Recognizing the need to revitalize tourism, the European Union (EU) and the United Nations Development Programme (UNDP) in Sri Lanka have come together to support the Government and people of Sri Lanka to build back tourism as a resilient and sustainable sector.

The Tourism sector being a vital foreign exchange earner and source of employment in Sri Lanka’s economy has suffered multiple crises since the 2019 Easter attack and the ongoing COVID-19 pandemic. 

Transforming tourism industry ie being carried out through the Transforming Tourism Project help Sri Lanka: Emerging from crisis as a strong, resurgent and rebranded industry, Tourism Development authority announced. 

A key expected outcome of this initiative is to strengthen the tourism policy framework and institutional capacity at national level, providing vital policy direction to rebuild, recover and trigger transformational change for more sustainable and inclusive tourism in the island. 

The draft Tourism Policy aims to create a unique tourism experience for travellers to Sri Lanka and create sustainable and inclusive benefits for all actors in the tourism industry. 

This in turn will aid in protecting Sri Lanka’s best features; its natural resources, culture and history while benefitting local communities, taking the country a step closer to achieving the Sustainable Development Goals – leaving no one behind.

To this end, the Ministry of Tourism (MoT), in line with the recently published draft National Tourism Policy and public call for comments to the draft held a meeting on Thrsday 08.to discusses the engagement of the EU and UNDP in supporting tourism, particularly, in the implementation of the National Tourism Policy..

Speaking at the meeting on the importance of the National Tourism Policy,   S. Hettiarachchi, Secretary to the Ministry of Tourism stated, “due to the nature of the tourism industry, developing policies after consulting the diverse array of stakeholders ensures a sustainable solution that is beneficial for Sri Lanka to unlock its true potential in developing tourism. 

The Ministry of Tourism looks forward to cross-collaborating and working closely with all other relevant ministries, in order to create a more resilient tourism industry.”

Reiterating the EU’s support, Ms. Jenny Correia Nunes, Head of the Development Cooperation of the Delegation of the European Union to Sri Lanka and the Maldives stated, “The EU has been supporting Sri Lanka in a number of sectors including rural development, private sector support, justice and social inclusion. 

In response to the impact of the COVID-19 pandemic, EU is now also focusing on tourism as we see the great potential and value addition it brings in terms of holistic economic and social development for the country and its citizens.”

Highlighting UNDP’s overall support to tourism recovery, Mr. Robert Juhkam, Resident Representative of UNDP in Sri Lanka stated, “UNDP helped bring together multiple stakeholders to widen the consultative process, importantly bridging perspectives and ensuring inclusiveness of Sri Lanka’s sustainable tourism revival. 

The collaboration between the EU and UNDP signifies the critical importance of tourism to Sri Lanka’s post-COVID-19 economic recovery. 

The Transforming Tourism Project will aim to address the urgent needs of the industry, strengthening the institutional framework and capacity to set it on a trajectory for a greener, more resilient future

India assured Sri Lanka of its support to tide over “difficult times” even as it welcomed the Trincomalee tank farms project saying it will augment bilateral energy security.

India’s External Affairs Ministry Spokesperson Arindam Bagchi, when asked at a media briefing on the possibility of India extending the credit line to help Sri Lanka overcome its economic crisis, said it has always stood by the people of that country.

After a telephonic conversation with his Sri Lankan counterpart, Indian External Affairs Minister S Jaishankar said India will support Sri Lanka in “these difficult times”.

“Greeted FM  G.L. Peiris of Sri Lanka in the New Year. A reliable friend, India will support Sri Lanka in these difficult times. Agreed to remain in close touch,” Jaishankar tweeted.

Jaishankar also stated that trade, as well as business, have grown and strengthened between India and Sri Lanka. 

He added that there is bilateral collaboration in the domains of development, education, culture, as well as defence. As per the MEA, both nations have a broad awareness of significant international concerns, ANI reported.  

On the fishermen issue, Bagchi said that the Indian High Commission in Colombo has been making efforts to ensure the early release of the remaining Indian fishermen detained by Sri Lankan authorities last month.

Sri Lanka had detained a total of 68 fishermen and 12 of them have already been released.

Bagchi said both sides are in consultation for early holding of a meeting of the joint working group on fisheries.

On Sri Lanka’s Cabinet approving the deal to jointly develop the Trincomalee oil tank farm with India, Bagchi said it will boost bilateral energy cooperation.

“We have seen reports that the Sri Lankan Cabinet has approved the development of the Trincomalee tank farms. Energy security is an important area of our bilateral cooperation with Sri Lanka,” he said.

