December 27, Colombo (LNW): The long-awaited public consultations regarding the proposed revision of electricity tariffs will begin today (27), with the first oral session set to take place in Kandy, Central Province, at the District Secretariat.
The Ceylon Electricity Board (CEB) recently presented its proposal to the Public Utilities Commission of Sri Lanka (PUCSL) for a revision of the electricity tariffs, suggesting that the current rates would remain unchanged for the next six months.
The proposal implies that no adjustments will be made to the existing tariffs in the near future.
However, in response, the PUCSL has presented an alternative recommendation, suggesting a potential reduction in the tariffs by anywhere between 10 per cent to 20 per cent.
To ensure public input on this matter, the PUCSL initiated a public consultation process starting on December 17, encouraging individuals to submit their views in writing. The oral sessions, which begin today, are scheduled to run until 10th January. These consultations are aimed at gathering a wide range of public opinions on the proposed changes.
Members of the public wishing to participate in the oral sessions can register by calling the PUCSL’s hotline at 0772 943 193.
This provides an opportunity for individuals to voice their concerns or support regarding the tariff revisions, and the feedback will be taken into account during the decision-making process.
Jayanath Herath, the Director of Corporate Communications at the PUCSL, has stated that the final report, which will incorporate both the written submissions and oral feedback, is expected to be delivered by January 17, 2025.
This report will outline the PUCSL’s final recommendations on the electricity tariff adjustment.
December 27, Colombo (LNW): Several spells of showers may occur in Northern, North-central, Eastern provinces and in Matale district, and showers or thundershowers may occur at a few places in Western, Sabaragamuwa, Southern North-western and Uva provinces and in Nuwara-Eliya and Kandy districts during the evening or night, the Department of Meteorology said in its daily weather forecast today (27).
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:
Condition of Rain:
Several spells of light showers will occur in the sea areas extending from Mannar to Batticaloa via Kankasanthurai and Trincomalee. Showers or thundershowers may occur at a few places in the other sea areas around the island during the evening or night.
Winds:
Winds will be North- easterly in the sea areas around the island and speed will be (20-30) kmph. Wind speed can increase up to 40 kmph at times in the sea areas off the coast extending from Puttalam to Trincomalee via Kankasanthurai.
State of Sea:
The sea areas off the coast extending from Puttalam to Trincomalee via Kankasanthurai may be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
President Anura Kumara Dissanayake expressed interest in joining the BRICS group through a letter to Russian President Vladimir Putin, as confirmed by Sri Lanka’s ambassador to Moscow, Pakir Amza: The letter, sent in October 2024, requests support from BRICS members to join as a partner country: Sri Lanka views this as an opportunity for enhanced multilateral cooperation and development.
The Samagi Jana Balawegaya (SJB) party has formed a special unit to investigate arbitrary transfers of government officials at state and provincial council levels: The SJB criticised these transfers as unjust and politically motivated, especially ahead of local government and cooperative society elections: They urged the government to suspend these actions, emphasising that such practices undermine the independence of the public service.
Arjuna Aloysius, owner of Mendis Company and son-in-law of former Central Bank Governor Arjuna Mahendran, was presented before the Colombo Chief Magistrate’s Court yesterday (26): Aloysius, who is serving a prison sentence for VAT non-payment and on bail in the 2015 Treasury Bonds case, appeared to address deficiencies in his case file: The Magistrate identified irregularities in his bail signing related to an ongoing Money Laundering Act investigation: Aloysius was brought from prison to submit the necessary documents to correct these issues, with his father, Arjun Aloysius, also present in court.
Deputy Minister of Public Security Sunil Watagala accused some police officers of receiving regular payments from underworld and drug trafficking activities: During an interview, he revealed that intelligence reports led to the transfer of police officers in Ruwanwella and Avissawella due to their involvement in criminal networks: Watagala emphasised that measures to combat these issues are in place but cannot be fully disclosed, and urged officers to honour their duty: He also mentioned that the current leader of the underworld is operating in Mathugama.
The government is creating a mechanism to provide relief to depositors earning less than Rs. 150,000 in monthly interest, who are currently being charged a 10% withholding tax: Minister of Labour Anil Jayantha announced that the Inland Revenue Department will soon outline how to address the concerns of affected depositors, including potential tax exemptions and refunds.
The All Share Price Index (ASPI) of the Colombo Stock Exchange reached a new all-time high, gaining 232.13 points to close at 15,400.53 points, up 1.53% from the previous close: The S&P SL20 also rose by 67.15 points, closing at 4,602.40 points, a 1.48% increase: The day’s turnover exceeded Rs. 7 billion, with over 534 million shares traded.
