Sri Lanka’s chicken meat production has collapsed 30 percent and egg output 40 percent as a currency collapse pushed up costs and feed imports were blocked by foreign exchange shortages, an industry official said.
“Small and medium farmers are leaving the business due to feed shortages and because big poultry companies are stopping buy back schemes,” Ajith Gunasekera, President of the All Island Poultry Association said.
Broiler meat output has fallen 30 percent to 12,000 metric tonnes a month from 18,000 metric and prices have shot up, he said.
A kilo of chicken is around 1,200 rupees from 460 rupee levels before economists started to print money to target an output gap by mis-targeting interest rates, and official inflation rose 39 percent in the year to May 2022.
Eggs which were around 18 to 25 rupees before the latest money printing bout have now shot up to 43 to 50 rupees.Egg production has collapsed 40 percent, amid feed shortages.
Gunasekera said daily egg production which was around 700,000 to 800,000 and now fallen to around 400,000.
“Chicken are also laying fewer legs due to nutrition problems,” Gunasekera said “A chicken will usually lay about one egg a day but without proper feed they will lay fewer eggs.”
Egg prices are up partly due to high transport costs from Kuliyapititya where most of the large egg farms are located to Colombo, he said.About 73 percent of the cost of raising broilers was feed.
Maize which was 40 to 45rupees a kilogram has now gone up to 80 to 90 rupees a kilogram but there was no supply with the domestic Maha season harvest having failed due to a fertilizer ban.Due to reduced paddy milling, rice polish is also not available.
Forex shortages from the non-credible peg has made it difficult to import maize or soya meal.The industry is hoping to get some inputs from the Indian credit line.
However he noted that poultry producers have to pay VAT, NBT and income tax excluding other duties and indirect taxes, in particular tax (CESS) on maize and other consumables, which are also substantial in amount and become a stumbling block under the present economic difficulties.
Several leading poultry production firms, which control an estimated 65 percent of the market, were forced to export their produce to maintain margins, he claimed.
He added that if the new administration takes prompt action to promote poultry exports, then the country’s dollar crisis could be tackled to a great extent.
All Island Poultry Association ( AIPA) Chairman Ajith Gunasekara disclosed that the industry has already invested heavily for poultry production and the government should provide more incentives for producers.
He complained that that was a shortage in animal feed, as domestic production of maize reduced and the Government imposed a ban on maize imports due to a policy to promote local production.
This has resulted in the poultry industry being unable to import the necessary maize to fill the shortage in domestic supply.
Sri Lanka poultry industry hit by chicken, egg production decline
Foreign Ambassadors call on new Foreign Minister
The Ambassador of the Russian Federation to Sri Lanka Yury Materiy called on the newly appointed Minister of Foreign Affairs Ali Sabry on Thursday 28 July, 2022 at the Foreign Ministry. Congratulating Minister Sabry on his appointment, Ambassador Materiy handed over a message of felicitation from the Russian Foreign Minister Sergey Lavrov addressed to the new Foreign Minister.
The Russian Ambassador apprised the Foreign Minister of significant aspects of the traditionally strong partnership between Sri Lanka and Russia. The Foreign Minister expressed his deep appreciation for Russia’s support towards Sri Lanka in bilateral and multilateral fora. He also expressed confidence in the further consolidation of cooperation, with particular attention to enhancing business ties, tourism and connectivity.
The Deputy Head of Mission of the Russian Embassy in Colombo and senior officials of the Foreign Ministry were present at the meeting.
Meanwhile,
The High Commissioner of Pakistan to Sri Lanka, Maj. Gen. (Rtd) Umar Farooq Burki, paid a courtesy call on the Minister of Foreign Affairs Ali Sabry on 29 July, 2022 at the Ministry.
The Foreign Minister discussed the growing bilateral relations between Sri Lanka and Pakistan while expressing satisfaction over the ongoing cooperation in multiple spheres. They resolved to strengthen people-to- people contacts as a means to strengthen the two way ties.
The Minister appreciated the steadfast and consistent support extended by the Government of Pakistan at trying times in many regional and international platforms.
Ministry of Foreign Affairs
Colombo
31 July, 2022
Surplus in merchandise trade balance after 20 years!
As a result of high monthly export earnings and the dropping of import expenditure over the years, the merchandise trade balance has recorded a surplus last month for the first time since August 2002, CBSL data showed.
The records reveal that the balance in the merchandise trade account in June 2022 has a surplus of US $21 million, compared to the deficit of US $652 million in the same month the previous year, indicating a trade surplus of US $110 million for the first time since August 2022.
CBSL data also showed that the cumulative deficit in the trade account during the period of January – June, 2022 narrowed to US $3,514 million from US $4,316 million over the same period in the previous year.
