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Sri Lanka Customs Imposes Rs. 33 Million Tax on Saudi-Donated Dates for Ramadan

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It was revealed that Sri Lanka Customs has imposed a tax of Rs. 33 million on a stock of dates donated by Saudi Arabia as a gift for the Ramadan fasting season.

The issue came to light during a media inquiry at the Cabinet press conference. Cabinet Spokesman, Minister Nalinda Jayatissa, stated that the government has decided to relax taxes on dates during Ramadan. However, he clarified that since the donated stock arrived before the tax relief decision was made, customs duties were imposed.

Minister Jayatissa assured that steps are being taken to provide the necessary relief following the Cabinet decision. The 50 metric tons of dates were part of Saudi Arabia’s annual donation to Sri Lanka’s Muslim community during the holy month.

President Dissanayake Proposes Structural Reforms for Loss-Making State Enterprises

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President Anura Kumara Dissanayake announced that the government is prepared to implement structural changes in state-owned enterprises (SOEs) that are operating at a loss. Speaking at the Sri Lanka Economic Summit 2025 in Colombo today (28), he revealed that a study is underway to explore the possibility of listing these enterprises on the Colombo Stock Exchange (CSE) through a holdings company.

“We are not viewing these enterprises from the old perspective. We are ready to make structural changes,” the President stated. He explained that the government is assessing whether merging certain enterprises and issuing shares on the stock market could be a viable solution. Additionally, the administration is considering restructuring corporations and boards to enhance efficiency.

The President acknowledged that some state enterprises perform overlapping functions, making consolidation necessary. “I will be frank—some enterprises are redundant. We may have to close some, merge others, and redefine the scope of certain institutions. We are currently working on identifying these,” he said.

The proposed reforms signal a significant shift in the government’s approach to public sector management, aiming to improve efficiency, reduce financial burdens, and attract investment through strategic restructuring.

UK Under-Secretary Catherine West Launches Export Handbooks to Boost Sri Lankan Trade

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Labour Party MP and Under-Secretary of State at the Foreign, Commonwealth and Development Office, Catherine West, was seen examining a Sri Lankan spice product during the launch of two UK-funded export handbooks. These handbooks, produced by the International Trade Centre, aim to assist Sri Lankan businesses in meeting export requirements for apparel, textiles, and agri-food products destined for the UK market.

The event was attended by Industry and Entrepreneurship Development Deputy Minister Chaturanga Abeysinghe and British High Commissioner Andrew Patrick. The initiative is expected to strengthen trade ties between Sri Lanka and the UK, providing local businesses with valuable guidance to access global markets.

Increase in Chikungunya Cases Among Children Reported, Says Paediatrician

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Lady Ridgeway Hospital’s Consultant Paediatrician, Dr. Deepal Perera, has raised concerns over a rise in Chikungunya cases among children in recent days. He stated that the disease is transmitted by Aedes aegypti and Aedes albopictusmosquitoes and can be managed with adequate rest and prescribed doses of paracetamol.

Dr. Perera outlined key symptoms of Chikungunya, including high fever, severe joint pain, muscle pain, and darkened skin around the nose. While the disease primarily affects adults, children are also at risk of transmission.

In addition to Chikungunya, Dr. Perera highlighted the prevalence of other diseases among children, such as dengue and childhood asthma. He emphasized the need for maintaining a clean environment to prevent mosquito breeding and reduce the spread of these illnesses.

The public is urged to take proactive measures to control mosquito populations and safeguard children from these potentially serious diseases.

Cabinet Approves Relaunch of “Sarusara” Rural Credit Scheme for Small-Scale Farmers

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Cabinet Spokesman and Mass Media Minister Dr. Nalinda Jayatissa announced yesterday that the Cabinet has approved the implementation of “Sarusara,” a revamped Rural Credit Scheme aimed at supporting minor and small-scale farmers engaged in short-term crop cultivation and gardening.

Addressing the media at the Government Information Department, Minister Jayatissa explained that the programme, originally introduced in 2020 by the Rural Development Department under the Central Bank of Sri Lanka, provided essential working capital assistance to farmers.

However, due to the enactment of the new Central Bank Act, which prohibits the Central Bank from operating concessionary loan schemes, the government has decided to relaunch “Sarusara” under the Development Finance Department of the Treasury starting in 2025.

The scheme is set to be an annual programme, ensuring consistent support for small-scale farmers. Its objectives include empowering rural farmers, fostering rural development, and strengthening the agricultural sector as a whole.

By reviving “Sarusara,” the government aims to provide crucial financial assistance to farmers, contributing to the overall growth of Sri Lanka’s agricultural economy and enhancing livelihoods in rural areas.

Sri Lanka Targets 4% Economic Growth in 2025: President Anura Kumara Dissanayake

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President Anura Kumara Dissanayake announced that Sri Lanka is poised to achieve an economic growth rate exceeding 4% in 2025. Speaking at the inauguration of the Ceylon Chamber of Commerce-hosted Economic Summit at the Shangri-La Hotel yesterday, the President outlined the government’s strategic focus on key sectors to drive this growth.

Highlighting tourism, shipping and logistics, and the ICT sector as priority areas, the President emphasized that the government will invest significantly in expanding the ports sector. Foreign Direct Investment (FDI) was also identified as a critical driver of rapid economic growth, and the government has introduced measures to streamline investment processes.

“Currently, it takes around 269 days from signing an agreement with the Board of Investment (BOI) to project execution, requiring approvals from 82 institutions, including 11 under the Ministry of Environment. We have now implemented systems to reduce this timeline to less than 82 days to attract more investors,” the President stated.

Addressing regional economic disparities, the President noted the importance of reducing the economic gap between the Western Province and other regions. He assured that the upcoming budget will include proposals to address these disparities and promote balanced development across the country.