“We are in consultation with the Government of Sri Lanka for the modernisation of the Trincomalee tank farms. This will allow for the storage of fuel and will augment bilateral energy security,” Bagchi added.

The Sri Lankan government said that after reviewing the three existing agreements with the Indian government regarding the strategic Trincomalee oil tank complex, commonly known as the Trinco oil tank farm, the two sides have reached an agreement to implement a joint development project.

On the query on extending the credit line by India, Bagchi referred to the visit to New Delhi by Sri Lankan Finance Minister Basil Rajapaksa last month.

“He briefed the Indian side on the economic situation in Sri Lanka and his government’s approach in addressing these challenges. India has always stood by the Sri Lankan people and Sri Lanka is an important part of our neighbourhood first policy,” Bagchi said.

He said during Rajapaksa’s visit, discussions took place on deepening cooperation in areas of food and health security, energy security, the balance of payment issues and Indian investments in Sri Lanka among others.

Central Bank Governor Ajith Nivard Cabraal met his Qatari counterpart, the Qatar Central Bank Governor Sheikh Bandar Bin Mohammed Bin Saoud Al-Thani, in Doha on Tuesday. 

In a statement, the Central Bank said bilaterally beneficial arrangements had been initiated between the two Central Banks during the meeting.

Discussions had also been held on strengthening bilateral ties and working relationships between the financial intermediaries of Qatar and Sri Lanka.

“Had an excellent discussion on the way forward of @CBSL & QCB collaboration & SL-Qatar economic ties with the newly appointed #Governor of Qatar Central Bank Sheikh Bandar Bin Mohammed Bin Saoud Al-Thani on 4Jan22,” Cabraal tweeted yesterday.

Senior officials of both the central banks and the Ambassador of Sri Lanka in Doha, State of Qatar Mafas Mihideen had attended the discussion, it added. 

In December 2021, it was reported that discussions were underway for a currency swap agreement for over $ 1 billion to be signed between the Central Banks of Qatar and Sri Lanka.  

There are about 210 Sri Lankan companies operating in Qatar with a capital of about QR45.5 million. more Sri Lankan companies have been invited to take part in renaissance taking place in Qatar.

Qatar-Sri Lanka Joint Committee for Economic and Technical Cooperation to be held  in Colombo would further boost trade ties between the two countries.

Qatari businessmen are looking to identify the investment opportunities available in Sri Lanka and build cooperation with businessmen there, leading to the establishment of alliances and partnerships that result in joint projects in both countries.

Underlining the vast potential of increasing trade volume between the two countries, the SLCB governor  added that Qatari market was an important destination for Sri Lanka.

The integrity and sensibility of the Framework Agreement between the government and the New Fortress Energy (NFE) Company has been questioned as it has resulted in assigning to NFE economic rights that were a part of an ongoing tender process, economic analyst claimed.

The tender was to build a Floating Storage Regasification Unit (FSRU), and the pipelines that could supply natural gas to two existing power plants in Sri Lanka.

The Cabinet memorandums relate to an investment in shares of West Coast Power (Pvt.) Ltd (WCPL mentions details of the Framework Agreement, which also assigns to NFE the right to build an FSRU and the pipelines that could supply natural gas to one of the two power stations.

It was mentioned in the tender Invitation No. B/12/2021.while bids for tender Invitation No. B/12/2021 had already been closed on 18 June 2021, and for which NFE had not submitted a bid.

The Cabinet memorandum dated 6 September states “…if the announced fixed charge for the FSRU and the Pipelines from the existing tender that is being processed is taken into account”.

These references to ‘an existing tender ’, make clear the overlap between the tender notice (No. B/12/2021) and the Framework Agreement with NFE.

These references also confirm that the MoF was aware of the conflict with the ongoing tender process.

The above substantiates the MP’s claim that NFE has been awarded, through a non-competitive contract, economic rights that were part of a separate ongoing tender process (albeit a controversial one) in which NFE had not participated, analysts said.

The US based New Fortress Energy (NFE) signed a framework agreement with Sri Lanka’s finance ministry to build a floating liquefied natural gas (LNG) terminal on July 14, which opponents say will give the company a monopoly in the supply of LNG to the island.

As part of the agreement, the government will facilitate the obtaining of necessary permits and entitlements by New Fortress to construct the LNG terminal. The terminal is expected to begin operations by the second half of 2022.

The terminal will be located off the coast of Colombo to supply gas to the country’s power plants, primarily located in the Kerawalapitiya power complex.

