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New state owned sugar factory to be set up soon in Welioya

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New state owned sugar factory to be set up soon in Welioya

A new state owned sugar factory is to be set up soon in Welioya in the Moneragala district, cabinet spokesman minister Ramesh Pathirana said.

Sri Lanka’s state-run Lanka Sugar (Pvt) Ltd has made a billion rupees of profit, Minister Pathirana disclosed. 

Lanka Sugar is made up of Pelwatte and Sevanagala sugar factories expropriated in 2011 under Pelwatte Sugar and Sevanagala Sugar Industries Co Ltd,

Sugar prices have moved up in recent months and Sri Lanka government has also banned the import of ethanol boosting profits of the sugar firms at the cost of lost import taxes.

Sri Lanka is estimated to require 600,000 metric tonnes of sugar each year, and 85 percent is imported.

Domestic production was 45,000 metric tonnes and the factory is expected boost local production.

Sri Lanka has been engaging in ‘import substitution’ after printing money to keep interest rates down.

Sri Lanka is now in a severe forex crisis, with policy rates at 6.0 percent, two years of balance of payments deficit.

Lanka Sugar Company which operates the Pelwatte and Sevanagala sugar factories recorded Rs.1.2 billion  net profit last year  from a net loss of Rs.1.3 billion in the previous year which is  the highest profit earned by the company for the last 35 years, 

This was disclosed by Lanka Sugar Company Chairman Janaka Nimalachandra pointing out that  the growth in earnings was a major achievement for the company which had been loss-making in the past. 

The company had cultivated 10,000 acres of sugarcane last year which included 8,500 acres at Pelwatte and 1,500 acres at Sevanagala.

It plans to crush around 200,000 MT of additional sugarcane and add over 5,000 acres to the cultivation this year,” the chairman said.

The company produced around 40,000 MT of sugar last year and plans to add 15,000 MT of sugar this year embarking on a factory expansion program to boost the capacity at Sevanagala and cultivation at Pelwatte.

The  government allocated Rs. 475 million through the last budget to increase factory capacity at Sevanagala.Phase II of Sevanagala Sugar factory expansion is to be carried out this year. Crushing capacity is to be expanded from 1,250 TCD to 1,500 TCD,” the chairman said, adding that through the expansion the factory will be able to crush an extra 60,000 MT of sugarcane

Government spends 80 percent of its revenue to pay loan interest

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Government spends 80 percent of its revenue to pay loan interest

The Government relied entirely on domestic sources to reduce exposure to foreign liabilities over the medium term last year, while the access to conventional global markets remained limited amidst rating downgrades by sovereign rating agencies. 

However, foreign exposure of central government debt declined with maturing ISBs, among other net repayments of foreign debt. By end July 2021, the relative share of outstanding foreign debt of the Central Government decreased to 38.4% of total central government debt, compared to 40.0% at end 2020.

Sri Lanka has spent 80 percent of its total revenue during the first seven months last year to pay loans and its interest, Central Bank’s recent report of economic developments divulged.

The governmet’s revenue during this period was Rs 798.9 billion and of that amounta sum of Rs. 637.4 billion was spent pay loan intrest only. 

The balance amount was Rs 161.5 billion available from the revenue for ther activities of the government the report shoed. 

  Expenditure and net lending rose to Rs. 1,814.4 bn (11.0% of estimated GDP) during the seven months ending July 2021 from Rs. 1,637.9 bn (10.9% of GDP) in the corresponding period of 2020. 

This increase reflects the escalated recurrent expenditure mainly due to the pandemic, as well as the rise in interest payments, and salaries and wages. 

Public investment increased to Rs. 242.7 bn (1.5% of estimated GDP) during the seven months ending July 2021 from Rs. 192.3 bn (1.3% of GDP) in the corresponding period of 2020. 

The increase in government expenditure offset the nominal increase in government revenue, causing the budget deficit to expand to Rs. 1,014.5 bn (6.2% of estimated GDP) during the period from January to July 2021 from Rs. 872.6 bn (5.8% of GDP) in the corresponding period of 2020. 

