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Showers or thundershowers will occur at times in Northern and North-Central Provinces

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November 07, Colombo (LNW): Showers or thundershowers will occur at times in Northern and North-Central Provinces and in Puttalam and Trincomalee districts. Fairly heavy showers above 50mm are likely at some places in Northern Province.

Showers or thundershowers will occur at several places in Central, Sabaragamuwa, Uva and Southernprovinces during the evening or night.

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

Sri Lanka Showcases Wellness Tourism and Ayurveda at ‘A Journey of Healing and Rejuvenation’ Event in Brussels

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November 06, Colombo (LNW): The Embassy of Sri Lanka in Brussels, in partnership with Siddhalepa Ayurveda Resorts and Spas, recently hosted an event titled A Journey of Healing and Rejuvenation to spotlight Sri Lanka’s wellness tourism and Ayurvedic heritage. Over 25 prominent professionals in wellness tourism—including tour operators, travel agents, travel writers, and journalists—attended the event, which showcased Sri Lanka’s holistic health offerings to the European market.

Sri Lanka’s Ambassador to Belgium, Chandana Weerasena, opened the event by emphasizing the island’s rich tradition of Ayurveda, which has been integral to Sri Lankan culture for centuries. Ambassador Weerasena encouraged the attendees to consider Sri Lanka as a unique destination for wellness tourism and to help elevate its profile among Belgian and European travelers.

Ushan Edirisinghe, Senior Marketing Manager at Siddhalepa Ayurveda Resorts and Spas, conducted an interactive presentation on the history and cultural importance of Hela Wedakama and Ayurveda in Sri Lanka. Edirisinghe highlighted Siddhalepa’s specialized treatments, wellness programs, and the generational knowledge embedded in their healing practices. The story of a foreign cancer patient who found recovery through Ayurveda treatments at Siddhalepa was shared through a video, demonstrating the profound impact of Sri Lankan Ayurvedic healing.

The event also featured a tasting of four traditional Ayurvedic elixirs, known as Arishtas, allowing guests to experience the flavors and medicinal properties of Sri Lanka’s traditional remedies. Additionally, a live cooking demonstration showcased the preparation of Sri Lankan dishes, spotlighting the health benefits of spices, coconut-based products, and local ingredients. Attendees expressed enthusiasm for the Ayurvedic beverages and cuisine, showing a keen interest in the nutritional and restorative qualities of Sri Lankan food.

This event marked a successful introduction to Sri Lanka’s wellness tourism sector, creating awareness of the island’s distinctive Ayurvedic offerings and reinforcing its appeal as a wellness destination in the European market.

Donald Trump Secures Second Presidential Term with Victory over Kamala Harris

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Donald Trump Secures Second Presidential Term, AP Projects

In a historic return to the White House, former President Donald Trump has won the 2024 U.S. presidential election, securing at least 270 Electoral College votes, according to projections by The Associated Press. This victory marks Trump’s second term in office, following his initial tenure from 2017 to 2021.

At 78, Trump emerged victorious over his Democratic rival, 60-year-old Vice President Kamala Harris, after a challenging and closely contested campaign. Trump’s triumph was solidified after he was projected to win key battleground states, including Pennsylvania, North Carolina, and Georgia. In a later development, AP also called Wisconsin in Trump’s favor, further consolidating his lead.

In addition to Trump’s win, the Republican Party is projected by AP to regain control of the Senate, signaling a shift in the balance of power in Washington. Trump’s return to the White House and the Senate majority mark a significant moment in American politics, setting the stage for policy shifts and changes in leadership for the coming years.

India Inaugurates New Surgical Unit at Batticaloa Teaching Hospital

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November 06, Colombo (LNW): India’s High Commissioner to Sri Lanka, Santosh Jha, and Health Ministry Secretary Dr. Palitha Mahipala inaugurated a newly constructed surgical unit at Batticaloa Teaching Hospital on November 4. The ceremony was attended by notable officials including Batticaloa Government Agent Muralidharan, Eastern Provincial Health Secretary Sivalingam, and the hospital’s Director, Dr. Kalaranchane Ganeshalingam.

