Sri Lanka Trade Development Council (SLTDC) recently demanded immediate action from the Government to protect the small and medium enterprises (SMEs) with a plan to Cabinet paper, warning they would otherwise bring all engaged in the sector to the streets.
The SME sector has been the worst hit by back-to-back blows since 2019, and the economic crisis has worsened the situation with most unable to operate their businesses or on the verge of bankruptcy.
The key demands of SLTDC include; immediately extending a financial relief package to all SMEs for one year whilst suspending all recovery actions, supporting the SME sector to convert businesses to export-oriented companies by providing special credit facilities and tax reliefs.
“SMEs are the live wire of the economy that helps to at least maintain it in this dire straits. We have been the worst hit with triple blows since 2019.
Yet, the resilient SMEs managed to continue despite internal and external challenges. But now, we have exhausted ourselves with no support whatsoever from the authorities. Hence, we submitted key proposals to the Government to implement immediately to protect the SMEs,” SLTDC Chairman Roshana Waduge said.
“We strongly believe that the Central Bank could have been more proactive in supporting the SMEs, but they have kept mum about it. Therefore, we made the request to the Government and hope they will take immediate steps to put forward a Cabinet paper next Monday before the sector collapses,” he added.
Waduge said it was sad that the gravity of the economic crisis and the urgency to protect local businesses has still not been comprehended by the political authorities.
“In other countries, SMEs are the first to be taken care of as they represent the backbone of an economy. However, in Sri Lanka, the banking and financial sector is killing the already crippled SME sector with recoveries and legal actions, while imposing high-interest rates of 30% on facilities obtained previously at low rates of 7-8% in an unfair manner.
“If the SMEs collapse, it will have an unimaginable adverse impact on the economy which will lead to an increase in unemployment, poverty, and scarcity of products and services,” he explained.
SMEs make up the largest part of the economy, accounting for 80% of all businesses whilst contributing to over 52% of GDP, and 45% of the total workforce accounting for 4.6 million employees engaged in the sector.
SLTDC Vice Chairman Indika Sampath Merenchige said the ignorance by the Government will only lead to economic peril.
“If the political authorities ignore our appeal to protect the backbone of the economy, we assure to take the lead for the next phase of people’s struggle by taking the baton from them. It will mean 4.6 million people in SMEs taking to the streets,” he warned.
Merenchige said the urgency today is a complete system change and not just the 21st Amendment to the Constitution. “We need consistent national policies to ensure economic development, stability, and sustainability,” he pointed out.
SL Trade Development Council demands Govt. to protect SMEs
Post offices open three days a week only
From July 10, all post offices will remain open for three days a week only, revealed Post Master General Ranjith Ariyaratne.
Accordingly, all post offices will be open on Tuesdays, Wednesdays and Thursdays, he added.
MIAP
Sri Lanka confectionery industry suffers 30 percent production drop
Sri Lanka’s confectionary industry has suspended the production of several of its most popular product ranges to prioritise the manufacturing of ready-to-eat items, which is becoming a popular option as the country continues to face severe shortage in gas.
As the cost of raw materials and fuel are increasing at a pace that industries cannot cope with, the Lanka Confectionery Manufacturers Association (LCMA) said stakeholders have started discontinuing production of ranges, especially easy-to-make desserts, and are instead focusing on keeping the production of items such as biscuits.
The confectionery industry has seen a 30 percent drop in overall production so far, as a reflection of multiple challenges they endured amidst the worst economic crisis.
The us $ 150-200 million worth confectionery industry — had been struggling for the past two years to import raw materials, deal with the exchange rate, source fuel and find containers to ship their goods to export markets on time.
“We have seen a 30 percent drop in overall production so far. With no concrete plan from authorities on how to fix the problems, the stakeholders fear the production will further drop to 40 percent by next week,” Lanka Confectionery Manufacturers Association (LCMA) President S.D. Suriyakumar.
Due to the shortage of ingredients, such as wheat, and increase in production costs, many manufacturers have halted operations. This has led to a drop in supply of confectionery items in the market.
The industry increased the price of its products by 30 percent last month. According to Suriyakumara, the hike has had little impact on sales.
“People don’t have a choice. There is no gas to cook food. Bakeries and eateries have closed down. Biscuits are a new staple now.
