Home Blog Page 267

Pelwatte at the Forefront as Sri Lanka Plans Dairy Self-Sufficiency

0

The Government is embarking on a strategic plan on revitalising the dairy industry with initiatives aimed at enhancing productivity, improving milk value chains, and supporting local farmers while encouraging private sector investments.

Key efforts include a new project utilising World Bank funding to boost dairy farm productivity in specific districts, and to transform state-owned dairy companies into efficient and market-driven enterprises.

A project funded by the World Bank is underway to enhance dairy farm productivity in key districts like Anuradhapura, Matale, and Galle ensuring a more efficient and sustainable dairy industry.

This strategic plan is aimed at transforming MILCO and the National Livestock Development Board into efficient and productive enterprises, according to President’s Office Sri Lanka.

A Milk Development Fund will be set up to support dairy farmers by improving their livelihoods and farming standards

Sri Lankan private sector has also stepped in to develop the dairy industry, aiming to boost milk production and meet local demand with the  encouragement of the government through initiatives like providing state land to private companies for commercial dairy farms and supporting local dairy farmers with training and insurance.

In a far reaching move to improve the dairy industry, Pelwatte Dairy Industries Ltd, Sri Lanka’s largest milk collector and a key player in the dairy sector is expanding its production capacity with a Rs.3.1 billion investment in a state-of-the-art Greenfield dairy processing facility in Ibbagamuwa, Kurunegala.

Founder Chairman of Pelwatte Dairy Industries, Master Divers, and President of Mawbima Lanka Foundation Ariyaseela Wickramanayake, said  that the new factory is being developed as an environmentally sustainable project featuring modern

 At initial capacity, the new plant will process 50,000 to 80,000 litres of milk daily, sourced directly from farmers across the Northwestern Province and the full capacity will be set at 300,000 litres. The factory is scheduled for completion by June 2026. 

The company currently exports ice cream and butter to the Maldives and is preparing to expand into other international markets, including Seychelles and Mauritius. It also exports milk powder mainly to China and a few African countries

He expressed the belief that Sri Lanka could achieve self-sufficient dairy and sugar production as well as major agricultural crops with the encouragement of the government. 

Mr. Wickramanyake disclosed that he was instrumental in initiating the concept of Hambantota port which is now becoming a regional hub for the East-West maritime traffic

He noted that he realised the importance of a seaport in Hambantota in the seventies, and did several studies on it. In 1997, he wrote a book on why it has to be Hambantota a strategic location, he added. .

Agriculture was the success of Sri Lanka‘s past and it is the future too” he said pointing out that that farming practices have sustained communities in the past, also hold the key to a sustainable and prosperous future prospects

GDP Growth slows in Q1, Industrial Sector keeps Sri Lanka Economy Afloat

0

Sri Lanka’s economy grew by 4.8% in the first quarter of 2025, reflecting a slowdown in momentum compared to recent quarters, according to the Department of Census and Statistics (DCS). This marks the second-lowest quarterly growth in the past year and is a drop from the 5.3% expansion seen in the same period last year.

Despite the dip, the economy continued its recovery trajectory, registering its seventh consecutive quarter of positive growth since the third quarter of 2023. Sri Lanka’s economy rebounded strongly in 2024, posting a full-year growth of 5.5%, a sharp turnaround from the 2.3% contraction in 2023.

In Q1 2025, agriculture contracted by 0.7%, dragging down overall performance, while industrial and services sectors grew by 9.7% and 2.8% respectively. Taxes minus subsidies on products rose by 8.3%.

Industrial activity played a leading role in the quarter’s growth, driven by the manufacturing, construction, mining, and quarrying sectors. Manufacturing alone grew by 9.6%, while the construction sector expanded by 10.7%, and mining and quarrying surged by 12.6%. This was supported by a stable exchange rate, lower interest rates, and increased imports of investment and intermediate goods.

However, agriculture weighed down the overall figures. Although sub-sectors like animal production (18.8%), marine fishing (14.5%), and tea cultivation (5.6%) saw notable gains, the sector declined due to sharp contractions in fresh water fishing (-57.0%), oleaginous fruit cultivation (-27.6%), and rubber production (-22.2%). Other key crop categories such as rice (-0.8%) and cereals (-0.4%) also posted declines.