The new facility addresses a longstanding need at the hospital, identified in 2015, to manage an increasing patient load and high demand for surgeries. At the time of proposal, over 1,280 patients were on waiting lists, with limited facilities leading to significant delays. Responding to Sri Lanka’s request, India pledged Rs. 275 million in grant assistance in 2016, later increasing support to Rs. 302 million.

The project involved constructing a two-story building with a floor area of 1,464 square meters, featuring four modern operation theaters and ten ICU beds. Additional essential infrastructure—IT systems, water supply, drainage, and electrical work—was also integrated. Despite challenges posed by the Covid-19 pandemic and economic constraints, the project was completed, incorporating additional components like generators and medical gas systems at the hospital’s request.

Health Ministry Secretary Dr. Mahipala expressed Sri Lanka’s gratitude for India’s vital support, which he noted would meet a crucial healthcare need in the region. Dr. Ganeshalingam highlighted that the unit is expected to reduce surgical waiting lists by 50 percent, benefiting between 3,000 to 5,000 patients annually and significantly improving healthcare access.

High Commissioner Jha discussed a variety of ongoing bilateral projects in Sri Lanka, particularly in the Eastern Province. These include infrastructure and healthcare initiatives, such as the renovation of 4,000 houses under the Indian Housing Project and livelihood support for the fishing community. He emphasized that India committed Rs. 2.35 billion in multi-sectoral grant assistance for Eastern Province development last year, with 33 livelihood projects nearing finalization.

The surgical unit at Batticaloa Teaching Hospital joins a series of India-supported healthcare initiatives across Sri Lanka. Highlights include the Suwa Seriya 1990 ambulance service, a 150-bed multi-specialty hospital at Dickoya, and infrastructure upgrades at Jaffna and other district hospitals. These efforts underscore India’s enduring commitment to strengthening healthcare infrastructure in Sri Lanka.

Government Disburses Rs. 20 Bn Fertiliser Subsidy for 2024/25 Maha Season to Support Over One Million Farmers

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November 06, Colombo (LNW): The Sri Lankan government has announced a Rs. 20 billion fertiliser subsidy for paddy farmers in the 2024/25 Maha season, aimed at boosting rice cultivation across the country. Agriculture Commissioner General U.B. Rohana Rajapaksa stated that around one million farmers, covering 720,000 hectares of rice fields, will benefit from this support.

Under President Anura Kumara Dissanayake’s directive, the Treasury has increased the subsidy to Rs. 25,000 per farmer for the new season. Currently, Rs. 15,000 has already been disbursed to eligible farmers as the initial phase of the support, with the remaining Rs. 10,000 expected by the end of the month.

To date, Rs. 162.4 million has been transferred to the accounts of 36,500 farmers under this scheme. The subsidy rollout includes several phases:

  • Phase One: Rs. 9.5 million was distributed to 670 farmers in Ampara and Kilinochchi districts on October 17, covering 638 hectares.
  • Phase Two: Rs. 46.5 million was provided to 4,475 farmers across 12 districts on October 23, covering 3,102 hectares.
  • Phase Three: Rs. 57.5 million was given to 4,219 farmers on October 28, covering 3,839 hectares.
  • Phase Four: Rs. 48.7 million was disbursed to 4,804 farmers across 12 districts, covering 3,247 hectares.
  • Phase Five: Scheduled for this week, Rs. 279.4 million will be deposited to support 22,419 farmers cultivating 18,627 hectares across 19 districts.

Rajapaksa highlighted that the subsidy distribution is being prioritized in districts where rice cultivation for the Maha season has started, as verified by local agriculture service centres. Districts such as Colombo, Kalutara, Galle, Mannar, and Polonnaruwa have not yet commenced paddy cultivation, largely due to recent rainfall delays.

This initiative builds on last year’s Rs. 11 billion subsidy, marking a significant increase in government support for paddy farmers. The programme aligns with the government’s strategy to enhance agricultural productivity and ensure food security.

Ceylon Electricity Board Reaffirms Commitment to Sector Reforms, Rules Out Privatization

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November 06, Colombo (LNW): The Ceylon Electricity Board (CEB) announced on Monday that while reforms in the electricity sector will continue, there will be no privatization of state-owned electricity assets.

