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Newly opened Central expressway section earns over Rs 2.8 million in 12 hours

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The Ministry of Highways says that the second phase of the Central Expressway, also known as the ‘Ethugalpura Entrance’, which was declared open to the public on Saturday, has generated an income of over Rs. 2.8 million within the first 12 hours of operations. 

Motorists had been allowed to use the newly-opened stretch of the Central Expressway toll-free until Sunday afternoon while the toll booths had been operational from 12 noon onwards.

Accordingly, the income generated by the new section of the expressway between 12 noon to midnight on Sunday (16) has been estimated as approximately Rs. 2,805,100.

The ministry said that 13,583 vehicles had used the expressway from Kurunegala to Mirigama within that 12-hour period while no vehicular accidents were reported during that time

The Road Development Authority (RDA) had achieved the highest-ever revenue of Rs. 8.8 billion via expressways in 2021, reflecting a 21 percent  increase from the previous year.

The outstanding performance is amidst the disruptions caused by the pandemic, particularly during the period from mid-May to end October.

In 2021, the total toll revenue of Southern Expressway and Outer Circular Highway was Rs. 4.5 billion whilst earnings of Colombo-Katunayake Expressway and Outer Circular Highway were Rs. 4.3 billion.

 Accordingly, RDA has collected an average Rs. 734 million monthly through the expressway network.

As per the Central Bank Annual Reports, overall revenue generated from expressways in 2020 was Rs. 7.3 billion; in 2019, it was Rs. 8.6 billion; and in 2018, it was Rs. 8.4 billion. T

he commuter usage dropped owing to the Easter Sunday attacks in 2019 and COVID-19 outbreak followed travel restrictions in 2020.

“The revenue generated through the expressway is commendable and a great recovery of the economic activities overall considering the challenges faced during 2021.

 The bulk of the revenue was generated as a result of increased leisure travels by the general public following lockdowns and festive seasons,” Highways Minister Johnston Fernando said.

Last year, the total toll revenue collected via Southern Expressway from Kottawa – Godagama was Rs. 3.2 billion, whilst Southern Expressway extension from Palatuwa to Barawakkumbura was Rs. 1.3 billion. 

The toll income of Colombo – Katunayake was Rs. 1.8 billion, while the Outer Circular Highway from Kottawa to Kerawalapitiya was Rs. 2.5 billion.

Total traffic through the expressway network for the entirety of 2021 was 38.6 million (38,663,651 million), where monthly traffic volume usage was 3.22 million. On average, over 107,000 vehicles used the expressway network last year. 

India stands by Sri Lanka continuing its development aid of US$ 3.5 billion

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ndia will stand with Sri Lanka and continue to work for the development of Indian origin Tamil community while extending  a total quantum of around US$ 3.5 billion, development assistance cutting across sectors spanning from infrastructure development to all aspects of daily human lives such as education, health, livelihood, among others. 
 Estate workers from plantation areas have been at the centre of the such assistance and several projects implemented through grant assistance by Government of India including the 150-bed hospital in Dickoya, multi-purpose hall in Saraswathy Central College in Pussellawa etc reinforce India’s ongoing focus on the region under the ‘Neighbourhood First’ policy.
       this was disclosed by Indian High Commissioner  in  Sri Lanka   Gopal Baglay when he addressed  at a public ceremonyt in Kotagala on 15 January 2022. 
 Minister of Youth Affairs and Sports Namal Rajapaksa,  Jeevan Thondaman, Minister of State for Estate Housing and Community Infrastructure jointly handed over house keys to more than 1000 beneficiaries from plantation areas of Sri Lanka

 Speaking on the occasion, High Commissioner conveyed Pongal greetings in Tamil. He stressed that India will stand with Sri Lanka and continue to work for the development of Indian origin Tamil community.
 He noted that the community was an organic link between India and Sri Lanka and underlined that the Festival of Pongal represented shared civilizational ties between the two countries. 

  Handed over houses were built under the third phase of the Indian Housing Project. 4000 houses are being constructed with grant assistance from Government of India in planation areas, spread across seven Districts of Sri Lanka, under this phase for the estate workers in Sri Lanka. 
Around 3000 houses have already been handed over to beneficiaries till date and handing over of close to 750 houses is being scheduled under this phase. Remaining houses are at various stages of implementation. 