The LCMA head shared that following the further increase in the price of flour, which went up by Rs. 40 per kilogram yesterday, the industry has no choice but to pass it on to the consumer.
About 50,000 direct employees and over 500,000 informal workers have been discontinued due to the inability to maintain costs.
Suriyakumar said the initiative to promote confectionery products in new markets will be done as a private-public partnership (PPP) with support from the Department of Commerce.
“At the early stage of our export industry, our products were only sold in areas where ethnic groups were residing, but now our products are in leading supermarkets such as Tesco, Lulu and Walmart, to name a few. We export to over 50 countries at present,” he added.
In November 2021, the industry said they were looking to move production to more favourable overseas locations.
However, the decision was later reversed after considering the impact it would have on the livelihood of over 550,000 people engaged in the industry and overall economy.
US delegation requests Intl. Banks to provide assistance to procure medicines, essentials
The visiting high-level US diplomatic delegation has assured that they will support by requesting international banks to assist Sri Lanka when issuing Letters of Credit (LC) to obtain medicines and essential commodities, President’s Media Unit said.
They have also assured that the US Government will continue its support to strengthen the relationship with the International Monetary Fund at all levels.
The meeting between the US State Department and the Treasury delegation and the President held at the President’s House, Colombo, ON Monday 27 .
President Rajapaksa commended the delegation for their visit to Sri Lanka and briefed them on the current economic and social crisis in the country.
The President also briefed about the progress of the ongoing discussions with the IMF. Kelly Keiderling, Deputy Assistant Secretary of State for South and Central Asia, US Department State and Robert Kaproth, Deputy Assistant Secretary of Treasury for Asia.
The US Department of Treasury further stated that US President Joe Biden is interested in the future of Sri Lanka.
The US President has also instructed to support Sri Lanka during this difficult time and to extend all possible assistance to the country.
The delegation expressed confidence with the implementation of the programme with the IMF will provide relief to the vulnerable families and will continue to have a positive impact on the future.
They said they were pleased with the similarities between the President’s understanding and their understanding of the economic reform process taking place in the country.
The delegation commended the President on the free space given to anyone to express their opinions without any hindrance to the right to freedom of expression.
The US government has provided US$100 million as medium term assistance to Commercial Bank to promote and uplift small scale businesses and also US$ 5.75 and another US$ 6 million financial assistance as humanitarian aid to Sri Lanka.
The delegation recalled the other US supported projects such as polyester fiber and yarn processing projects which are manufactured with disposable plastic materials.
Matthew Mohlenkamp, Treasury Office Director for South and Southeast Asia, John McDaniel, State SCA/NSB Economic Unit Chief, Julie Chung, US Ambassador to Sri Lanka, US Embassy, Geoff Chanin, Acting Political Chief, US Embassy, were present at this discussion.
Private bus operations drop to 10 per cent. Recommendations on fare revisions today
Islandwide private bus operations will drop to 10 per cent today (29) due to the ongoing fuel crisis, said President of the Ceylon Private Bus Owners Association Gemunu Wijeratne.
Despite recommendations from certain bus associations to increase the bus fares by 30 per cent and the minimum fare up to Rs. 40, there had been disagreements between the unions pertaining to such revisions. The discussions with Transport Minister Bandula Gunawardena in this regard yesterday were halted in the middle.
However, recommendations pertaining to bus fare revisions will be handed over today, said the National Transport Commission.
MIAP
US President announces $20 million aid to strengthen SL food security
At the G7 Summit today (June 28), President of the United States Joe Biden announced $20 million in additional assistance to strengthen food security in Sri Lanka.
Building on other recent funding announcements from the United States, this newly posted assistance will target Sri Lankans most in need during the current economic crisis.
The funding aims to support a school nutrition program that will feed over 800,000 Sri Lankan children and provide food vouchers for over 27,000 pregnant and lactating women over the next 15 months, according to the U.S. Embassy in Colombo.
The effort also plans to support approximately 30,000 farmers through the contribution of agricultural assistance and cash in order to increase food production in vulnerable Sri Lankan communities.
