The Ceylon Electricity Board says that the first generator of the Norochcholai coal-fired power plant, which was under repair due to an emergency breakdown, has been re-connected to the national system.
Accordingly, Andrew Nawamani, the media spokesman of the Electricity Board, stated that an electricity capacity of 300 megawatts has been added to the national system since yesterday (26) afternoon.
Enhancing bilateral trade and promoting Sri Lanka as a dynamic base for UK-based businesses will be among the main areas the Ceylon Chamber’s Council for Business with Britain (CBB) will focus on over the next year, stated CBB President Tania Polonowita Wettimuny at the Council’s AGM recently.
Taking on the mantle of leadership for the year 2022/23, Wettimuny stressed the ‘importance of creating long-term sustainable economic reforms’ and the role that organisations such as the CBB have to play in supporting economic recovery.
Highlighting that the UK is the second largest market for Sri Lanka in terms of apparel and software, and the second largest source market for tourism so far this year, she added that ‘it is of paramount importance that we continue to nurture this market and build on it for future trade and FDI, by fostering business on both sides and building on the trade corridor’.
UK High Commissioner to Sri Lanka Sarah Hulton thanked the CBB for its submission to the public consultation for the UK’s recently announced Developing Countries Trading Scheme, which will benefit Sri Lankan exports, and expressed the UK’s commitment to strengthening bilateral ties by supporting existing partnerships and facilitating collaboration in new sectors such as green technology.
The Guest of Honour, Export Development Board Chairman Suresh De Mel addressed the audience on the new initiatives of the EDB to support export trade and develop trade partnerships through the current economic challenges.
Governor of the Central Bank of Sri Lanka, delivering the keynote address expressed confidence that once a Staff-Level Agreement is reached with the International Monetary Fund (IMF) by the end of the month, it would enable a clearer picture of debt sustainability and debt targets for Sri Lanka to achieve in the next 10 years.
He added that once Sri Lanka unveils a macro-economic programme in the medium to long-term, along with structural reforms, endorsed by the IMF, this would ensure significant credibility and encourage creditors to support Sri Lanka in its efforts to ensure debt-sustainability.
The 2022/23 executive committee comprises Vice Presidents Shirendra Lawrence – MAS Holdings Ltd. and Ameena Ziauddin, Development Director, Norfolk Foods Ltd., Treasurer, Irfan Thassim – Oceanpick, and Immediate Past President, Roshanie J. Moraes – Link Natural Ltd.
Unilever Sri Lanka Chairperson Hajar Alafifi, Hayleys PLC Director Sarath Ganegoda, Commercial Bank MD Sanath Manatunge, London Stock Exchange Group SL Chief Financial Officer and Head of Finance Centre of Excellence for Sri Lanka Fadhil Jiffry, Finlays Group SL, MD Gihan Jayasinghe, De La Rue Director and Plant Manager, Sri Lanka Currency Derek Mansfield, Hilton Colombo Residences General Manager Karim Schadlou, The Hongkong and Shanghai Banking Corporation Ltd. Chief Executive Officer Sri Lanka and Maldives Mark Surgenor, Hirdaramani Group Director Nikhil Hirdaramani, and KPMG Principal – Deal Advisory Shiluka Gunawardena, were also appointed as Members of the Committee.
The finance ministry’s ban on the import of over 300 items temporarily along with the debt default on the directions of Central Bank Governor Nandalal Weerasinghe is set to boomerang on the government pushing millions of micro businessmen and women as well as small scale industrialists into doldrums.
This will create another wave of people’s uprising with street fights of affected people while the Finance Ministry and Central Bank officials headed by Nandalal Weerasinghe will wait without taking the responsibility putting the blame on the president , several public interest activists said.
The import of over 300 items has been temporarily suspended with effect from Tuesday under the Imports and Exports (Control) Act through a Government notification by the Finance Ministry.
The host of items included in the list range from chocolate and other food preparations containing cocoa, condensed milk, yoghurt, coconuts, coconut based arrack, roses, perfumes, beauty or make-up preparations, deodorants and dental floss, to trunks, suitcases, briefcases, and various clothing items.
Owners of beauty parlours its employees, street sellers and self employed were among the badly hit by this short sighted decision to save few dollars more, they said.
At Pettah, the small- and medium-scale shop owners also raised concerns over the latest ban, saying that the price of bags and shoes would increase to the point where people cannot afford to buy them.