Within industry, most sub-sectors showed growth. Notably, electricity, gas, steam, and air conditioning supply increased by 3.4%, while sewerage and waste management grew by 7.9%. However, water supply fell by 3.2%. In contrast, two manufacturing categories—repair and installation of machinery (-10.6%) and refined petroleum products—saw no or negative growth.

The services sector posted a 2.8% increase, slightly higher than the 2.5% reported a year ago. Key contributors included financial services and accommodation-related activities, reinforcing the gradual economic rebound.

While the slower growth in Q1 signals a tempering of the recent recovery pace, consistent quarterly expansion and strong performance in industrial sectors highlight the economy’s underlying resilience.

Sri Lanka Seals Bilateral Debt Deal with France Boosting Economic Recovery

0

In a major development within Sri Lanka’s external debt restructuring journey, the country officially signed a bilateral debt agreement with France on Monday (June 16) in Colombo, according to the Ministry of Finance.

Representing the Sri Lankan government, Treasury Secretary Mahinda Siriwardana inked the deal, while William Roos, Assistant Secretary of Multilateral Affairs from the French Treasury, signed on behalf of France.

The Finance Ministry highlighted this agreement as a vital indicator of Sri Lanka’s dedication to swiftly concluding its debt restructuring program to restore debt sustainability and rejuvenate the national economy.

France, along with Japan and India, played a prominent role in co-chairing Sri Lanka’s Official Creditor Committee (OCC), guiding the country through complex negotiations to restructure its foreign debt. The Ministry praised France’s leadership and constructive involvement, emphasizing that such collaborative efforts have enabled significant progress in stabilizing Sri Lanka’s finances.

This agreement also signals an intention to deepen longstanding diplomatic and economic ties between France and Sri Lanka.

The French Embassy noted that 2023 marked a high point in bilateral relations, as leaders of both countries engaged in frequent high-level discussions. French President Emmanuel Macron and Sri Lankan President Ranil Wickremesinghe met three times during the year—in Paris during the Summit for a New Global Financing Pact in June, in Colombo in July, and again in October on the sidelines of COP28 in Dubai.

Notably, 2023 also saw the first formal political dialogue between the two nations, held in Colombo in October. The second edition of these top-level talks is scheduled to take place in France later in 2024, further strengthening political cooperation.

France, Sri Lanka’s fourth-largest official bilateral creditor, has been instrumental in uniting the creditor community. A key milestone was reached in June 2023 when negotiations culminated in Paris with a joint agreement signed by the OCC co-chairs and China’s Exim Bank. This agreement was formalized at the French Ministry of Economy and Finance during the 11th Paris Forum.

The latest bilateral pact enables France to expand its development cooperation in Sri Lanka. According to the Finance Ministry, French agencies such as AFD (Agence Française de Développement), the Economic Department, and the Embassy’s Cooperation and Cultural Action Department have consistently supported Sri Lanka—even during periods of economic turmoil.

The agreement stands as a testament to international solidarity and France’s enduring commitment to Sri Lanka’s recovery, paving the way for enhanced collaboration across economic, political, and cultural sectors.

PM Emphasises Rural Tourism and Regional Collaboration at China–Sri Lanka–Maldives Tourism Forum

0

Colombo, June 17 — Prime Minister Dr. Harini Amarasuriya reaffirmed the Government’s commitment to developing community-based and rural tourism while speaking at the inaugural China–Sri Lanka–Maldives Tourism Forum, held in Colombo on Monday (16) under the theme “Connectivity and Collaborative Success along the Silk Road.”

Addressing delegates, the Prime Minister highlighted the Government’s vision of a tourism sector that not only drives economic growth, but also empowers rural communitiesprotects ecosystems, and preserves cultural heritage.

“Our focus is on building a tourism industry that supports women entrepreneursyouth participation, and eco-tourism, while strengthening the capacity of local tourism service providers,” she said. “Tourism must reach beyond the cities and touch underrepresented regions, ensuring benefits flow to rural communities.”

The Prime Minister also underlined the value of regional cooperation, calling for collaboration in visa streamlininghealth and safety standardsdigital infrastructure, and joint marketing strategies. She noted that working with China and the Maldives presents valuable opportunities to elevate the tourism industry in all three countries.

