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New Oversight Committee Established to Streamline Public Investment Projects

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By: Staff Writer

January 01, Colombo (LNW): The government has introduced measures to enhance the implementation of public investment projects through rigorous monitoring and evaluation of their progress. Over the 2022-2024 period, the public investment plan amounts to Rs. 3,050 billion, with 17% allocated to social infrastructure, primarily in health and education.

For new projects during this timeframe, Rs. 234 billion—equivalent to 8% of the total investment—has been earmarked. A Finance Ministry report emphasizes the importance of prioritizing projects addressing post-crisis recovery needs.

To ensure efficient implementation, the Cabinet of Ministers has approved the establishment of a committee for investment project oversight, announced Minister Nalinda Jayatissa. T

he State Investment Supervision and Evaluation Committee, comprising 11 members, including two ministry secretaries, aims to resolve challenges in project management and supervision.

Minister Jayatissa highlighted that over the past decade, the lack of anticipated results from public capital investments has hindered targeted development.

The new committee will oversee strategic decision-making on project planning, resource allocation, budgeting, finance, and monitoring, relying on input from Chief Enumeration Officers.

Infrastructure Development Focus

The government is committed to upgrading the nation’s infrastructure, including roads, ports, airports, power, and telecommunications.

Public Investment Programme (PIP)

The 2021-2024 Public Investment Programme is a cornerstone of the government’s strategy for sustainable and inclusive growth, rooted in its National Development Policy Framework.

Public-Private Partnerships (PPPs)

Sri Lanka has a robust history of PPPs in infrastructure, completing 73 projects in electricity, telecommunications, and ports between 1990 and 2014.

2024 Investments

For 2024, Rs. 1,260 billion has been allocated to public investments across roads, bridges, agriculture, irrigation, education, health, drinking water supply, and urban development. During the first eight months of 2024, Rs. 454.7 billion was spent—26.6% of the annual estimate—marking a 16.7% increase compared to Rs. 389.6 billion during the same period in 2023.

The road sector accounts for the largest share of actual expenditure in 2024, with 47% of allocated funds. Overall, road development represents 25% of the total investment, followed by irrigation at 6%.

Govt to End Marine Research Moratorium with New SOP for Foreign Surveys

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By: Staff Writer

January 01, Colombo (LNW): The Sri Lanka Government has confirmed it will not extend the year-long moratorium on foreign Marine Scientific Research (MSR), which concludes last night (31 December 2024).

 The Ministry of Foreign Affairs is moving swiftly to establish a committee tasked with drafting a new Standard Operating Procedure (SOP) for granting diplomatic clearance to foreign research vessels and aircraft.

The new SOP will outline the procedures for allowing foreign MSRs to conduct surveys in Sri Lankan waters and its Exclusive Economic Zone (EEZ).

Foreign Minister Vijitha Herath confirmed that the moratorium, instituted by the previous Ranil Wickremesinghe administration, will not be extended.

 He added that the new SOP will balance international best practices, national security concerns, and Sri Lanka’s national interests.

The committee, which will be led by Herath, aims to complete the new SOP promptly, though he indicated foreign MSRs will not be permitted in Sri Lankan waters before the new guidelines are finalized.

This move follows extensive efforts by the previous government to refine the existing SOP for MSR clearance, including consultations with several countries, including India, in 2022-2023.

The new process proposed by the Foreign Ministry raises questions about whether the government is revisiting and potentially revising policies already put in place earlier this year.

The “New SOP of 2023/24,” which was shared with foreign diplomatic missions, included stringent regulations requiring applications for MSR activities to be submitted six months in advance, with amendments due two months ahead of the survey start date.

The SOP also mandates local collaboration in research and guarantees that Sri Lankan authorities or designated researchers have the right to participate in the studies. The final reports must be submitted to Sri Lankan authorities in line with UNCLOS regulations.

On the face of it, the previous Sri Lankan government’s decision to ‘declare a pause’ on foreign research vessels for one year beginning 1 January 2024 is an attempt to buy peace with the large-hearted Indian neighbour, and also the United States (US), leader of the Western bloc, that is not as generous towards the island-nation, especially in matters human rights.