The current account deficit, which reflects the dissavings of the Government, increased to Rs. 779.1 bn (4.7% of estimated GDP) during the seven months ending July 2021 from Rs. 694.5 bn (4.6% of GDP) recorded in the same period of 2020. 

The primary balance, recorded a higher deficit of Rs. 377.2 bn (2.3% of estimated GDP) during January-July 2021 in comparison to the deficit of Rs. 288.9 bn (1.9% of GDP) during the corresponding period of 2020.

Net domestic financing amounted to Rs. 1,204.6 bn during the seven months ending July 2021, compared to Rs. 1,067.0 bn during the corresponding period of 2020, while foreign financing recorded a net repayment of Rs. 190.1 bn during the period under review, compared to a net foreign repayment of Rs. 194.5 bn recorded in the corresponding period of 2020.

 The Central Bank’s contribution to net domestic financing rose to 45.6% in the seven months ending July 2021, compared to 17.5% in the same period last year. 

The Central Bank supported the Government in terms of providing financing in an unprecedented scale to meet the rising expenditure and debt servicing requirement. 

The central government debt, which stood at Rs. 15,117.2 bn at end 2020, increased to Rs. 16,751.7 bn at end July 2021. 

India hands over 1000 houses on Pongal

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India hands over 1000 houses on Pongal

High Commissioner Gopal Baglay, Hon’ble Namal Rajapaksa, Minister of Youth and Sports, Minister of Development Co-ordination and Monitoring and State Minister of Digital Technology and Enterprise Development and Hon’ble Jeevan Thondaman, Minister of State for Estate Housing and Community Infrastructure jointly handed over house keys to more than 1000 beneficiaries from plantation areas of Sri Lanka at a public event in Kotagala on 15 January 2022. Hon’ble Members of Parliament Mr. S.B Dissanayake and Mr. M. Rameshwaran and other dignitaries took part in the event.

2.     Speaking on the occasion, High Commissioner conveyed Pongal greetings in Tamil. He stressed that India will stand with Sri Lanka and continue to work for the development of Indian origin Tamil community. He noted that the community was an organic link between India and Sri Lanka and underlined that the Festival of Pongal represented shared civilizational ties between the two countries.

3.      Handed over houses were built under the third phase of the Indian Housing Project. 4000 houses are being constructed with grant assistance from Government of India in planation areas, spread across seven Districts of Sri Lanka, under this phase for the estate workers in Sri Lanka. Around 3000 houses have already been handed over to beneficiaries till date and handing over of close to 750 houses is being scheduled under this phase. Remaining houses are at various stages of implementation.

4.       Indian Housing Project is a flagship development assistance programme in Sri Lanka which is being carried out in different phases. 46,000 houses were built/repaired in Northern and Eastern Provinces of Sri Lanka in the first two phases. Another 10,000 houses shall be constructed in the plantation areas in the next phase. This would take Government of India’s overall commitment under the project to 60,000 houses.

5.       The dignitaries took part in a traditional ‘Maatu Pongal’ ceremony prior to the handing over event, which was attended by thousands and featured cultural performances.

6.        Celebration of Pongal in Sri Lanka attests to the abiding cultural linkages between the people of India and Sri Lanka as well as the shared heritage. Development assistance is a key pillar of bilateral relationship between the two countries. At a total quantum of around USD 3.5 billion, development assistance from India cuts across sectors spanning from infrastructure development to all aspects of daily human lives such as education, health, livelihood, among others.  Estate workers from plantation areas have been at the centre of the such assistance and several projects implemented through grant assistance by Government of India including the 150-bed hospital in Dickoya, multi-purpose hall in Saraswathy Central College in Pussellawa etc reinforce India’s ongoing focus on the region under the ‘Neighbourhood First’ policy.

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Colombo
16 January 2022

Dr. S. Jaishankar and Hon’ble Basil Rajapaksa finalize large Indian support to Sri Lanka

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Dr. S. Jaishankar and Hon’ble Basil Rajapaksa finalize large Indian support to Sri Lanka

External Affairs Minister Dr. S. Jaishankar held a virtual meeting with Finance Minister of Sri Lanka H.E. Basil Rajapaksa on January 15, 2022. This interaction follows Mr. Rajapaksa’s visit to India last month.