Sri Lanka welcomed its 2 millionth tourist of the year at Bandaranaike International Airport, marking a historic achievement after a five-year gap: This is the fourth time annual tourist arrivals have exceeded 2 million, following 2016, 2017, and 2018: Despite challenges like the 2019 Easter attacks and the pandemic, the tourism sector is rebounding, supported by government initiatives, including free visas for citizens from 39 countries.
The 2024 edition of the India-Sri Lanka bilateral naval exercise, SLINEX 24, took place from December 17 to 20 at Visakhapatnam, organised by the Indian Navy’s Eastern Naval Command: The exercise included a Harbour Phase with professional exchanges and a Sea Phase featuring joint drills, gun firings, and special forces operations: SLINEX, initiated in 2005, strengthened maritime cooperation, promoting a secure, rule-based maritime domain in line with India’s SAGAR vision.
Sri Lanka Customs announced that the clearance of imported rice, which was briefly halted resumed yesterday (26): This follows the government’s decision to allow private-sector rice imports between December 4 and 20, during which 67,000 metric tons were brought in: The rice import deadline has been extended to January 10, 2025: Additionally, the first government-imported rice shipment of 780 metric tons is expected to arrive at Colombo Port: Deputy Minister of Agriculture, Namal Karunaratne, assured immediate distribution to the market.
Sri Lanka’s rugby team is set for a crucial playoff match against Malaysia on April 19, 2025, at Johor Rugby Stadium: The winner will secure promotion to the Asia Rugby Emirates Men’s Championship (AREMC) and stay in contention for the 2027 Rugby World Cup: Sri Lanka, ranked 39th, earned the opportunity after winning Division 1 in the 2024 Asia Rugby competition: A victory would mark a historic achievement, elevating Sri Lanka to the Premier Division: Additionally, Sri Lanka will host New Zealand’s Under-85kg national team for two historic matches in May 2025.
December 26, Colombo (LNW): Sri Lanka’s Tourism Development Fund (TDF) has faced significant mismanagement, leading to inefficiencies and irregularities, as revealed by the Auditor General’s 2023 report.
The fund, which is intended to promote tourism development, is financed by a 1 percent contribution from hotel and tourism businesses and 0.5 percent from small enterprises, along with a 0.33 percent of the Embarkation Levy.
Managed by the Sri Lanka Tourism Development Authority (SLTDA), the funds are distributed to various tourism bodies, including the SLTDA, Sri Lanka Tourism Promotion Bureau (SLTPB), Sri Lanka Institute of Tourism & Hotel Management (SLITHM), and the Sri Lanka Convention Bureau (SLCB) based on allocations outlined in the Tourism Act No. 38 of 2005.
However, stakeholders, including hoteliers, tour operators, and other tourism-related businesses, have raised concerns over the lack of transparency in the fund’s allocation and use.
There is little clear communication about how the funds are being spent, leading to dissatisfaction among industry professionals. Many express frustration with the absence of detailed reporting on the effectiveness and outcomes of the TDF.
The 2023 Audit Report highlighted several issues with the fund’s management. These include delays in the utilisation of allocated funds, irregular disbursements, and a lack of systematic monitoring and evaluation.
In many cases, funds were allocated without proper documentation or approval, which raised questions about the accountability of the distribution process.
Additionally, there were significant lapses in adhering to financial regulations, including incomplete records, improper allocation of expenses, and failure to comply with procurement procedures.
A major concern was the inefficient use of funds, with large portions remaining unspent for long periods.
This inefficiency has hindered the effective implementation of tourism development programs. In some cases, tourism infrastructure projects suffered from cost overruns, delays, or incomplete work, leading to underutilization of resources.
The report also pointed out that some TDF projects were funded without following necessary procedural guidelines, and there were instances where advances to contractors and service providers were not recovered in a timely manner.
Moreover, the audit revealed a lack of strategic planning in the allocation of funds, which led to reactive rather than proactive initiatives.
Without a comprehensive long-term strategy, tourism development efforts have been fragmented, resulting in suboptimal outcomes for the sector.
Inadequate coordination between government bodies, private-sector stakeholders, and local communities has further contributed to inefficiencies in project implementation.
Finally, weaknesses in internal control systems and oversight were noted. The absence of robust internal audits and safeguards against misuse or misallocation of funds makes the TDF vulnerable to mismanagement.
Strengthening financial oversight, improving the disbursement and monitoring processes, and ensuring greater transparency are critical to restoring confidence in the fund and supporting sustainable tourism development in Sri Lanka, audit report observed.