Yet, in effect, Sri Lanka’s ‘moratorium’ only means that a directly-elected President with a newly-elected Parliament, both with a full and fresh mandate, could and would review and take decisions that they consider appropriate and beneficial to their country, as they see it, as it stands in circa 2025.

New Delhi should be keeping its fingers crossed, to the possibility of a post-poll President ordering a review earlier and also for the moratorium’s withdrawal or suspension on a selective basis.

Social activist Namal Kumara remanded in custody over alleged defamation

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January 01, Colombo (LNW): Social activist Namal Kumara has been remanded until January 15, 2025, following his arrest earlier today by the Colombo Crimes Division (CCD).

The order was issued after Kumara was presented before the Fort Magistrate’s Court, where he faced charges related to an audio recording that has circulated widely on social media.

The recording allegedly tarnishes the reputation of the Archbishop of Colombo, His Eminence Malcolm Cardinal Ranjith.

The investigation, led by the CCD, was initiated after a formal complaint was lodged by the Archdiocese of Colombo.

Rev. Fr. Jude Krishantha, the Media Director of the Archdiocese, accused Kumara of being an accomplice in the 2019 Easter Sunday attacks and suggested that he may be conspiring with third parties to instigate further unrest.

Police Spokesman SSP Buddhika Manathunga confirmed that Kumara’s arrest was a direct result of an ongoing investigation, which was launched in response to the complaint filed by Rev. Fr. Krishantha.

Customs breaks revenue records with historic Rs. 1.515 trillion in 2024

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January 01, Colombo (LNW): Sri Lanka Customs has achieved a monumental milestone in 2024, reaching a record revenue of Rs. 1.515 trillion, the highest in the department’s history.

According to Seevali Arukgoda, the Media Spokesperson and Additional Director General of Sri Lanka Customs, this remarkable figure highlights the department’s exceptional performance and underscores its vital role in the country’s economic progress.

This impressive revenue growth is just shy of the government’s ambitious target of Rs. 1.533 trillion for the year, reflecting a close alignment with national fiscal objectives.

Customs officials attribute the record-breaking earnings to a combination of strategic factors, including robust government tax policies, a notable rise in imports, and enhancements to the efficiency of the tax collection mechanisms.

The substantial growth in imports, which contributed significantly to the overall revenue, comes on the back of an improving economy and consumer demand.

Furthermore, the streamlining of internal processes within the department has facilitated faster and more accurate tax collection, which has been critical in meeting the revenue targets.

President pledges to rebuild Sri Lanka with new political culture and national initiatives

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January 01, Colombo (LNW): President Anura Kumara Dissanayake has affirmed that the responsibility for bringing about meaningful change in Sri Lanka lies firmly with the government.

Speaking at the inauguration of the ‘Clean Sri Lanka’ national initiative, the President stressed the crucial role of the political establishment in steering the country toward a new path in the coming year.

He indicated that the dawn of 2025 signals the beginning of a fresh political culture aimed at restoring the country’s lost integrity.

The foundation of any strong endeavour must be unwavering,” President Dissanayake remarked. “Our nation has seen its foundation eroded over time. However, we are making significant progress in rebuilding it. Our initial steps have been focused on re-establishing political authority, reinforcing the machinery of the state, upholding the rule of law, and ensuring the constitution is respected and protected. We are also committed to eradicating fraud and corruption at every level.”

The President emphasised that while political will is essential in addressing these challenges, state institutions must also recognise their role in supporting the broader efforts.

It is not enough for the political leadership alone to combat corruption and fraud,” he explained. “State institutions must fully understand their responsibilities and take decisive action to contribute to these reforms.

Acknowledging the deep-rooted issues within the governance system, President Dissanayake made a candid statement regarding the extent of corruption that has taken hold in the country.

Corruption and bribery have become deeply entrenched in our state apparatus, spreading like a cancer,” he said. “Restoring the rule of law is an imperative, and we are making concerted efforts to address these systemic issues.

Reflecting on the new political atmosphere in Sri Lanka, the President noted that 2025 marks the start of a revitalised approach to governance.

This year brings with it a new political culture, one focused on unity and the welfare of the people. The entire political establishment is determined to take on the challenge of rebuilding our country, and we are fully committed to ensuring that this cultural shift endures,” he declared.

