Leader of the Opposition Sajith Premadasa condemned the hypocrisy of government ministers stating that those who urge the public to go to their working places by foot bicycles are enjoying the luxury of V8 vehicles.
The Opposition Leader made this observation while speaking to the occasion of donating a three-wheeler to the Meegoda Ayurvevdic Hospital as part of the ‘Jana Suwaya’ project of the ‘Samagi Jana Balawegayen Husmak’ initiative undertaken by the Samagi Jana Balawegaya today (27).
Chairmen government state-run institutes are frequently resigning due to theft, bribery, corruption and fraud, the Opposition Leader noted.
Premadasa pointed out that he had added value to the country as the Opposition by changing the obsolete politics at a time when Sri Lanka was suffering from a massive pandemic and invited all other political forces to join him.
The world’s largest stock market in the US has already lost 10 percent of its value in the first few weeks of this year as Joe Biden’s administration come under mounting pressure. Stocks in the global superpower have tumbled as fears continue over potential interest rate hikes, which have spooked “growth” investors who are now backing businesses that are expanding rapidly but often generate little to no profit. Historically, interest rate hikes have sent forecast profits plunging, meaning companies promising future rewards are less appealing to investors around the world.
On Tuesday, the FTSE 100 dropped 2.6 percent while the FTSE 250 plunged 3.6 percent as increasing fears of conflict between Russia and Ukraine, as well as the prospect of higher interest rates, spooked investors.
In a day of turmoil in the City of London, that had wiped £68billion off the value of Britain’s 350 leading listed companies.
But a totally different story is unfolding in China – home to the world’s second-largest economy behind the US – where shares in the country are quickly gaining ground.
Hong Kong’s Hang Seng index has overtaken the American benchmark S&P 500, reporting gains of six percent since the start of this year.
In a major boost for China, its central bank has cut a key interest rate for the first time in almost two years in a huge attempt to inject significant momentum into the economy.
The move has improved the outlook of shares following a controversial crackdown on regulations in 2021 that saw some of the biggest companies in China take a massive hit.
Paris Jordan, of the wealth manager Waverton, explained: “China is one of the few countries that is cutting rates, with most developed nations tightening their monetary policy.
“As such, this could be a tailwind for the stock market and appears to have created an attractive buying opportunity.”
Global financial crash: US stock markets have struggled this year (Image: GETTY)
Sharukh Malik, manager of the Guinness Best of China fund, said stocks in the country appeared cheap on a historic basis.
The expert said: “At a 12.6 times multiple of 2022 earnings, they are valued at an eight percent discount to the average over five years, since the big technology stocks were added to the index.
“There is little future growth priced in, though market earnings are forecast to grow 16 percent a year in 2022 and 2023.
“This is faster growth than the wider Asian region, faster than Europe and faster than the US and yet is valued much lower.”
Ms Jordan pointed to the £1.7billion Fidelity China Special Situations as a popular pick among DIY investors.
This has also lost 28 percent of its value over the past year following the tighter regulation in China that battered the technology sector and saw top holdings Tencent and Alibaba take a hit.
But both stocks are now bouncing back and are up three percent and four percent respectively since the start of the year.
In contrast in the US, tech giants such as Microsoft and Google have seen their market value sink by more than a tenth.
Global financial crash: US fears continue over potential interest rate hikes (Image: GETTY)
Ms Jordan said: “It is likely Chinese tech companies have passed peak regulation and a recovery in the shares could be expected after a disastrous 2021.
“Fidelity China should benefit from this.”
Some managers have highlighted British and European firms with high exposure to China as those that could interest investors looking to profit more indirectly from economic in the Asian superpower.
Rob Burgeman of the wealth manager Brewin Dolphin picked out luxury retailer Louis Vuitton Moet Hennessy, which saw a third of its profits come from Asia (excluding Japan) during its 2020 financial year.
A recent strategic restructuring of insurance firm Prudential could also see it benefit, according to Mr Burgeman.
