Prime Minister Narendra Modi unveiled the new Naval Ensign for Indian Navy at Kochi on 2 September 2022 on the sidelines of the commissioning of India’s first indigenous aircraft carrier INS Vikrant. The new Naval Ensign has done away with the Saint George’s Cross in centre which is symbolic of Indian Navy’s historic association with United Kingdom. The first change to the Indian Navy Ensign, post-independence was made in 1950, where in the Indian tri colour was inserted on the left top corner.

2.     It may be recalled the other aircraft carrier of Indian Navy INS Vikramaditya had visited Colombo in January 2016, generated huge interest amongst the locals and strengthened the bonds of friendship between the two countries. In continuation of India’s maritime cooperation with Sri Lanka, a Dornier Maritime aircraft was gifted to Sri Lanka Air Force on 75^thAnniversary of India’s Independence on 15 August 2022. The Dornier will enhance endeavours of Sri Lanka for maritime security in the region.

3.     The commissioning of the first indigenous 45,000 Tons Aircraft Carrier INS Vikrant has showcased the quantum leap by India to design, build and operate an Aircraft Carrier, which is the most advanced and extremely complex platform operated at sea. The ship is 262m long and can cruise upto 28 knots. The ship can carry more than 30 aircraft and helicopters onboard including indigenous Light Combat Aircraft (LCA) and Advanced Light Helicopter (ALH).

4.     Indian Navy has been actively engaged with Sri Lanka Navy in facilitating engagements like Deck Landing Practice and Copilot experience on indigenous ALHand Sail Training Experience onboard INS Tarangini for SLAF/ SLN personnel in March 2022.In line with the Government of India’s ‘Neighbourhood  First Policy’ spares for SLNS Sagara, SLCG Suraksha and AN 32 are being, provided on grant basis by Government of India to ensure optimal operational availability of platform and thereby improve security in the region.

5.     Supporting Sri Lanka’s fight against COVID-19, Indian Naval Ship Shakti arrived in Colombo on 22 August 2021 carrying100 tons of Liquid Medical Oxygen (LMO) from Visakhapatnam. Further, Indian Naval Ship Gharial was specially tasked for expeditious delivery of medical supplies to Sri Lanka in April and June 2022. To commemorate 75 years of India’s Independence, an Artificial Limb Camp, sponsored by Government of India was conducted by Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS), an Indian NGO for the disabled defence personnel of Sri Lanka Armed Forces in Colombo and Jaffna in February-March 2022. 

6.     Towards capability and capacity building measures for Sri Lankan Armed Forces, agreements were signed for provisioning of 4000T Floating Dock and installation of Maritime Rescue Coordination Centre for SL Navy in March 2022. The initiatives by Government of India would help in realisation of the vision ‘Security and Growth for All in the Region’ (SAGAR).

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Colombo

2 September 2022

The World Food Programme (WFP) says 6.3 million people or three in 10 Sri Lankans today are facing food insecurity contradicting President Ranil Wickremasinghes disclosure of 61 000 families .

Nearly two-thirds of families are resorting to at least one negative coping mechanism, including taking smaller portions or less nutritious food, the UN’s food-assistance agency said in a statement.

According to the WFP, pregnant and breastfeeding women, children under 5, and people with disabilities are among the worst affected.

However, the Sri Lankan President disclosed in his budget speech that a financial relief of Rs10,000 per poor family for the next four months.

“Sri Lanka’s worst economic crisis since its independence in 1948 – pushing food prices upwards of 90 percent and sparking fuel shortages – has disrupted livelihoods and key safety-net programmes, causing a spike in the number of food-insecure people.”

It comes as WFP warns of an unprecedented global food crisis as the country grapples with spiking prices, shrinking crop yields, the fallout of the war in Ukraine and a lack of state funds to pay for key supplies.

The WFP pointed out that even before the economic meltdown and the COVID-19 pandemic deepened hardship, Sri Lankan women and children suffered from far higher rates of malnutrition than their peers in other middle-income countries.

The agency noted that it aims to reach 3.4 million people with food assistance for which it needs USD 63 million to respond to the crisis. This includes supporting 1.4 million people with food, cash, or vouchers.

The WFP also plans to support existing social safety-net programmes – reaching 1 million children through the national school meals programme, and another 1 million Sri Lankans through a government programme providing fortified food to pregnant and breastfeeding mothers and young children

“Focusing on vulnerable populations and communities is a priority to avert a humanitarian crisis,” says Indu Abeyratne, an activity manager, who is at the centre of WFP’s emergency response operation.

The WFP said its vouchers – redeemable at stores for food items worth LKR 15,000 (USD 40) – are a much-needed windfall for pregnant women in the country, whose struggling families include elderly parents and husbands working daily labourers.

The statement went on to highlight that Thriposha counts among other key government assistance programmes affected by the economic crisis.

“Its disruption for lack of funds has removed a critical health and nutritional lifeline for the women and children who once depended on it. Coupled with income losses and inflation, this could further bump up malnutrition levels among these vulnerable groups.”

Interim Budget 2022 has revised estimates of the Gotabaya Rajapaksa regime’s budget for this year forecasting the revenue drop to to Rs. 2 trillion from Rs. 2.2 trillion.

Of that, tax revenue is Rs. 1.85 trillion, down from Rs. 1.98 trillion. Income tax is estimated to be Rs. 558 billion, higher from Rs. 496 billion from original estimate.

Taxes on Goods and Services to be lower at Rs.972 billion despite the increase in VAT from Rs. 1 trillion previously. Non-tax revenue revised upwards to Rs. 232 billion from Rs. 226 billion.

The Government announced the Value Added tax (VAT) will be increased from 12% to 15% from Thursday but lowered its overall revenue estimate for 2022.