2.    EAM conveyed greetings to the Sri Lankan Finance Minister and the Government and the people of Sri Lanka on his own behalf and on behalf of the Government and the people of India for the year 2022 and on the occasion of the festival of Pongal celebrated both in India and Sri Lanka.

3.    Dr. Jaishankar conveyed that India has always stood with Sri Lanka, and will continue to support Sri Lanka in all possible ways for overcoming the economic and other challenges posed by COVID-19 pandemic. As close friends and maritime neighbours, both India and Sri Lanka stand to gain from closer economic interlinkages.

4.    Both Ministers positively noted that extension of US$ 400 million to Sri Lanka under the SAARC currency swap arrangement and deferral of A.C.U. settlement of USD 515.2 million by two months, which would assist Sri Lanka.

5.    The two Ministers reviewed the progress in extending Indian credit facility of USD 1 billion for importing food, essential items and medicine and USD 500 mn for importing fuel from India.

6.     Mr. Rajapaksa recalled India’s longstanding cooperation with Sri Lanka and deeply appreciated the gestures of support. He welcomed Indian investments in Sri Lanka in a number of important spheres including ports, infrastructure, energy, renewable energy, power and manufacturing and assured that conducive environment will be provided to encourage such investments. In this context, both Ministers noted that the recent steps taken by the Government of Sri Lanka for jointly modernizing Trincomalee Oil Tank Farms will boost confidence of investors, apart from enhancing Sri Lanka’s energy security.

7.      EAM brought up the issue of Indian fishermen detained in Sri Lanka. He urged the Government of Sri Lanka to ensure early release of the detained fishermen on humanitarian considerations.

8.      The two Ministers agreed to remain in close touch for guiding mutually beneficial bilateral economic cooperation towards long-term economic partnership for shared progress and prosperity.

(Contents of this Press Release have been drawn from the Press Release issued by Ministry of External Affairs in New Delhi on 15 January 2022. )

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Colombo
16 January 2022

With Omicron’s prevalence, Covid to turn into common cold and fever

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With Omicron’s prevalence, Covid to turn into common cold and fever

With the prevalence of the Omicron variant, the Covid virus is likely to be decimated from the world, said State Minister of Drug Supply Channa Jayasumana.

Should such an occurrence be a reality, there will be no need of administering a fourth dose of the vaccine, the Minister pointed out, adding that the government, nevertheless, will be ready to administer a fourth dose at any given requirement.

Revealing that certain groups are still attempting to weaken the vaccination process, Jayasumana emphasised that the vaccination program against the pandemic is being carried out amidst such a backdrop.

Meanwhile, the World Health Organisation (WHO) has also predicted that the Covid virus is likely to turn into an equivalent to common cold or fever by July – August this year.

Dr. Nimal Rajapaksa, a resident of Canada, clarifies that the data reveal that the Omicron variant has reached its peak. The number of infectees requiring intensive care treatment is as low as 0.2 per cent among those infected with the variant, and Omicron has the potential to curb the prevalence of the Delta variant, he added.

MIAP

Opposition Leader vows to eliminate ethnic distinction, racism and extremism in Sri Lanka

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Opposition Leader vows to eliminate ethnic distinction, racism and extremism in Sri Lanka

Extremists, racists and religious extremists should be faced without fear and racism, ethnic distinction and extremism must be eradicated from this country, said Leader of the Opposition Sajith Premadasa, joining the Thaipongal Festival organised by Leader of the Labour National Society Palani Digambaram at Sinesita Stadium in Nuwara Eliya today (16).

The Opposition Leader joined the event as the Chief Guest and the occasion was also graced by Indian High Commissioner to Sri Lanka Gopal Baglay.

Reminding that the late President Ranasinghe Premadasa had made the dream of citizenship a reality by granting citizenship to the plantation workers’ community for the first time, the Opposition Leader noted that he would take the responsibility of uplifting the their lives and making them a stronger community.

The Samagi Jana Balawegaya (SJB) is currently formulating a Plantation Workers’ Convention and having it as the mission of a future government to uplift the living standards of plantation workers, Premadasa revealed. A Special Presidential Task Force for the development of the Plantation Sector will be established under a SJB government, he promised.