Despite growing sentiments discouraging travels to Sri Lanka and the fuel crisis barring smooth transportation, tourism earnings also recorded a rise in June 2022 (Y-o-Y) from the low base, while the workers’ remittances moderated in June 2022 compared to the month before, reflecting an increase of grey market operations catering to forex transactions, the CBSL added.
The central monetary regulator further disclosed that foreign investment in the government securities market recorded a marginal net inflow, and that the Colombo Stock Exchange (CSE) recorded a marginal net outflow during June, 2022.
The CBSL claimed that it continued to provide forex liquidity to finance the importation of essential commodities, exhausting the usable level of gross reserves.
It added that the weighted average spot exchange rate in the interbank market remained around Rs. 360 per US dollar during the month.
Copra Processed by Army Troops Offered to Temple of Tooth Relic for Illuminations in the Annual Perahera
The Army repeating its annual practice of offering free dried coconuts (Copra) that can be used to light up and for illuminations of the Sri Dalada Perahera July (29) handed over a stock of 15 tons of Copra to the chieftain (Diyawadana Nilame) of the Sri Dalada Maligawa (Temple of Tooth) for the 9th consecutive year during a simple ceremony, graced by Lieutenant General Vikum Liyanage, Commander of the Army.
The Vijayabahu Infantry Regiment (VIR) troops of the VIR Regimental Centre at Boyagane, Kurunegala, situated in a grove of coconut trees have been instrumental in preparing those dried coconut stocks for this exclusive religious need every year, adhering to age-old traditions of ancient royalties who had reportedly continued to provide the parading torch bearers with Copra to lighten up the entire procession.
Lieutenant General Vikum Liyanage, Commander of the Army, together with Mrs Janaki Liyanage, President, Army Seva Vanitha Unit at the invitation of Major General Nishantha Manage, Colonel of the Regiment VIR and Director General General Staff (DGGS) offered the first tray of Copra symbolically to the lay custodian of the temple, Mr Pradeep Nilanga Dela Bandara, Diyawadana Nilame soon after performance of religious observances amid customary Theva (daily service) rituals.
Buddhist flags and lotus trays-carrying troops in procession brought the Copra stock to the Dalada Maligawa premises at first where the Diyawadana Nilame offering a tray of jasmine flowers welcomed the Commander of the Army and invited him to the inner chamber.
After the formal handover was over, a brief meeting inside the Buddhist museum, led by the Diyawadana Nilame and the Commander of the Army exchanged a few views about the conduct of the forthcoming Esala Perahera, its security arrangements and other matters of concern. The chieftain in turn appreciated the Army’s continued commitment to this indispensable need of the annual festival and expressed his gratitude to all involved in the process of preparation of those dried coconuts.
Towards the end, the Diyawadana Nilame awarded a special memento to the Army Chief, Lieutenant General Vikum Liyanage for this ‘Ranaviru Uttama Seva Poojawa’ and appreciated the contribution of the troops.
The conduct of the annual Sri Dalada Perahera festival, set to begin in a few days is considered and venerated as the most sacred offering to the canine tooth relic of the Buddha, a living monument that has been preserved for many generations by successive royalties and heads of state in Sri Lanka. All Devala processions, accompanying the main spectacle are also provided with those Army-processed dried coconuts for flaming purposes.
Since the year 2014, preparation of those dried coconuts to be used as lamps for the Perahera has been done by VIR troops as a token of respect to the annual Esala Perahera event in Kandy. Coconuts from VIR groves are collected and used for this sacred purpose throughout the year with the dedication and commitment of VIR troops, resident in the VIR Regimental Centre at Boyagane.
Major General Nishantha Manage, Colonel of the Regiment VIR and Director General General Staff, Major General Prasanna Ranawaka, Quarter Master General, Major General Deepal Pussella, Commander, Security Forces-West, Major General Indu Samarakoon, Army Logistic Commander, Senior Officers including the VIR Centre Commandant and Other Ranks were associated with the day’s programme
SL Army
President promised to reenact 19A: Karu Jayasuriya
President Ranil Wickremesinghe has promised the National Movement for Social Justice (NMSJ) that the 19th Amendment to the Constitution will be reenacted and the move will be made within the next few weeks, revealed Movement Convener former Speaker Karu Jayasuriya, addressing the Galle District Summit of the ‘New Constitution for a Good Country’ organised by the Movement and the ‘Movement for National and Religious Reconciliation’.
The former Speaker pointed out that the entire country can be saved from the destruction befallen it if each and everyone can spare the differences between each other.
An all-party government should be formed in short-term to troubleshoot the current crisis and a proper programme should be implemented in this regard, Jayasuriya added, emphasising that such a foundation should be laid in in the objective of abolishing the executive presidency.
