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FAO Report Reveals $12 Trillion in Hidden Costs of Global Agrifood Systems, Driven Largely by Health Impacts

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November 09, Colombo (LNW): The UN Food and Agriculture Organization (FAO) released its State of Food and Agriculture (SOFA) report on Friday, uncovering that the global agrifood system incurs approximately $12 trillion in hidden costs annually, largely due to health impacts from non-communicable diseases (NCDs) like heart disease, stroke, and diabetes. Health-related costs linked to poor dietary patterns account for about $8 trillion—70% of the total hidden costs—far surpassing those related to environmental degradation and social inequalities.

Using true cost accounting, SOFA 2024 analyzes the full range of costs and benefits associated with food production, distribution, and consumption. The report identifies 13 dietary risk factors, such as insufficient intake of whole grains, fruits, and vegetables, and excessive consumption of sodium and processed meats, which contribute significantly to the global health cost burden.

The FAO categorizes agrifood systems into six types—protracted crisis, traditional, expanding, diversifying, formalizing, and industrial—to better understand the unique challenges each system faces. Countries with industrial and diversifying agrifood systems face substantial environmental hidden costs, particularly from greenhouse gas emissions, nitrogen runoff, land-use changes, and water pollution. In diversifying systems alone, these costs are estimated at $720 billion annually.

The report also highlights that countries experiencing protracted crises bear the highest relative environmental costs, amounting to 20% of their GDP. Meanwhile, traditional systems and crisis-affected regions see poverty, undernourishment, and other social costs that represent between 8% and 18% of their GDP.

FAO Director-General Dongyu Qu emphasized that transforming agrifood systems is critical to achieving the Sustainable Development Goals (SDGs). The FAO calls for collective action to make these systems more sustainable, resilient, inclusive, and efficient, addressing both the environmental and health costs tied to food production worldwide.

Health Ministry Launches Measles-Rubella Vaccination Drive Amid Rising Cases in Sri Lanka

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November 09, Colombo (LNW): Amid rising measles cases, the Sri Lankan Health Ministry has rolled out a measles-rubella vaccination campaign in 12 high-risk districts, running from November 8 for four weeks. Targeted primarily at individuals aged 20-30, the campaign also aims to immunize those who missed previous vaccinations.

The initiative follows a public awareness drive held from November 4 to 9, aimed at educating the community about the importance of vaccination to prevent measles transmission. Health officials stress that measles, a highly contagious airborne disease, can spread rapidly, with a single infected person potentially transmitting it to 10-18 others.

Despite earlier success in eradicating measles, cases have re-emerged in Sri Lanka since 2023, largely due to regional outbreaks in other Asian countries. Dr. Athula Liyanapathirana from the Epidemiology Unit noted that priority will be given to individuals who missed their full dose or received only one shot of the vaccine.

The Ministry urges the public to check vaccination schedules with local Medical Officers of Health (MOH) and participate in this critical preventive measure to help contain the resurgence of measles and protect public health.

Suspects Behind Rs. 10 Billion Pyramid Scheme Arrested at Airport, Remanded Until November 22

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November 09, Colombo (LNW):The Criminal Investigation Department (CID) has arrested Dhammika Kumara Ranasinghe, 52, and his wife Surangani Hemachandrara, 42, in connection with an illegal pyramid scheme that allegedly defrauded over Rs. 10 billion from depositors in the Kurunegala area. The couple, who were apprehended at Katunayake Airport upon Ranasinghe’s return from Kuala Lumpur, Malaysia, were remanded by Colombo Chief Magistrate Thilina Gamage until November 22.

Ranasinghe, the primary suspect, fled Sri Lanka while facing trial in the Colombo Chief Magistrate’s Court. His wife, who served as a director in their financial institution, was arrested while waiting at the arrivals terminal.

The pyramid scheme, operating under the name “JD’s Business School,” reportedly attracted over 2,500 investors, with CID investigations uncovering a network of more than 3,000 members. CID officials revealed that the suspects had multiple bank accounts and significant assets, including an apartment complex and two large land plots in Kurunegala. Authorities also found 11 accounts in Hemachandrara’s name across three major Sri Lankan banks.

The CID requested that the two suspects be remanded to allow for further investigation, noting that 68 additional individuals are implicated in the scheme. Following the court’s order, a team from the Commercial Crime Investigation Division has taken custody of the suspects. Further investigation will involve collaboration with the Colombo Narahenpita Illegal Assets Division to examine their extensive assets and financial dealings.

Showers will occur at times in Western, Sabaragamuwa and North-western provinces

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November 09, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts. Fairly heavy showers about 50mm are likely at some places in Western, Sabaragamuwa and North-western provinces and in Galle and Matara districts.

Showers or thundershowers may occur at several places in Uva province and in Ampara and Batticaloa districts during the evening or night.