“President Biden’s announcement of $20 million in additional assistance to Sri Lanka demonstrates the United States’ ongoing commitment to food security, public health, and the economic well-being of all Sri Lankan people,” said U.S. Ambassador to Sri Lanka Julie Chung. “
The United States will continue to support Sri Lankan efforts to promote economic stability and will ensure this assistance reaches the communities – and children – who need it most.”
The $20 million of humanitarian assistance announced today builds on nearly $12 million in recent U.S. commitments in economic and humanitarian assistance, totaling $32 million in U.S. support for the Sri Lankan people since June 16, 2022.
Funding is provided through the U.S. Agency for International Development (USAID) and will be awarded to partners that adhere to globally recognized monitoring and evaluation standards. This ensures that funding is accounted for and assistance reaches those identified as most vulnerable to food insecurity, the U.S. Embassy in Colombo noted.
The United States has agreed to provide technical assistance for fiscal management in Sri Lanka, Prime Minister’s Media Division said.
Kelly Keiderling, Deputy Secretary of State for South and Central Asia at the U.S. State Department, who arrived in Sri Lanka yesterday, held a discussion with Prime Minister Ranil Wickremesinghe today (27).
The US Diplomatic Group also stated its support for the ongoing talks between the Government of Sri Lanka and the International Monetary Fund.
Robert Kaproth, Deputy Assistant Secretary of the Treasury for Asia in the United States and Julie Chung, US Ambassador to Sri Lanka, also participated in the discussion held at the Prime Minister’s Office.
Following the meeting with Prime Minister Wickremesinghe, the U.S. Ambassador on Twitter said the U.S. continues to support Sri Lankan efforts to promote economic growth.
“We met PM Ranil Wickremesinghe to explore ways to strengthen the bilateral relationship, and to discuss US efforts to provide millions of dollars in humanitarian assistance directly to low-income communities in Sri Lanka,” Chung said.
In addition, Secretary to the Prime Minister Saman Ekanayake and Senior Adviser to the Prime Minister Dr. R.H. Samaratunga were also present at the meeting.
“In search of Young Climate Changemakers in Sri Lanka” Applications are now open!
Climate Action Champions Network to select 100 individuals to lead Climate Action Policies and Initiatives in South Asia
COLOMBO-June 28, 2022: The United States Department of State, in collaboration with the Sri Lanka Development Journalist Forum (SDJF), Genlab, Observer Research Foundation (ORF), and Pavilion Group, launched the Climate Action Champions Network (CACN), that will support 100 individuals from Sri Lanka, India, Bangladesh, Nepal, and Bhutan as they lead climate action policies and initiatives in their respective countries, as well as the wider South Asia and Indo-Pacific Region.
Climate Change is a critical transnational threat, with South Asia being one of the most affected regions. The Climate Action Champions Network (CACN) is a timely initiative that will raise awareness and encourage action. This program will appoint 100 young individuals over a 12 -month period to work together to drive policy and programs that combat climate change in South Asia and the Indo-Pacific Region.
Commenting on the initiative, U.S. Ambassador to Sri Lanka, Julie Chung stated: “Climate-related challenges in South Asia cut across borders. The region’s ability to address the multifaceted challenges posed by climate change will have an enormous impact on youth populations. This is a fantastic opportunity for young changemakers to influence policy and an initiative that will encourage young people to take an active role in promoting environmental conservation.”
The cohort will work on specific thematic areas such as the green technology industry, climate change impact on biodiversity, climate-smart agriculture, climate finance, and climate change policymaking. They will also delve into the broader climate change and development agenda, examining how climate change intersects with developmental indicators such as gender, global health, and urbanization.
“We are looking forward to receiving applications from promising individuals, and it is an enormous honor to be part of the steering committee for such a worthy cause. Climate change, a hot-button issue and a critical phenomenon that could surely determine the fate of humanity and its future course, has been a prime concern, by and large, for all the nations irrespective of their political or economic agenda. As youth are crucial strata in virtually all societies, they are the most vibrant actors of the change and progress; when it comes to mitigating and addressing Climate Change, the same principle is valid. If you believe you are the change, this is the call for you. We will be at every guiding footstep of our young changemakers and will provide the necessary support,” added Dr. Darshana Ashoka Kumara the Chairman of the Sri Lanka Development Journalist Forum, while taking the lead in delivering the message to the youth in Sri Lanka.
