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IMF Praises Sri Lanka’s Strong Program Performance Amid Debt Restructuring Efforts

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May 17, Colombo (LNW): The International Monetary Fund (IMF) has commended Sri Lanka’s overall program performance as strong, according to Julie Kozack, Director of Communications at the IMF. Speaking to reporters in Washington D.C. on Thursday (16), Kozack highlighted key achievements and outlined the necessary steps for the continuation of Sri Lanka’s economic recovery.

Kozack noted that for the IMF Executive Board to complete its review, two critical components are required: the implementation of agreed prior actions by Sri Lankan authorities, and the completion of the financing assurances review. This review will verify contributions from multilateral partners and assess progress in debt restructuring.

Sri Lanka’s macroeconomic policies are showing positive outcomes, including a rapid decline in inflation, robust reserve accumulation, and initial signs of economic growth, all while maintaining financial system stability. These commendable results mark significant strides in the country’s economic recovery.

Looking forward, the primary focus for Sri Lanka is to conclude negotiations with external private creditors and implement agreements with official creditors. Kozack acknowledged the challenges in reaching a consensus with external bondholders, noting that initial debt restructuring negotiations ended in mid-April without an agreement. However, she emphasized that discussions are ongoing with the goal of reaching an agreement in principle.

University Strike Forces Postponement of Examinations

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May 17, Colombo (LNW): The University Grants Commission (UGC) has announced the postponement of all undergraduate examinations in universities due to an ongoing strike by non-academic trade unions.

UGC Vice Chairman, Senior Prof. Chandana P. Udawatte, stated that the strike, now in its 16th day, will affect over 50,000 undergraduates, preventing them from completing their degrees within the planned timeframe. Additionally, the issuance of the university admission manual for students who passed the Advanced Level Examination has been delayed.

The Minister of Education has submitted proposals to the Cabinet to address the issues raised by the non-academic staff. Despite these efforts, Co-Convener of the University Trade Union Alliance, Dhammika S. Priyantha, affirmed that the strike will continue indefinitely until their demands are met with satisfactory solutions.

Investigation Launched into Death Threats Against State Minister of Finance Shehan Semasinghe

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May 17, Colombo (LNW): The Colombo Fort Police Station has begun an investigation into death threats made against State Minister of Finance Shehan Semasinghe. The threats were reportedly received via a phone call at the State Minister’s office on the afternoon of the 15th.

The anonymous caller threatened that Semasinghe would not be permitted to contest in the upcoming elections and warned of assassination if the threats were ignored.

In response to the threats, State Minister Semasinghe’s media unit confirmed that a complaint was lodged with the Colombo Fort Police, prompting the initiation of an investigation.

Addressing the media in Habarana, State Minister Semasinghe disclosed that the President has indicated that the Presidential Election will be held first, followed by other elections.

Indian Religious Leader Swami Govind Dev Giri Maharaj Visits Sri Lanka

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May 17, Colombo (LNW): Swami Govind Dev Giri Maharaj, Treasurer of the Shri Ram Janmabhoomi Teerth Kshetra Trust in Ayodhya, India, has arrived in Sri Lanka to usher in a new era in the country’s spiritual and cultural journey. He was accompanied by a delegation from the Ayodhya Shri Ram Mandir.

The visit was initiated by former British MP and MEP of the European Parliament, now Sri Lanka’s Presidential Envoy, Niranjan Deva Aditya, on behalf of President Ranil Wickremesinghe. The aim is to promote religious tourism between India and Sri Lanka. This meeting was facilitated by global Indian peacemaker Muralidharan Murthy, whose efforts have significantly impacted many lives worldwide.

Chairman of Supreme Global Holdings R. M. Manivanan and Rogan Muralidharan of IGS India played crucial roles in organizing the visit. Their efforts aimed to reconnect and revive the ancient relationship between Ayodhya and Sri Lanka, especially with the recent construction of the Ram Temple in Ayodhya sparking renewed interest in the sacred geography of the Ramayana.

Swami Govind Dev Giri Maharaj highlighted the importance of connecting Ayodhya’s Ram Temple with Sri Lanka’s Sita Eliya and the Seetha Amman Temple, emphasizing that together they create a comprehensive spiritual experience for devotees. He underscored the significance of King Vibhishana, whose palace was on the banks of the Kelani River and who is revered as a guardian deity in Sri Lanka.