Looking forward, the President outlined three key objectives for the government in the coming year. These include launching a robust economic programme in the upcoming budget aimed at eradicating poverty, advancing digitalisation to modernise governance and public services, and implementing the ‘Clean Sri Lanka’ initiative.

The Clean Sri Lanka initiative, in particular, will be pivotal in rebuilding our nation,” the President concluded. “It is a comprehensive effort to instil transparency and accountability across all sectors, restoring integrity to the heart of Sri Lankan society.

Sri Lanka continues to experience deflation in Dec 2024

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January 01, Colombo (LNW): Sri Lanka’s inflationary pressures remained subdued in December 2024, as the country continued to experience deflation for the fourth consecutive month.

The year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI) recorded a deflation rate of 1.7 per cent in December, a slight improvement from the 2.1 per cent deflation seen in November 2024.

The Central Bank of Sri Lanka’s latest data reveals a moderation in the non-food deflation rate, which decreased to 3.0 per cent in December, compared to 3.3 per cent in the previous month.

This suggests a gradual easing of downward pressures on non-food items, which have been significantly impacted by global and domestic factors.

Food inflation, on the other hand, showed a modest increase. In December 2024, food prices rose by 0.8 per cent year-on-year, slightly higher than the 0.6% recorded in November.

This uptick in food inflation, though marginal, reflects some resilience in food prices, which have fluctuated due to supply chain adjustments and seasonal variations.

On a monthly basis, the CCPI showed an increase of 1.19 per cent in December, largely driven by a 1.24 per cent rise in food prices. In contrast, non-food prices saw a small decrease of 0.06 per cent, reflecting a relatively stable environment for many goods and services outside of the food sector.

Core inflation, which excludes volatile food and energy prices, remained steady at 2.7 per cent on a year-on-year basis, indicating that underlying inflationary pressures in the economy have remained relatively stable.

This suggests that inflationary forces, while present, have not yet reached concerning levels in the broader economy.

Looking ahead, the Central Bank anticipates that Sri Lanka will continue to experience negative headline inflation for the coming months.

This is expected to be driven by the ongoing impact of substantial energy price reductions, alongside lower food prices and the base effect resulting from the significant price hikes earlier in 2024, triggered by changes in taxation policies.

However, the Central Bank expects inflation to gradually turn positive in the months ahead, with inflationary pressures aligning towards the target rate of 5 per cent over the medium term.

CSE sees record growth of about 50% in 2024, with market capitalisation reaching new heights

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January 01, Colombo (LNW): The Colombo Stock Exchange (CSE) has experienced a remarkable surge in 2024, with a growth rate of 49.66 per cent, marking one of the most significant performances in recent years.

The All Share Price Index (ASPI) saw a substantial increase, climbing from 10,654.16 to an impressive 15,944.61 points by the close of the year.

This strong upward trajectory highlights a robust recovery and growing investor confidence in Sri Lanka’s stock market.

This exceptional growth has also contributed to a new milestone for the market capitalisation, which has reached an all-time high of Rs. 5.69 trillion.

This surge in value reflects the optimism surrounding Sri Lanka’s economic prospects, as well as the continued resilience of key sectors in the country’s financial terrain.

Analysts have attributed this growth to several factors, including a favourable business environment, improved corporate earnings, and increasing foreign interest in the Sri Lankan market.

The surge has also been driven by a combination of local investors capitalising on stock opportunities and a favourable outlook for the economy, which has contributed to a broader sense of confidence in the market’s potential.

Sri Lanka’s 2025 Budget presentation and debate schedule announced

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January 01, Colombo (LNW): The Sri Lankan government has announced the detailed schedule for the 2025 Budget presentation and debate, with the first reading of the Appropriation Bill set for January 9, 2025, followed by the Budget speech on February 17.

The full debate on the budget will run for a total of 26 days, beginning on February 18 and concluding on March 21, 2025, with key votes scheduled during this period.

The decision was made during a meeting of the Committee on Parliamentary Business, chaired by Speaker Dr. Jagath Wickramaratne yesterday (31).

According to the Secretary-General of Parliament, Mrs. Kushani Rohanadeera, the first reading of the Appropriation Bill will take place in Parliament on January 9, 2025.

The much-anticipated Budget speech will be delivered on February 17, followed by the second reading debate from February 18 to 25.