In an official statement, CEB explained that it had initiated a reform process last year, driven by external recommendations, due to decades of delayed internal reforms. However, the organization now sees an “unprecedented opportunity” to advance meaningful reforms in the energy sector, aligning with the social transformation mandate of Sri Lanka’s current president.

CEB’s Board of Directors has called on all stakeholders to collaborate in building a people-centric, clean, and secure electricity sector. The goal is to achieve the lowest electricity costs in the region within the next five years, under a strong single-buyer market model, with an Independent System Operator (ISO) and unbundled licenses for generation, transmission, and distribution. This vision will be implemented through amendments to the Electricity Act, with extensive public and stakeholder consultation.

In addition, CEB has proposed forming a committee representing employees at all levels to foster active involvement in the ministry’s future initiatives. An online awareness session on the reforms was recently conducted for CEB staff by the Chairman and Board of Directors, emphasizing that, “Change is a constant; timely changes are essential for any organization.”

The CEB emphasized that these organizational reforms aim to enhance service quality, customer satisfaction, and employee welfare, while ensuring economic returns that support both the organization and the national economy.

Top banker Kavinda de Zoysa takes over new Chairmanship at Bank of Ceylon

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The Bank of Ceylon (BOC) has announced the appointment of Kavinda de Zoysa as its new Chairman. With over 30 years of experience in the banking industry, including 25 years in management, de Zoysa brings extensive leadership expertise and a strategic vision to the role. 

His deep knowledge of both local and global markets will help BOC navigate the challenges of the evolving financial landscape.

De Zoysa is recognized for his collaborative leadership style and commitment to innovation, ethics, and corporate values such as diversity, equity, and inclusion (DEI). He emphasizes meritocracy and the importance of agile execution in driving success.

In his statement, de Zoysa expressed his pride in taking on the role, acknowledging BOC’s pivotal role as the largest bank in Sri Lanka. “I look forward to working with BOC’s talented team to drive growth and create value for all stakeholders,” he said. “As Sri Lanka enters a new phase of economic growth, we will uphold the bank’s legacy while embracing innovation to support the nation’s evolving economic needs.”

Prior to his appointment at BOC, de Zoysa held a senior leadership position at Citibank N.A., Sri Lanka, where he was the Director and Country Business Head. His nearly two-decade career at Citi spanned various areas, including Corporate and Investment Banking, Risk Management, and Capital Markets. He also contributed significantly to Citi’s strategic planning, major corporate finance transactions, and the digital transformation of the bank.

De Zoysa’s banking career began at Seylan Bank, where he worked his way up from a Banking Assistant at just 18 years old. His professional experience includes roles at NDB Bank, Nations Trust Bank, and the National Development Bank, with expertise across retail banking, project finance, SME lending, corporate planning, and auditing.

In addition to his banking career, de Zoysa is actively involved in professional organizations. He serves as a Global Council Member of the Chartered Institute of Management Accountants (CIMA) UK and has held leadership positions in other international bodies like the AICPA. He is also a visiting lecturer at the University of Colombo and the University of Ruhuna.

De Zoysa holds an MBA from the University of Colombo, where he graduated with merit honours and a gold medal. He is a Fellow of several prestigious institutions, including CIMA UK and the Institute of Bankers of Sri Lanka, and has completed executive education programs at the University Of Chicago Booth School Of Business.

BOC expressed confidence in de Zoysa’s ability to lead the bank to continued success under his stewardship.

Govt Advised to Reform State-Owned Enterprises with Competitive Bidding Process

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November 06, Colombo (LNW): The Advocata Institute, an independent think tank, has called for urgent reforms in Sri Lanka’s State-Owned Enterprises (SOEs) to tackle ongoing corruption and inefficiencies. 

This call comes amid rumors that the Ceylon Electricity Board (CEB) might continue bypassing competitive bidding for fuel purchases, which has sparked concern on social media. 

While these rumors have not been confirmed, they shine a light on the persistent financial challenges plaguing SOEs, including growing debt and mismanagement, which have long affected the country’s economy.

According to Advocata, the lack of competitive procurement processes has led to inflated costs in essential sectors. 

