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Debt management reforms to tackle rising domestic borrowings

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Sri Lanka’s domestic debt is rising at an alarming rate forcing the government to introduce management reforms to ensure that the government’s financing needs are met at the lowest possible cost, the latest fiscal report of the Finance Ministry outlined.

 Currently, the Public Debt Department of the Central Bank is handling debt servicing of around 656 foreign loans and a domestic debt portfolio of Rs.2. 13 trillion.

 An effective mechanism is in place to monitor and debt service payment obligations on time. The annual and monthly debt forecasts are monitored by the Back Office staff and payment obligations are checked and approved by an internal committee, Finance Ministry sources said.  

However proposed new reforms are consistent with a prudent degree of risk, and developing and strengthening the government securities market, while enhancing efficiency and maintaining stability, the report added. 

 Reforms that are planned to be undertaken in the near future in the area of debt management are, a debt consolidation programme, the formulation of debt management guidelines, the implementation of a risk management framework and the introduction of a domestic debt data module.

The domestic debt management strategy is decided by the Domestic Debt Management Committee comprising senior officials of both the Ministry of Finance and the Central Bank. 

The Committee meets on a monthly basis and a market based strategy is adopted by considering market conditions, market appetite, monetary developments, inflation, government cash flow needs, the maturity profile and risks in the debt portfolio etc.

Information relating to domestic debt is maintained in an in-house developed computer based debt recording system. Information on the debt portfolio is disseminated to the general public and market participants weekly, monthly and annually.

Treasury Bonds, Treasury Bills, Sri Lanka Development Bonds (SLDBS) and Provisional Advance were the main sources of domestic borrowings of the Government. 

According to latest statistics of the Finance Ministry, around 55 percent of the total domestic borrowings were raised by way of Treasury Bonds while 29 percent were raised by way of Treasury Bills and another 16 percent was raised by way of SLDBS and Provisional Advance of Central Bank in 2021.

The total borrowing limit approved by Parliament for the year 2021 amounted to Rs. 2.99 trillion, within which the utilization of Government borrowings (Book Value) for the period from 01st January to 31st August 2021 was recorded as Rs. 1.75 trillion.

Total borrowing utilization of domestic and foreign borrowings amounted to Rs. 1.47 trillion and Rs 282.3 billion, respectively as at 31st August 2021 to finance cash flow operations and development projects during the period.

Domestic borrowing accounts for almost 83.9 percent of the total borrowings during the first eight months of 2021.

The debt stock which was elevated due to the rise of the fiscal deficit however, saw a change in its dynamics in line with the announced Foreign Resource Mobilisation 2020-2025 strategy, whereby with the rationalisation of the foreign debt in the share of foreign debt has reduced to almost 40 percent from the highs of nearly 50 percent in 2019, Fiscal report revealed. 

It is expected that such a path could be maintained, while also sourcing the required financing from multilateral and bilateral agencies which are provided at concessionary terms. At the same time, domestic financing will be sourced in particular to finance the public investment programme.

SRI LANKA: Who should be in the constitutional convention?

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The making of a new Constitution through a constitutional convention is now being discussed in the community. This is against the privately-drafted Constitution through a group of lawyers which the Government intends to introduce in early 2022.

The difference between such a Constitution and one that is made with the participation of many groups and persons is that it will not only reflect the many problems that need to be solved in Sri Lanka but it will also provide the solutions coming from among the various sectors of the society itself.

Following are some persons who should necessarily be there in a constitutional convention.

Sri Lanka is traditionally and for now and the future based very much on its agriculture. The knowledge and the ideas about consolidating the agricultural aspect of the economy is an essential part of trying to develop a stable foundation for the economy as well as for the society in Sri Lanka. Thus, the agricultural experts in various associated fields should necessarily be a part of such a convention.

In the recent disputes, these experts have shown their capacity and also the understanding of how the agriculture sector in the country should be protected. With such expertise, there should also be representatives of farmers, who will represent their interests including their land rights, and the manner in which there should be State institutions which must deal with the issues of production, sale, and also consumer protection.