The President’s remarks highlighted the government’s commitment to creating an investor-friendly environment, fostering regional equity, and leveraging key sectors to achieve sustained economic growth in 2025.

WEATHER FORECAST FOR 29 JANUARY 2025

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Cloudy skies can be expected over Southern part of the island.

Showers or thundershowers will occur at times in Northern, North-central, Eastern, Uva and Southern provinces and in Matale and Nuwara-Eliya districts. Fairly heavy showers above 50 mm can be expected at some places in the above areas.

Showers or thundershowers will occur at several places elsewhere in the evening or night.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Southern provinces during the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

UK Indo-Pacific Minister Catherine West Meets with Opposition Leader Sajith Premadasa

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United Kingdom’s Indo-Pacific Minister, Catherine West, met with Sri Lankan Opposition Leader, Sajith Premadasa, in Colombo today to discuss the country’s economic, social, and political challenges. The meeting was attended by Minister West’s Private Secretary, British High Commissioner to Sri Lanka, Andrew Patrick, and Second Secretary Alexander Smith.

Also present were Samagi Jana Balawegaya (SJB) representatives, including former MP Eran Wickramaratne, and Members of Parliament Harshana Rajakaruna, Mujibur Rahman, and Kavinda Jayawardena.

During the discussions, Opposition Leader Premadasa stressed the importance of international support to help Sri Lanka navigate its ongoing economic crisis. He also emphasized the need to boost tourism, particularly attracting more visitors from the United Kingdom, as a key step towards economic recovery.

The meeting underscored the commitment to strengthening the bilateral relationship between Sri Lanka and the United Kingdom, with a focus on addressing Sri Lanka’s critical national issues in a collaborative manner.

Special Traffic Plan Announced for Colombo Ahead of Independence Day Celebrations

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In preparation for the upcoming Independence Day celebrations, the Colombo Police have announced a special traffic plan for the area around Independence Square. The traffic restrictions will be enforced from January 29 to February 2, from 6:00 AM to 12:00 PM each day.

The following roads will be affected by the traffic plan:

  • Entry from Vijerama Mawatha (Cinnamon Gardens) to Vidya Mawatha will be restricted.
  • Entry from Bauddhaloka Mawatha (Cinnamon Gardens) to Maitland Place will be restricted.
  • Entry from Bauddhaloka Mawatha (Cinnamon Gardens) to Premakeerthi de Alwis Mawatha will be restricted.
  • Entry from Stanley Wijesundara Mawatha (Cinnamon Gardens) to Foundation Institute Road will be restricted.
  • Entry from Independence Roundabout (Cinnamon Gardens) to Independence Square will be restricted.
  • Entry from Horton Place to Maitland Crescent Junction towards Independence Roundabout will be restricted.
  • Entry from R.G. Senanayake Mawatha to Maitland Crescent towards Independence Roundabout will be restricted.
  • Entry from Independence Roundabout to Maitland Crescent will be restricted.

Motorists are advised to plan their routes in advance to avoid any disruptions or inconvenience caused by these temporary restrictions.

President Anura Kumara Disanayake Sets Ambitious Export Revenue Target of $36 Billion by 2030

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In line with the new government’s vision of “A Thriving Nation- A Beautiful Life,” President Anura Kumara Disanayake has directed officials to implement measures aimed at boosting Sri Lanka’s export revenue to $36 billion by 2030. This target was highlighted during a meeting of the Export Development Council of Ministers (EDCM) held on January 27, 2025, at the Presidential Secretariat.

Sri Lanka’s export revenue stood at $16.1 billion in 2024, with an anticipated increase to $18.2 billion this year. The comprehensive action plan aims to achieve the $36 billion target by focusing on strengthening domestic production, shifting to an export-driven economy, and leveraging the country’s strategic location, human resources, and natural assets for industrial growth.

Key points discussed at the meeting included revitalizing domestic manufacturing industries, enhancing export sector competitiveness, expanding the services industry, and exploring innovative global market strategies. There was also a focus on attracting Foreign Direct Investment (FDI) under a national framework, creating an investor-friendly environment, and ensuring the availability of infrastructure and resources.

Several important decisions were made:

  1. A VAT refund system will be established at the airport for goods purchased by tourists.
  2. The manual system for inspecting export products will be replaced with an automated scanning system at Katunayake airport, with funding from the Ministry of Industries.
  3. Sri Lankan-manufactured railway engines will now be inspected within the country to expedite exports.
  4. Renewable energy sources will be introduced to reduce costs in the export industry, and exporters will be encouraged to adopt modern technology.
  5. Funding from the CESS fund will be provided for programs aimed at supporting entrepreneurs and investors in achieving export targets.
  6. The Investment Facilitation Committee will be established to support both domestic and foreign investments in the export sector.
  7. Export incentives will be introduced for gems and jewellery exports by implementing a method to accurately determine their export value.
  8. The government will focus on boosting the export of locally manufactured electronic equipment and devices, including customs duty concessions on raw material imports.

Additionally, the digitalization of data systems for the export industry was prioritized, and measures were discussed to increase bank guarantee limits for incentivizing service exports.

The meeting also tackled current challenges in the export sector, including delays in apparel export inspections, with resolutions developed through consensus.

The EDCM, established on September 11, 1980, had not met between 1992 and 2020. The 2025 meeting marks the resumption of its activities after a 28-year hiatus, underscoring its significance in shaping Sri Lanka’s export strategy.

Key attendees included Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Minister of Transport Bimal Rathnayake, Minister of Trade Wasantha Samarasinghe, and several other ministers and government officials. The EDCM’s goal remains to enhance Sri Lanka’s global competitiveness by formulating and executing national export development policies.