Applications are now being accepted and can be found on the SDJF’s official website. Enthusiastic individuals between the ages of 18 and 35 who are passionate about climate action and advocacy, are analytical, and demonstrate leadership qualities and innovation are strongly encouraged to apply for the program by July 15, 2022. For further information contact [email protected].
Politics As Usual Approach Is Not Viable
The economic crisis in the country continues to worsen with queues lengthening, prices rising and essentials unavailable. The general expectation after the rise of the Aragalaya protest movement was that a small and interim all-party government would be formed to specifically deal with the economic crisis, stabilize the economy and to conduct fresh elections. But this has not materialized. Governance is the essential element of the state, and good governance is not merely the exercise of power but the safeguard of the rights of each individual and the welfare of all.
Unfortunately, the appearance at present is of a government that seeks to consolidate itself in power and continue into the longer term. President Gotabaya Rajapaksa has made an announcement that he seeks to remain in office for the remainder of his term despite the serious mistakes he has made in economic and political decision making for which he has apologized. The number of ministers is much larger than expected with some 40 cabinet and state ministers and a further 25 district ministers reportedly to be appointed.
Mismanagement of this nature in the private sector would potentially lead to immediate dismissal. In our public service it could lead to suspension or transfer to a difficult location. The National Peace Council expresses its strong concerns that more than six weeks after the appointment of the new prime minister and ministers there is no economic recovery plan on the table. There have been visits by an IMF delegation, US Treasury officials and Indian ministry officials with whose goodwill the economic recovery plan that caters to the national interest could be adopted.
The National Peace Council calls on the president to deliver on his pledge to establish an interim all-party consensual government forthwith with a limited time frame. The parliament should not become a battle ground to articulate opposing viewpoints but one that displays cooperation at this time. We call for the passage of the 21st Amendment as an interim measure and the abolition of the presidential system subsequently as the misuse of presidential powers has contributed in substantial measure to the present catastrophe. This is the message emanating from several Aragalaya protest sites, which have galvanized all communities irrespective of their religious and ethnic backgrounds.
The National Peace Council Sri Lanka
Ambassador of SL to Lebanon pays courtesy call on Head of Mission and Force Commander of UNIFIL Maj. Gen. Lâzaro
Ambassador of Sri Lanka to Lebanon pays courtesy call on Head of Mission and Force Commander of UNIFIL Major General Aroldo Lâzaro and visits Sri Lankan Peace Keeping troops
Ambassador of Sri Lanka to Lebanon Shani Calyaneratne Karunaratne, paid a courtesy call on Head of Mission and Force Commander Major General Aroldo Lâzaro at the Head Quarters of the UNIFIL (United Nations Interim Force in Lebanon) at Blue Line, in Naquara, on 21 June 2022.
They discussed matters of mutual interest which included increasing Sri Lankan troops at UNIFIL. The Force Commander stated that the Sri Lankan troops are respected for their outstanding professionalism and thanked them for their contribution to the UNIFIL for the past 11 years. Contingent Commander of 13th Force Protection Company (UNIFIL) Sri Lanka Lieutenant Colonel Nayan Samarakoon, and Attaché (Administration) of the Embassy Priyantha Dasanayaka also participated in the meeting.
The Ambassador was accorded a Guard of Honor and an inspection of troops and armored vehicles. A k9 demonstration and a concert by the Sri Lanka Army Calypso band was also held.
Embassy of Sri Lanka
Beirut
28 June, 2022
Foreign Minister Peiris holds bilateral talks with Commonwealth Foreign Ministers on the side-lines of CHOGM
In a series of bilateral meetings held on the sidelines of the Commonwealth Heads of Government Meeting 2022 (CHOGM) in Kigali, Rwanda from 24–25 June 2022, Minister of Foreign Affairs Prof. G.L. Peiris met with the Foreign Ministers and Heads of delegations of Commonwealth Member States to discuss a range of issues of political and economic significance, overcoming the current economic crisis faced by Sri Lanka, and enhancing cooperation through multilateral fora including through the Commonwealth.
In a meeting with Minister of Foreign Affairs, International Business and Diaspora Relations of Dominica Kenneth Melchoir Darroux , Foreign Minister Peiris discussed developments related to tourism which is critical to the economies of both nations. The two Ministers shared experiences of increasing resilience in the tourism industry to cope with COVID-19 pandemic and ongoing global crises.
