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President to attend World Government Summit in UAE

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February 06, Colombo (LNW): President Anura Kumara Dissanayaka will embark on an official visit to the United Arab Emirates (UAE) from February 10 to 13, 2025, following an invitation from the President of the UAE, Mohamed Bin Zayed Al Nahyan.

The primary purpose of the visit is for President Dissanayaka to participate in the prestigious ‘World Government Summit 2025’, which is set to take place in Dubai.

During his time at the summit, President Dissanayaka is expected to deliver a key address, contributing to the global discussions on governance, innovation, and the future of public administration.

In addition to his participation in the summit, he will also engage in high-level bilateral talks with President Mohamed Bin Zayed Al Nahyan.

These discussions will cover a wide range of topics of mutual interest, aimed at deepening the existing cooperation between Sri Lanka and the UAE.

President Dissanayaka’s visit will also see him meeting with UAE’s Vice President and Prime Minister, Sheikh Mohammed bin Rashid Al Maktoum, to discuss further strengthening of the bilateral relationship between the two nations.

In addition to the meetings with UAE officials, President Dissanayaka is scheduled to hold bilateral discussions with heads of state and government from various countries attending the summit, further broadening Sri Lanka’s international diplomatic reach.

Furthermore, President Dissanayaka plans to meet with CEOs of major global companies across several sectors, including information technology, artificial intelligence, energy, tourism, finance, and media.

These engagements are strategically aimed at attracting foreign investments to Sri Lanka, fostering economic growth, and enhancing Sri Lanka’s position on the global business stage.

The Ministry of Foreign Affairs has emphasised that this diplomatic mission will contribute substantially to Sri Lanka’s international relations and economic development goals.

Mainly fair weather to prevail across most parts of island (Feb 06)

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February 06, Colombo (LNW): Except for a few showers in Galle, Matara, Kaluthara, Rathnapura, Ampara, Matale and Badulla districts in the evening or night, mainly fair weather will prevail over the island, the Department of Meteorology said today (06).

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, Uva and North-central provinces and in Galle, Matara and Kurunegala districts during the morning.

Marine Weather:

Condition of Rain:
Mainly fair weather will prevail over sea areas around the island.
Winds:
Winds will be north-easterly and speed will be (20-30) kmph. Wind speed can increase up to (40-45) kmph at times in the sea areas off the coast extending from Colombo to Mannar via Puttalam and from Matara to Pottuvil via Hambantota.
State of Sea:
The sea areas off the coasts extending fromColombo to Mannar via Puttalam and from Matara to Pottuvil via Hambantota will be fairly rough at times.

Demise of Two Business Magnets Sends Shockwaves in SL corporate sector

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By: Staff Writer

February 05, Colombo (LNW): Sri Lanka’s corporate world is mourning the loss of two distinguished business leaders, Ken Balendra (85) and Harry Jayawardena (82), both of whom passed away yesterday after brief illnesses.

Their untimely demise on the same day has sent shockwaves across the country, with thousands paying tribute to their immense contributions to the national economy. Both were widely regarded as self-made legends who left an indelible mark on the private sector, serving as role models for aspiring entrepreneurs and professionals alike.

Ken Balendra, a dynamic corporate figure, held numerous leadership roles in Sri Lanka and beyond. He was the first Sri Lankan Chairman of John Keells Holdings Ltd., the nation’s largest conglomerate.

Affectionately known as ‘Ken’ to some and ‘Bala’ to others, he excelled as a schoolboy rugby player at Royal College Colombo, later coaching Royal Rugby team   and playing for CR & FC club.

His journey began in 1963 as a planter at Finlays, a well-established tea and horticultural trading company. In 1969, he joined John Keells Holdings—then known as John Keells Thompson White Ltd.—where his expertise as a tea broker led to his appointment as Director in 1974.

He eventually became Chairman in 1990, the first Sri Lankan to hold the position, and played a pivotal role in transforming the company from a colonial-era tea broker into the country’s most diversified corporate giant. Under his leadership, John Keells experienced unprecedented growth and expansion.

Beyond John Keells, Balendra served as Chairman of The Ceylon Chamber of Commerce, the Bank of Ceylon, the Ceylon Tobacco Company, the Securities and Exchange Commission, and the Insurance Board of Sri Lanka. I

n 2000, he was named the inaugural President of the Sri Lanka Institute of Directors. His contributions were recognized with the national honor of ‘Deshamanya’ in 1998, and he was later appointed Honorary Consul General of Poland in Sri Lanka.

He also received the prestigious Cavaliers Cross of the Order of Merit of Poland in 2007 and was named ‘Sri Lankan of the Year’ in 1998. In 2003, he was voted Sri Lanka’s Most Effective Business Leader since independence.

Harry Jayawardena, another towering figure in Sri Lanka’s business community, was the Founder Director and Chairman/Managing Director of the Stassen Group of Companies.