Indian Housing Project is a flagship development assistance programme in Sri Lanka which is being carried out in different phases. 46,000 houses were built/repaired in Northern and Eastern Provinces of Sri Lanka in the first two phases. 
Another 10,000 houses shall be constructed in the plantation areas in the next phase. This would take Government of India’s overall commitment under the project to 60,000 houses. 

 The dignitaries took part in a traditional ‘Maatu Pongal’ ceremony prior to the handing over event, which was attended by thousands and featured cultural performances. 

Sri Lanka’s current economy suffers severe setback in dollar crisis

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Sri Lanka’s current economic situation became worse by the existing dollar crisis, soaring cost of living and a possible shortage of food in the coming year- has made people curse over the government’s broken promises when it assumed power. 

This economic crisis originated due to unprofessional, arrogant, egoistic, and childish and rent seeking governance by the regime in control of the executive presidency, several eminent economists said.  

It will further deter value-adding FDI flows, low growth, and high twin deficits, rating downgrades and possibly excessive stress on citizens of the  country heading towards a failed state , they claimed. 

Although decision makers conveniently blamed the unforeseen COVID pandemic for this economic downfall, economists believe that several other factors contributed to this situation.

The imposing of tax concessions and import controls have been erroneous policies that caused a reduction in Government revenue. 

While Sri Lanka is indebted to many of its allies, its foreign reserves have drastically reduced and the country has now opted to selling off its gold reserves. 

Apart from that the American rating agency Fitch downgraded Sri Lanka’s rating status to ‘CC’ – the lowest rating prior to default. 

As per the official statistics, the debt servicing during the next 12 months relating to both the government and the private sector has been estimated at USD 7 billion. 

According to the Central Bank, Sri Lanka only had US$ 3.1 billion foreign reserves as at the end of 2021. 

The reserve money increased compared to the previous week mainly due to the increase in cuThe total outstanding market liquidity was a deficit of Rs. 459.932 bn by end of this week, compared to a deficit of Rs. 424.448 bn by the end of last week.

During the year up to 13th January 2022, the Sri Lankan rupee depreciated against the US dollar by 0.7 per cent given the cross currency exchange rate movements currency in circulation, Central Bank’s weekly economic indicators report revealed. 

During the eleven months ending November 2021, domestic tea production increased to 278 million kilo grams notably in comparison to the corresponding period of the previous year from 250.2 million kilograms owing to favourable weather conditions, it divulged. 

 Production of rubber also increased in response to high market prices to 71.4 million kilograms during the eleven months ending November 2021 from 70.8 million kilograms in the same period in 2020 

Coconut production increased considerably due to the lagged effect of favourable weather conditions that prevailed during the latter part of 2020 to 2,852.9 million nuts during the first eleven months of last year compared to 2,561.6 million nuts in the same period in 2020. 

 The government revenue posted a slight increase during the nine month period ending September 2021 to RS.1 052.2 billion from Rs.1031.7 billion in the same period 2020  while expenditure stood at Rs. 2,185.4 in 9 months ending September 2021 compared to Rs. 2,380.4 billion in 2020. 

 Earnings from Tourism have recovered to some extent last year by posting a sum of US$ 261.4 million from $ 682.4 million in 2020.  Workers’ Remittances (Inflows) have declined to $325.2 in December 2021 from 812.7 in the same month 2020.

 Workers’ Remittances in 2021 was $5,491.5  compared to $  7,103.9 in 2020 due to decline in tourist arrivals during the Covid-19 pandemic period.  

Sri Lankans to suffer in Four Hour Power Cut

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Sri Lankans are to face a four hour power cut daily as a result of fuel scarcity and the drop in water level of hydropower reservoirs in the country, Ceylon Electricity Board (CEB) Engineers Union warned.

The CEB currently possessed 3000 metric tonnes of diesel sufficient for two or three days to generate electricity and furnace oil adequate for 22 days to run generators , president of the CEB Engineers Union Saumya Kumarawadu  disclosed.    