Another sector that should necessarily be involved in constitution making is the financial sector in the country. Among them are the Sri Lankan economists who have in the past decades shown their thorough understanding of the problems of the economy and ways to overcome the present crisis. It should also include financial experts who could help to develop a proper regulatory framework for finance in Sri Lanka which should be a major issue that should be considered in the making of a constitution.

Yet another sector that should be necessarily involved in constitution making is those who are dealing with accountability in various sectors. The Auditor General’s Department and also the former auditors and those who have expertise in this area are an essential element in the development of a stable system of finance and the control of it in the country.

We should also include those who monitor bribery and corruption. Their involvements are very essential in order to develop an effective corruption control system which should be recognised within the constitution.

Those involved in the law enforcement sectors and those whose expertise has grown around this are also very essential to ensure the proper law enforcement in the country. As it has been recognised that there is a tremendous failure of law enforcement, there should be expertise from within the Police and other sectors as well as from the society of persons who have gained knowledge of the development of an effective law enforcement aspect with guarantees of respect for the protection of individuals.

Still another sector that should be essentially there if there is going to be any effective constitutional governance in Sri Lanka is also the various sectors that represent various communities. There are sectors that represent the majority community as well as the sections that represent the minority communities such as Tamils, Muslims, and also the religious minorities. A society can hold together only on the basis of the principle of co-operation of all sectors of the society. Therefore, solving this problem that has troubled Sri Lanka over a long period should also be an integral part of the constitution making and this could be done only by opportunities for discourse between the communities themselves.

There should be necessarily persons representing the trade unions which are an essential component of safeguarding the interests of the working population. A constitution must necessarily provide opportunities for a just framework within which the disputes between the working people and the business sector could be settled in an atmosphere of justice and also with due regard to the basic rights of the various sectors of the working classes.

There should necessarily be representations of the educational sector which is a vital part of a nation’s life. There should be representatives who have expertise from school education as well as from the university sectors and also for the future development of the higher educational levels. This should include not only the professional experts but also the various sectors affected by that such as the students, teachers and also the parents.

Above is not an exhaustive list. It was meant to show that the expertise of lawyers is not at all the major contributor to the development of a constitution.

Furthermore, it should also not be left entirely to the politicians who have acquired rather dubious representations in the country.

If all sectors which have an interest in the country and the development of the country are brought together for a discourse which is genuine and open, Sri Lanka could develop a kind of infrastructure both in the economy as well as in the society, that could be reflected within the constitution by which a new beginning can be made for the future of the country.

Perhaps, a new Constitution with such a representation brought about through the constitutional convention may be the beginning of real independence in Sri Lanka.

An Article by the Asian Human Rights Commission

The two years lost due to covid should be given to the President and the government – Diana Gamage

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Parliamentarian Diana Gamage states that the term of office of the President and the current government should be extended as the promises made to the people at the election could not be fulfilled due to the Kovid epidemic. Due to this, the President should be given another two years and the term of the current Parliament should be extended by two years.

She made this statement while participating in the parliamentary debate today.

Diana Gamage points out that the present government and the President would have had a lot of work to do in the past two years if it had not been for the covid epidemic. She also states that if there was no covid epidemic, the expressway system would have been completed by now.

Diana Gamage has stated that she is ready to submit a proposal to Parliament to extend the term of office of the President and Parliament.

5500 dengue patients reported in January

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The National Dengue Control Unit states that 5500 dengue patients have been reported so far this year. The unit says there has been a rapid increase in the spread of dengue.

60% of the 5500 dengue patients found are reported from the Western Province. The majority of patients have been reported from urban areas in the province.

The National Dengue Control Unit points out that dengue has been on the rise in many parts of the country since September last year and it is the duty of the people to prevent the further spread of the disease.

TNA MP Shanakiyan Rasamanickam infected with COVID19

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TNA Batticaloa District Parliamentarian Shanakiyan Rasamanickam has been infected with the Covid 19 virus.

The MP said in a Twitter message that he was currently in isolation.

He has been urging people who have worked closely with him over the past few days to get tested whether they are infected with the virus.

More than 3.6 million omicron cases reported worldwide!