The second reading debate will span seven days, after which a vote on the second reading of the Appropriation Bill is scheduled to take place on February 25 at 6:00 p.m.

Following the second reading, the Committee Stage Debate on the Appropriation Bill will commence on February 27 and continue until March 21, 2025, covering 19 days of deliberations, including four Saturdays.

This extended debate period will allow for a thorough review of the bill. A vote on the third reading of the Appropriation Bill is slated for March 21 at 6:00 p.m.

In terms of daily scheduling during the budget debate, a 30-minute slot from 9:30 a.m. to 10:00 a.m. will be reserved for five Questions for Oral Answers.

The budget debate itself will then run from 10:00 a.m. to 6:00 p.m., with an additional half-hour from 6:00 p.m. to 6:30 p.m. allocated for motions at adjournment time.

However, on the two critical days, February 25 and March 21, when votes are to take place, this allocation will not apply.

SL descent former British MP Ranil Jayawardena awarded knighthood for services to public life

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January 01, London (LNW): Ranil Jayawardena, the former Member of Parliament for North East Hampshire and ex-deputy leader of Basingstoke and Deane Borough Council (BDBC), has been recognised in the 2024 New Year’s Honours List, receiving a knighthood for his outstanding contributions to public service.

Born in London to Sri Lankan parents, the 38-year-old’s career in politics spans over a decade, from his early days as a local councillor to his service in the UK Parliament.

Jayawardena represented North East Hampshire from 2015 until his recent loss in the 2024 general election, making him a familiar and respected figure in his constituency, where he had lived for most of his life.

His commitment to public service, both at the local and national levels, has earned him this prestigious honour.

Expressing his gratitude for the knighthood, Jayawardena commented, “I am deeply humbled to receive this recognition from His Majesty The King. It is a reflection of the journey I’ve taken in public service, from serving as a local councillor to holding key Cabinet positions in government.

Jayawardena’s political path began in Basingstoke, where he served as a councillor for the BDBC from 2008 until 2015. His rise through the ranks of local government saw him become the deputy leader of the council, a position that laid the groundwork for his later national political career.

It was an immense privilege to serve as MP for the area where I grew up, attended local state schools, and where I continue to live with my family,” he said.

After securing a degree in Government from the London School of Economics in 2008, Jayawardena took his first steps into national politics, becoming the Member of Parliament for North East Hampshire in 2015.

Over the years, he built a reputation as a dedicated and effective politician, holding several important roles in government.

Between 2020 and 2022, he served as the International Trade Minister, where he was instrumental in negotiating trade agreements to strengthen the UK’s economic position, particularly during the challenging period of the Covid-19 pandemic.

His leadership during this time helped ensure the resilience of global supply chains, a key factor in the UK’s recovery.

In September 2022, following the appointment of Liz Truss as Prime Minister, Jayawardena was promoted to Secretary of State for Environment, Food and Rural Affairs.

In this capacity, he spearheaded initiatives to tackle water pollution and protect the UK’s natural environment—issues that remain close to his heart.

In his message of thanks, Jayawardena expressed his gratitude to his family, colleagues, and constituents, acknowledging the crucial role they played in his achievements.

“I am incredibly thankful to my family, colleagues, and especially the people of North East Hampshire for their unwavering support over the years. It has been an honour to serve them, and I will always be proud of the work we’ve done together.

President AKD launches ‘Clean Sri Lanka’ initiative (LIVE)

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January 01, Colombo (LNW): In a significant step towards national transformation, President Anura Kumara Dissanayake officially launched the much-anticipated ‘Clean Sri Lanka’ initiative at a ceremony held at the Presidential Secretariat a short while ago (01).

The initiative, which aims to address critical environmental, social, and ethical challenges, was unveiled with the promise of fostering a cleaner, more sustainable future for the nation.

The ‘Clean Sri Lanka’ programme has been designed to encourage citizens to take an active role in improving their communities by promoting a cleaner and more sustainable future addressing critical environmental, social and ethical challenges befallen the island nation.

The launch event saw a strong emphasis on unity and collective action, with President Dissanayake calling on every Sri Lankan to contribute to the success of the initiative.

Addressing the gathering, the President expressed his belief that a clean nation is essential not only for the well-being of the people but also for the country’s broader development goals.