Canada warns nationals in SL of economic crisis-led food, med shortages

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Canada warns nationals in SL of economic crisis-led food, med shortages

ECONOMYNEXT – Canada on Friday (14) warned its nationals visiting and living in Sri Lanka of a looming economic crisis that could lead to shortages in food, medicine and fuel and also contribute to deterioration in the security environment.

The Canadian government in its travel advisory issued via its official Twitter account also warned of possible poor delivery of public services including healthcare due to the economic crisis.

Sri Lanka is facing an unprecedented economic crisis due to heavy debt and bad policies in the past. The island nation, which thrived under British colonial rulers before independence in 1948, is grappling with food shortages due to insufficient dollars for imports and lower harvest in its farmlands due to the government’s controversial change in its fertilizer policy.

Though the government has assured no shortages, already the 80 billion US dollar economy is seeing queues for kerosene, cooking gas, rice, milk powder, sugar, and wheat flour among many other commodities.

Prices of many essential goods have skyrocketed in the last six months with inflation hitting record highs and double digits, resulting in a negative rate of returns for risk-free investments.

The Canadian government advised its citizens to take measures due to limited access to resources which “could also contribute to a deterioration in the security environment”.

“Keep supplies of food, water and fuel on hand in case of lengthy disruptions. Long line-ups may be experienced at grocery stores, gas stations, and pharmacies. Monitor local media for information related to food and fuel shortages.” it said.

Canada is the first country to issue a travel advisory on Sri Lanka’s over economic instability and its possible impact on its travellers.

The President Gotabaya Rajapaksa-led ruling Sri Lanka Podujana Peremuna (SLPP) coalition is facing a twin crisis of dent and forex. It has to pay around 6.9 billion US dollars in foreign loans this year while it’s forex reserves were at just 3.1 billion US dollars by end December.

The government shrugged off possible sovereign debt default concerns and requests to seek International Monetary Fund (IMF) assistance. The government has also claimed that it has already been restructuring debts.

Economy Next

No power outages until day after tomorrow: Subject Minister

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No power outages until day after tomorrow: Subject Minister

A continuous supply of power can be guaranteed until the day after tomorrow, said Energy Minister Gamini Lokuge today (16).

This is mainly due to the reception of 3000 metric tonnes of fuel oil to the Kelanitissa Power Plant, the Minister revealed.

Lokuge added that a request has been made to the Ceylon Petroleum Corporation (CPC) to continue the provision of fuel for power generation until February 22 and that a special discussion will be held with the CPC authorities tomorrow as well.

If an agreement is not reached, a decision may be taken on the supply of power, he noted.

Lokuge also accused the previous government of incurring a considerable amount of debt from the Rs. 80 billion debt, which is due to be settled by the Ceylon Electricity Board (CEB) to the CPC, and murmured that he has to bear the responsibility of settling the amount now. More than Rs. 44 billion has to be recovered from the relief provided to electricity consumers amid the Covid-19 pandemic and the CEB may be relieved significantly from the financial depression befallen it if the money is received, he added.

The Subject Minister also expressed confidence that the generator, which was malfunctioned losing 300 megawatts of power, may be restored by February 22.

MIAP

Australia court rules Novak Djokovic to be deported

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Australia court rules Novak Djokovic to be deported

Tennis star Novak Djokovic has lost his chance to defend his Australian Open title after an Australian court upheld a government deportation order.

Three Federal Court judges on Sunday sided with Immigration Minister Alex Hawke’s decision made on Friday to cancel the 34-year-old Serb’s visa on public interest grounds.

The ruling means that Djokovic, who is not vaccinated against COVID-19, will remain in detention in Melbourne until he is deported.

A deportation order usually also includes a three-year ban on returning to Australia.

The sensational 11-day battle over Djokovic’s COVID vaccination status ended his dream of a record 21st Grand Slam.

Djokovic said he was “extremely disappointed” with the court’s decision but added he will “cooperate with the relevant authorities in relation to my departure”.

“I am uncomfortable that the focus of the past weeks has been on me and I hope that we can all now focus on the game and tournament I love,” he said in a statement.