In a broader context, she described tourism as a tool for peacebuilding and human connection, stating, “In a divided world, tourism opens pathways to unite across borders, cultures, and generations.”

The event was attended by Chinese and Maldivian diplomatic representatives, senior officials from the Chinese Ministry of Culture and Tourism, and other invited dignitaries.

India Hosts Reception for Sri Lanka’s Women Parliamentarians to Deepen Bilateral Collaboration

0

The High Commissioner of India to Sri Lanka, Santosh Jha, hosted a special reception at India House on Monday (June 16) in honour of the Women’s Caucus of the Sri Lankan Parliament. The event was attended by Prime Minister Dr. Harini AmarasuriyaMinister of Women and Child Affairs Saroja Savithri Paulraj, and several other Women Caucus members.

In his remarks, High Commissioner Jha emphasised the historic and evolving role of women in politics in both India and Sri Lanka, noting that the two countries have been global pioneers in women’s political leadership. He highlighted the transformative efforts in India over the past decade, particularly under Prime Minister Narendra Modi, which have positioned women as active nation-builders—from participating in space exploration to grassroots governance.

The event also marked growing cooperation between women parliamentarians in both countries, as guided by President Anura Kumara Dissanayake and Prime Minister Modi. Earlier in May 2025, three members of Sri Lanka’s Women Caucus visited India to participate in an orientation programme at the Parliamentary Research and Training Institute for Democracies (PRIDE) in New Delhi.

With the current Sri Lankan Parliament recording the highest number of women MPs in its history, the initiative aims to strengthen institutional knowledge-sharing and promote democratic values through parliamentary-level exchanges.

France and Sri Lanka Sign Bilateral Agreement on Debt Restructuring

0

 France and Sri Lanka on Monday signed a bilateral agreement to implement the terms of the Memorandum of Understanding (MoU) reached on June 26, 2024, with Sri Lanka’s Official Creditors Committee, co-chaired by France, India, and Japan.

The agreement reschedules €390 million of Sri Lanka’s debt until 2042, providing a five-year grace period and a cap on original interest rates. It aligns with the coordinated international effort to restore Sri Lanka’s debt sustainability, following the country’s 2022 economic crisis.

The agreement was signed on June 16 by William Roos, Assistant Secretary for Multilateral Affairs, Trade and Development at the French Treasury, and Finance Ministry Secretary Mahinda Siriwardana. The signing took place in the presence of French Ambassador Rémi LambertDeputy Finance Minister Dr. Harshana Suriyapperuma, and Central Bank Governor Dr. Nandalal Weerasinghe.

Officials said the agreement supports the implementation of the IMF’s multi-year €2.8 billion financing programmeand ensures compliance with the principle of comparability of treatment among all creditors, including third-party lenders.

France reaffirmed its continued support for Sri Lanka’s economic recovery and reform agenda, viewing the agreement as a key milestone in strengthening bilateral relations and fostering long-term financial stability.

Cabinet Approves Move to Revoke Special Benefits for Former Presidents and MPs

0

The Cabinet of Ministers has approved amendments to revoke special privileges granted to former Presidents and Members of Parliament, marking a significant shift in Sri Lanka’s political entitlement framework.

The Cabinet approved the drafting of amendments to the Presidents’ Entitlements Act No. 4 of 1986 and the Parliamentary Pensions Law No. 1 of 1977, instructing the Legal Draftsman to initiate the necessary legislative process.

Cabinet Spokesman and Health and Mass Media Minister Dr. Nalinda Jayatissa, speaking at the weekly Cabinet media briefing, stated that the move aligns with the Government’s policy vision, “A Wealthy Country – A Beautiful Life”. He said the Government has a public mandate to eliminate long-standing privileges for retired leaders and MPs.

“With the enactment of these amendments, all special benefits currently extended to former Presidents and their spouses — including official residences and personal staff — will be revoked. The same applies to pensions granted to MPs who have served for five years,” Dr. Jayatissa said.

However, he clarified that constitutionally protected retirement pensions of former Presidents will remain intact, as the reforms only target benefits under the Presidents’ Entitlements Act.