He said: “It now derives the majority of its income from Asia following the spinning off of M&G in the UK and the sale of its North American arm, Jackson.
“Over the long term, it should benefit from the strong growth in China and Asia, more generally.”
The Japanese Government will be assisting Sri Lanka to reduce the use of polythene and plastics and provide technical assistance in recycling them, the Japanese Ambassador to Sri Lanka Hideaki Mizukoshi said.
He made the comments after meeting with the Environment Minister and the Ministry Secretary at the Ministry to discuss environmental issues after assuming his duties in Sri Lanka.
The Ambassador appreciated the programmes that are already in place to protect the environment, like reducing carbon emissions, reducing the use of plastics and polythene, and reducing the accumulation of polythene and plastics in the oceans by preventing the entry of polythene and plastics into the ocean under the Surakimu Ganga programme.
During the discussion, the Ambassador also spoke on the successful programmes currently in place for the recycling of polythene and plastics in Japan, as well as the new technology being used for this purpose.
He said that a team from Sri Lanka could be sent to Japan for this purpose and that they would be allowed to gain new technical knowledge and experience.
It has been revealed that the 100-year-old ‘Marubeni’ Company of Japan is planning to invest in the construction of a wind power plant in Mannar.
“The concept of utilising renewable energy sources is very close to the Japanese economy. Therefore, Japan is assisting Sri Lanka to develop renewable energy sources,” Foreign ministry sources added.
Every effort was made by Japan to uplift the tourism industry in the country. Despite the collapse of the tourism industry with the spread of the coronavirus, the tourism industry in Sri Lanka is seeing resurgence under the new normalisation situation.
In that context, Sri Lanka expects more Japanese tourists to visit Sri Lanka in the future adding that the Embassy of Sri Lanka in Japan has prepared a special program for this purpose.
a large number of Japanese tourists will visit Sri Lanka in the near future due to these tourism promotion programs which are being carried out with the direct interference of the Embassy,” foreign ministry sources added.
Oil tanker ‘Sunny Bay’ carrying 15,000 metric tons of Marine Gas Oil (MGO), called at the Hambantota International Port (HIP), the first to discharge MGO for storage at the port’s tank farm.
HIP, with its global partner Sinopec, launched bunkering operations for VLSFO last year. Now, with the tank farm along with its oil jetties fully refurbished and FSS certified for safety by the Lloyd’s Register, HIP is ready to utilise the storage facility allocated for MGO and MDO (Marine Diesel Oil).
The port which received their first MGO shipment is now capable of providing a full complement of bunkering fuels to its customers, positioning as a strategic bunker operator in the region.
Benchmarking international standards, HIP has also set up a state of the art Petroleum Testing laboratory in partnership with leading global independent inspection service provider Intertek Lanka, to provide innovative and bespoke assurance, testing, and inspection and certification services for bunker fuels, LPG, LNG and other petrochemical products.
The laboratory located within the port premises, is classified as a truly international facility capable of testing IMO 2020 global Sulphur protocol.
CEO of HIPG Johnson Liu says, “With our Lloyds certified oil storage facility and state of the art testing capabilities, HIP has the overall capacity to add great value to customers.
He said “With our location in the Indian Ocean rim, where 50% of the world’s maritime oil is traded, our oil fuel bunker, LPG and future LNG operations, we are securing the Hambantota Port’s rightful place as a global maritime location.”
The lab testing facility will enable HIP clients to get their products such as fuel oil, marine diesel and marine gas oils tested efficiently and with ease, at the bunker terminal site, ensuring that products meet the required international quality standards.
The port’s dedicated professional team ensures safe operations of the oil tank network, ancillary pipelines, oil berth jetties, and control systems, which are on par with international standards. All supporting facilities for operational safety are in place such as a wholly functional firefighting system and wastewater treatment facility.
HIP’s location in close proximity to one of the busiest sea routes coupled with the port’s partnership with top global player Sinopec to provide IMO 2020 compliant high quality fuel oils, makes Sri Lanka’s energy market more competitive while benefiting Sri Lankan players supplying bunkers for vessels.