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Confirmed cases of COVID-19 have passed 338 million globally, according to Johns Hopkins University. The number of confirmed deaths has now passed 5.56 million. More than 9.79 billion vaccination doses have been administered globally, according to Our World in Data.

British Prime Minister Boris Johnson announced the end of COVID-19 measures introduced to curb the rapid spread of the Omicron variant in England as the country shifts towards a policy of living with the virus after a peak in cases.

China’s capital Beijing ramped up efforts to curb COVID-19 infections, ordering checks among cold-chain firms and urging residents to cut unnecessary gatherings, as the city reported an uptick in local cases weeks before the Winter Olympics.

Hong Kong will suspend face-to-face teaching in secondary schools from Monday until after the approaching Lunar New Year, authorities said, because of a rising number of coronavirus infections in several schools.

The Judicial Medical Officer confirms that Champika has no illness

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It was revealed in court today that MP Patali Champika Ranawaka, who did not appear in court on the 11th due to being treated at the hospital, does not have any special illness.

The Colombo Chief Judicial Medical Officer has confirmed to the court that although Champika Ranawaka has undergone 10 medical examinations, no special condition has been revealed.

When the case was filed on January 10 in connection with a road accident in the Rajagiriya area during Ranawaka’s tenure as a Minister, Ranawaka’s lawyers stated that his client was not appearing in court as he was being treated at the hospital. Colombo High Court Judge Damith Thotawatte ordered the Colombo Chief Judicial Medical Officer to submit a report to the court regarding the suspect.

The suspect Champika Ranawaka appeared before the court when the case was taken up today.

Deputy Solicitor General Dileep Peiris who appeared for the High Court on behalf of the plaintiff stated that the Colombo Crimes Division had recorded a statement from the Colombo Judicial Medical Officer regarding the condition of Champika Ranawaka. Peiris has stated that 10 tests carried out by the Judicial Medical Officer have confirmed that Champika Ranawaka is in good health and is not that ill to be admitted to the hospital for treatment.

The Deputy Solicitor General requested the High Court to remand the suspect until the end of the trial. If not he asked that the case be heard on a daily basis.

Defendant’s counsel Anuja Premaratne stated that his client was hospitalized not with the intention of postponing the case. The lawyer also said that his client is scheduled to undergo another medical examination tomorrow.
After considering the facts, High Court Judge Damith Thotawatte stated that the court would not oppose any attempt to adjourn the case following due process of law. However, according to the reports issued by the Judicial Medical Officer, it is confirmed that the suspect is in good health enough to appear before the court, the judge said.

The High Court Judge stated that it was the intention of the court to conclude the case expeditiously and decided to hear the case again on February 18.

If there are no power plant breakdowns, there will be no power outages today – Electrical Engineers Association (VIDEO)

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The Kelanitissa Power Plant has so far received 10,000 metric tons of diesel and there is no need to cut power if a power plant does not become inactive today, said Eranga Kudahewa, a committee member of the Ceylon Electricity Board’s Electrical Engineers Association.

He was speaking to the media today (21) regarding the latest situation in the power supply.

Kudahewa said that all the three power plants of the Kelanitissa Power Plant had been activated last night and one of them had to be shut down for maintenance at around 10.00 pm it had been restored at around 3.30 am and has now been restored to power.

He also said that even if the GD 7 power plant is shut down, it will not be a barrier to supply the demand.

Meanwhile, the Sapugaskanda power plant had run out of fuel last evening, but the Sapugaskanda power plant had received about 370 metric tons of fuel during the night.

Accordingly, there is no need to go for a power cut today unless there is a breakdown at a power plant today, said Kudahewa.

He said that the Norochcholai power plant has informed that it will take another three to four days to restore completely.

Cavinkare Lanka unveils Meera Facewash – unique combination of natural actives

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~ Capturing the free spirit of women, Meera facewash aims to encourage use of sulphate free, paraben free products that is milder on skin

FMCG Major’s latest product for the Sri Lankan market, Meera Facewash was unveiled in an official event at Colombo. Celebrating the young contemporary Sri Lankan woman, Meera facewash will be introduced in three different variants providing functional solutions to everyday skincare problems – Red Sandal (for soft skin), Neem & Tea Tree (for pimple clear skin) and Wild Turmeric (for clear skin).

