January 05, Colombo (LNW): The National Youth Services Council spent more than Rs. 320 million on the “Smart Youth Night” music concert series, a major event organised by the council, an audit has uncovered.

The expenditure was revealed as part of a thorough audit review conducted by the Youth Services Council itself, shedding light on the significant financial commitment involved in this initiative.

The concert series, which aimed to engage and entertain the youth across the country, was held in numerous locations, including the Maharagama National Youth Services Centre, as well as cities such as Galle, Ampara, Kuliyapitiya, Puttalam, Dambulla, Jaffna, Mahiyanganaya, Hatton, Higurakgoda, Bandarawela, Walisara, and notable venues like the Colombo Race Course and Khettarama Stadium.

These events were designed to attract young audiences with music performances and entertainment, aiming to provide a platform for youth involvement and social engagement.

At the time of the concert series, the National Youth Services Council was operating under the supervision of Harin Fernando, who held the position of Minister of Youth Affairs and Sports.

The audit report, along with a set of recommendations, has now been forwarded to the Secretary of the Ministry of Sports and Youth Affairs for further review and consideration.

In light of these findings, Deputy Minister of Youth Affairs Eranga Gunasekara has directed that a formal investigation be launched to assess the details of the expenditure and determine whether the funds were allocated appropriately.

The probe will focus on understanding the full scope of the spending and whether it aligns with the intended goals of the concert series, while ensuring that the financial resources were utilised efficiently.

January 05, Colombo (LNW): The Ministry of Urban Development, Construction, and Housing has confirmed that it will resume work on housing schemes that had previously been put on hold.

In a statement, Ministry Secretary Ranjith Ariyaratne highlighted the government’s renewed commitment to ensuring that every citizen has access to secure home-ownership.

Ariyaratne further explained that the housing projects would be given top priority, in response to the identification of nearly one million individuals who currently lack access to adequate and comfortable housing.

Amongst these, approximately 65,000 people are residing within the urban confines of Colombo, where housing shortages have become an increasingly urgent issue.

The government plans to strategically launch these housing initiatives in areas where the demand is most critical, using comprehensive data from the national population and housing census to guide the selection of locations.

These projects aim to address both the quantity and quality of housing available, ensuring that developments are well-distributed across the country and tailored to the specific needs of each community.

By targeting both urban and rural areas, the government hopes to provide much-needed homes for the millions of Sri Lankans who have long struggled with inadequate living conditions.

January 05, Colombo (LNW): Litro Gas has confirmed that there will be no change to the prices of its domestic liquefied petroleum (LP) gas for the month of January, adhering to the company’s established pricing formula.

The announcement, made on January 04, comes as a relief to households across Sri Lanka, who will see no increase in their gas costs.

Chairman Channa Gunawardena revealed that the price structure introduced in December 2024 will remain in place for the foreseeable future.

As per the current rates, the price of a 12.5 kg gas cylinder will stay at Rs. 3,690, while the 5 kg cylinder will continue to be sold for Rs. 1,482. Smaller cylinders, such as the 2.3 kg variety, will retain their price of Rs. 694.

This decision is in line with the company’s ongoing efforts to ensure stability in the local market, despite fluctuations in global energy prices.

It remains to be seen whether the company will continue to uphold these prices in the coming months, or if external factors such as changes in global energy prices will prompt a future revision.

For now, the public can rely on the stability of their domestic gas costs, at least for January.

January 05, Colombo (LNW): A fresh proposal to establish a committee for assessing the wind energy ventures of the Adani Group in Sri Lanka will be presented at tomorrow’s Cabinet meeting (06), according to a spokesperson from the Ministry of Energy.

The focus of these projects is the development of wind power plants in the regions of Mannar and Poonaryn, both of which are expected to play a crucial role in enhancing the country’s renewable energy capacity.

The projects were initially approved under the previous government, with a tariff rate of 8.26 US cents per unit for the electricity generated.

However, the new administration has raised concerns about the terms of this agreement, prompting the proposal to re-evaluate its conditions.

The proposed committee will be tasked with conducting a comprehensive review of the agreement, examining whether the tariff and other terms are in the country’s best interest.

January 05, Colombo (LNW): Showers or thundershowers will occur at several places in Sabaragamuwa, Southern and Uva provinces and in Kaluthara, Kandy and Nuwara-Eliya districts during the afternoon or night.

Mainly fair weather will prevail in the other areas of the island.

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

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

Marine Weather:

Foreign investors acquired over $100 million worth of Sri Lanka’s government securities during the last 15 weeks of 2024, despite net selling throughout the year, according to Central Bank data.

This surge reflects growing confidence in the nation’s economic trajectory, underpinned by deflationary policies and expectations of further interest rate cuts.

Sri Lanka has adopted stringent deflationary measures and import restrictions while lowering interest rates after inflation peaked at a staggering 70% in 2022.

According to currency dealers in Colombo foreign investors are optimistic about a possible 100 basis points reduction in policy rates by the Central Bank, spurring their recent activity.

The week ending December 26 witnessed an inflow of 2.71 billion rupees ($9.3 million), adding to a total of 29.9 billion rupees ($103.1 million) of inflows into treasury bonds and bills over 15 weeks.

By December 26, foreign holdings of government securities were valued at 69.3 billion rupees. However, the year overall saw outflows of 48.2 billion rupees, with foreign investor holdings dropping from 117.4 billion rupees at the start of 2024 to 69.3 billion rupees by year’s end.

Analysts attribute these inflows to effective deflationary policies, despite challenges like a 66% outflow (78.1 billion rupees) in the year’s first nine months.

The government, led by President Anura Kumara Dissanayake, has emphasized transparency and pledged to combat entrenched corruption since assuming office in September.

Sri Lanka’s ongoing economic restructuring, following its first-ever sovereign default in 2022, has drawn global attention.

The nation defaulted on $12.5 billion in debt after a currency crisis triggered by COVID-19 disruptions and price surges caused by Russia’s invasion of Ukraine. These shocks led to acute shortages of food, fuel, and medicines, exposing deep governance issues.

The restructuring includes innovative governance-linked bonds aimed at incentivizing improved financial management and transparency.

Under this arrangement, Sri Lanka’s coupon rates, starting at 3.6%, could rise to 9.25% by 2032 if governance targets are not met.

Achieving these goals could save the government $80 million in interest payments. Experts consider this instrument precedent-setting, offering a model for integrating accountability into debt management.

However, the restructuring has introduced six new bond instruments, including macro-linked and past-due interest bonds, making the process complex. Bond prices recently dropped by up to 3 cents per dollar as some investors sold holdings to avoid dealing with intricate instruments.

 The long-term success of governance-linked bonds could determine their wider adoption. As Giulia Pellegrini of Allianz Global Investors observed, their tradeability and pricing will hinge on Sri Lanka’s performance, offering lessons for global debt restructuring initiatives.