Sri Lanka’s official unemployment rate increased in the second quarter ended in June as the unprecedented economic crisis pushed many out of work amid sky-high interest rates, import restrictions, soaring inflation and other demand destruction policies implemented to arrest the situation.

The data released last week showed that the official unemployment rate had risen to 4.6 percent by the end of the second quarter from the 4.3 percent recorded in the first quarter.

However, this may not paint the full grim outlook of the local unemployment condition as the official jobless rate does not capture those who are unemployed but had given up looking for work during the survey period.

Many people who made a living out of imports, construction, consumer discretionary and durables items and the likes remain on the sidelines since the collapse of the economy.

Businesses were forced to either retrench staff to stay afloat to confront squeeze in demand coming from galloping inflation or completely close shop leaving all their staff redundant.

There were evidence of widespread layoffs, pull-backs in recruitment and hiring freezes across all sectors. The Sri Lankan economy is now officially in a recession as the country’s GDP recorded back-to-back contractions in the first and the second quarters

The GDP shrank 8.4 percent in the second quarter, sharpest for any quarter after a mild 1.6 percent decline in the first quarter, making the island nation’s economy 4.8 percent smaller than it was a year ago.

Meanwhile, what makes the matter even worrying is the shrinking labour force participation in Sri Lanka, which now appears to have become an entrenched problem.

For instance, the so-called labour force participation rate, which measures those who are both employed and unemployed but looking for work as a percentage of the working age population, fell to 50.1 percent in the second quarter from 51.2 percent in the first quarter.

While Sri Lanka’s working age population may be falling due to record number of people going overseas, it appears that employed people have also come down quite sharply, weighing on the ratio.

Meanwhile, others who are unemployed may have also given up looking for work here in Sri Lanka as employment opportunities have dried up.

Sri Lanka risks losing its key talent and people in their prime working age due to the ongoing economic crisis, potentially prolonging the misery the people are going through in their daily lives as a weaker workforce could only do very little to help the economy’s sustained recovery.

1. Opposition Leader and SJB Leader Sajith Premadasa alleges there are drug addicts in Parliament: wants all MPs to be screened before the ordinary people are tested.
   
2. Public Utilities Commission Chairman Janaka Ratnayake says the Ministry of Energy should reduce the price of diesel as well: Petroleum Corporation Trade Union Leader Ananda Palitha claims the reduction of the petrol price was not carried out according to the price formula.
   
3. CB Governor Dr Nandalal Weerasinghe says exporters should bring proceeds within a month: also says to reduce credit period offered to foreign buyers: admits there’s no “bridging finance”: laments foreign suppliers are refusing to accept Letters of Credit of local banks.
   
4. Food inflation (YoY) in September rises to an astronomical 94.9%, up from 93.7% in August 2022: transport inflation rises to a staggering 150.4%.
   
5. Colombo Stock Exchange closes early due to S&P SL20 index dropping over 5%: ASPI drops by 281 points (2.83%) to end the day at 9,650: Turnover Rs. 2.5 bn.
   
6. Banks curtail private credit for the 4th consecutive month in August: Banks’ asset quality deteriorates: large numbers of borrowers default due to soaring interest rates and spiralling inflation: over 8% GDP “contraction” expected this year, from 4% GDP “growth” expected before debt default was announced.
   
7. SJB MP Harsha de Silva says law must be applied equally to all those responsible for economic crimes: analysts say when Silva was Economic Policies State Minister, Sri Lanka raised its forex borrowings by 65% from 2015 to 2019, and ISB borrowings tripled from USD 5.0bn to USD 15.0bn: current debt crisis mainly attributed to this forex borrowing spree.
   
8. SLFP communique states the recently set up National Council is a devious attempt by Government to obtain approval indirectly for its decisions from other parties in Parliament: also states it’s an attempt to mislead the international community that there is political stability in the country.
   
9. Catholic Bishops’ Conference President and Bishop of Kurunegala His Lordship Harold Perera tells President Ranil Wickremesinghe that victims of the 2019 Easter Sunday carnage had been denied justice: urges the government to
   bring perpetrators of the massacre to justice.
   
10. Past President, Small Hydro Power Developers Association Prabath Wickremasinghe says Sri Lanka’s renewable energy industry is experiencing a brain drain of engineers: laments close to 50 engineers have migrated and the industry is unable to replace them.

1,000 Caregiver jobs in Japan for Sri Lankan workers next year

‘150 Caregiver workers to be recruited this year’

Japan’s GTN – Global Trust Network has assured the Minister of Labour and Foreign Employment Manusha Nanayakkara that it will facilitate measures to provide more than 1000  Caregiver jobs in Japan for Sri Lankan workers.

Minister of Labour and Foreign Employment Manusha Nanayakkara who is visiting Japan in a bid to secure more job opportunities for Sri Lankan youth in Japan held discussions with GTN – Global Trust Network Chairman Hiroyuki Goto, Manager of Skilled Labour Division Yuka Kuwahara, and top officials of the frontline management in the organisation. During discussions the Japanese officials agreed to provide jobs for 150 Caregiver workers this year itself and recruit another 1000 workers next year.