Calling the decision “historic,” Dr. Jayatissa added, “For the first time in nearly four decades, a Government is taking decisive legislative action to end this entitlement culture. Once passed, these reforms will apply to all living former Presidents and spouses of deceased Presidents.”

WEATHER FORECAST FOR 18 JUNE 2025

0

Showers will occur at times in the Western and Sabaragamuwa provinces and in Nuwara-Eliya, Kandy, Galle and Matara districts.

Several spells of showers will occur in the North-western province.

Showers or thundershowers may occur at a few places in the Uva province and in Ampara and Batticaloa districts in during the afternoon or night.

Fairly strong winds of about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Southern and North-western provinces and in Trincomalee district.

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

SL Embassy in Israel offers support for nationals seeking re-entry amid ongoing conflict.

0

By: _Isuru Parakrama_

June 17, Colombo (LNW):
Amid continued regional instability and the disruption of international air travel to Israel, the Sri Lankan diplomatic mission in Tel Aviv has announced a series of measures aimed at assisting Sri Lankan nationals attempting to re-enter the country.

With flights to Ben Gurion Airport suspended due to heightened tensions linked to the Israel-Iran confrontation, Sri Lankans stranded abroad have faced growing uncertainty about their ability to return to Israel for employment, family obligations, or other commitments.

In response, the Sri Lankan Embassy has moved to provide administrative support to ease the difficulties facing affected individuals.

Ambassador Nimal Bandara confirmed that he has formally reached out to Israel’s Population and Immigration Authority (PIBA), requesting an extension of re-entry visa validity by a further two months, calculated from the onset of the current regional conflict.

The diplomatic appeal is aimed at ensuring that Sri Lankan citizens who temporarily left Israel and are now facing visa expiry issues are not penalised due to circumstances beyond their control.

Although this request was made on behalf of Sri Lankan nationals, the Ambassador noted that the Israeli authorities may extend the same leniency to citizens of other countries, should the recommendation be accepted. However, he acknowledged that processing timelines remain uncertain given the evolving security situation.

In anticipation of extended airspace closures, the Embassy is also exploring alternative travel arrangements via Egypt. Sri Lankans currently outside Israel may be able to enter the country by flying into Cairo, with subsequent overland transfers arranged to the Israeli port city of Eilat, located near the southern border.

The Embassy has indicated that it is prepared to assist with the necessary paperwork for Egyptian short-stay visas, as well as coordinate group transportation if demand warrants such efforts.

Ambassador Bandara urged those seeking assistance to promptly share their details—including full name, passport number, and contact information—with the Embassy. He emphasised, however, that the mission’s role is strictly limited to facilitating and coordinating the logistical process.

All costs relating to flights, visas, accommodation, and land transport will need to be covered by the individuals involved, he added.

Fatal Error Suspected in Air India Flight AI171 Crash: Co-Pilot May Have Pulled Wrong Lever, Expert Claims

0

By: Puli

June 17, Colombo(LNW): Aviation expert and veteran commercial pilot Captain Steve Scheibner has suggested that a critical error by the co-pilot may have led to the tragic crash of Air India Flight AI171, which killed all 241 people onboard and dozens on the ground.

The London Gatwick-bound Boeing 787 Dreamliner crashed just minutes after taking off from Ahmedabad, Gujarat, on June 12. Captain Scheibner, a former American Airlines pilot, shared his theory on his YouTube channel, pointing to a possible mistake involving the aircraft’s controls.

According to Scheibner, the co-pilot might have been instructed to retract the landing gear but mistakenly pulled the flap lever instead reducing lift at a crucial moment during takeoff.

“This is just my opinion,” Scheibner emphasized. “But I believe when the captain said, ‘gear up,’ the co-pilot may have accidentally grabbed the flap lever, not the gear lever. If that’s what happened, it could explain why the aircraft suddenly lost lift and crashed.”

He added that under normal conditions, the aircraft’s wings would show visible flexing due to lift forces during takeoff. However, video footage reportedly does not show this, further supporting the flap-retraction theory.

Meanwhile, air accident investigators in India have begun decoding the aircraft’s black box data and are interviewing pilots and crew who operated the aircraft in the days before the crash. Officials hope these steps will shed more light on the circumstances surrounding the disaster.