Known for his astute business acumen, he played a crucial role in the growth of numerous enterprises. He took the helm as Chairman of the Distilleries Company of Sri Lanka in 2006, after serving as its Managing Director for nearly two decades.

His leadership extended to various industries, including Melstacorp PLC, Aitken Spence PLC, Lanka Milk Foods (CWE) PLC, and Lanka Bell, among others.

Jayawardena also held key positions outside the private sector, including being a former Director of Hatton National Bank PLC and serving as Chairman of both the Ceylon Petroleum Corporation and SriLankan Airlines.

His international contributions were recognized when he was appointed Honorary Consul for Denmark and awarded the prestigious ‘Knight’s Cross of Dannebrog’ by Queen Margrethe II of Denmark. In 2005, he was honored with the national title of ‘Deshamanya’ for his outstanding services to Sri Lanka.

The passing of these two esteemed business leaders represents a significant loss to Sri Lanka’s economy and corporate sector.

Their visionary leadership, strategic decision-making, and unwavering commitment to national development helped shape the country’s business landscape for decades.

Their absence leaves a void that will be difficult to fill, and their contributions will be remembered for generations to come.

The nation mourns the loss of two trailblazers who not only built thriving enterprises but also inspired countless individuals to strive for excellence in business and beyond.

Government forms an advisory committee to address the difficulties faced by MSMEs

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By: Staff Writer

February 05, Colombo (LNW): Micro, Small, and Medium-sized Enterprises (MSMEs) form the backbone of Sri Lanka’s economy, contributing significantly to employment and economic growth. However, many of these businesses face severe financial constraints, particularly in loan repayments.

 The implementation of the Parate Law—a provision that allows banks to seize collateral without court intervention—has raised concerns about its impact on MSMEs struggling with debt. To mitigate these challenges, the government has initiated key reforms aimed at striking a balance between financial stability and business sustainability.

Formation of an Advisory Committee

The Finance Ministry has announced the formation of a special advisory committee to address the difficulties faced by MSMEs in the enforcement of the Parate Law.

This committee will develop sustainable solutions and formulate policy guidelines to ensure a more balanced approach to loan recovery while supporting business continuity. It will operate under the Ministry of Finance, Planning, and Economic Development in collaboration with the Industry and Entrepreneurship Development Ministry, incorporating insights from both public and private sector representatives.

Comprising 14 members, the committee will include seven government officials and seven experts in MSME development, nominated by the Industry and Entrepreneurship Development Ministry. Their objective will be to ensure practical and effective interventions that facilitate comprehensive policymaking.

Enhancing MSME Access to Finance

Recognizing the financing difficulties MSMEs face, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and other professional accountancy bodies are working on introducing a credit scorecard and rating mechanism.

This initiative aims to improve MSME access to credit by providing a transparent assessment of creditworthiness. Additionally, the National Credit Guarantee Institute Ltd. (NCGIL) will play a critical role in offering loan guarantees to ease financial burdens on small enterprises.

Relief Measures for Financially Distressed MSMEs

A relief package has been introduced to assist businesses that secured loans from licensed banks and have been classified under the Stage 3 (non-performing) loan (NPL) category after April 1, 2019. The measures include:

Postponement of Parate Law enforcement through a structured approach to delay implementation.

Grace periods for loan repayments:

12 months for loans below Rs. 25 million

9 months for loans between Rs. 25 million and Rs. 50 million

6 months for loans above Rs. 50 million

Loan interest relief: Unpaid interest for loans ranging from Rs. 5 million to Rs. 25 million may be written off based on repayment timelines.

Extended repayment period: Borrowers may now be granted a maximum 10-year repayment term if their original loan agreement did not provide for it.

Fair property valuation: A formal dispute resolution mechanism will be introduced to ensure that borrower properties receive the highest possible valuation during auctions.

Working capital loans: Eligible MSMEs can access working capital loans, provided they submit a business revival plan.

Concessional Banking Unit: A dedicated banking unit will be established to facilitate loan restructuring, making financial assistance more accessible.

With these measures, the government aims to create a more supportive financial environment for MSMEs, ensuring that businesses can recover while financial institutions maintain stability. These reforms reflect a concerted effort to strike a balance between financial recovery and sustainable business growth.

Sri Lanka Bets Big on Casinos with City of Dreams Set to Open in 3Q 2025

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By: Staff Writer

February 05, Colombo (LNW): Sri Lanka is making a major push into the casino industry with the upcoming City of Dreams in Colombo, set to be operated by Melco Resorts & Entertainment. 

The highly anticipated gaming and entertainment hub is expected to commence operations in the third quarter of 2025, according to its local partner, John Keells Holdings (JKH).

This project, which marks South Asia’s first integrated resort, aims to capitalize on India’s rising wealth and outbound tourism. 

