Retired Major General M.R.W. de Zoysa has been appointed as the new Chairman of the Ceylon Petroleum Storage Terminals Company. It is reported that the new chairman is scheduled to assume duties today.
Zoysa previously served as Chairman of the Sri Lanka Land Reclamation and Development Corporation.
He had also served as the Chairman of the Ceylon Petroleum Storage Terminals Company during the Mahinda Rajapaksa regime.
High energy-consuming industries yesterday called on the government to get its act together and give some level of confidence with regard to its ability to come up with sustainable solutions to resolve the ongoing hours-long power cuts, a result of the prevailing foreign exchange crisis.
Manufacturing industry representatives expressed disappointment in the course of action taken by the authorities thus far in solving the massive energy problem the country is faced with. According to them, the country was not caught off guard by an escalating power crisis, but it is a result of clear mismanagement of the economy.
“Today we are dealing with a toxic combination, a power, and a fuel crisis. This puts all the industries in a very tight corner because you can be ready for some, but for others you cannot,” said Hemas Holdings Executive Director/Hemas FMCG Managing Director Sriyan de Silva Wijeyeratne.
Addressing a webinar on ‘Navigating through the Power Crisis’ organized by CT CLSA, he pointed out that industries have been taking measures to stay afloat, but the real challenge is sustaining so that businesses continue to stay afloat.
For export-oriented companies, such as Hela Apparel Holdings, managing the power crisis internally is only one of the many daily challenges that need attention.
Convincing buyers deliveries will be made on time as scheduled is a risk they need to take on a regular basis. “There is the narrative that we need to maintain with our customers who have a certain concern around our ability to deliver with these shortages.
And that is a difficult narrative to manage,” said Hela Apparel Holdings Group Chief Executive Officer Dilanka Jinadasa.
According to Walltile PLC and Lanka Tiles PLC Managing Director Mahendra Jayasekera, there is an absolute lack of confidence in the policy-making process as well as the signals that are being given.
Businesses are increasingly finding that there are no sustainable solutions coming from the policy-making bodies.
“There is no way we can run our operations without energy and running operations on generators is not a solution. It does not work that way,” said Jayasekera.
Joint export associations and chambers yesterday urged the Government to take immediate steps to find solutions to the ongoing energy crisis, as the prevailing situation has begun to impact productivity and that could impact revenue earned by the industry for the country.
The associations pointed out that the shortage of power and diesel for logistics is already impacting production and supply chains, and warned the situation could significantly impact Sri Lanka’s reputation and credibility as a destination that could deliver.
the apparel sector is aiming for $ 6 billion in exports in 2022, but the prevailing crisis has put a damper on this figure, with costs mounting due to impacts stemming from the crisis.
Losing credibility is very dangerous, the participants echoed, as it would impact the future and remarked that it would be very difficult to attract buyers back to Sri Lanka. Over the past two years, industrial exports sustained the foreign income of this country and these industries need to be protected, the associations said.
The Ceylon Tea Traders Association lamented the lack of diesel had impaired transporting teas to the Colombo Tea Auction last week, which had then been shifted to this week.
Its Chairman Manoj Udugampola, added value addition in terms of packaging and marketing was essential for Ceylon Tea to maintain its edge in the world market, and Sri Lanka’s position was now under risk due to delays and shortfalls stemming from the crisis. “.
It is very inefficient for the industry to work with generators, as its costs about Rs. 30 per kilowatt over grid power they revealed. What is happening today is yet to yield its full impact on the export sector, and the country needs to act now and avoid a disastrous situation, the exporters associations said.
They urged the Government to draw up a plan with viable sustainable solutions that can offer medium stability to all sectors.
The Leader of the United National Party (UNP) Ranil Wickremesinghe today (08) requested the ruling party to submit to the party leaders the report released by the International Monetary Fund (IMF) on Sri Lanka under Article IV as soon as possible.
Wickremasinghe pointed out that if the report is received soon, party leaders will have the opportunity to prepare for the forthcoming All Party Conference to be convened by President Gotabhaya Rajapaksa.
Accordingly, he requested that the Central Bank of Sri Lanka submit letters to the IMF within this week requesting that the report, as well as the relevant statistics and the preliminary report, be revised.
Replying to this the Leader of the House Dinesh Gunawardena stated that the government has nothing to hide in it and will take steps to hand it over to the party leaders as soon as possible.
Minister of State Dayasiri Jayasekara says that President Gotabhaya Rajapaksa has agreed to convene an all-party conference to find a solution to the economic crisis facing the country.
Dayasiri Jayasekara stated that this agreement was reached during a special discussion between the Sri Lanka Freedom Party and the President yesterday (08) afternoon.
