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BOI to attract FDIs, re-investments from  German firms

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BOI to attract FDIs, re-investments from  German firms

Sri Lanka will be making every effort to attract Foreign Direct Investment(FDI) and re-investments from Germany at a time where the island nation is facing an unprecedented economic crisis triggered by dwindling foreign reserves and mounting foreign debt payments.

The Board of Investment is working on wooing new FDI’S From Germany while negotiating reinvestment joint ventures which are in operation at present.   

These details were discussed at a meeting attended by  Ambassador of Germany Holger Seubert, Deputy Head of Mission / Counsellor Olaf Malchow and Chief Delegate of German Industry and Commerce in Sri Lanka (AHK) Alexandra Voss along with Chairman BOI Eng. Raja Edirisuriya and Director General Renuka Weerakone on 10 March at the BOI. 

Head sof Corporate Affairs / Export Promotion (AHK) Malintha Gajanayake and BOI Director (Investment Promotion) Nilupul De Silva also participated in the discussion.

The objective of the meeting was to introduce the new Head of AHK in Sri Lanka to continue the good working relationship between the BOI and AHK. 

During the discussion the matters discussed comprised of the facilitation provided for existing investors to encourage them to re-invest and expand their operations in Sri Lanka, as well as attracting more FDI from Germany, especially in the pharmaceutical sector. 

The BOI Chairman briefed the Ambassador and his team regarding the pharmaceutical zone that is currently being developed in Hambantota, and requested the Ambassador to invite leading world class German companies to invest in Sri Lanka in the pharmaceutical sector. 

Both sides agreed to continue the dialogue on a regular basis, to discuss the issues faced by the Existing German investors, in order to make the facilitation more effective.

The Ambassador stated that whilst appreciating the assistance provided by the BOI for the existing German investors, 

The German Embassy in Colombo in close collaboration with AHK will continue to work closely with the BOI to provide an effective facilitation program for the German companies to encourage them to re-invest as well as invite potential German companies to invest in Sri Lanka. The Ambassador assured their fullest co-operation in attracting FDI to Sri Lanka.

35 MW Broadland power plant adds to national grid soon 

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35 MW Broadland power plant adds to national grid soon 

Sri Lanka needs to add an estimated 11,000 MW to its power grid within the next two decades to meet growing demand. Adding hydro power plants with  large-scale floating solar plants would not only make electricity greener and affordable but improve Sri Lanka’s overall economic competitiveness as well, World Bank suggested    

Sri Lanka’s energy policy is underpinned by the Government’s ambitious target of generating 70% of power from renewables by 2030. 

By identifying large water bodies for floating solar, Sri Lanka also can tap into the multiple benefits of lower evaporation, higher solar panel efficiency due to cooling effect, complementarity with hydro power generation and, efficient management of peak hours. 

The synergies from combining floating solar with existing hydropower plants can be significant and can add much-needed diversity to Sri Lanka’s power generation mix, the report revealed. 

 Sri Lanka’s power mix could potentially benefit from greater solar power generation during the day and a switch to hydro in the night. Seasonally, floating solar could produce power during the dry months while throughout the monsoon rains hydro could play a larger role in the energy mix.  

In this context  35 megawatts (MW) from the Broadland power plant will be integrated into the national grid by early next month, according to Minister Pavithra Wanniarachchi.

“As the Minister of Power and Energy, I am fortunate to be able to re-integrate a power plant into the national grid that was started during my tenure as the Minister of Power and Energy, she said. . 

It has the potential to be used as a solution, so we hope to add the expected 35 MW of capacity from the Broadland Hydro Power Plant to the national grid as soon as possible,” said Minister Wanniarachchi.

Minister Wanniarachchi expressed these views while participating in a special inspection tour held at the Broadland Power Plant premises this week.

The Broadland Power Plant, the last hydropower plant of the Laxapana Complex located at Kitulgala, Polpitiya on the Kelani River, commenced operations in 2013 and has been successfully completed. 

The estimated cost of the project is $ 82 million. Construction is being carried out by China National Electric Company of China, which specialises in consulting and supervising local engineers.

The plant has a capacity of 35 MW and can generate 126-gigawatt hours (126 million units) of power annually. The power generated will be connected to the Polpitiya-Maliboda transmission line, which is about 200 meters away, via a 132-kilowatt dual powerline from the site near the power plant to the national grid.

MP Radhika Wickramasinghe, Sabaragamuwa Provincial Council Chairman Kanchana Jayaratne, politicians of the area, officials of the Ceylon Electricity Board, and Broadland Hydro Power Plant also participated in the visit.