Sri Lanka Now Well And Truly Trapped In The Western Grip
It’s now over 4 months since Sri Lanka “sought IMF help”. This was done at the repeated call of a dubious group, publicly led by MP Harsha Silva (US Eisenhower Fellow) and US funded Advocata, Pathfinder, Bar Association, Transparency International and Vérité teams of Nishan de Mel, Chandra Jayaratne, Murtaza Jafferjee, W A Wijewardena, and Chamber of Commerce Chairman Vish Govindasamy and his team. But, everyone knows that this IMF call was actually being orchestrated by the US, to lure Sri Lanka into the US & Western orbit, away from the Chinese influence.
So far, not a CENT has been forthcoming from the IMF, and the Australian PR holder Governor Nandalal Weerasinghe now says IMF money is LIKELY TO BE RECEIVED in December 2022, AFTER debt restructuring!
In the meantime, obviously as IMF prior actions, Rupee has been depreciated from 202 to 370. Interest rates have been increased by over 20%. Forex debt has been defaulted with disastrous consequences, with the country now being officially labelled as BANKRUPT. All fuel prices have been put up by nearly 175%. Inflation has risen to over 60%. Money printing is taking place at over Rs.6 billion per day. To cap it all, NO ONE is giving any money to Sri Lanka, or even opening an LC.
Sri Lanka is being STRANGULATED well and truly and there is now NO WAY OUT other than the IMF path, which is completely controlled by Washington. In short, Sri Lanka has now LOST ITS SOVEREIGNTY.
THIS IS EXACTLY WHAT THE US AND THE WEST WANTED TO DO TO SRI LANKA, AND THAT HAS NOW BEEN ACHIEVED.
Harsha Silva was the Chief Traitor, posing off as the WISE MAN who repeatedly wanted Sri Lanka to default and go to the IMF from the time Gotabaya Rajapaksa became President: and today, Sri Lanka is suffering as a result of that low IQ President falling into that TRAP. There is now NO END in sight. In fact, NO ONE STILL KNOWS what conditions have been stipulated by the IMF. When those are publicly known, ALL HELL WILL PROBABLY BREAK LOSE and Sri Lanka will not be manageable politically, socially and economically.
Now, ONLY the Triple Gem and the Gods can save Sri Lanka from these cleverly laid TRAPS of these traitors (described as “wise men”), manipulated by the same Western powers that subjugated Sri Lanka for 443 years from 1505 to 1948.
Govt temporarily suspends sending medical personnel for overseas specialist training
The Government of Sri Lanka has temporarily suspended sending medical personnel for overseas specialist training, confirmed the Director General of Health Services (DGHS).
The Ministry of Health has made the move due to the lack of foreign currency to make payments for the medical officers amidst the forex crisis, DGHS Dr. Asela Gunawardena told the Postgraduate Institute of Medicine (PGIM) in a letter.
Sri Lanka is suffering from its worst economic crisis since independence and the Health Ministry is grappling against the arrangement of payments for medical officers who are already working overseas in their mandatory foreign training.
Accordingly, all overseas training will be temporarily suspended and the PGIM is instructed to suspend the offering of further recommendations for overseas training, especially those who are planning to be completely dependent on monthly living allowance offered by the Health Ministry.
The move, however, will not affect those who have already arranged departure i.e. reserved air tickets and / or obtained visa, subject to use their own money for expenses during the period of training, and reimbursement from the Ministry later.
There will be no restrictions for those who have arranged their overseas training as paid jobs and the PGIM is expected to assist them in funding placements with paid job opportunities, said Dr. Gunawardena the DGHS.
MIAP
Govt approves issuance of soft liquor licences to all hotels and restaurants registered with SLTDA
The government has approved the issuance of soft liquor licences to all hotels and restaurants registered with the Sri Lanka Tourism Development Authority (SLTDA) in a move to boost the tourism sector amidst the worst economic crisis befallen the island nation.
The measure will also follow all tourist establishments located in areas recognised by the SLTDA.
President Wickremesinghe in his capacity as the Minister of Finance, Economic Stability and National Policies has granted approval to issue licence for soft liquor such as beer and wine. The move will be made in a flexible strategic action to boost the tourism sector, effective from July 28, 2022, the President said in a statement.
Accordingly, Rs. 25,000 will be charged as fee for the soft liquor licence and it is required to be renewed on an annual basis.
MIAP
Chinese military ship’s visit to SL arouses new row over naval dominance
Chinese maritime surveillance military ship’s planned to visit to Sri Lanka at time of its unprecedented economic crisis and people’s uprising against the legitimate government has aroused a new row over naval dominance in the Indian ocean, several geo political experts said.