A yard of fabric has increased from Rs. 375 to Rs. 575, while the prices of clothes have increased from Rs. 2,000 to Rs. 5,000. Now, clothes have become a special commodity.
Meanwhile, the owner of a cosmetic shop in Maharagama said that they could provide shampoo and other cosmetics at a normal price since they have already been imported, but that the next shipment would cost double the price.
Meanwhile, the traders of Pamunuwa, Maharagama, also protested against the increase of electricity tariffs by 75%.and the increase in prices of clothing They noted that this decision was made to destroy small-scale industries. If the Government is trying to stop bringing in material, then they should have a plan to produce locally.
This protest is not to change the Government, but to show our struggle. We want to live. More than one million people depend on this business. Is the Government asking us to engage in farming instead?”
At Pamunuwa, 70% of those in stalls are women. They start their business early in the morning at around 4 a.m.he price of skirts has increased from Rs. 550 to Rs. 1,000. We urge the Government to provide us with solutions, they said.
Meanwhile, the country is facing a serious shortage of forex and the government is struggling to even provide for the basic necessities, even after defaulting on the forex debt.
Inflation has risen to over 50%, and is expected to exceed 70% according to the 8th Respondent. The cut-off levels of Treasury bill interest rates have already soared beyond 35% per annum.
The limited progress seems to also indicate that Sri Lanka is slowly but surely being strangled by outside forces on whom the Government is now compelled to rely upon, and needless to say, over a very short period, the economy is likely to shrink further, and the country will be at risk of plunging towards despair and destruction.
It is also now observed that fresh conditions are being proposed by IMF members which may make it even more challenging for Sri Lanka to ever access an IMF Programme and its funds, without first making contentious social and foreign policy changes as well.
At the press conference held yesterday (26) in Colombo, the parties related to egg production said that by controlling the price of eggs, it will not be possible to release eggs for the upcoming Christmas season.
Uditha Wanigasinghe, who represented the Association of Animal Medicine Manufacturers and Importers, who spoke at the press conference, said that in order for the eggs to be released to the market properly for the coming Christmas and the next year season, the chickens should be bred properly.
For that, egg farms should be protected and for that the price should be secure, he said.
The producers asked the government to give a reasonable price for the sale as it already costs Rs.49 per egg.
Central Bank Governor Nandalal Weerasinghe has ignored President Ranil Wickremasinge’s prior warning of debt default repercussions issued by him when he was an MP.
The President’s views on the consequences of default were expressed in a TV interview at a “Derana 360” programme on 28th March 2022 when he was an MP has become a reality today three months after the Central Bank Governor Nandalal Weerasinghe’s. declaration of preemptive debt default on April 12.
He noted that If we fail to pay our debt, we won’t be able to get any money from anywhere claiming that some persons or countries who have already given us loans will call back those loans making the country bankrupt.
Mr Wickremesinghe: said the country will face the situation where foreign investors will not have trust and confidence. Even local business people will not have confidence. Not only large businesses, but even a small boutique owner will lose confidence when the country is bankrupt.
If the debt is not paid, essential goods can’t be purchased. If we are to get essential items into the country, we have to transact business with foreign banks. Then, if the country is bankrupt, those foreign banks won’t do business with us, will they?he asked.
Sri Lanka fell into debt evasion for the first time in its history following declaration of preemptive debt default on April 12 2022 by Central Bank Governor Nadalal Weerasingheina haste pushing the people into economic hardships in high cost of living, economic analysts said.
Policy makers had flagged to creditors that the nation wouldn’t be able to make payments until the debt is restructured,he disclosed at a time where confimed foreign inflows to the cumulative value of around US$ 4,950 million as at March 4 2022,Central Bank, data on foreign exchange recipt on pipe line revealed.
Of the pipeline, a sum of $ 4,500 mn was confirmed as being in the final stages by 3rd April 2022, and a further amount of about $ 2,650 mn was very likely to materialize over the short term, which would have enabled the Government to settle the maturing payments due in 2022, while also rolling over several other existing loans, including Dvelopment Bonds and FCBU loans.
Sri Lanka was on the verge of receiving a significant inflow of funds of $ 1 billion and access to a trade loan of $1.5 billion from China that were expected to materialize towards the latter part of April 2022 or early May 2022. These inflows were officially announced on March 21 2022.
The government is due to make a $36 million interest payment on a 2023 dollar bond April 18, as well as $42.2 million on a 2028 note.and a $1 billion sovereign bond was maturing July 25.