Strong winds about (40-50)kmph can be expected at times over Western slopes of the central hills, Northern, North-central and North-western provinces and in Hambantota, Monaragala and Trincomalee districts.

Immigration Officers’ Association Calls for Investigation into Passport Issuance Delays

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November 08, Colombo (LNW): The Sri Lanka Immigration and Emigration Officers’ Association has released a special announcement addressing recent delays in the issuance of foreign passports, which has caused significant inconvenience to the public and President Anura Kumara Dissanayake.

In a statement issued on the 7th, the Association attributed the delays to incorrect information provided by the department’s higher administration. They emphasized that the situation cannot be resolved by maintaining the arbitrary practices of a few high-ranking officials whose appointments were based on political allegiance.

The Association expressed its responsibility to expose the reality of the situation and called for a formal investigation to identify the officials accountable for the disruption. They also asserted that recent statements by various parties on the issue were contradictory and inaccurate.

Sri Lanka Air Force Contributes $130 Million to Treasury from UN Peacekeeping Operations

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November 08, Colombo (LNW): The Sri Lanka Air Force (SLAF) has contributed $130 million to the national treasury since 2014, earned through its involvement in United Nations peacekeeping operations.

A new SLAF aviation contingent, comprising 20 officers and 88 airmen, is set to deploy to the Central African Republic in the first week of December. These personnel will support peacekeeping efforts in the region, fulfilling roles that include troop and elite transport, food and cargo logistics, inter-country flights, parachute drops, and medical evacuations.

Government Plans to Reduce VAT on School Materials, Essential Foods, and Medicine

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November 08, Colombo (LNW): Senior Advisor to the President on Economic and Financial Affairs, Prof. Anil Jayantha, announced that the government is considering reducing the VAT on school materials, including textbooks, as well as essential foods and medicines. This statement was made during a meeting with Gampaha district farmers, organized by the Sri Lanka Agricultural Development Council, on November 7.

A key issue raised during the meeting was Sri Lanka’s unique position as the only country to levy VAT on textbooks. The President of the Gampaha Minsara organization urged the government to remove VAT from school materials. Prof. Jayantha responded by emphasizing that while the government is committed to addressing these concerns, the country has committed to certain benchmarks with the International Monetary Fund (IMF), including a target to increase government revenue as a percentage of GDP to 15% by 2025.

To meet this goal, the government needs to collect indirect taxes like VAT. Prof. Jayantha mentioned that discussions with the IMF included suggestions such as reducing VAT on school materials from the current 18% to 7% or even 5%, rather than completely removing it. Another proposal was to provide financial grants to schoolchildren to purchase necessary materials. While no final decision has been made, the government aims to reduce VAT on essential items like food, medicine, and school materials to zero percent at the earliest opportunity.

Sri Lanka Crowned ‘The Most Desirable Island in the World’ at UK’s Wanderlust Reader Travel Awards 2024

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November 08, Colombo (LNW): Sri Lanka has been awarded the title of ‘The Most Desirable Island in the World,’ clinching the prestigious Gold award at the 23rd Annual Wanderlust Reader Travel Awards 2024 held in the United Kingdom. This accolade, voted on by over 200,000 global travelers, marks a significant leap for Sri Lanka, which moved up from eighth place in 2023 to claim the top spot.

The award was received by Sri Lanka Tourism Chairman, Buddhika Hewawasam, at the iconic Tate Modern in London. Known as the ‘Pearl of the Indian Ocean,’ Sri Lanka captivated voters with its rich cultural heritage, diverse landscapes, abundant wildlife, and pristine beaches. Notable attractions include the ancient sites of Sigiriya, Dambulla, and Anuradhapura, along with the country’s lush tea plantations and the newly introduced Pekoe Trail, which invites travelers to explore the island’s scenic highlands.

The Wanderlust Reader Travel Awards 2024 saw over three million votes from 150,000 readers, underscoring Sri Lanka’s allure as a top-tier travel destination. This Gold award solidifies Sri Lanka’s global reputation as a captivating and must-visit island, drawing admiration from travelers worldwide.

President assures PAYE Tax Cuts and Economic Reforms by March 2025

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President Anura Kumara Dissanayake has committed to reducing the Pay-As-You-Earn (PAYE) tax rates for Sri Lanka’s workforce by March 2025. 

Speaking in a televised programme on Wednesday evening, he outlined a series of tax reforms and economic initiatives that his government plans to include in the upcoming national budget, which will be presented in February 2025.

He revealed that the new budget would focus on providing targeted relief for lower-income earners by reducing PAYE tax rates. He emphasized that while tax cuts would benefit lower-salaried individuals the most, high-income earners would see more modest reductions. 

He also noted that his administration had held discussions with the International Monetary Fund (IMF) representatives in Washington to review these proposed fiscal reforms. An IMF delegation is scheduled to visit Sri Lanka on 14 November for further consultations.