Accordingly the electricity board is compelled to reduce the power demand by enforcing power cuts for longer hours after three days’ time   to maintain the balance in the grid system, he divulged. 

Hydropower generation will also have to be curtailed; the hydroserviour water is being managed for irrigation purposes in agriculture, for drinking and environmental conservation activities, he added. 

CEB Engineer Kumarawadu noted the delay in the construction of new power plants, cancellation of power projects and the lack of power plants for emergency use.

Power Minister Gamini Lokuge noted there will be no power cuts until Tuesday18 as the Ceylon Petroleum Corporation (CPC) has agreed to supply 3,000 metric tons of furnace oil to the CEB.

It has already received 3,000 metric tons of fuel for the Kelanitissa power plant; he said adding that the ministry will hold discussions with the CPC to obtain furnace oil sufficient till Saturday 22.  

He disclosed that  in the wake of the shutdown of a generator at the Norochcholai power plant, the national grid has lost 300 megawatts affecting the uninterrupted power and the problem has become worse due to an unexpected technical fault at the Kelanitissa power station .

Minister Lokuge claimed that, hydropower generation has also been affected due to drop in water level at hydropower reservoirs after allocating the required capacity for irrigation and drinking water and also around 35 percent of the overall capacity of the reservoirs is set apart for power generation.

The Ceylon Petroleum Corporation (CPC) is to deliver urgently required 1,500 MT of diesel to the Ceylon Electricity Board (CEB) daily enabling it to operate its generators and avoid enforcing power cuts.

However the CEB will have to provide US dollars to the CPC if it requires fuel continuously, Minister of Energy Udaya Gammanpila said.“in the wake of  the prevailing dollar crisis in the country, the CPC had to face severe difficulties to find  $400 million every month, for the supply of fuel stocks required for transportation and other industries,”he added

Explainer: Sri Lanka on the edge as debt burden mounts

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By Uditha Jayasinghe

COLOMBO, Jan 17 (Reuters) – Hit hard by the COVID-19 pandemic, Sri Lanka is facing its most serious financial crisis in years, raising doubts about its ability to pay its creditors.

On Tuesday, the island nation will repay $500 million towards an international sovereign bond, the first tranche of a total of $4.5 billion that it needs to pay back this year, to avoid the first default in its history. read more

Here are the key details about Sri Lanka’s mounting debt problems.

DEBT PROFILE

Sri Lanka, through repeated cycles of borrowing since 2007, has piled up $11.8 billion worth of debt through sovereign bonds (ISB), which makes up the largest part – or 36.4% – of its external debt.

Repeated cycles of borrowing from capital markets, including the International Sovereign Bonds, have made them the largest source of foreign funding for Sri Lanka.
Repeated cycles of borrowing from capital markets, including the International Sovereign Bonds, have made them the largest source of foreign funding for Sri Lanka.

The Asian Development Bank (ADB) is in second place with a 14.3% share, having lent $4.6 billion. Japan is at 10.9% and China at 10.8%, with each having lent about $3.5 billion each.

The rest of the debt is owned by countries such as India and international agencies including the World Bank and United Nations.

CHINESE LOANS

China has lent billions of dollars to Sri Lanka, partly under its Belt and Road Initiative (BRI), over the past decade for infrastructure projects including highways, ports, an airport and a coal power plant.

Critics say the funds have been used for white elephant projects with low returns. China rejects that criticism.

Sri Lanka has asked China to restructure its debt repayments to help navigate the financial crisis.

GOVERNMENT FACES MULTIPLE CHALLENGES

The government is struggling to tame retail inflation, which is running at a decade-high, amid surging commodity prices. It is also struggling to meet a fiscal deficit target of 8.9% of gross domestic product.

Since November, Moody’s, Fitch and Standard & Poor’s ratings agencies have all downgraded Sri Lanka on debt default worries. Central bank governor Ajith Nivard Cabraal has said the country will meet all its debt repayments in 2022.

SOME SAY RESTRUCTURE, DON’T REPAY

Some experts believe Sri Lanka should restructure its debt and establish a three-year repayment structure.

Doing so would save precious dollars and lessen the burden on Sri Lankan citizens who are facing shortages of imported goods such as milk powder, gas and fuel.