GTN – Global Trust Network, one of the leading foreign employment agencies in Japan, has provided job opportunities in Japan to more than 350,000 foreign workers.

Minister Manusha Nanayakkara who commented in this regard said that it is a great achievement to be able to garner job opportunities for the workers of Sri Lanka in association with such a reputed organisation.

The minister further stated that Sri Lanka plans to work closely with the organisation in the future with the intention of increasing the annual job opportunities offered to Sri Lankan’s in Japan.

The meeting was organized by Professor Ashu Marasinghe.  Mr. Senarath Yapa, Deputy General Manager (Training) of the Sri Lanka Bureau of Foreign Employment and Mr. Shan Yahampath, International Relations Advisor were also present on this occasion.

The Embassy of Sri Lanka to the United States, working in collaboration with renowned American humanitarian donor organizations, has achieved a significant milestone in provision of free medicines and medical supplies to Sri Lanka from July to October 2022. Three consignments have already been sent to the Ministry of Health and a fourth is expected to land on 02 October. The total value of the 4 consignments is over US Dollars 12,645,150. At today’s exchange rate, this is worth approximately SL Rupees 4.6 billion (exactly LKR 4,588,925,697).

Sri Lanka’s Ambassador to the United States, Mahinda Samarasinghe, who reached out to US donor organizations earlier this year, has conveyed his heartfelt gratitude to the three donors, Heart to Heart International, Hope Worldwide and Americares for their generosity which has proved timely and potentially lifesaving for hundreds of thousands of Sri Lankans in dire need. The Ambassador intends to continue working with humanitarian organizations and agencies to provide assistance to vulnerable segments of the population.

Commencing in July 2022, Heart to Heart International has sent two consignments worth USD 9.131 million. The consignment from Americares arrived in Colombo earlier in September and is valued at over USD 773,000. The last consignment from Hope Worldwide is worth over USD 2.74 million and is due in Sri Lanka in the first week of October. The Ministry of Health which takes charge of the shipments will provide detailed distribution reports to the donors specifying the recipients and local destinations for these medicines and medical supplies.

Embassy of Sri Lanka

Washington DC

3 October, 2022

Members have been nominated for the Legislative Standing Committee, announced Speaker Mahinda Yapa Abeywardena.

Accodingly, the following members have been nominated with the Deputy Speaker as the Chair and the Deputy Chairperson of Committees by the Committee of Selection to serve in the Legislative Standing Committee.

Mohan Priyadarshana De Silva,
Sisira Jayakody,
Prof. G. L. Peiris,
Dr. Rajitha Senarathne,
Dayasiri Jayasekara,
Dr. Nalaka Godahewa,
Faizal Cassim,
Ajith Mannapperuma,
Jayantha Samaraweera,
Govindan Karunakaram,
Imran Maharoof,
Kokila Gunawardene,
Premnath C. Dolawatte,
Madhura Withanage,
Jayantha Weerasinghe

Odds could be great in numbers against Sri Lanka at the United Nations Human Rights Council (UNHRC) in Geneva, Switzerland, as about 30 member states have agreed to back the resolution tabled against the island nation, reports said.

Despite the Sri Lankan delegation at the UNHRC being confident about defeating the resolution at the October vote, which is scheduled to be held on October 06 or 07, as they had done many times before on occasions in which resolutions of this nature were adapted by the world powers, the charges against the country lodged by seven member states including the United States and the United Kingdom this time are staggeringly backed by about 23 other member states, namely Albania, Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Estonia, Finland, France, Germany, Iceland, Ireland, Latvia, Liechtenstein, Lithuania, Luxembourg, Marshall Islands, Netherlands, New Zealand, Slovakia, Sweden, Northern Ireland and Turkey.

Russia and Bangladesh, who had sided with Sri Lanka in previous years against such hardships before the international community, will not have the right to vote this time, and India and Nepal will probably abstain from voting, analysts pointed out.

The Middle Eastern Countries and several member states of the African Region which used to side with Sri Lanka have not yet declared any support.

MIAP

High Commissioner of India to Sri Lanka, HE Shri Gopal Baglay paid a visit to Batticaloa and Trincomalee on 1-2 October, 2022. In these two (2) days, High Commissioner had multiple engagements which underscore the multidimensional nature of India-Sri Lanka partnership and India’s deep and enduring cultural and socio-economic ties with Eastern Sri Lanka.

2.     High Commissioner began his visit to Batticaloa by attending the convocation ceremony of the Eastern University on 1 October, 2022 as the Chief Guest. On this occasion, he announced a special financial assistance scheme to support the studies of 100 University students from economically backward families. High Commissioner called for enhanced cooperation in higher education and skills training through various initiatives by the Government of India, including ITEC, scholarships, and cooperation with Indian institutions of excellence.

3.     High Commissioner reviewed the progress of the construction of Surgical Unit in Batticaloa Teaching Hospital, being undertaken under grant assistance from India. The project, which is nearing completion, is in line with the people-centric nature of development cooperation partnership between India and Sri Lanka, under which projects have been carried out in diverse areas including health, education and livelihood development in all the 25 Districts of Sri Lanka.