December 26, Colombo (LNW): Sri Lanka is celebrating a significant milestone in its tourism recovery, welcoming its 2-millionth visitor today. The Sri Lanka Tourism Promotion Bureau (SLTPB) is marking this achievement as the country experiences its strongest tourism season since 2018.
December has been a standout month, recording 161,383 tourist arrivals in just the first 22 days. A new daily record of 10,820 arrivals was set on 22 December, while daily numbers exceeded 10,600 from 20-22 December, pushing the average daily arrivals to 7,336.
This surge builds on impressive results in November, which saw 184,168 tourists—a 22% year-on-year increase. December arrivals are projected to reach 256,389, with year-to-date (YTD) figures already surpassing 1.96 million. Sri Lanka is on track to close 2024 with 2.1 million visitors and over $3 billion in tourism revenue.
Speaking at the National Tourism Awards 2024, Sri Lanka Tourism Development Authority (SLTDA) Chairman Buddhika Hewawasam highlighted the industry’s resilience and growth. “We are ending 2024 on a high note, with hotel occupancy climbing to 80% and a vibrancy returning to the sector after nearly five years. The best years for Sri Lanka Tourism lie ahead,” he stated.
India has been the largest source market, contributing 35,131 tourists in December, or 22% of total arrivals. Russia followed with 22,637 visitors, while the UK ranked third with 12,822. Germany and Australia completed the top five with 9,998 and 8,646 arrivals, respectively. For the full year, India accounted for 399,224 visitors (20.3%), followed by Russia (189,299) and the UK (172,404).
Hewawasam emphasized that the ongoing winter season signals the beginning of a new era for Sri Lankan tourism. He announced a structured five-year plan aimed at elevating the sector through institutional reforms and innovative strategies. “Our vision is ambitious but attainable. Tourism’s contribution to the economy, now at 11%, could grow to 15%-20% with effective policies and collective dedication,” he said.
Acknowledging the role of stakeholders, Hewawasam called for continued collaboration to maintain the sector’s growth trajectory. He stressed the need to nurture a skilled workforce to meet the rising demand and create sustainable opportunities across the country.
“Tourism recovery is not just about numbers—it’s about transforming lives and fostering opportunities nationwide,” he noted. He also emphasized the importance of enhancing Colombo’s appeal as a hub for city hotels while promoting lesser-known destinations for balanced regional development.
As Sri Lanka closes in on a record-breaking year, the government and tourism authorities are determined to sustain this momentum. With robust growth, a resilient industry, and a clear roadmap, Sri Lanka’s tourism sector is poised for a brighter and more sustainable future.
December 26, Colombo (LNW): Sri Lankan food and beverage (F&B) exporters made significant strides in accessing the European Union (EU) market through their participation in SIAL Paris 2024, a premier global F&B exhibition held from October 19 to 23 in France.
A key focus of Sri Lanka’s involvement, organized by the Sri Lanka Export Development Board (EDB) in collaboration with the Sri Lankan Embassy in France, was promoting EU PGI-certified Ceylon Cinnamon products.
With financial support from the International Finance Corporation (IFC), a dedicated promotional area was set up to highlight the premium cinnamon offerings of 10 Sri Lankan companies, including Samagi Spice Exports Ltd., Pasanka Ltd., and Jaith Ceylon Cinnamon Ltd. This initiative was aimed at boosting Ceylon Cinnamon’s visibility and enabling its penetration into the lucrative EU market.
To enhance exposure, the Embassy produced a promotional video featuring French Chef Dominique Pambrun, showcasing the culinary versatility of Ceylon Cinnamon to European audiences. A pre-event social media campaign in French and English further created awareness among potential EU buyers.
The Embassy also facilitated business-to-business (B2B) meetings and invited top European importers, such as Carrefour, to visit the Sri Lanka pavilion. In addition, the EDB shared importer contact details with participating companies beforehand, enabling them to arrange meetings and negotiations effectively.
By the end of the exhibition, Sri Lankan firms had secured $2.8 million in confirmed orders from EU and other buyers. Moreover, negotiations for an additional $3.6 million in potential business were ongoing for spices, coconut products, confectionery, and processed foods.
Sri Lanka’s proactive efforts at SIAL Paris reflect a strong commitment to expanding its F&B exports into the EU, leveraging the event’s global platform to establish long-term commercial partnerships and enhance the country’s presence in international markets.
The Sri Lankan Embassy in France, led by Sri Lankan Ambassador Manisha Gunasekera, provided comprehensive support to the EDB in organising Sri Lanka’s participation at the event. The Embassy connected several leading buyers with the Sri Lankan companies, including the Carrefour supermarket chain in France.