Accordingly, the relevant All Party Conference will be held later this month, he said.
Lanka News Web reported yesterday (08) that a national government will be formed in April by a coalition of the SLPP, the United National Party, and other parties.
A successful All-Party Conference can generally be seen as the first step in a national government. It means governing by national consensus, whatever the form of government.
It is no secret that Sri Lanka is currently facing an unprecedented economic crisis. Needless to say, it would be a great tragedy for the country to be able to come to a political agreement and face such a situation, regardless of party affiliation.
The Excise Department says that the news published on some media and social media that the production of liquor will be stopped after March 22, 2022 due to the shortage of ethanol is untrue.
There are 23 licensed distilleries operating in the country producing arrack and other locally and it is still possible to obtain the required raw material including ethanol from the local market, the department said in a statement.
The announcement is below.
Lanka News Web reported yesterday (08) that a national government will be formed by the Sri Lanka Podujana Peramuna and the United National Party before the upcoming Sinhala-Tamil New Year with the participation of 15 members of the Samagi Jana Balawegaya.
Responding to this, the Leader of the Samagi Jana Balawewa, Leader of the Opposition Sajith Premadasa stated that no one in his party would join such a national government.
“No one in the Samagi Jana Balawega wants to commit a ‘political suicide’. Therefore, it can be guaranteed that none of us will join such a national government. And the fact that India is behind this must have been a fabrication. India is a country that deals with me regularly. I can assure you that they will not do this. ” Sajith Premadasa said to LNW.
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It is reported that Padma Devi Peiris, the mother of the First Lady of Sri Lanka – Ioma Rajapaksa has passed away.
She was 89 years old at the time of her death in California, USA.
In an effort to mend fences with the Indian Government and seek financial assistance including US$1 billion loan facility Finance Minister Basil Rajapaksa will be visiting India during the second half of this month after postponing it in two previous occasions, official sources confirmed.
New Delhi Authorities has not delayed the necessary arrangements for the SLFinance minister’s visit until the fulfillment of some of their conditions grant financial assistance to the island nation.
Samagi Jana Balawegaya (SJB) MP Dr. Harsha de Silva noted that the Central Bank has taken this decision hurriedly to float the rupee two days after Governor Ajith Nivard Cabraal’s claim of the current level of rupee to the dollar is appropriate and there will not be a rupee float.
Mr Cabraal stated on Friday 05 that the Monetary Board has not taken a decision on the flexible exchange rate and therefore it will remain as it is he said
Dr. Harsha de Silva claimed that the country’s rupee had been devalued hurriedly, heeding to a demand made by Indian External Affairs Minister Dr. S. Jaishankar during his telephone conversation with the Sri Lankan Finance Minister.
This was a fulfillment of one of the conditions put forward by India to provide $ 1billion loan facility and facilitate Minister Basil Rajapaksa’s official tour of India this month, he added.
According to de Silva, Sri Lanka’s debt service needed for the next six weeks is $ 1.44 billion, which includes payments in relation to development, sovereign bonds, and other obligations which include $ 200 million development bonds and several other obligations.
The CBSL had reportedly sold $ 372.35 million in November to defend the rupee – a record high in recent years – reflecting the seriousness of the foreign currency liquidity crisis Sri Lanka is currently in.
According to the latest data, the CBSL had sold $ 372.35 million in foreign exchange and bought $ 61.71 million from the domestic foreign exchange market in November, staying as a net seller of foreign exchange for the second consecutive month.
In October, after months of being a net absorber or buyer of foreign currency from the market, the CBSL had turned to a net seller of $ 72.32 million worth of foreign currency.
Sri Lanka’s rupee had been under heavy pressure since this June, when the expected inflows to the reserves started to minimise.
The Indian External Affairs Minister Dr. S. Jaishankar has assured that India will continue to support Sri Lanka in all possible ways.
In a tweet, the Indian High Commission in Sri Lanka said the Indian External Affairs Minister had a productive and cordial telephone conversation with Sri Lanka’s Finance Minister Basil Rajapaksa on Monday (7) evening.
It added that both sides agreed to a mutually convenient date in the second half of March for Basil Rajapaksa’s visit to India.
The Indian conditions for the granting of this loan package included several maritime security agreements that will strengthen India’s strategic interests, particularly around the eastern Trincomalee harbour.
These include Donier surveillance aircraft for the Sri Lanka Air Force, a ship repair dock for the Sri Lanka Navy in Trincomalee and posting of a Sri Lankan Navy officer at the Intelligence Fusion Centre, a Bahrain-based intelligence sharing office which is a US Navy initiative to combat international terrorism, the narcotics trade and ensure safe maritime passage for commercial vessels in the region.