In the wake of India’s concerns on violating innocent passage requirements in territorial seas,China said that it hoped “relevant parties” would refrain from interfering with its legitimate maritime activities, after New Delhi voiced concern over this matter.
India is keeping a close watch across its southern neighbourhood following a report that a Chinese scientific research vessel ‘Yuan Wang 5’ will enter Hambantota port on August 11 for a week to allegedly conduct satellite control and research tracking in the Indian Ocean Region.
India worries that the Chinese-built and leased port of Hambantota will be used by China as a military base in India’s backyard. The $1.5 billion port is near the main shipping route from Asia to Europe.
What has raised eyebrows here is the timing of the docking of the vessel at the port built by China, probably taking advantage of the political crisis in the island nation. New Delhi is examining the level of local political and military support that China has received for the proposed plan
The ship is expected to depart Hambantota on August 17 after replenishment. The ship could conduct satellite control and research tracking in the north-western part of the Indian Ocean region, according to Y Ranaraja, Director, Belt & Road Initiative, Sri Lanka (BRISL).
“China’s Yuanwang-5 space-tracking vessel conducting a space-ground information exchange and specially provide significant data support to Zhongxing-2E satellite’s orbit determination and entry. Now the vessel is sailing pass Taiwan towards Hambantota in Sri Lanka,” Ranaraja tweeted.
China has a major say in the Hambantota Port area and much of its activities in the area remain under wraps, according to critics both local and foreign. Sources explained that Yuan Wang 5 is also potentially violating innocent passage requirements in territorial seas as per UNCLOS. The vessel, according to experts, has a capability to snoop on a coastal state
Shipping data from Refinitiv Eikon showed Chinese research and survey vessel Yuan Wang 5 was en route to Hambantota and due to arrive on Aug. 11, at a time when Sri Lanka is facing its worst economic crisis in seven decades. India has provided Sri Lanka with nearly $4 billion in support this year alone.
During a weekly briefing late on Thursday, an Indian foreign ministry spokesman said the government was monitoring the planned visit of the Chinese ship, adding that New Delhi would protect its security and economic interests.
India has already lodged a verbal protest with the Sri Lankan government against the ship’s visit.
In response, China’s foreign ministry said Beijing had always exercised freedom of the high seas lawfully.
Foreign security analysts describe the Yuan Wang 5 as one of China’s latest generation space-tracking ships, used to monitor satellite, rocket and intercontinental ballistic missile launches.
The Pentagon’s annual report on China’s military modernisation says the Yuan Wang ships are operated by the Strategic Support Force of the People’s Liberation Army (PLA).
IMF to continue policy talks on bailout package with new SL administration
Sri Lanka is to resume bailout loan discussions with the International Monetary Fund (IMF) after the World Bank said it would not be able to offer the country fresh funding without “deep structural reforms , ” the Finance ministry announced.
Debt ridden Government is set to reach a staff-level agreement with the International Monetary Fund (IMF) within a couple of months and an economic reform programme for a bailout package would be finalised by next month (August 2022).
Debt restructuring process will also be commenced soon to reach an agreement with creditors as a prelude for the IMF towards providing financial assistance, a top official closely connected to IMF negotiations disclosed.
The IMF is closely monitoring the ongoing developments in Sri Lanka, a spokesman of the monetary agency revealed.
He noted that” they are continuing technical discussions with their counterparts in the Ministry of Finance and Central Bank and are ready for policy discussions with the new administration towards reaching a staff-level agreement on the Extended Fund Facility (EFF) arrangement.”
Chinese Ambassador Qi Zenhong assured China, as member of the International Monetary Fund, will provide necessary support provided at the meeting of its Board of Directors, a statement from the Prime Minister’s office said.
The ambassador called on Prime Minister Dinesh Gunawardane and discussed economic, agricultural and cultural relations between China and Sri Lanka in the face of the current economic crisis.
However after the staff level agreement is reached, an application jointly signed by the Minister of Finance and the Governor of the Central Bank should be made by Sri Lanka to IMF, several economic experts who are conversent with IMF procedure disclosed.
Then it should be approved by the IMF’s executive board which normally approves the loan requests by consensus ,they added.
In this context, an opinion expressed by the US Senate Foreign Relations Committee may hamper Sri Lanka’s attempt at getting approval, eminent economic expert claimed.
That committee has imposed three additional conditions, namely, making the Central Bank independent, observing the Rule of Law, and establishing an effective anti-corruption mechanism, he added.
The discussions for a bailout from the IMF could last months despite the urgent need Sri Lanka is also in the process of trying to reestablish a functioning government under the leadership of President Ranil Wickremesinghe reaching a deal on a broad coalition with. opposition parties.