The Ambassador visited the Sri Lanka pavilions and had discussions with the Sri Lankan companies during the trade fair.
Prior to the exhibition, the EDB, with the assistance of the Sri Lankan Embassy, shared the contact details of potential importers for all product sectors displayed by Sri Lankan companies, enabling the participant firms to arrange business meetings.
Further, the Sri Lanka Mission in France invited all potential importers to visit the Sri Lanka pavilion and arranged B2B meetings with potential importers at the pavilion.
The Embassy also organised a successful social media campaign in the French and English languages for a period of more than five weeks.
To give more visibility and to attract potential commercial partners to the Sri Lanka pavilion in two locations, the EDB organised a webinar series before the exhibition for the individual participants/companies highlighted by SIAL Paris.
December 26, Colombo (LNW): On December 20, 2024, Sri Lanka achieved a major milestone in its economic recovery by officially exiting sovereign default. This accomplishment follows a period of painful reforms and complex debt restructuring, Treasury Secretary Mahinda Siriwardena announced.
He emphasized that Sri Lanka must adhere to key economic principles, regardless of political changes. These include fiscal discipline, sound monetary policies, and the stabilization of public finances to create fiscal space for development and honor commitments to both domestic and international stakeholders.
Encouragingly, there are early signs of the de-politicization of macroeconomic policy, a shift that Siriwardena believes will be further solidified by strong legal frameworks like the Central Bank of Sri Lanka Act, Public Financial Management Act, and Public Debt Management Act.
“This upgrade is a critical milestone,” Siriwardena said, “but it is only the beginning of Sri Lanka’s journey towards shared prosperity. To succeed, we must avoid repeating policy errors driven by dogmatic beliefs or unsustainable practices.”
Moody’s Upgrades Sri Lanka’s Credit Rating
Global rating agency Moody’s recently upgraded Sri Lanka’s Long-Term Foreign Currency Issuer Rating to Caa1 from Ca, with a stable outlook.
Previously under review for an upgrade, this decision reflects the successful restructuring of Sri Lanka’s international bonds held by private creditors, significantly reducing default risks on future issuances.
Moody’s noted that the new rating reflects improvements in Sri Lanka’s external vulnerability and government liquidity risks, as well as prospects for fiscal and debt sustainability.
These improvements are underpinned by ongoing reforms aligned with programs supported by development partners, including the International Monetary Fund (IMF).
The government’s ability and willingness to implement these reforms also highlight improvements in governance, which contributed to the rating action.
However, Moody’s warned that challenges remain. Despite the upgrade, Sri Lanka’s debt affordability remains weak, and its debt burden is high compared to peer nations, limiting fiscal flexibility. Additionally, the country faces significant social challenges that need attention.
The stable outlook reflects balanced risks. On the positive side, sustained reform implementation could further strengthen Sri Lanka’s credit profile, potentially leading to higher ratings.
On the downside, risks remain due to a narrow government revenue base, limited fiscal space, and reliance on external financing. Adverse global economic conditions could threaten sustained recovery and reform progress.
Progress on International Bond Restructuring
Concluding the review initiated on November 28, 2024, Moody’s has assigned definitive Caa1 ratings to Sri Lanka’s new USD-denominated Macro-Linked Bonds (MLBs), Governance-Linked Bonds (GLBs), and Past-Due Interest (PDI) Bonds. Additionally, the agency raised Sri Lanka’s local and foreign currency country ceilings to B1 and B3, respectively.
The upgrade highlights reduced external risks, increasing foreign exchange reserves, and improved macroeconomic stability. However, Moody’s noted that challenges such as high external debt and a fragile domestic political environment continue to pose risks.
Sri Lanka’s exit from default and the recent rating upgrade by Moody’s mark a new chapter in its economic recovery. Continued commitment to reforms and prudent policymaking will be crucial to achieving long-term stability and prosperity.
December 26, Colombo (LNW): Sri Lanka’s national consumer prices saw a continued decline for the third consecutive month in November 2024, providing much-needed relief to households across the country.
The downward trend in prices, much sharper than the previous month, has been welcomed by many citizens who have faced years of soaring costs since 2022.
According to the latest data, the National Consumer Price Index (NCPI) dropped by 1.7 per cent in the 12 months leading up to November, following a smaller decline of 0.7 per cent in October.
This marks a notable shift from the extreme inflationary pressures that had previously burdened the public.
However, on a monthly basis, prices rose slightly by 0.1 per cent, reflecting a modest uptick in food costs, notably coconut, coconut oil, and rice, which have dominated both social and political discourse in recent weeks.
Coconut prices saw the steepest rise between October and November, driven by production setbacks and high demand from export industries.