4.     High Commissioner visited the Ramakrishna Mission in Batticaloa and appreciated the contribution and services of the Mission in the fields of health, education and spirituality, to help the people of Sri Lanka. He assured them of all possible support from the High Commission of India in this endevour.

5.     High Commissioner also visited Meththai Grand Jumma Mosque and Badriyyah Jum’ah Masjith at Kattankudy in Batticaloa and offered prayers for peace, progress and prosperity of the people of India and Sri Lanka.  He unveiled plaques of Indo-Lanka Sufi Friendship Association and a media unit in Badriyyah Jum’ah Masjith. He interacted with representatives of All Ceylon Jamiyyathul Ulama (ACJU), religious and community leaders at Meththai Grand Jumma Mosque.

6.     On the eve of the birthday of Father of the Nation, Mahatma Gandhi, falling on October 02, High Commissioner offered floral tributes to the statue of Gandhiji in Batticaloa which was built in 1967. The event was graced by the presence of Hon’ble MP Govindan Karunakaran and Batticaloa Mayor Mr. Thiyagarajah Saravanapavan.

7.     High Commissioner began his visit to Trincomalee on October 02, 2022 with a puja at the Thirukoneswaram kovil, an ancient Hindu temple. The chief priest blessed the High Commissioner after observing special religious rites on the auspicious occasion of Navratri. Temple trustee President Mr. Thusyanthan briefed High Commissioner on the history of temple and submitted a proposal for its restoration as a pilgrimage destination for devotees from near and afar.

8.     To mark the 153^rd birth anniversary of Mahatma Gandhi, an event was organized at the Lanka Indian Oil Corporation (LIOC) facility in Trincomalee, which was attended by High Commissioner. High Commissioner led floral tributes to Gandhiji and recalled the Mahatma’s visit to Sri Lanka in 1927 and his close association with the Sri Lankan people. Managing Director LIOC, Mr. Manoj Gupta thanked High Commissioner for his presence at LIOC Facility for the solemn event and briefed him on LIOC’s plans for further expansion and diversification of their business at Trincomalee. High Commissioner appreciated LIOC’s role in ensuring Sri Lanka’s energy security, especially in the last few months, and in meeting the growing needs of its industries. High Commissioner visited the Lube blending plant and the newly inaugurated grease plant at the Facility, which is the first such plant at Sri Lanka. MD also briefed him on the plans for joint development of the Upper Tank Farms by LIOC and Ceylon Petroleum Corporation.

9.     Later in the day, High Commissioner met the Commander Eastern Naval Area Rear Admiral Jayantha Kularatne and Commandant of the Air Force Academy Air Commodore Asela Jayasekera. He also interacted with the Technical Team from Indian Navy which is supporting the Sri Lankan Armed Forces with operations of the Dornier aircraft gifted by India to Sri Lanka on 15 August 2022 to strengthen the maritime security of Sri Lanka and contribute to overall security of the region. 

10.   Attesting to India’s ongoing commitment to the people of Sri Lanka, during the two (2) day visit, High Commissioner donated humanitarian ration packages to 400 low income families in Batticaloa and Trincomalee. The event at Batticaloa was held in the presence of Hon. S. Viyalanderan, State Minister of Trade. The event at Trincomalee was attended by Hon MP Kalaiyarasan on behalf of Hon MP and leader of TNA R. Sampanthan. At both the places, organizers expressed their gratitude for the donations and India’s unstinted support to the people of Sri Lanka. High Commissioner said that, India, like a twin brother, has and will always stand by Sri Lanka, especially in times of need.

***

Colombo

October 03, 2022

Instead of regretting the lost excellent opportunities, only an awakening of attitude can be used to practice the future opportunities for the good of all. Consequently, I invite you to celebrate the 36th World Habitat Day.

It has been more than half a century since we gained independence. Many other countries in the region and the world that had a lower socio-economic status than Sri Lanka have already passed us by. It is a challenging task to develop a country without long-term national policies that help to achieve sustainable development from an export-led innovative economy.

With the upcoming 75th independence celebration, in our next 25-year plan, we all hope to build a society that will lead us to live happily in our own home with our beloved family. We as a government are already working for make this wish a reality. Plans are underway to start construction of 2,000 housing units for low-income families in conjunction with the 75th Independence Day. This project will not only benefit the urban areas but will also benefit the semi-urban area populations. The government’s goal is to solve the housing needs of low-income families living in rural and urban areas in an efficient and humane manner. Irrespective of personal agendas, we will introduce a proper method when vesting them to the public.

Sensitize the local and global challenges that affect us in pursuit of goals; it is everyone’s responsibility to engage in self-conversation and provide appropriate answers. Long-term policies, laws and programs that can successfully deal with the emerging problem are the need of the hour. I see the need for all of us to work together for the country.

Remembering again, the need to revise deeply to build a society with no one left behind and no gaps, I extend my heartiest greetings to the celebration of World Habitat 2022.

President’s Media Division