Once commenced HIP will cater to the second highest demand in the maritime industry. The MGO supplied by the port is of very high quality, compliant with ISO 8271 standard and can also be provided to overseas locations such as the Maldives.
The Sinopec group, the port’s bunker partner, was ranked 2nd in the Fortune Global 500 list in 2020, and a global leader in the fields of oil exploration, production, refining, marketing, and distribution.
The partnership between SINOPEC International Petroleum Services Corporation and HIPG, will not only benefit the two parties and their international clientele, but will boost the Sri Lankan oil and gas industry, which will see the highest standards in terms of quality, knowledge and expertise.
The Public Utilities Commission is scheduled to decide today (27) whether to allow a power cut or not.
Chairman of the commission Janaka Ratnayake stated that a decision will be taken after the commission meets this afternoon to review the situation.
According to a review conducted by the Public Utilities Commission on the 25th, it was decided not to carry out any power cuts till today.
However, the Kelanitissa Sojitz private power plant has been shut down due to maintenance work and the national grid has lost 162 megawatts of electricity.
It is reported that MCC Ferdinando, who submitted his resignation letter to the President yesterday (26) to resign from the Chairman post of the CEB, is to be appointed as the Secretary to the Ministry of Power and Energy.
During Mahinda Rajapaksa’s presidency, Ferdinando also served as the Secretary to the Ministry of Power and Energy due to a conflict with the then Minister in charge of the subject, Patali Champika Ranawaka.
However, as he had handled the trade unions better during his tenure as the Secretary to the Ministry, the government is considering re-appointing him to the post.
According to sources, Ferdinando has been invited by the government to take over the post of Secretary to the Ministry of Power and Energy, which is currently in a state of disarray.
He had moved to Australia after the fall of the previous Rajapaksa government in 2015 and was repatriated after winning the 2019 presidential election to assist in fulfilling the responsibilities of the new government.
It is reported that a very serious allegation has been leveled against the Minister of Public Defense Sarath Weerasekara before President Gotabhaya Rajapaksa.
This is in connection with accepting bribes of Rs. 300,000 each for the transfer of OICs.
The best example of this is the transfer of the former Kosgama OIC to Headquarters Inspector of Police – Avissawella and many more such incidents have been reported.
The IGP has also informed the President that it will be difficult for him to maintain police discipline if this situation continues.
Sarath Weerasekara is currently receiving treatment at the IDH for Covid infection and sources say that a large number of police personnel are expecting the President to take a decision in this regard as soon as he recovers.
The Ministry of Health states that 927 cases of Covid have been identified in the country yesterday (26).
It is clear that this is a huge increment over the situation two weeks ago. Two weeks ago, the number of daily Covid infections was between 500 and 600.
Accordingly, the health sector is urging the public to follow the health guidelines as the new Omicron Covid variety is spreading rapidly.
At present the Covid wards of the Colombo National Hospital are overcrowded and the National Institute of Infectious Diseases (IDH) is also overcrowded with covid patients. The need for intensive care units and oxygen is also on the rise, hospital directors told the media.
Sri Lanka has narrowed the trade deficit to US $ 553 million in November 2021, compared to the deficit of $ 600 million recorded in November 2020 exerting a significant impact on the currency and the economy, Central Bank announced.
The country’s total exports are actually manufactured, but almost half of those are garments. While garments are a good example of value addition, there is still substantial area for growth in this segment, several economic experts said.
However the country’s import restriction and dollar crisis affected many of the inputs that are imported from abroad – including both components such as zippers and the fabric itself – when much of it could potentially be manufactured in-country.
Opportunities also exist in Sri Lanka for more advanced processing of materials and manufactured goods, and some are being encouraged by Sri Lankan officials, they said.