The visit marked the launch of the “Ramayana Trail – The Sacred Mission,” an ambitious project to transform nine key sites along Sri Lanka’s Ramayana Trail into world-class spiritual and cultural monuments. Key locations include Ram’s Bridge in Mannar Basin, Ashoka Vatika in Sita Eliya, Divurumpola in Welimada, Ussangoda National Park, Rumassala in Galle, Koneswaram in Trincomalee, Manawari Temple in Chilaw, Ravana Cave in Ella, and the Kataragama Ramayana Trail.

This project aims to blend ancient spirituality with modern technology, such as AI, augmented reality, and virtual reality, to create immersive experiences for visitors. Swami Govind Dev Giri Maharaj endorsed the project, which is expected to boost spiritual tourism and contribute to Sri Lanka’s economic revival.

During his visit, Swami Govind Dev Giri Maharaj participated in the inaugural ceremony of the Ramayana Trail Project, where the project website was officially launched. The event included a delegation of Indian investors and support from prominent figures such as the High Commissioner of India Santosh Jha, Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka, former Speaker Karu Jayasuriya, and cricket icon Sanath Jayasuriya.

Swamiji expressed his gratitude for the warm hospitality of the Sri Lankan people and met with key spiritual leaders, including the Mahanayake of the Malwatte Chapter and the Mahanayake of the Asgiriya Chapter. He also visited the Sri Dalada Maligawa to view the Sacred Tooth Relic, reflecting on the enduring ties between India and Sri Lanka. Additionally, he conducted poojas at the Hanuman Temple and the Seetha Amman Temple, further strengthening the spiritual connection between the two countries.

US Ambassador Visits Historic Green Memorial Hospital

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May 17, Colombo (LNW): US Ambassador in Colombo, Julie Chung, visited the Green Memorial Hospital on Wednesday. Founded by American missionary doctor Samuel Fisk Green in 1847, it holds the distinction of being then-Ceylon’s first teaching hospital.

The Green Memorial Hospital, located in Jaffna, operates as a charitable institution under the management of the Jaffna Diocese of the Church of South India. During her visit, Ambassador Chung was welcomed by the Hospital’s Governing Council Chairman, Bishop Rt. Rev. Dr. V. Pathmathayalan.

Prime Minister Emphasizes Strengthening Trade and Buddhist Ties with Myanmar

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May 17, Colombo (LNW): Prime Minister Dinesh Gunawardena highlighted the significant potential for enhancing trade, economic, and Buddhist ties between Myanmar and Sri Lanka. This statement was made during a meeting with Myanmar Charge d’ Affairs Lei Yi Win at Temple Trees on Thursday (16).

The Prime Minister emphasized that there are numerous opportunities to strengthen economic and trade relations in sectors such as gem and jewellery, tea and coconut trade, minerals, and tourism, with a particular focus on Buddhist tourism. He also proposed barter trade involving tea and coconut, noting Myanmar’s interest in exporting coconuts to Sri Lanka for processing and re-export to third countries.

Acting Ambassador Lei Yi Win suggested that Sri Lanka participate in the ‘Yangon Trade Fair’ to explore potential areas for imports, exports, and broader economic collaboration. She mentioned that this year marks the 75th anniversary of diplomatic relations between Myanmar and Sri Lanka, and Myanmar will also celebrate 1,000 years since the establishment of Theravada Buddhism during the Bagan Dynasty in the 11th Century.

Prime Minister Gunawardena noted the enduring influence of Buddhist teachings over 2,600 years, which have fostered strong religious and diplomatic ties between the two nations. He expressed gratitude for Myanmar’s role in organizing a Higher Ordination in Sri Lanka in the 19th Century, which contributed to the establishment of the Ramannya and Amarapura Nikayas sects.

Parliamentarian Yadamini Gunawardena, Prime Minister’s Secretary Anura Dissanayake, and Counsellor Thep Zaw Toe of the Myanmar Embassy were also present at the meeting.

Government Introduces Patient Safety Rights Charter to Enhance Hospital Safety

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May 17, Colombo (LNW): The government has decided to draft a Patient Safety Rights Charter aimed at ensuring the safety of hospitalised patients, announced Health and Industries Minister Dr. Ramesh Pathirana. According to global reports, one in seven hospitalised patients faces issues during their stay, highlighting the need for such measures worldwide.

Dr. Pathirana made this announcement during a discussion with hospital staff on Wednesday (15), following a special inspection tour of the Gampaha Wathupitiwala Base Hospital. The decision to prepare this Charter comes in response to the various problems patients encounter during hospitalisation.

The Minister noted that the proposal for a Patient Safety Rights Charter was discussed in the Parliament’s Sectoral Oversight Committee and might eventually become law. Last year alone, the Health Ministry received 700 complaints regarding issues arising during patient hospitalisation.