“Sri Lanka is unreasonably committed to repaying its debt. It is more prudent to press pause on debt repayment and take care of critical economic needs,” Verité Research Executive Director and Economist Dr. Nishan de Mel told Reuters.

REBUILDING OF FOREX RESERVES

Fitch estimates the Sri Lankan central bank will also need to arrange for $2.4 billion to help state-owned and private firms in the country honour the debt obligations they have in 2022, over and above the $4.5 billion central government debt.

The country also needs around $20 billion for essential imports such as fuel, food and intermediate goods for exports.

Reserves have been at a critical level for months but grew to $3.1 billion at the end of December boosted by a $1.5 billion yuan currency swap from China.

REUTERS

Anandasangaree tests positive for Covid-19

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Leader of the Tamil United Liberation Front V. Anandasangaree has tested positive for Covid-19, as confirmed upon a rapid antigen test conducted yesterday (16).

Anandasangaree is currently receiving treatment at a hospital in Jaffna. Some of his family members have also contracted the virus, according to reports.

Following his status, the Tamil United Liberation Front office in Jaffna has been declared for isolation.

MIAP

Suspected Drone Attacks Caused Explosion In Abu Dhabi: UAE

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Abu Dhabi police said three fuel tankers had exploded in the industrial Musaffah area near storage facilities of oil firm ADNOC and that a fire had broken out at a construction site at Abu Dhabi International Airport.

Yemen’s Iran-aligned Houthi movement said on Monday it had carried out an attack on the United Arab Emirates after authorities in the Gulf state reported two fires in the capital Abu Dhabi that were possibly caused by drones.

“Initial investigations found parts of a small plane that could possibly be a drone at both sites that could have caused the explosion and the fire,” the police said in a statement on state news agency WAM.

There was no “significant damage” from the incidents and a full investigation has been launched, the statement added.

NDTV

Veteran Singer Neela Wickremasinghe passes away

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Veteran Singer Neela Wickremasinghe has passed away at the age of 71.

Her demise has been confirmed today (17) in Milan, Italy, due to a heart attack.

Mrs. Wickremasinghe was recently appointed as the Consul General for Milan, Italy.

MIAP

Foreign remittances further declined – dollar crisis mounts

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Foreign remittances have reportedly declined by US$ 1600 million in comparison of the values of 2020 and 2021.

Sri Lankans living overseas have remitted US$ 7,100 million in 2020, but only US$ 5,400 million in 2021.

Sri Lanka received US$ 812 million in December, 2020 but the figure dropped to US$ 325 million in December, 2021.

Nevertheless, dollar inflows indicate a slight rise in December compared to November last year.

The Central Bank of Sri Lanka (CBSL) also decided to set an allowance of Rs. 10 per dollar to encourage Sri Lankans abroad to remit monies. Despite the CBSL’s campaigning on the offer, no significant improvement has seemingly been made.

Recent reports also claimed that Sri Lankans living overseas remit dollars through various channels, including brokers, without trusting the banks. The Governor of the CBSL commented that the amount of dollars remitted via such informal channels is only a small percentage, making no effect.

MIAP

Government’s decision to import rice has nothing to do with any shortage: Trade Minister

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The government’s decision to import rice has nothing to do with any shortcoming of rice production in the country, said Trade Minister Bandula Gunawardena.

Rice is being imported in a move to defeat the mafia in rice production aided by certain mill owners in Polonnaruwa who purchase rice stocks from the farmer and sell at their own discretion, Gunawardena said.

These mill owners have planned to soar the price of rice up to Rs. 300, which must never be allowed to happen, he added.

The Trade Minister further said that rice had been imported even during the tenure of the Good Governance Regime, when there were no such crises.

600,000 metric tonnes of rice was imported in 2014, 286,000 metric tonnes in 2015, 26,000 metric tonnes in 2016, 745,000 metric tonnes in 2017, 249,000 metric tonnes in 2018 and 16,000 metric tonnes in 2020 under the present regime, Gunawardena revealed, adding that the amount, in comparison, would be very small.

Those who had imported millions of tonnes of rice back then are spreading false information against the government’s objective of relieving the public and saving them from the mafiamen, he noted.

MIAP