However, financial analysts at Morgan Stanley caution that while Indian tourists show strong interest in travel and leisure, they historically spend less on gambling compared to Chinese tourists, as seen in markets like Singapore.

A Billion-Dollar Investment

The City of Dreams Sri Lanka represents a significant $1.2 billion investment, making it the largest private sector project in the country’s history. 

JKH, a veteran in Sri Lanka’s hospitality industry through its Cinnamon brand, has been a key player in the development, ensuring a seamless blend of luxury accommodation and entertainment.

Melco, which secured a 20-year casino license in April 2024, will oversee the 180,000-square-foot casino and the 113-room Nuwa ultra-luxury hotel. 

The resort’s commercial spaces have already begun operations, and the full-scale launch—including a shopping mall, entertainment areas, and high-end dining options—is scheduled for mid-2025.

Casino-Driven Revenue & Growth Prospects

Melco’s investment in the project stands at $125 million, which the company considers a “small wager” with strong potential for returns. The casino is projected to generate a gross gaming revenue (GGR) of $200 million to $250 million annually.

 Analysts suggest that 50% of the resort’s EBITDA will likely stem from casino operations. However, to meet profitability expectations, GGR must exceed $300 million, ensuring a post-tax cash flow of $30 million for Melco.

Meanwhile, JKH has committed $900 million to the venture, aiming for a 15% return on invested capital (ROIC) and an annual cash flow of $100 million.

Tourism & Employment Impact

Beyond financial gains, the City of Dreams is expected to be a game-changer for Sri Lanka’s tourism industry. 

The development will create over 20,000 direct and indirect jobs, bolster foreign exchange earnings, and attract high-net-worth visitors. JKH’s 687-room Cinnamon Life hotel, which opened in October 2024, will further enhance the destination’s appeal.

Melco’s Chairman and CEO, Lawrence Ho, has hinted at the possibility of expanding gaming facilities based on market performance. 

As Sri Lanka positions itself as a premier gaming and entertainment hub in South Asia, this project is set to redefine the country’s tourism and leisure sector.

With its grand opening approaching, all eyes are on City of Dreams, as it could be the catalyst for Sri Lanka’s transformation into a top casino tourism destination in the region.

Sri Lanka’s Business Confidence Index Reaches New High amid Economic Optimism

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By: Staff Writer

February 05, Colombo (LNW): The February issue of LMD, a leading business magazine, highlights a significant surge in the Business Confidence Index (BCI) for the fourth consecutive month, reflecting strengthened economic indicators.

According to the latest LMD-PEPPERCUBE report, the BCI climbed by 24 basis points in January, reaching its highest level since 2015.

The index is now approaching its all-time record of 204, which was set in September 2015 following a General Election.

LMD notes that this remarkable rise places the index 75 points above its historical median of 123 and 79 points higher than its 12-month average of 119. For comparison, the BCI was at just 82 basis points in January of the previous year.

The report attributes this surge in business confidence to improvements in Sri Lanka’s foreign exchange reserves, a more stable currency, and increased export activity. These positive economic shifts have bolstered market sentiment, PepperCube Consultants notes in the magazine.

However, LMD cautions that the trajectory of the index will depend heavily on the upcoming Budget 2025, set to be presented in late February.

A spokesperson for the magazine points out that how the budget influences businesses will determine whether the index continues its upward momentum or stabilizes.

There is speculation that the BCI might even surpass its previous record ahead of the budget announcement, depending on how the proposals are received by corporations and whether the government fulfills its election promises.

Another crucial factor influencing economic confidence is Sri Lanka’s adherence to the IMF-backed economic framework.

The sustainability of this approach remains uncertain, raising questions about its long-term impact on businesses.

Additionally, the possibility of local government elections in the near future adds another layer of unpredictability to the economic landscape. LMD predicts that the coming months will likely bring both uncertainty and speculation, though there is potential for the BCI to reach record highs before eventually stabilizing.

At the recent Sri Lanka Economic Summit, organized by the Ceylon Chamber of Commerce (CCC), President Anura Kumara Dissanayake outlined his administration’s plans for large-scale privatization and public sector downsizing.

His government remains committed to attracting increased foreign investment and advancing the Economic Transformation Act (ETA)—a framework initially introduced under former President Ranil Wickremesinghe in alignment with IMF directives.

While some amendments will be made to facilitate smoother implementation, the government’s overall economic strategy remains focused on restructuring state-owned enterprises (SOEs).

President Dissanayake emphasized that barriers to foreign investment will soon be lifted, and approval processes will be streamlined, reducing waiting periods to approximately six months.

The government is also considering the creation of a holding company for multiple SOEs, with the intention of listing shares on the stock market.

However, privatization efforts have historically faced strong resistance from the working class, leading to protests and strikes in recent years.