The increase in the VAT was the only major revenue measure, whereas prior to the interim Budget presentation the private sector was worried by higher or new taxation.

President Ranil Wickremasinghe delivering his budgeT speech in parliament said a number of tax reforms pertaining to Income Tax, Value Added Tax (VAT), Telecommunication Levy and Betting and Gaming Levy have already been approved to be implemented.

Some of these tax proposals have already been implemented.He also said most revenue proposals introduced in May 2022 will be effective from 1 October 2022.

“The implementation of these proposals will help increase the revenue. It will gradually reduce the quantum of monetary financing for Government expenditure,” Wickremesinghe said.

The President also announced that the 2023 Budget will present new revenue enhancing proposals.

In terms of tax administration, Wickremesinghe said efforts to increase the revenue, tax administration must play a pivotal role in enhancing the tax collection efficiency, strengthening tax compliance and preventing tax avoidance.

In addition to the already existing requirements, the President proposed to introduce compulsory tax registration for all residents who are above 18 years of age without considering their annual income and tax-free thresholds.

He also said the Government is committed to implement the recommendations in the Final Report of the “Presidential Commission of Inquiry into Sri Lanka Customs”. This will strengthen corporate, administrative, and operational processes of Sri Lanka Customs to discharge its responsibilities effectively and efficiently.

President also said measures will be taken to enhance non-tax revenue, including royalties received for Government assets.

He proposed to take actions to attract foreign investors and/or technology holders to establish joint ventures with Sri Lankan partners for industrial investments with advanced technologies to ensure better utilization of our mineral resources and increase value addition without jeopardizing the interests of the national economy and the sustainable use of resources.

The President said the online revenue collection program will be implemented in all local Government authorities before the end of 2022.

The Supreme Court today granted permission to former Finance Minister Basil Rajapaksa to go abroad. This permission is valid till January 15 next year.

Several petitions have been filed before the Supreme Court asking for an order to be issued to the investigating agencies to investigate the people responsible for the current economic crisis. Former Prime Minister Mahinda Rajapaksa, Basil Rajapaksa and others have been named as respondents in the petitions.

The Supreme Court, which considered these petitions, had issued a foreign travel ban to the respondents of the petitions.

The lawyers representing Basil Rajapaksa asked the court today that their client wants to leave for America for medical treatment and other personal reasons. After considering the request, the foreign travel ban imposed on Basil Rajapaksa was temporarily lifted.

These petitions were considered before a five-member Supreme Court bench headed by Chief Justice Jayantha Jayasuriya.

World Food Programme (WFP) Regional Director for Asia and the Pacific John Aylieff, currently on a visit to Sri Lanka, paid a courtesy call on the Minister of Foreign Affairs, Ali Sabry on 01 September, 2022.

The Foreign Minister appreciated the support extended by WFP to Sri Lanka over the past decades in many areas including the national health system by supporting national nutrition programmes, the National School Meal Programme, in strengthening food systems to ensure access and availability of food and in developing shock-responsive safety net programmes particularly with the Department of Samurdhi. He apprised the Regional Director of the efforts taken by the Government of Sri Lanka in dialogue with all stakeholders including domestic and international partners, to emerge from the challenges facing the country. 

The Regional Director briefed the Foreign Minister on the progress of the ongoing WFP programmes in the country, particularly the social safety net programmes and added that the WFP will continue to support and cooperate closely with the Government of Sri Lanka during this challenging time.

Ministry of Foreign Affairs

Colombo

02 September, 2022

Minister of Foreign Affairs Ali Sabry says that the decision to suspend the payment of interest and installments for loans taken from foreign countries was made after a long investigation with the intervention of the officials of the Central Bank, the officials of the Ministry of Finance, the heads of the government and all the responsible people.

The Minister points out that the decision was only announced to the country by the Governor of the Central Bank, and therefore it is absolutely unacceptable to accuse the Governor of the Central Bank Ajith Nandalal regarding the suspension of loan payments.

Ali Sabry said this while joining the budget debate, clarifying the comments made by the members of the opposition parties during the budget debate yesterday regarding the Governor of the Central Bank.

Sabry states that if any party wants to remove Nandalal Weerasinghe from the post of Central Bank governor, he is ready to resign instead, and that it is a big crime to lose a resource like Weerasinghe at a time when the country is facing a crisis.

The Minister says that as the decisions taken by him as the Governor of the Central Bank have benefited the people who are living their lives amid many challenges, the Minister says that he requests everyone to refrain from jumping behind the officials who take such bold decisions.

Nandalal Weerasinghe had recommended Sabry’s name for the Ministry of Finance even after Ranil Wickramasinghe became President.

Arjun Aloysius, director of W.M. Mendis Company, has been summoned to appear before the Colombo Magistrate’s Court. Colombo Additional Magistrate T.N. Ilangasinghe had issued this order.

These summons have been issued according to a complaint made by the Inland Revenue Department that Mendis Company has committed a fraud by defaulting on the payment of a tax amount of 167 crore rupees.

Arjun Aloysius, who is also named as one of the main accused in the Central Bank bond scam, is also the owner of Perpetual Treasuries.

Earlier, Mendis Company’s alcohol production activities were also suspended, but later the relevant ban was lifted by the court.

Muditha Peiris, Chairman of Litro Company, says that gas prices will be further reduced from next Monday. The chairman says that this revision is done in relation to the decrease in the prices of the world market.

According to the new amendment, the price of a 12.5 kg domestic gas cylinder has been reduced by Rs.246 and its new price is Rs.4664. The price of a 5 kg cylinder has been reduced by Rs 99 to Rs 1872 and the price of a 2.3 kg cylinder has been reduced by Rs 45 to Rs 869.