One of the key pressure-points from the Indian Government is to start a renewable energy (solar power) project in and around Sampur near Trincomalee..
The reopening of the Palay airport for commercial operations and several cultural projects in the Jaffna peninsula are also among items on the list already made public.
The Indian Government also wants to enter into the renewable energy field in the Delft islet after it scuttled a Chinese company securing the project following an Asian Development Bank ((ADB) tender procedure.
Sri Lanka has recorded over 200,000 tourists so far this year led by Russians, surpassing the 194,495 received for the entirety of 2021.
It is also the highest number of tourists received post-pandemic. As per the provincial data released by the Tourism Ministry 200,798 travellers have arrived from 1 January to 6 March.
Tourism Minister Prasanna Ranatunga said despite the challenges emanating from the global COVID pandemic as well as the unrest in Eastern Europe, it was a significant achievement by Sri Lanka to be recognised as a safe and secure destination.
As per the provisional data of Sri Lanka Tourism Development Authority (SLTDA) 21,964 tourists have arrived in the country during the first six days of March. Sri Lanka received 82,327 tourists in January and 96,507 in February — the highest number of tourists visiting the country in a month after two years.
Despite the conflict, Russia continues to dominate the top source market to Sri Lanka with 31,912. However, India was the top tourist traffic to Sri Lanka for the month of March, which accounts to 4,395, followed by Russia with 3,094, Germany 2,240 and 969 from France.
“Sri Lanka is currently focusing on new tourism markets,” the Minister said, adding that attention has been drawn to a number of countries which had not previously promoted Sri Lanka as a tourist destination and special promotion programs have been planned on targeting those countries.
Ranatunga also said that the Finance Minister had recently agreed to provide $ 56 billion for the Global Communication Campaign (GCC) in the second quarter of this year.
Sri Lanka plans to allocate $56 million for tourism promotion activities in its main tourist source countries during the second quarter of 2022.
The main targets for tourism promotion include Britain, India, Russia and China, said Minister of Tourism Prasanna Ranatunga said..
He said that they have an ambitious plan to attract tourists this year and Minister of Finance Basil Rajapaksa agreed to provide 56 million dollars for the promotion.
“We will also carry out promotional activities in other countries that are potential sources of tourism. We are trying to get tourists as groups,” Ranatunga said.
The Sri Lankan government approved in 2021 a five-year global action plan to promote tourism.
The Ministry of Tourism is currently in the process of selecting an event management firm, an advertising firm and a digital partner to implement the project.So far in 2022, over 150,000 tourists have visited Sri Lanka.
In December 2021, business consultancy McKinsey & Company told an economic forum in Colombo, organized by the Ceylon Chamber of Commerce, that Sri Lanka may take up to five years to reach the tourist figure recorded in 2018, prior to Easter Sunday attacks in 2019 and the outbreak of COVID-19 in the country in 2020.
The government has decided to withdraw the special Goods and Services Tax (GST) aimed at simplifying the existing tax structure and consolidating several taxes as a single tax following the Supreme Court’s decision of requiring a two-third majority and referendum to enact it as a law, Finance Ministry sources said.
The Court observed that several clauses of the bill are inconsistent with some of the articles of the country’s constitution.
The Special GST consolidates several taxes on liquor, cigarettes, telecommunications, betting and gaming and vehicles. The Attorney General had cleared the draft law.
This legal issue has prompted the Finance Ministry find an option to re-introduce the SGST and one of the options is to withdraw the tax and allow the previous taxation system with some revisions to relevant taxes to continue,a senior official said
Finance ministry has convened several special meetings to arrive at a decision and it will also seek the legal opinion of the Attorney General on possible options to re-introduce SGST and devising a new bill with necessary amendments.
The Ministry has made all arrangements to set up a separate revenue collection unit at the treasury and install the computer system to collect SGST on line he said adding that it has been planned to collect additional revenue of Rs 50 billion from the new tax by law and changes to the Value Added Tax.
The Special GST was proposed to introduce one tax for various taxes imposed under multiple laws and institutions on alcohol, cigarettes, telecommunication, betting and gaming and vehicles, which accounts for 50 per cent of the income from taxes and levies, he added.
The proposed Bill accords power to the Finance Minister to make an Order on the rate of the special GST which comes into immediate effect once an Order is published in the Gazette.
The establishment of a separate unit in the Treasury under a Deputy Secretary General for the collection and accounting of the Special GST is against all administrative and financial regulations of the country as it will take over the functions of the revenue collection institutions of the state inland revenue department officials said