 Despite opposition, the current administration appears determined to push forward with its economic restructuring plans, arguing that underperforming state-owned enterprises place an excessive financial burden on the government.

As Sri Lanka navigates these economic reforms, the business community remains watchful of how these policies unfold.

The next few months will be critical in shaping investor confidence and determining whether the BCI continues its remarkable ascent or stabilizes in response to evolving economic conditions.

Prof. Neelika Malavige appointed President-Elect of ISID

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February 05, Colombo (LNW): Professor Neelika Malavige has been named the President-Elect of the International Society for Infectious Diseases (ISID), a prestigious position she will officially assume in 2027, the University of Sri Jayawardenapura said.

Each term in the role lasts for two years, and her appointment reflects the high regard in which her work is held globally.

A renowned expert in the field of infectious diseases, Professor Malavige has made invaluable contributions, particularly in the areas of COVID-19 testing, viral sequencing, and the identification of emerging virus strains.

Her pioneering research has significantly advanced the understanding of the molecular epidemiology of SARS-CoV-2, especially in Sri Lanka, where her work played a critical role in tracking and studying the virus’s spread.

In recognition of her exceptional scientific achievements, Professor Malavige was recently named among the top 2% of scientists worldwide, as ranked by Elsevier-Stanford.

This acknowledgment places her in an elite group of researchers, underlining the global impact of her work.

Beyond her research on COVID-19, Professor Malavige has also conducted extensive studies into dengue fever, with a focus on its immunopathogenesis, biomarkers, and immune responses related to protection.

Her contributions to clinical trials and molecular research have been instrumental in advancing the global understanding of dengue, a disease that continues to affect millions around the world.

Fewer drug quality failures in 2024, but stricter controls expected

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February 05, Colombo (LNW): The number of drug quality failures in 2024 was notably lower compared to the previous year, according to the Medical Supplies Division of the Ministry of Health.

A total of 87 drug quality failures were reported in 2024, with the majority of the problematic products being imported from India.

Of the drugs that did not pass quality tests, approximately 47 were sourced from India, while 12 had been produced locally.

The remaining substandard drugs came from various countries, including China, Kenya, Pakistan, Japan, and Bangladesh.

Some of these drugs have been withdrawn from circulation, while others have been withheld or discontinued altogether in an effort to safeguard public health.

The issue of substandard drugs gained widespread attention in 2023, when the country experienced its highest-ever number of quality failures, with 124 incidents reported.

These failures contributed to a number of serious health complications and, in some cases, fatalities, prompting urgent calls for reform within the pharmaceutical supply chain.

As of early 2025, there have already been 13 drug quality failures reported, a figure that has raised concerns despite the relative reduction compared to the previous year.

In light of these ongoing challenges, a senior official from the Ministry of Health has confirmed that steps are being taken to tighten regulations around drug imports.

These measures include enhanced quality control protocols and more frequent testing of pharmaceutical products before they reach the market.

The Ministry is also planning to increase its scrutiny of pharmaceutical suppliers, ensuring that only the highest quality products are allowed into the country.

Major General Chandana Wickramasinghe appointed Chief of Staff of Sri Lanka Army

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February 05, Colombo (LNW): Major General Chandana Wickramasinghe has been appointed as the new Chief of Staff of the Sri Lanka Army, a role he will officially take up on February 09, 2025.

His appointment follows an extensive and distinguished military career, during which he has held several key positions within the Army.

Prior to his new role, Major General Wickramasinghe served as the Deputy Chief of Staff of the Sri Lanka Army.

He also held the position of Director General of General Staff at Army Headquarters, where he played a critical role in overseeing military operations and strategic planning.

Wickramasinghe’s military journey began with his training at the prestigious Indian Military Academy, where he completed the Regular Intake 87 course. He further honed his skills at the Sri Lanka Military Academy, completing Intake 31 before receiving his commission as a Second Lieutenant.

His initial posting was with the Gajaba Regiment, where he served as an Infantry Officer, embarking on a path that would see him rise through the ranks due to his leadership and strategic expertise.

Labour Dept launches new appointment system for EPF registration

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February 05, Colombo (LNW): In a bid to streamline the registration process for the Employees’ Provident Fund (EPF), the Department of Labour has introduced a new programme designed to facilitate smoother registration for employees.

The initiative, called AH Registration, allows individuals to book appointments ahead of time, ensuring a more organised and efficient experience when registering for the EPF.

H. K. K. A. Jayasundara, the Commissioner General of Labour, announced that those wishing to register can now easily schedule an appointment by calling the designated number, 011 2202 201.

He emphasised that this advance booking system would significantly reduce wait times and help applicants complete the registration process without unnecessary delays or complications.

By offering a structured approach to registration, the Department of Labour aims to improve efficiency and accessibility for all individuals seeking to participate in the fund.