Dhammika Perera takes on the challenge of raising the first billion dollars under the ‘Golden Paradise Program’

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Dhammika Perera takes on the challenge of raising the first billion dollars under the ‘Golden Paradise Program’

Businessman Dhammika Perera says he will take on the responsibility of bringing the first US $ 1 billion to Sri Lanka under the ‘Golden Paradise Program’.

The Golden Paradise Program, a proposal made by Dhammika Perera to the Government to help Sri Lanka overcome its current foreign exchange crisis, is a program to provide foreigners with long-term resident visas to Sri Lanka.

Dhammika Perera has suggested in his program that if a foreigner who wishes to obtain residency through this program, he/she must first open a bank account in Sri Lanka and deposit US $ 100,000 in it. After one year, the person can withdraw up to US $ 50,000 from that amount. And from the second year onwards he/she must maintain a balance of at least US $ 50,000 in the account for the entire duration of their stay in the country.

He had also proposed to issue 10-year visas to foreigners over a monthly income of more than US $ 2,000 and over 60 years of age.

The proposal for the program was submitted to President Gotabhaya Rajapaksa by Dhammika Perera last month. The President had given his approval and directed the Secretary to the President Gamini Senarath to prepare the necessary preliminary work within a week to implement this.

Accordingly, the preliminary work was prepared within a week and then the relevant Cabinet Paper was prepared and submitted to the Cabinet by Minister Namal Rajapaksa for Cabinet approval.

Businessman Dhammika Perera told LNW that he would prepare the necessary arrangements to implement this program as soon as the initial approvals were received.

Currently, the bureaucratic approach taken by Sri Lankan immigration officials is the main obstacle to the speedy implementation of a program to issue long-term resident visas to foreigners in Sri Lanka. They seem to be carrying out their procedures for an excessive period of time which makes the people very uncomfortable. (Red tapism) This is a very backward and harmful situation that can be seen in many parts of the public sector in our country.

As a solution to this, Dhammika Perera says that almost all the approval processes should be planned in such a way that foreigners can do it online. Approval in principal will be granted upon deposit, and Visa applicants in the ‘Golden Paradise Program’ will be able to complete all other tasks online without undue bureaucratic interference.

Dhammika Perera also said that he would carry out the necessary international publicity to attract foreigners to implement the program, adding that he would take up the challenge of raising the first billion US dollars for Sri Lanka through this proposal.

Sri Lanka is expected to raise US $ 5 billion in foreign exchange through this program.

http://128.199.126.103/archives/6043/cabinet-approves-dhammika-pereras-golden-paradise-program/
http://128.199.126.103/archives/5063/president-instructs-to-implement-dhammika-pereras-golden-paradise-program-within-a-week/
http://128.199.126.103/archives/4305/dhammika-pereras-next-solution-for-the-dollar-the-golden-paradise-programme/

SLFP strongly criticizes President’s statement

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SLFP strongly criticizes President’s statement

Prof. Rohana Lakshman Piyadasa, Senior Vice President of the Sri Lanka Freedom Party, a major party in the government, yesterday strongly criticized President Gotabhaya Rajapaksa’s special statement to the nation.

He said that the issue that has arisen at present is outside the purview of the President. So I think I did not see or feel much of a message to the people in his very short speech. He said that this is expected in the future and the fact that he will build this in the next three years but a roadmap for the building was not shown. The rulers of a country came to power to correct the mistakes of all those who have done wrong in history. The people gave a huge mandate for that. In order to solve the problems of the country, it is necessary to answer the problem in a self-critical manner with the help of politicians, scholars and intellectuals. We need to protect democracy in the country with transparency and win the trust of the international community. I think it is a dream to rebuild the country without fulfilling these requirements. ”

Prof. Rohana Lakshman Piyadasa stated this addressing a media briefing held in Kandy yesterday (17).

The President’s speech shows that he has not been properly instructed about the IMF – Harsha

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The President’s speech shows that he has not been properly instructed about the IMF – Harsha

The statement made by President Gotabhaya Rajapaksa to the nation shows that he has not been properly informed about the International Monetary Fund, says Samagi Jana Balawegaya MP Harsha de Silva.

“In fact, we all knew what the President was saying. He didn’t say anything new. He then said that he would reach to the International Monetary Fund and resolve this issue. The President is not right there. The person who said that did not inform the President properly. Because the International Monetary Fund has recognized that our country is no longer a country that can pay its debts. Then the International Monetary Fund cannot legally lend to a country that cannot pay its debts. Now the President did not say that. The government is bankrupt. The first thing to do is to restructure the debt now. So we need to meet the groups that lend us money. We have to meet with them and come to an agreement that we hope to restructure the debt in this manner. They will not agree to it unless the International Monetary Fund gives any guarantee. If the President thinks that only the IMF can solve this problem, he has not received proper information. ”

Dr. Harsha de Silva stated this addressing a media briefing held yesterday (17).