Hawke cancelled the visa on the grounds that Djokovic’s presence in Australia may be a risk to the health and “good order” of the Australian public and “may be counterproductive to efforts at vaccination by others in Australia”.

The justices listened to a half-day of feisty legal back-and-forth about the alleged risk posed by Djokovic.

Hawke said Djokovic’s stance may inspire anti-vaccine sentiment, leading some people to face the pandemic without vaccination, and inspiring anti-vaxxer activists to gather in protests and rallies.

The player’s high-powered legal team painted Australia’s effort to deport him as “irrational” and “unreasonable”, but at times they faced pointed questions.

Djokovic’s lawyer Nick Wood insisted his client had not courted anti-vaccination support and was not associated with the movement. The government “doesn’t know what Mr Djokovic’s current views are”, Wood said.

Legal limbo

Djokovic was scheduled to play his first-round Australian Open match on Monday night on a Day 1 programme announced while he was still in legal limbo.

The Australian government cancelled Djokovic’s visa because of issues surrounding his stance against COVID vaccination. That was four days after the Serbian star had an earlier decision to cancel his visa overturned by a court on procedural grounds.

Fans reacted with dismay over the court ruling.

“What they did today is everything except justice,” said Natasha Marjnovic, 44, a Djokovic supporter who was wiping away tears outside the court building. “They killed a beautiful sportsman and his career and for all of us who love tennis.”

Canadian tennis player Vasek Pospisil also questioned the move.

“Novak would never have gone to Australia if he had not been given an exemption to enter the country by the government. He would have skipped the Australian Open and been home with his family and no one would be talking about this mess,” Pospisil said on Twitter.

“There was a political agenda at play here with the elections coming up, which couldn’t be more obvious. This is not his fault. He did not force his way into the country and did not ‘make his own rules’; he was ready to stay home.”

‘Keep Australians safe’

A border official originally cancelled his visa after deciding Djokovic did not qualify for a medical exemption from Australia’s rules for unvaccinated visitors.

He spent four nights in immigration detention before the first court hearing and was confined to an immigration hotel again on Saturday night waiting for his appeal.

The medical exemption that allowed the Serbian star to enter the country without being vaccinated sparked fury in Australia, and became a political issue for Prime Minister Scott Morrison, who has to call a federal election before May.

Morrison on Sunday welcomed the court’s decision, saying it will help “keep our borders strong and keep Australians safe”.

“It’s now time to get on with the Australian Open and get back to enjoying tennis over the summer,” the prime minister said in a statement.

Djokovic’s dominance in Grand Slam play of late has been particularly impressive, winning four of the last seven major tournaments and finishing as the runner-up in two others.

The only time he did not get at least to the final in that span was at the 2020 US Open, where he was disqualified in the fourth round for hitting a ball that hit a line judge in the throat after a game.

Al Jazeera

Central Expressway Mirigama-Kurunegala Section: Did present government take credit for predecessor’s work?

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Central Expressway Mirigama-Kurunegala Section: Did present government take credit for predecessor’s work?

Although the present government proudly opened the Mirigama-Kurunegala terminal of the Central Expressway yesterday (15), most of its construction work was undertaken by the Good Governance government, reminded Samagi Jana Balawegaya (SJB) MP Lakshman Kiriella.

Speaking to the media, the Chief Opposition Whip noted that most of the construction work of the Mirigama-Kurunegala Section of the Central Expressway had already been completed by the time a ’52-day coup’ was formed in 2018.

Reminding that even the initial surveying part of the construction of the Mirigama-Kurunegala terminal had not been carried out when the Good Governance Regime came to power in 2015, Kiriella added that its construction commenced in October, 2016 and was handed over to 16 local contractors. No foreign debt was ever obtained to complete the Section and only the funds obtained from the General Treasury were allocated for the purpose, the SJB MP noted.

37 kilometres out of 41 kilometres of the Central Expressway terminal were completed during the period of the Good Governance Regime and the present government had to complete only the remaining 04 kilometres, with which it demonstrated a non-existent pride at the opening event, Kiriella said.

Needless to explain that the present government consumed two solid years to complete only 04 kilometres, he mocked.

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