The government’s move to halt the construction projects without settling the bills of the contractors would severely impact those dependent on the sector, a senior representative of the construction industry said.
Dr. Rohan Karunaratne, an industry veteran and President of the South Asian Lean Construction Association, commenting on the recent statement made by Central Bank Governor Dr. Nandalal Weerasinghe, where he stated that hyperinflation may bring people back to the streets, said a similar scenario is possible if the government continues to halt the construction projects and avoid settling the bills, as the livelihoods of thousands are affected.
The government’s decsion oF stopping the construction projects will also lead to a situation where the people without the means to feed their families flooding the streets, pleading for their livelihood,” said Dr. Karunaratne.
As the economic crisis worsened, the government halted the construction projects without settling the contractors’ bills. According to the industry stakeholders, the total amount due is over Rs.130 billion, while the contractors owe the banks around Rs.200 billion.
“Interest rates have skyrocketed to 25-28 percent and the temporary overdraft limits are 30 percent, both of which contractors cannot bear,” Dr. Karunaratne highlighted.
“The construction companies have been crushed under the boot of high bank rates and unpaid government bills, leaving them unable to take care of their vast workforce and supply chains.
Thus, as the governor advised Parliament, the contractors, in turn, advise the governor that the unpaid dues to the contractors may lead to hundreds of thousands of unemployed labourers and workers flooding the streets pleading for their survival. The contractors shall not be held responsible for this crisis,” he added
The local construction sector is a major contributor to the national economy, accounting for about 10 percent of the GDP.
In 2020, the sector contributed over Rs.300 billion to the GDP. There are over one million people involved in the construction industry.
The construction supply chain is easily one of the largest in Sri Lanka and includes around 4,000 small and medium enterprises, including sand suppliers, rubble suppliers and brick makers.
Construction sector warns of workers upheaval if govt defaults their payments
03 more arrested for damaging the property at Temple Trees
Three more people were arrested by the Colombo South Division Criminal Investigation Department for trespassing and damaging property at the Temple Trees on 09th July.
Three residents of Padukka and Watareka areas have been arrested.
Police say they are aged 35, 38 and 44 years.
CBSL Governor says that he cannot comment on debt restructuring due to sensitive issues (VIDEO)
Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, says that he cannot comment on debt restructuring due to sensitive matters regarding market affairs.
“In the next 4-5 years, on average, we have about 6 billion dollars of external debt to pay off. After that, four to five billion dollars and 27 billion dollars have to be paid within 4-5 years. When we announced our debt default, we only wanted to restructure external debt and resolve the foreign exchange crisis. That was the situation in April. As we moved forward, we reached an official level agreement with the International Monetary Fund and officially began the process of restructuring our debt. As officials, we are not in a position to talk about debt restructuring, because they are market sensitive. So I cannot comment on this. From the day we went into an officer-level agreement, we started negotiating with our creditors with financial agreement consultants. It is good to have transparency in the government’s dealings with the International Monetary Fund. But we can’t disclose certain market-sensitive information until it’s implemented.”
Weerasinghe said this while joining a television program.
Members appointed for 09 ministerial advisory committees
Speaker Mahinda Yapa Abeywardena announced to Parliament yesterday (06) that members were appointed for 09 ministerial advisory committees.
Accordingly,
Ministerial Advisory Committee on Defence
i. Honorable Anura Dissanayake
ii. Honorable Field Marshal Sarath Fonseka
iii. Honorable (Dr.) Sarath Weerasekera
iv. Honorable Arundika Fernando
v. Honorable (Dr.) Major Pradeep Undugoda
Ministerial Advisory Committee on Finance, Economic Stabilization and National Policy Affairs
i. Honorable Kabir Hashim
ii. Honorable (Dr.) Harsha de Silva
iii. Honorable Mr. Jagath Kumara Sumithraarachchi
iv. Honorable M. W. D. Sahan Pradeep Withana
v. Honorable (Professor) Ranjith Bandara
Ministerial Advisory Committee on Ports, Shipping and Aviation Affairs
i. Honorable Tissa Attanayake
ii. Honorable Pramita Bandara Thennakoon
iii. Honorable K Kader Mastan
iv. Honorable Sivanesathurai Chandrakanthan
v. Honorable Hesha Withanage
Ministerial Advisory Committee on Transport and Highways
i. Honorable Kabir Hashim
ii. Honorable Dilum Amunugama
iii. Honorable Kanaka Herath
iv. Honorable Ashok Abeysinghe
v. Honorable Lalith Varna Kumara
Ministerial Advisory Committee on Media Affairs
i. Honorable Imtiaz Bakir Makar
ii. Honorable Shanta Bandara
iii. Honorable Geetha Samanmalee Kumarasinghe
iv. Honorable S. M. Marikkar
v. Honorable Sanjeeva Edirimanna
Ministerial Advisory Committee on Agriculture
i. Honorable RM Ranjith Madduma Bandara
ii. Honorable Sivagnanam Sritharan
iii. Honorable Udayakantha Gunathilaka
iv. Honorable Kulasingham Thilipan
v. Honorable Upul Mahendra Rajapaksa
Ministerial Advisory Committee on Judiciary, Prisons and Constitutional Reforms
i. Honorable Thalatha Athukorala
ii. Honorable H. M. M. Haris
iii. Honorable Sisira Jayakodi
iv. Honorable G. G. Ponnambalam
v. Honorable Anupa Paskuval
Ministerial Advisory Committee on Power and Energy Affairs
i. Honorable Pavitradevi Vanniarachchi
ii. Honorable Duminda Dissanayake
iii. Honorable Kabir Hashim
iv. Honorable Nalin Bandara Jayamaha
v. Honorable Nalaka Bandara Kottegoda
Ministerial Advisory Committee on Labor and Foreign Employment Affairs
i. Honorable John Seneviratne
ii. Honorable Vadivel Suresh
iii. Honorable D. B. Herath
iv. Honorable Velu Kumar
v. Honorable (President’s Counsel) Jayantha Weerasinghe
were appointed to the relevant Advisory Committees.