For example, the CEB purchases naphtha from the Ceylon Petroleum Corporation (CPC) at prices higher than global market rates, raising electricity production costs and resulting in higher tariffs for consumers. 

In addition, inefficiencies at CEB delay payments to CPC, which contributes to mounting debt that is often covered by the government or state banks.

A similar issue affects SriLankan Airlines (SLA), which faces overcharging for jet fuel by CPC. This has worsened the airline’s financial losses, which the government has had to offset with significant equity injections, including Rs. 102.5 billion in 2023.

 Both cases highlight a broader issue of “circular debt,” where inefficient practices in SOEs lead to rising debt, which is ultimately shouldered by taxpayers.

The Advocata Institute argues that these inefficiencies and the lack of competitive bidding are draining public finances and harming consumers. SOEs like CEB and CPC contribute to a cycle of rising debt, higher tariffs, and poor services, all of which exacerbate the government’s budget deficit. 

The Institute highlights that the absence of competitive procurement processes allows corruption to flourish, inflating costs and reducing the quality of services.

Establishing a transparent, competitive bidding system could help break this cycle, reduce corruption, and enhance efficiency in SOEs.

This need for reform is also supported by the International Monetary Fund’s Governance Diagnostic Assessment, which connects non-competitive procurement with corruption in SOEs.

While the government has attempted some reforms, such as the unbundling of CEB through the Electricity Bill approved in June 2024, progress has been slow. The recent decision to halt the privatization of SriLankan Airlines has also raised doubts about the government’s commitment to comprehensive SOE reform.

However, there is some hope for change. President Anura Kumara Dissanayake recently met with the National Procurement Commission (NPC) to discuss the importance of implementing procurement laws. 

If these discussions lead to concrete reforms, the introduction of competitive bidding could help address the long-standing inefficiencies and corruption that have hindered Sri Lanka’s SOEs.

The Advocata Institute calls on the government to prioritize competitive bidding as a critical first step toward reforming SOEs, improving transparency, and securing a more sustainable economic future for Sri Lanka.

Salesforce to Drive Sri Lanka’s Digital Transformation with AI-Driven Solutions

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November 06, Colombo (LNW): Salesforce, a global leader in customer relationship management (CRM), has reaffirmed its commitment to digitally transforming businesses in Sri Lanka, aligning with the country’s 2030 vision of becoming a fully digital nation.

 By leveraging cutting-edge artificial intelligence (AI) and automation technologies, Salesforce aims to revolutionize customer experiences across various industries, helping businesses unlock significant value and drive growth.

In a video message at the media launch, Arundhati Bhattacharya, Chairperson and CEO of Salesforce India, emphasized Sri Lanka’s strides in adopting technology, which have helped build a dynamic digital economy. 

She noted that the country’s vision of reaching a $15 billion digital economy by 2030, supported by an AI strategy, is a crucial driver for economic competitiveness, job creation, and sustainable development.

Salesforce, she said, is committed to supporting businesses in Sri Lanka by providing resources to help them thrive in the digital era.Several leading Sri Lankan companies, including Campus Direct, Cinnamon Hotels, Keells Super, Dilmah Tea, and Third Space Global, are already utilizing Salesforce’s AI-driven solutions to transform their digital strategies. 

These businesses are using Salesforce to enhance productivity, improve efficiency, and revolutionize customer interactions—key elements of a successful digital transformation in line with the government’s vision for innovation and sustainable growth.

A major component of Salesforce’s strategy is the introduction of Agentforce, a suite of autonomous, customizable AI agents and tools that collaborate with employees to streamline operations. 

With low-code capabilities, Agentforce allows organizations to build and deploy their own agents quickly. These agents can perform tasks like answering customer inquiries, qualifying sales leads, and optimizing marketing campaigns. 

The Salesforce platform also features Customer 360, which integrates sales, service, marketing, and commerce, providing businesses with a comprehensive view of customer interactions.

Furthermore, Salesforce’s integration platform MuleSoft facilitates seamless connectivity between applications and APIs, allowing businesses to bring in third-party data and extend the capabilities of Agentforce.

 In addition, Slack, a collaboration tool within the Salesforce ecosystem, empowers employees by enabling them to interact with AI agents directly in the flow of their daily work, improving the relevance and context of their interactions.