However, local Sri Lankan commentators have cautioned that market interventions, such as price controls, are no substitute for structural reforms. Whether the solution to be recommended is value addition or some other option, the risk is that the efforts will be both costly and ineffective.
Structural reforms can help make the country more competitive while addressing the issue of the trade deficit without risking the unintended consequences of more interventionist measures.
While this may take more effort, the results could be greater and more sustainable in the long run.
The cumulative deficit in the trade account during January to November 2021 widened to $7,051 million from $ 5,446 million in the corresponding period of 2020.
Earnings from exports in November 2021 grew by 54.6 per cent over November 2020 to reach $ 1,211 million, and surpassed the previous highest value recorded in October 2021 ($1,200 million).
Meanwhile, import expenditure also increased at a higher rate in November 2021. Reflecting the favourable impact of increased exports, the merchandise trade deficit narrowed to $ 553 million in November 2021 compared to $ 600 million in November 2020.
Meanwhile, decreases in import expenditure were observed in dairy products (mainly milk powder), vegetables (mainly masoor dhal and big onions), oils and fats (mainly coconut oil) and seafood (mainly dried fish).
Intermediate goods: Expenditure on the importation of intermediate goods increased by 24.3 per cent (y-o-y) in November 2021, driven mainly by fuel, textiles and textile articles, rubber and articles, and plastics and articles thereof, Central Bank disclosed.
The Islamic Republic of Iran is ready to prepare the groundwork for providing Sri Lanka with technical-engineering services in all fields, especially energy.
Iran-Sri Lanka ties have always been friendly and close and today, with regard to the lift of sanctions, there are very good opportunities for developing relations between the two countries that can be taken advantage of to benefit the existing ties, foreign ministry sources said.
The banking relations between the two countries are to be further developed to establish a solid base for cementing economic and commercial ties.
In this current backdrop Iran’s Foreign Minister Hossein Amir-Abdollahian is to visit Sri Lanka next week for crucial talks, a senior foreign ministry official said.
According to reports, he is scheduled to arrive in Sri Lanka on Tuesday following a visit to India on Sunday.
The Iranian Foreign Minister’s visit to Colombo comes a month after Iran agreed to accept tea from Sri Lanka to settle outstanding payments for oil purchased from Iran.
The Ministry of Plantation of Sri Lanka and the Ministry of Industries, Mines and Trade of the Islamic Republic of Iran agreed last month to formulate a scheme for the settlement of dues to be settled following US sanctions on that country
A sum of US$ 250.92 million outstanding from the Ceylon Petroleum Corporation to the National Iranian Oil Company by means of utilizing the said sum to facilitate the export of Ceylon Tea to Iran by signing a memorandum of understanding (MoU).
The MoU is a form of mutual commitment in complimenting each other`s duties and function in the Formulation of a Scheme for the Settlement of Sri Lanka’s Oil Outstanding to the Islamic Republic of Iran through the Exportation of Ceylon Tea.
Iran is among the top 10 importing countries of Ceylon Tea for the past several decades.
Ceylon Tea which had a market share of around 47% in 2016 dropped to around 25% in 2020 due to the economic sanctions resulting in banking restrictions, payment problems and depreciation of Iranian Riyal.
From a peak of 38.42Mn Kgs in 2013, tea exports from Sri Lanka to Iran dropped to 14.73Mn Kgs in 2020.
Due to US sanctions imposed on Iran in November 2012 and with the absence of an accepted payment mechanism through the banking system, Sri Lanka tea exporters found it difficult to receive the export proceeds from Iranian buyers
Sri Lanka was bracing for the fallout from the tensions in the Middle East after the US and Iran launched what some termed a shadow war.
9 million kilograms of Ceylon Tea worth $ 129 million in 2018.Sri Lanka and Iran were also in talks over a tea for fuel repayment barter deal.
Once finalised, the deal was to see Sri Lankan export tea repay liabilities valued at approximately $ 240 million for oil imports from Iran..
Just recently, Iran had called for improved bilateral relations with Sri Lanka, including defence ties.