Meera facewash is a range of formulation that is Soap-free, Sulphate free, Paraben free and is milder on the skin. It has a unique combination of Natural actives mentioned in ancient Ayurvedic textbooks. It includes a very special product which is Salicyclic acid- free acne treatment facewash. It helps to remove 99.9% of acne causing bacteria using prebiotic technology. 

Meera facewash is aimed at modern young women of Sri Lanka who hold a strong belief in traditional practices & natural ingredients. Today young women are well read, understand the importance of healthy skin and have a holistic view of how healthy skin is beautiful skin.  It comes out from the confidence of understanding scientific literature that supports these natural ingredients rather than following it naively. 

Virtually connecting at the event, Arun Chacko, Business Head of Personal care category (Sri Lanka, Bangladesh & Nepal) said, “With the Launch of Meera Face Wash today, we add to the hugely successful Meera portfolio of shampoos. With this, we intend to enhance the Richness of Tradition that Meera as a brand has been offering to the Sri Lankan Populace over the years. We are sure that the variants, would endear to the needs of Sri Lanka. We promise to bring more such exciting products to cater to the consumers.”

Speaking at the event, Mr. Raney, Country Head, Personal care business highlighted, “Meera facewash launch will help Cavinkare Lanka to enter one of the biggest categories in Personal care business. It will help us leverage our distribution strength while providing value to the customer through quality skincare solutions. We will work to ensure access of quality products  to every Sri Lankan consumer”. 

The product will soon be available at all leading stores across the country. 

Image 01:

(From left to right) Raney – Country Head, Cavinkare Lanka, Neethu Jose – Brand Manager, Meera, Cavinkare, Saravanan – Head of Operations, Cavinkare Lanka.

Image 02:

Neethu Jose – Brand Manager, Meera, Cavinkare, speaking at the event. 

Image 03:

Raney – Country Head, Cavinkare Lanka, addressing the audience. 

About Meera: 

Meera is one of the flagship brands of CavinKare which is in its 28th year of delivering strong and healthy hair. Meera boasts of a portfolio like Shampoo, Herbal Powder, Coconut Oil, Herbal Oil, Conditioner and Hair Wash Paste, stressing on wholesome health for hair. The brand derives its strengths from deep understanding of traditional Indian practices and giving it to consumer in easy-to- use contemporary formats. The brand ‘MEERA’ evokes immense respect from both consumers and retailers which only a few other brands can claim and is one of the trusted household brands of South India as well as international markets. 

About CavinKare: 

CavinKare is a diversified FMCG major with business interest in personal care, professional care, dairy, snacks, foods, beverages & salons. The brand portfolio consists of Shampoos (Chik, Meera, Karthika and Nyle), Hair Wash Powders (Meera & Karthika), Coconut Oil (Meera), Fairness creams (Fairever), Deodorant & Talc (Spinz), Pickles & Snacks (Ruchi, Chinni’s & Garden), Hair Colours (Indica), Retail Salon Products (Raaga Professional), Beverages (Maa), Dairy (Cavin’s), and Beauty Salons (Green Trends & Limelite). Most of the brands are clear winners in their respective product categories. A dedicated R & D center equipped with latest equipment and technologies constantly supports the divisions in their endeavor. Today, with a turnover of over Rs. 1600 crore, CavinKare has achieved significant milestones and a competitive edge with sound understanding of mass marketing dynamics and has established a firm foothold in the national market. CavinKare’s success is based on it being firmly grounded to its corporate mission ‘we shall achieve growth by continuously offering unique products and services that would give customers utmost satisfaction and thereby be a role model’

Power generation at Sapugaskanda Power Plant disrupted again!

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Power generation at both generators of the Sapugaskanda Fuel Power Plant has been disrupted. Power generation has been disrupted since last night due to a lack of fuel.

The capacity of the national grid is 100 megawatts per day due to the disruption at this power plant.

The power plant had fuel only to generate electricity until 8 last night.

Meanwhile, power generation at the Kelanitissa Power Plant has resumed. The required stocks of diesel have been provided by the Ceylon Petroleum Corporation from yesterday.