In preparation for these changes, the President announced that following the election on 14 November, a smaller Cabinet of fewer than 25 members would be appointed. 

Due to time constraints, the government will initially present a supplementary budget to fund state operations until March 2025, with the full budget to follow in February.

Additionally, Dissanayake confirmed plans to remove the Value Added Tax (VAT) on certain essential goods and services. 

While acknowledging the importance of tax collection, he emphasized that the priority would be to provide economic relief to vulnerable groups, with the broader aim of fostering an environment where all citizens can live comfortably.

The President also addressed Sri Lanka’s ongoing participation in the IMF program, which requires the government to increase revenue to 15% of GDP by 2025, up from the current target of 13.8%. 

The IMF also mandates that Sri Lanka’s primary account balance should be positive by 2.3% by 2025. Dissanayake acknowledged the difficult decisions ahead, stressing that leaving the IMF program was not a viable option at this stage due to the risks of economic instability.

 He assured that despite potential reductions in taxes, the government would strive to meet its economic targets without compromising citizens’ livelihoods.

In another major announcement, Dissanayake outlined steps to revive Sri Lanka’s paddy cultivation and restore the country’s collapsed state-owned rice marketing and supply chain. 

The government plans to streamline operations at the Paddy Marketing Board, making full use of its storage capacity of 201,000 metric tons and renovating an additional 100,000 metric tons of storage facilities. 

The government will also register all paddy collectors, with a mandatory weekly stock report to be submitted to authorities.

Despite these efforts, Dissanayake acknowledged the financial challenges faced by the Paddy Marketing Board, which has incurred a debt of Rs 28 billion due to inefficiencies. 

This debt, which was provided by two state banks and the treasury to purchase paddy from farmers, remains a significant hurdle for the Board’s operations.

Sri Lanka’s Gem Industry Poised for Global Expansion with Key Events and Innovation

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Sri Lanka’s gem and jewelry sector is gearing up for significant growth in 2025, with several high-profile events and innovations set to boost its global presence. 

The country, known for its rich gem-bearing soils and diverse range of precious and semi-precious stones, is positioning itself as a global hub for gemstone trade, cutting, and production.

One of the highlights of next year is the return of Gem Sri Lanka, South Asia’s premier precious stone exhibition, scheduled from January 7 to 10, 2024, at Cinnamon Bentota Beach. 

Organized by the Chinafort Gem and Jewellery Traders Association (CGJTA), this event will showcase the best of Sri Lanka’s gemstone craftsmanship and attract international buyers from regions including the USA, Europe, Russia, and China. 

Gem Sri Lanka 2025, which marks the second edition of this exhibition, is expected to build on the success of its inaugural event and further establish the island as a center for high-quality gemstones.

The exhibition is not just about showcasing gemstones but also about strengthening Sri Lanka’s standing in the global gem market.

 Hilmy Cassim, Chairman of Gem Sri Lanka, emphasized that the event is designed to demonstrate the country’s mastery in gemstone production and cutting, positioning it above typical trade fairs. 

The exhibition has seen impressive growth, with the number of booths doubling for the upcoming edition, a clear indicator of increasing global interest in Sri Lankan gems. Beruwala, known for its gem-cutting expertise, plays a central role in this transformation.

In addition to facilitating trade, Gem Sri Lanka serves as a platform to promote Sri Lanka’s tourism industry, offering visitors a chance to experience the island’s cultural and natural beauty alongside its renowned gemstones.

A key innovation introduced at the event was the GSLFAIR application, a first-of-its-kind mobile tool developed by the CGJTA.

 This app aims to streamline the trading process, connecting buyers and sellers more efficiently, and reflects Sri Lanka’s commitment to technological advancement in the gem trade.

Looking ahead, the Sri Lankan gem industry is projected to grow significantly in 2024, with revenue from the jewelry sector expected to reach $199.3 million. 

The industry is also forecasted to expand at an annual rate of 4.96% from 2024 to 2029. As part of efforts to enhance export efficiency, the Export Development Board (EDB) has established a Trade Facilitation Task Force to support this growth.

The global potential for Sri Lankan gems is immense. Notably, Andy Lucas, President of the Guild Institute of Gemology, highlighted that emerging markets like China offer significant opportunities for growth. 

While colored gemstones currently represent a small portion of the Chinese jewelry market, Lucas sees substantial room for expansion, especially with gems like aquamarine and spinel gaining popularity.

 By collaborating, innovating, and utilizing platforms like social media, the industry can increase its global footprint and capitalize on the growing demand for natural gemstones, particularly in the wake of the diamond market’s recent struggles.

In conclusion, the success of Gem Sri Lanka 2025 and other upcoming events underscores Sri Lanka’s growing role in the global gemstone industry.

 With strategic innovations, collaborative efforts, and an eye on emerging markets, Sri Lanka is poised to maintain its status as a leading player in the world of fine gemstones.