The role of Salesforce’s local partners in Sri Lanka was also highlighted during the launch. Ramesh Shanmughanathan, 

Executive Vice President and Group CIO of John Keells Holdings (JKH), spoke about the opportunity for transformative change across industries due to the growing digital ecosystem in Sri Lanka. 

He emphasized that the partnership with Salesforce would help accelerate innovation and drive exceptional outcomes for customers.

Nalaka Umagiliya, Senior Vice President of JKH’s Group Information Technology division, shared that the collaboration with Salesforce was pivotal in advancing JKH’s CRM, sales, marketing, and loyalty operations. 

The focus on data privacy and customer consent management would further elevate customer engagement and optimize business processes, leading to significant efficiency gains for the company.

Urgent Call for Debt Recovery Reforms to Protect MSMEs in Sri Lanka

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November 06, Colombo (LNW): The Micro, Small, and Medium Enterprises (MSME) Chamber of Sri Lanka has urged President Anura Kumara Dissanayake to implement significant reforms to the country’s debt recovery systems, particularly focusing on the Recovery of Loans by Banks (Special Provisions) Act No. 04 of 1990. 

In a letter addressed to the President, the Chamber highlighted the severe financial pressures faced by MSMEs, exacerbated by economic crises and aggressive debt recovery practices. These challenges threaten the survival of businesses that form the backbone of Sri Lanka’s economy.

The Chamber expressed concern over the rising number of MSMEs pushed to the brink of collapse, with businesses unable to recover due to outdated and harsh debt recovery mechanisms. 

They called for urgent reforms to support these enterprises and promote broader economic stability. By treating MSMEs as key drivers of resilience, the government could strengthen the economy and attract investment, helping businesses recover and thrive.

The letter details a series of challenges faced by MSMEs over the past few years, which have compounded their financial struggles:

Ethnic Violence (2018): Anti-Muslim riots disrupted businesses, particularly those owned by the affected communities, causing significant financial losses and long-term damage to consumer confidence.

Political Instability (2018): A 52-day political crisis led to governance paralysis, undermining investor confidence and stalling business operations.

Easter Sunday Attacks (2019): The bombings devastated the tourism sector, severely impacting businesses like hotels and restaurants reliant on international visitors.

COVID-19 Pandemic (2020-2021): The pandemic caused widespread business closures, with MSMEs struggling to pivot to digital solutions or other alternatives.

Economic Crisis (2022): The collapse of Sri Lanka’s financial system in 2022 intensified the challenges for MSMEs, with aggressive debt recovery measures threatening their survival.

In response, the MSME Chamber proposed several reforms to the debt recovery process:

Temporary Suspension of Debt Execution: A two-year moratorium on aggressive debt recovery would allow businesses time to stabilize and reorganize.

Loan Restructuring: Banks should adjust loan terms based on current cash flows rather than outdated credit assessments, acknowledging the economic disruptions caused by recent crises.

Asset Valuation Reforms: Fairer asset valuation practices should be enforced to ensure that MSMEs are not unfairly penalized during recovery.

Clearer Default Definitions: Definitions of “wilful” and “non-wilful” defaults should be revised to accommodate the impact of unforeseen events like natural disasters or economic downturns.

Equitable Asset Acquisition: The government should mandate that banks pay stamp duty based on the current market value of properties acquired during debt recovery.

Return of Surplus Balances: Surplus funds from asset acquisitions should be returned to the owner promptly, ensuring fair financial practices.

Advisory Committee: An expert committee should be established to help design and monitor reforms tailored to the needs of MSMEs.

The Chamber also called for long-term structural reforms, such as enhanced borrower rights, protection of essential business assets, and sector-specific safeguards for industries like agriculture and manufacturing. 

They proposed looking at successful global debt restructuring models, such as Australia’s voluntary administration and safe harbour protections, as potential frameworks for Sri Lanka’s debt recovery process.

By reforming the debt recovery system, the Chamber believes that the government can foster a more resilient economy. Effective reforms will not only support MSMEs but also help attract investment and ensure the country’s economic recovery and growth in the face of ongoing challenges.