Emphasizing the importance of effective patient-clinician communication as a cornerstone of quality healthcare, Dr. Pathirana stressed the need for a special mechanism to ensure this vital interaction is maintained.

Showery and windy conditions expected to enhance due to pre-monsoonal conditions

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May 17, Colombo (LNW): Showery and windy conditions are expected to enhance due to pre-monsoonal conditions over the country and surrounding sea areas.

Showers or thundershowers will occur at times in Western, Sabaragamuwa, Eastern, Northern and North-western provinces and in Galle and Matara districts.

Showers or thundershowers will occur at several places elsewhere of the island after 12.00 noon.

Heavy showers about 100mm are likely at some places in Western, Sabaragamuwa, Central, Eastern and Uva provinces.

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

Sri Lanka to establish a small arms manufacturing facility with Indian assistance

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By: Staff Writer

May 16, Colombo (LNW): Sri Lanka is planning to establish a small arms manufacturing facility and is in discussions with India regarding this initiative, according to Sri Lankan State Minister of Defence Premitha Bandara Tennakoon.

He mentioned that while the Sri Lankan military possesses expertise in weapons manufacturing, the current scale of production does not meet their expectations.

The Sri Lankan Armed Forces primarily use the Type 56 (T56) assault rifle, which fires 7.62×39 mm cartridges, along with various pistols that use 9 mm cartridges.

The Ministry of Defence has already announced plans to reduce the size of the Sri Lanka Army, the largest component of the defence forces, to approximately 100,000 personnel by 2030.

He mentioned that while the Sri Lankan military possesses expertise in weapons manufacturing, the current scale of production does not meet their expectations.

“So we are in touch with our Indian counterparts. And so there’s so much that we can take and learn from India. And with a little help, we also can do wonders here. So those discussions are ongoing at the moment he added

Speaking at the Presidential Media Centre under the theme “Collective Path to a Stable Country”, Tennakoon detailed Sri Lanka’s involvement in a presentation by Indian weapons manufacturers on 10 April, where he served as the chief guest.

Tennakoon clarified that Sri Lanka is not currently aiming to make any purchases, noting that such presentations are routine annual events.

“Connectivity is really good, and military-to-military connectivity. Indian and Sri Lankan military-to-military connectivity is at a high. So we maintain that. So that doesn’t mean that we are going to buy anything from anyone”, the state minister explained.

He  also praised the growth of India’s defence manufacturing sector over the past two decades, suggesting that Sri Lanka could benefit from adopting a similar model.

“We can take a lot from the Indian model. So there’s nothing wrong with learning from them. And I think we also should get into the manufacturing”, he noted.

What you have to understand is the Indian defence manufacturing arm has boomed during the last two decades. 

Sri Lanka manufacturing sector slides as services gain in April 2024

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By: Staff Writer

May 16, Colombo (LNW): Companies, representing both the manufacturing and services sectors, have taken breather during the festive period this year with scale down their production activities.

According to the monthly survey conducted by the Central Bank, manufacturing sector firms in particular recorded a contraction in their production while service sector continued with slower expansion.

Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 42.0 in April 2024, indicating a contraction in manufacturing activities following the seasonal pattern.

New Orders, Production, Employment and Stock of Purchases sub-indices declined during the month, resulting in an overall decline in the index.

As per the respondents, the decline in New Orders was mainly due to the end of the festive season’s demand, particularly for food & beverages.

Further, the decrease in Production was primarily due to the fewer working days in April, as most factories were temporarily closed for the Sinhala and Tamil New Year holidays.

Moreover, Employment and Stock of Purchases decreased during the month, in line with the decline in New Orders and Production.

Meanwhile, Suppliers’ Delivery Time further lengthened in April, owing to the extended holidays in the month.

Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated a slower expansion in services activities in April 2024 as reflected by the Business Activity Index, which recorded an index value of 56.7.

The expansion in Business Activities was driven by the improvements observed across several sub-sectors.

Accordingly, business activities in the financial services sub-sector continued to grow following the reduction in policy rates in March 2024.

Further, business activities in the wholesale and retail trade sub-sector experienced a considerable growth amid the seasonal demand.

Meanwhile, programming and broadcasting, telecommunication and real estate sub-sectors also recorded positive developments during the month.

Nevertheless, the accommodation, food and beverage sub-sector declined slightly during the month in line with the decline in tourist arrivals on a month-on-month basis.

New Businesses increased in April, particularly with the increases observed in wholesale and retail trade, financial services and real estate sub-sectors.

Employment declined in April despite some new recruitments made by several companies. Meanwhile, Backlogs of Work continued to decline during April.