SJB begins work on economic blueprint to save nation

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SJB begins work on economic blueprint to save nation

The Samagi Jana Balawegaya (SJB) will be commencing discussions with all stakeholders next week to formulate and present a comprehensive economic plan to overcome the current crisis.

The discussions headed by its economic policy team comprising MPs Dr. Harsha De Silva, Kabir Hashim and Eran Wickremaratne, will look to present a blueprint for a Social Market Economy that would touch all aspects of society including the very bottom of the pyramid.

Addressing a media briefing on Wednesday, Kabir Hashim remarked that Sri Lanka must reset its fiscal program to once again achieve sustainable growth.

This would involve difficult decisions and sacrifices, but a genuine concerted effort that engaged and communicated with all sectors would offer solutions over the medium-term and save our country, he added.

“Sri Lanka is a political economy, so we need to factor that aspect as well,” said Dr. Harsha De Silva, which is why the plan must consider all aspects of society, and this would be a unique program unlike any other implemented before in the country. Ensuring social justice was a critical aspect of the program, he added.

De Silva noted that the price of food and other essentials would continue to rise further whilst the US dollar appreciated further against the rupee, as interest rates remained static. People would have to face further hardships in time to come, he said.

SJB MP Eran Wickramaratne said Sri Lanka’s crisis was entirely manmade, and noted that only two aspects of the Economic Roadmap spelt out by the Central Bank Governor six months ago had been made. He noted that despite the document stating inflation would be brought down to 6%, currently food inflation sat at over 25% and described the plan as a complete failure citing several other indices.

“Corruption is a huge problem we face. Corruption has pervaded all aspects and projects, so-much-so even Chinese companies have written to the President and complained about corruption in infrastructure projects.

Only corrupt elements will look to Sri Lanka in this context. Eradicating corruption is one of the key elements of our plan, and we are looking at proposals to strengthen the regulatory aspects concerning bribery and corruption. Governments and their machinery should not be able to withdraw cases at the whims of officials,” Wickramaratne added. .

De Silva charged that the Government had misrepresented budget details in the 2020 budget, and whereas the real figure stood at 14%, the Government had listed the budget deficit at 11.1%. With Core Inflation at about 11% currently, this detailed the levels of bad fiscal management, he said.

“The Government is split on how to address the economic crisis. One group is following the Central Bank Governor and the rest under Finance Minister Basil Rajapaksa. The IMF team that came here has not met the Central Bank Governor, so there definitely seems to be a lot of internal conflict on this issue,” De Silva remarked.

“Following our request for a $ 1 billion loan from India, the Government is now handing out the Trincomalee tank farm, areas in Jaffna, Sampur and others to satisfy them.

This won’t solve the problem. They (Government) must stop focusing on repaying dollar loans of others and focus on our citizens. This is no magic, it just needs sound restructuring. Getting another billion dollars in loans will not build confidence,” Hashim asserted.

Five Indian Navy Sailing Vessels Visit Sri Lanka

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Five Indian Navy Sailing Vessels Visit Sri Lanka

In continuation of Indian Navy’s endeavour to build ‘Bridges of Friendship’ five sailing vessels of the Indian Navy are visiting Sri Lanka from 10-19 March 2022.

2.     The indigenous sailing vessels include Mhadei, Tarini, Bulbul, Kadalpura and Hariyal. The visit aims to provide ocean sailing training and experience to the Sri Lanka Navy. The vessels were in Trincomalee from 10 March 2022 to 13 March 2022 and embarked fourteen officers including two lady officers of Sri Lanka Navy for ocean sailing experience in Colombo. Dedicated training was also imparted to the embarking officers by an Indian Navy Officer during harbour phase.

3.     The Senior Officer of the Indian Navy Sailing team, Cmde BR Singh, called on RAdm Jayantha Kularatne, COMEAST at Trincomalee and RAdm AUC De Silva, Deputy Chief of Staff & COMWEST at Colombo. The ocean sailing experience provided by Indian Navy is expected to encourage keen enthusiasm amongst the Sri Lanka Navy Officers for this adventure sport.

4.     It may be recalled that INSV Madhei circumnavigated the globe in a solo endeavour by Cdr Dilip Donde in 2010 and undertook nonstop solo expedition in 2012 by Lt Cdr Abhilash Tomy. Further, INSV Tarini as part of Navika Sagar Parikrama (Six Women Officer team) had successfully circumnavigated the globe in 2019. To further support the interest towards sailing and adventure sports amongst the personnel of the Sri Lanka Navy, RAdm Sameer Saxena, the Flag Officer Commanding Western Fleet, Indian Navy had earlier handed over state of the art sailing gears on behalf of the Indian Navy to RAdm PS Mahawithana, Director General Operation of the Sri Lanka Navy at a ceremony onboard INS Chennai on 12 March 2022.