Sri Lanka’s controversial LNG deal purportedly with the US-based New Fortress Energy Inc, is reportedly falling part after opposition factions exposed serious anomalies in the infamous midnight agreement.

An explosive revelation has been made in parliament last year noting that the agreement for the LNG Plant in Kerawalapitiya was not signed with New Fortress Energy, but with a separate company.

The government has in fact signed it with NFE Sri Lanka Power Holding LLC., and not New Fortress Energy Inc.

“On the 21st of September 2021, New Fortress Energy Inc in a press release announced that it executed a definitive agreement for New Fortress’ investment in West Coast Power Limited (“WCP”), the owner of the 310 MW Yugadanavi Power Plant based in Colombo, along with the rights to develop a new LNG Terminal off the coast of Colombo, the capital city.

As part of the transaction, New Fortress will have gas supply rights to the Kerawalapitya Power Complex, where 310 MW of power is operational today and an additional 700 MW scheduled to be built, of which 350 MW is scheduled to be operational by 2023.

However, concerns are now mounting over this agreement, which was also dubbed as the midnight deal, by the opposition parliamentarians.

The “Green Agriculture programme” of the government being carried out by the government has back fired pushing the island nation into a famine and dwindling food reserves with people and farmers cursing against the present ruling party.   

How ever Agriculture Minister Mahindananda Aluthgamage has vowed to stand by President Gotabaya Rajapaksa to continue the Green farming even if it affects his political image.

He said during a meeting with officials attached to the Agriculture sector that a “wrong advice given by various persons had resulted in a crisis in the agriculture sector. 

The UN Assistant Secretary-General Kanni Wignaraja also commended Sri Lanka’s green agriculture program.

This was conveyed by Wignaraja when she called on President Gotabaya Rajapaksa on Wednesday 04..

Wignaraja serves as the United Nations Development Program’s (UNDP) Assistant Administrator and Director of the Regional Bureau for Asia and the Pacific.

According to the President’s Media office, Wignaraja said Sri Lanka was ranked 87th out of 165 countries in the 2021 Sustainable Development Report, moving seven points ahead from the previous year’s ranking. 

The President said that a comprehensive mechanism had been set up for this purpose, including the Presidential Task Force on Economic Revival and Poverty Alleviation and the Presidential Task Force on Creating a Green Sri Lanka and Sustainable Solutions to Climate Change.

In the wake of wide spread protests and agitation campaigns of the people, the government has  abandoned its quest to become the world’s first completely organic farming nation n, announcing it would immediately lift an import ban on pesticides and other agricultural inputs with effect from November 21 in 2021.

The island country has been in the grips of a severe economic crisis, with a lack of foreign exchange triggering shortages of food, crude oil and other essential goods.

Authorities had already walked back restrictions on fertiliser imports for tea, the country’s main export earner.

But ahead of planned farmer protests countrywide  Sri Lanka’s agricultural ministry said it would end a broader ban on all agro chemicals including herbicides and pesticides

Vast tracts of farmland were abandoned after the import ban, first introduced in May.

Shortages have worsened in the past week, with prices for rice, vegetables and other market staples having doubled across Sri Lanka.

Supermarkets have also rationed rice sales, allowing only five kilograms (11 pounds) per customer.

President Gotabaya Rajapaksa had justified the import ban by saying he wanted to make Sri Lankan farming 100 percent organic.

The policy was introduced after a massive hit to the cash-strapped island’s economy in the wake of the Covid-19 pandemic, with tourism earnings and foreign worker remittances drastically falling. 

Authorities attempted to save foreign exchange by last year banning a host of imported goods, including some food and spices.

Sri Lanka also shut its only oil refinery last month after running out of dollars to import crude.

With a view of promoting green agriculture despite mounting public protests, two Chinese companies were given an order  to supply organic fertiliser but  the samples that these Chinese companies sent, both were contaminated. 

That is, both of them had chemicals and they were not organic at all, meaning that the plan again failed. 

Now, under increased pressure, the government had no option but to approach India and the Indian organisation IFFCO that is Indian Farmers Fertiliser Cooperative Ltd was asked to export their liquid nano and fertiliser to Sri Lanka.

 This liquid nano fertiliser from IFFCO has been tested to be completely organic. However, the nitrogen content in this liquid fertiliser is much lower than what the farmers actually required. 

2.5 litres of this product only provides 100 grams of nitrogen. When the paddy crop requires at least 50 kg of nitrogen, which is much higher than what was given to them by the government. 