Therefore Central Bank Governor Nandalals statement to media that it had not been able to make some $ 200 mn including $87 million in interest payments was unbelievable, economic analysts claimed.
This policy action further deepens the country’s economic crisis, which has sparked mass protests and left the country struggling with fuel shortages.
Not only did the Government previously settle the maturing ISB of $ 500 mn in January 2022 and all other maturing debts and interest in the months of January and February 2022, during the month of March 2022, the Government paid back and rolled-over sovereign Forex debt payments of a substantial sum of $1,166 million out of the total amount of repayments of approximately USD 7,100 million that was due in 2022.
Thereafter, in April 2022, the Forex debt servicing was comparatively less at only $244 million, while the Forex debt servicing for May and June was only another $789 million.
Thhe sudden “default” announcement of 12th April 2022, completely disrupted all the above expected inflows, with the possible exception of the roll-over of the India and Bangladesh SWAPs that had been previously negotiated.
Ranjan Ramanayake has left the Welikada prison a few moments ago after being released under the conditional presidential pardon.
To welcome Ranjan Ramanayake, who was released from prison, a group of MPs from the Sami Jana Balawega including opposition leader Sajith Premadasa, as well as Minister Manusha Nanayakkara, who joined the government from the opposition, went there.
Ranjan Ramanayake’s supporters were also seen gathering at the place to seek support.
Ranjan Ramanayake was sentenced by the Supreme Court to imprisonment with hard labor on the charge of insulting the judicial system and he has apologized for it in the affidavit submitted to the Supreme Court.
Ranjan Ramanayake’s release letter has been handed over to the prison officials a little while ago.
The letter has been handed over by Vasantha Perera, Secretary, Ministry of Justice.
Justice Minister Wijedasa Rajapaksa also participated in the event.
The Government of India informs the Indians in this country to be constantly aware of the current crisis situation in Sri Lanka. Indian Foreign Ministry spokesperson Arindam Bagchi has mentioned this in a press conference.
The spokesperson added that India has been monitoring the situation in Sri Lanka for a long time and is constantly exchanging information through the Indian High Commission in Colombo.
Currently, the fuel crisis has escalated again in Sri Lanka and due to the lack of fuel, some fuel stations have been closed. Apart from this, the queues which were not seen in the past days have started again.
Most of the foreign tourists coming to this country are Indians and the central government of India has made this awareness to save them from the inconvenience they have to suffer in this country.
President Ranil Wickramasinghe emphasizes that in the future war may take place not only on land, air and sea but also in cyberspace so our Our security forces should be equipped with technical knowledge – President Ranil must be equipped with the necessary knowledge for such a technological war.
Pointing out that discipline, training and knowledge are needed to create a successful army, the President also said that the Sir John Kotalawala Defense University is already fulfilling all these matters.
President Ranil Wickramasinghe said this while participating in the ceremony held yesterday (25) afternoon to present the Presidential Colors and University Colors to General Sir John Kotalawala Defense University.
A military salute was accorded to the President who arrived at the Defense University in Kotalawala and an interfaith blessing was also held for the President’s colors and the university’s flag colours.
Then President Ranil Wickremesinghe made a special speech and presented the Presidential Colors and University Colors to General Sir John Kotalawala Defense University.
Later, the Vice-Chancellor of Kotalawala Defense University, Major General Milind Peiris, made a special statement and presented the university flag and colors.
The President, who also visited the museum at Walawwa, also made a note in the commemorative book of special guests. A special commemorative gift was presented for the President.
Janaka Rathnayake, Chairman of the Public Utilities Commission, says that a strange payment is being made for the employees of the Ceylon Electricity Board.
Question – Is a lot of money really going to the electricity board for salaries?
“I came to know this the day before yesterday, Not only the salaries EPF and ETF are generally provided for the employees of the Electricity Board. That’s the normal way. But did you know that all employees who work here for 20 years are paid a third of their salary, a pension for as long as they live? In which country do you pay the EPF and ETF and pay another pension with the money given by the public? I think this model should be studied in universities too, because this is a very strange model. This is the biggest company in Sri Lanka, if this continues, it will collapse and there will be a 24-hour power outage in Sri Lanka in the future.”
Janaka Ratnayake said this while participating in a conversation on Derana TV channel.
However, when asked about this, the Chairman of the Electricity Board, Nalinda Ilangakoon, had stated that there is a method of paying pensions that needs to be legally and properly managed in the Electricity Board.