Similarly, the price of rice became a contentious issue, prompting urgent measures from the government to address the supply shortage and stabilise prices, especially as the country approaches the festive season.
The Cabinet recently announced plans to import rice to prevent any further disruption to the market and ensure the availability of key varieties.
Despite these food-related price fluctuations, the overall food prices remained steady on a year-on-year basis up until November, with the exception of coconut and rice, which contributed to the 0.4 per cent rise in monthly prices.
In contrast, non-food prices continued their downward trend, falling by 3.1 per cent compared to November 2023.
The decline in non-food prices slowed slightly in November, with a more modest drop of 0.1 per cent compared to a sharper 0.6 per cent decrease in October.
The Central Bank of Sri Lanka has projected that the current deflationary conditions are likely to persist through the first half of 2025 before gradually aligning with the medium-term inflation target of 5 per cent.
In its recent assessment, the Central Bank noted that while price reductions could have negative implications for certain sectors, they are ultimately beneficial for the overall economy.
The easing of inflationary pressures allows consumers to regain some of their purchasing power, enabling them to spend more on goods and services they had previously cut back on.
This boost in consumer spending is expected to stimulate economic growth as the country emerges from a prolonged period of economic difficulty.
In addition to the ongoing deflationary environment, the government’s upcoming reduction in personal income tax is expected to further support consumer spending, providing households with additional disposable income to contribute to economic recovery.
Meanwhile, core inflation, which excludes volatile items such as food, energy, and transport, rose by 1.5 per cent in November from the previous year. While this marks a slight decrease from the 1.7 per cent increase recorded in October, it reflects a broader cooling of underlying inflation pressures within the economy.
This trend further suggests that inflationary forces are subsiding, providing a positive outlook for both consumers and businesses as the country seeks to stabilise its economic situation in the months ahead.
December 26, Colombo (LNW): Sri Lanka Customs has announced the resumption of the clearance process for imported rice, which had been temporarily halted.
The clearance will recommence today (26), allowing businesses that imported rice to begin clearing their shipments once again.
Sivali Arukgoda, the Additional Director General and spokesperson for Sri Lanka Customs, confirmed that rice shipments, which had been delayed, can now be processed and released into the market.
This decision follows a brief suspension aimed at addressing concerns related to rice imports.
To mitigate the ongoing rice shortage in the country, the government permitted private-sector rice importers to bring in rice shipments between December 4 and December 20, 2024.
During this period, approximately 67,000 metric tons of rice were successfully imported into Sri Lanka.
In response to the continued demand for rice, the Cabinet recently extended the rice importation window until January 10, 2025, with the formal Gazette notification being issued on December 24.
With this extension, Sri Lanka Customs is now able to fully resume clearing the imported rice stocks, ensuring that the market supply improves in the coming weeks.
This step is expected to help stabilise prices and address the supply shortages experienced by consumers.
Meanwhile, Agriculture Deputy Minister Namal Karunaratne, provided an update on the government’s rice importation efforts, revealing that that the first shipment of 780 metric tons of rice, imported through the Sri Lanka State Trading Corporation, was expected to arrive at the Colombo Port on December 25.
The Deputy Minister assured the public that the government would expedite the distribution of this rice to ensure it reaches the market without delay.
December 26, Colombo (LNW): Sri Lanka has reached a significant milestone in its tourism sector, recording its two millionth tourist arrival today, according to Sri Lanka Tourism.
The landmark achievement was celebrated with the arrival of a couple from Thailand, marking a moment of pride for the island nation as it continues to recover and thrive in the post-pandemic tourism landscape.
Data from Sri Lanka Tourism reveals that by December 22, 2024, the country had already welcomed 1,966,256 international visitors.
The final push to the two millionth arrival came in the latter part of the month, with a notable surge in tourist numbers over the course of December.
A total of 161,383 tourists arrived in Sri Lanka between December 1 and December 22, 2024, reflecting strong demand for the country’s vibrant tourism offerings.
India continues to be the leading source of international visitors, with 35,131 Indian nationals arriving during this period.
Other countries contributing significantly to the surge in arrivals include Russia, with 22,637 visitors, followed by the United Kingdom (12,822), Germany (9,998), and Australia (8,646).
The United States, China, Maldives, France, and Poland also contributed notable numbers of tourists, further diversifying the mix of international travellers flocking to the island.
The steady rise in tourist arrivals signals a strong recovery for Sri Lanka’s tourism industry, which had faced challenges in recent years.
Sri Lanka Tourism is optimistic about the continued growth of the sector as it positions itself as a leading destination in the South Asian region.