However, since there was no other option, IFFCO got into the action with the help of the Indian government and they have started supplying this liquid fertiliser to Sri Lanka, which has now been given to their farmers. 

As expected, this has resulted in a much lower production of food grains in the country, forcing the Sri Lankan government to import food from outside.

The Sri Lankan government is importing food from outside, which again would not be organic, which means the same thing could have been produced in Sri Lanka itself if the government would not have banned these things.

 Realising its mistake, the Sri Lankan government on the 24th of November lifted the ban on chemical fertilisers and allowed the private sector to import this. But the impact of lesser grain production will be seen in Sri Lanka in the coming weeks as well.

As the story ends here, but there’s a very interesting side about this story. That is, it gives a chance for India to revive its relationship with Sri Lanka.

When the Sri Lankan government needed organic fertilisers, they asked two Chinese companies to import them. 

Now, what happened was these Chinese companies were told that you send your fertilisers to Sri Lanka and after the fertilisers come here, people’s bank of Sri Lanka, which is also in China, will release the money to it. 

So when they sent their fertilisers and Sri Lanka check that they are not organic, there is contamination, obviously, the People’s Bank of Sri Lanka refused to give them the money, 

leading to the Chinese government becoming very angry. So angry that China has blacklisted the People’s Bank of Sri Lanka. Thus  deteriorating the diplomatic relations between the two countries.

The Republic of Korea is continuing its assistance to Sri Lanka with renewed interest in extending its support to improve Education and Infrastructure transportation, water resources, sanitation and regional development in Sri Lanka this year, Foreighn Ministry sources said. 

Sri Lanka is one of Korea’s priority ODA cooperation partner countries among all other countries with the Sri Lanka office of KOICA has ben assisting and funding  commercial and infrastructure projects in various fields including above mentioned sectors.

 For instance, in March 2021, KOICA partnered with the UN World Food Program (WFP) to support the Sri Lankan Government with a funding worth USD 600,000 (LKR 117 million) to procure maize for the production of Thriposha amid COVID-19.

Korea Eximbank also contributes massively to the development of our bilateral relations. Recently the Framework Arrangement between Korea and Sri Lanka has been signed for 2020 and 2022 with the commitment amount of half a billion US Dollars. 

Korea  ha staken strenuous efforts in successful planning, designing and implementation of the Deduru Oya Water Supply Project which was handed over to the Sri Lankan Government on May 21, 2021.

Foreign Minister Prof. G. L. Peiris held discussions on further srenthening bilateral ties between the two countries in Seoul with Deputy Prime Minister and Minister of Education of the Republic of Korea Yoo Eun-hye recently.

Minister Peiris referred to extensive economic cooperation between the two countries, especially Overseas Development Assistance led by KOICA and the EXIM Bank of ROK. Minister Peiris expressed appreciation of the benefits derived by Sri Lanka from these programmes.

The Foreign Minister, referring to the 22,000 Sri Lankans employed in ROK, mentioned the popularity of teaching programmes directed at proficiency in the Korean language in Sri Lanka.

 He said that the Korean language had been adopted as a subject for the G.C.E. (Advanced Level) Examination in Sri Lanka in 2023.

Deputy Prime Minister Yoo Eun-hye, responding to Foreign Minister Peiris, said that the Government of ROK would consider extensive assistance for initiatives in the field of vocational education and training in Sri Lanka.

Korean investors are  exploring  more opportunities in Sri Lanka, especially in the key sectors including agriculture, renewable energy, LNG, infrastructure, digital economy etc. 

When it comes to Sri Lankan exports to Korea, apparel products such as leather, fabric, and other agricultural items make a significant contribution to the Korean economy.

Sri Lankan tea is very popular among Koreans for its high quality and distinct taste. The SLIF – 2021 themed “Sri Lanka: Asia’s Next Growth Haven” which was held recently to bolster investment opportunities and uplift foreign investment flows was a great success. 

More than 100 Korean investors participated in this forum and expressed their interest to invest in Sri Lanka.

The engagement in labour cooperation has also been impressive in recent years. Around 20,000 Sri Lankan employees are in Korea. Around US$ 520 million were transmitted by them from Korea to Sri Lanka in 2019. 

They greatly contribute to the economic advancement of both countries. Due to the COVID-19 outbreak, the process of departure to Korea for employment was suspended. 

 Sri Lankan employees in Korea are a great asset to strengthen the economic and commercial ties of both countries. If COVID-19 subsides, I hope to further expand our labour relations, Koreandiplomatic sources revealed.