5.     The recent engagements amongst the two Navies have cemented the deep rooted bonds of friendship and seamless interoperability. The arrival of Indian Navy ships is symbolic of close defence cooperation and togetherness shared amongst the two countries in line with India’s ‘Neighborhood First’ policy.

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Colombo

17 March 2022

Ministers Basil Rajapaksa, Jaishankar and Sitharaman witness the signing of the USD 1 billion Indo – Lanka Loan Agreement

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Ministers Basil Rajapaksa, Jaishankar and Sitharaman witness the signing of the USD 1 billion Indo – Lanka Loan Agreement

Ministers Basil Rajapaksa, Jaishankar and Sitharaman witness the signing of the USD 1 billion Indo – Lanka Loan Agreement

Concluding his two-day official visit to New Delhi, Finance Minister Basil Rajapaksa today (17) witnessed the signing of the agreement pertaining to the Short-Term Concessional Loan facility of USD 1 billion extended by the Government of India to the Government of Sri Lanka through the State Bank of India.

The USD 1 billion loan facility, which formed the key component of the four-pillar economic cooperation arrangement agreed between India and Sri Lanka during Minister Rajapaksa’s visit to New Delhi in December last year, was extended to the Government of Sri Lanka for procurement of food, medicines and other essential items.

The signing ceremony was held at the Ministry of Finance in New Delhi this afternoon in the presence of Finance Minister Basil Rajapaksa, the External Affairs Minister of India Dr. S. Jaishankar and the Indian Finance Minister Smt. Nirmala Sitharaman. Managing Director of the State Bank of India Shri Ashwini Kumar Tewari and the Bank’s General Manager Shri Vinod Kumar were also present on this occasion.

Secretary to the Ministry of Finance S. R. Attygalle signed the agreement on behalf of the Government of Sri Lanka, with Deputy General Manager Shri Pushkar Jha signing on behalf of the State Bank of India.

Prior to the signing ceremony, Finance Minister Basil Rajapaksa was received jointly by the Finance and External Affairs Ministers of India for bilateral talks at the Finance Ministry in the North Block.
During the bilateral talks, the two sides agreed to set up a framework for short, medium and long-term economic cooperation between the two countries aimed at addressing Sri Lanka’s present economic challenges.

With this objective, the three Ministers agreed to stay in regular contact and a coordinating mechanism consisting of senior officials from the two countries was set up to maintain a regular dialogue.
Finance Minister Basil Rajapaksa was accompanied to this meeting by Sri Lanka’s High Commissioner to India Milinda Moragoda, Secretary to the Ministry of Finance S. R. Attygalle and Deputy High Commissioner of Sri Lanka to India Niluka Kadurugamuwa.

Earlier in the day, Minister Rajapaksa met with India’s Minister of Power and New & Renewable Energy Shri Raj Kumar Singh and discussed the ways and means to further deepen and broaden bilateral cooperation in the power and renewable energy sector. Chief Economic Adviser of the Government of India, Prof. A. Nageswaran also called on Finance Minister Rajapaksa.

Power cut plan for Friday revealed

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Power cut plan for Friday revealed

A five hour-power cut will be taking place tomorrow (18) as approved by the Public Utilities Commission of Sri Lanka (PUCSL).

Accordingly, a power cut of 05 hours will occur in zones A – L, with a power cut of 03 hours and 20 minutes from 08 am to 06 pm and a power cut of 01 hour and 40 minutes from 06 pm to 11 pm.

Meanwhile, a power cut of 03 hours and 15 minutes will occur in zones P – W, with a power cut of 02 hours from 09 am to 05 pm and a power cut of 01 hour and 15 minutes from 05 pm to 10 pm.

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Sri Lanka enters agreement for US$01 billion debt facility from India

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Sri Lanka enters agreement for US$01 billion debt facility from India

The agreement providing a debt facility of US$01 billion was signed between Sri Lanka and India today (17). The agreement was signed by the Deputy General Manager of the State Bank of India on behalf of the Government of India and Secretary to the Finance Ministry of Sri Lanka, S.R. Attygalle.

Sri Lankan Finance Minister Basil Rajapaksa together with a group of Sri Lankan delegates left for India for the final discussions regarding the debt facility yesterday and Indian Prime Minister Narendra Modi held talks with several senior government officials, including the Foreign Minister.

The US$01 billion debt facility will be used to purchase essential food items for the next few months, and accordingly, essential items, including wheat flour, sugar and rice, will be purchased from India.

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