Minister Peiris met with Minister for Foreign Affairs and Tourism of the Republic of Seychelles Sylvestre Radegonde and discussed the status of several promising ventures such as medical tourism and enhancing cooperation in ocean related issues. Minister Peiris stated that Sri Lanka was focused on Seychelles as a gateway to enhancing trade and bilateral relations with the African Continent. Minister Radegonde thanked Sri Lanka for the donation of 2 patrol boats for maritime surveillance, following a request made by Seychelles.
In a bilateral meeting with Minister for Foreign Affairs of the People’s Republic of Bangladesh A.K. Abdul Momen, the Bangladesh side briefed Minister Peiris on steps being taken by Bangladesh to assist Sri Lanka during the current economic crisis including through provision of food, medical assistance and the extension of a credit line. Minister Peiris thanked Minister Momen for the assistance at this critical stage. The two Ministers also discussed avenues of increasing bilateral trade. Minister Momen noted Sri Lanka’s successful hosting of the Fifth Summit of Heads of State/ Government of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) in March 2022 in virtual format.
Minister Peiris briefed Cabinet Secretary for Foreign Affairs of the Republic of Kenya Raychelle Omamo on the several steps taken by Sri Lanka to address reconciliation related issues and added that Sri Lanka was keen to learn from African countries regarding their reconciliation experiences. Cabinet Secretary Omano shared the experiences related to reconciliation efforts in Kenya and added that each country has to devise a template that promotes healing. Noting that several Sri Lankan companies had invested in the garment sector in Kenya, Cabinet Secretary Omano encouraged Sri Lanka to explore joint ventures with Kenyan companies in other industries.
In a bilateral meeting with Minister for Foreign Affairs, Regional Integration and International Trade of the Republic of Mauritius Alan Ganoo, Minister Peiris encouraged greater cooperation between the two countries in ocean affairs issues, including in regional and international fora. The two Ministers also discussed the effect of climate change on island nations, cooperation in tourism industry and addressing the impact of soaring food prices in the world market.
Minister Peiris’s bilateral meeting with Minister for Foreign Affairs of the Republic of Cyprus Ioannis Kasoulides, focused on employment opportunities and consular assistance to the Sri Lankan workers in Cyprus. Minister Peiris appreciated the employment opportunities provided by Cyprus and added that Sri Lanka was keen to increase foreign employment opportunities. Minister Kasoulides briefed Minister Peiris on steps that the Cyprus government was taking to enhance welfare measures to Sri Lankan workers. Sharing their experiences in dealing with the IMF to address economic challenges, Minister Kasoulides said that Cyprus experienced an economic turnaround after implementing critical economic reforms on an expeditious basis.
Several issues related to enhancing multi-faceted bilateral relations was discussed in a bilateral meeting between Minister Peiris and Minister for Foreign Affairs of Malaysia Saifuddin Abdullah. Minister Abdullah stated that many Sri Lankan origin Malaysians have contributed to the growth of Malaysia. Noting that the Malaysian government was focused on developing a digital economy, Minister Abdullah suggested that Sri Lanka explore the job market for IT workers in Malaysia. The also Ministers discussed close cooperation between the two countries on ocean related issues at multilateral fora.
Minister Peiris concluded his visit to Rwanda with a meeting between Minister for Foreign Affairs and International Cooperation of the Republic of Rwanda Vincent Biruta. Minister Peiris congratulated Minister Biruta for the Rwandan government’s successful hosting of the CHOGM meeting adding that the meeting strengthened the Commonwealth at a critical time. Noting that Rwanda has made impressive progress in recent times, particularly on economic and reconciliation spheres, Minister Peiris encouraged closer relations between the two countries. Minister Biruta thanked Minister Peiris and observed that African countries are gaining confidence to forge their own paths towards economic and political resilience. Minister Biruta also expressed a desire to explore potential areas to strengthen political and trade relations with Sri Lanka.
Previously, Minister Peiris held bilateral discussions with India’s External Affairs Minister Dr. S. Jaishankar and Minister for Foreign Affairs and Local Government of New Zealand Nanaia Mahuta, on the sidelines of CHOGM.
Ministry of Foreign Affairs
Colombo
28 June, 2022