An announcement from CPC about fuel distribution
The Ceylon Petroleum Statutory Corporation emphasizes that the reports that about 300 petrol stations have to be closed daily without fuel are completely untrue.
Even now, approximately 4000 metric tons of diesel and 3000 metric tons of gasoline are being released to the filling stations daily, which is a high figure compared to the previous fuel scarcity period, they point out.
Also, as reported by the media, no filling station has been closed based on the introduction of a priority register, restriction of check facilities, etc., the corporation said.
Below is the announcement they issued.
Export income surged by 12.9 per cent within first seven months: CBSL
The export income has surged by 12.9 per cent within the first seven months of 2022, in comparison with the previous year, the Central Bank of Sri Lanka (CBSL) revealed.
The export income from January to July this year is US $ 7678 million, according to CBSL statistics.
Compared to last year, import costs have declined by 3.5 per cent and import expenses have dropped by only 24.8 per cent in July. The total import cost for January-July period is recorded as US $ 11,315 million, CBSL data revealed.
The country’s forex reserves are said to have grown to a certain extent due to the growth in export earnings and drop in import costs, and with the US $ 1.5 billion exchange facility provided by the People’s Bank of China, total reserves have risen to US $ 1.8 billion.
MIAP
Consumer rights activists demand LAUGFS to reduce gas price (VIDEO)
The LAUGFS Gas Company not reducing gas prices in parallel to the state-run LITRO Gas Company would be a serious problem and such a monopoly in the LP Gas industry must not be allowed to exist, said consumer rights activists.
The price of LAUGFS gas must be slashed within a period of one week
After lodging a complaint with the Chairman of the Consumer Affairs Authority (CAA) today (06), President of the Restaurant Owners Association Asela Sampath told media that the price of LAUGFS gas must be slashed within a period of one week, adding that otherwise, every LAUGFS Gas cylinder will be piled up in front of the company.
Sampath emphasised that when the gas price is slashed by LITRO, the relief received by LITRO customers must also be given to LAUGFS customers.
MIAP
Person of annual income exceeding Rs. 1.2 million liable to income tax
Any person of an annual income of and over Rs. 1.2 million will be liable to income tax, as per a decision by the government.
Simply put, a person of a monthly income of over Rs. 100,000 will have to pay income tax to the government.
The relevant Cabinet paper will be presented in the Cabinet soon and the matter will be in effect from October 01, 2022.
These income tax rates are as follows;
- An annual income of Rs. 1.2 – 06 million – 06 per cent
- An annual income of Rs. 05 – 10 million – 12 per cent
- An annual income of Rs. 10 – 15 million – 24 per cent
- An annual income of Rs. 15 – 20 million – 30 per cent
- An annual income of over Rs. 20 million – 36 per cent
These tax rates were imposed during the previous good governance regime, but were revised immediately after Gotabaya Rajapaksa became the President, making the minimum limit for income tax Rs. 03 million in annual income.
These tax revisions are also a mandatory part of the requirements by the staff-level agreement with the International Monetary Fund (IMF), according to sources.
MIAP
Energy Minister reveals system to increase fuel ration for three-wheelers
The fuel quota entitled to ‘meter-reading’ three-wheelers will be increased soon, disclosed Energy Minister Kanchana Wijesekara, addressing Parliament today (06).
“Right now, we have instructed the Police stations and local government bodies, as well as the Traffic Commission, to identify three-wheelers who operate professionally full-time among these drivers. Because only if we identify them will we be able to provide more fuel ration via an alternative method,” Wijesekara said.
The Minister added: “It is in this purpose did we ask them to be registered at the filling stations nearest to their police stations. But in the last five weeks we have never told them to purchase fuel from a particular filling station only. Therefore, they were able to purchase fuel from any station in Sri Lanka they desired.
The Energy Minister further told Parliament that the government expects to increase the ration in the future and that they are working to provide more fuel quota to the three-wheeler drivers who have meters installed in their vehicles, and who display the price and charge fairly, in compliance with the recommendations produced by the Ministry of Transport through the Transport Commission.
“We have initiated a programme in which they can purchase fuel meeting the quota provided from that registered filling station, and the volume of five litres regularly provided from any filling station,” Wijesekara went on, “We expect to implement the initiative after the Transport Commission and the Transport Ministry together with the local authorities provide the necessary information.”
MIAP
Govt to enter new agreement on career opportunities in Malaysia
A proposal submitted by Foreign Employment Minister Manusha Nanayakkara to enter an agreement with the Malaysian government regarding the recruitment, referral for career opportunities and repatriation of workers has been approved by the Cabinet.
The two governments had previously entered a memorandum of understanding (MoU) regarding the affair in 2016 and its validity period ended on December 15, 2021.
Accordingly, the Cabinet has approved the extension of this MoU for another validity period, as proposed by Nanayakkara.
MIAP