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Court sentences man to death in 24-year-old homicide case

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By: Isuru Parakrama

October 17, Colombo (LNW): Following a prolonged legal battle, the Galle High Court has delivered a death sentence in a homicide case dating back over two decades.

The accused, a 50-year-old resident of Imaduwa, was convicted for the deliberate killing of a man by electrocution on 6 February 2000, using an unauthorised electricity connection in the Koratuhenagoda area.

The court found that the defendant had intentionally set up the illegal connection, leading to the death of the victim, an action which was part of a premeditated plan.

The incident, which occurred within the jurisdiction of the Imaduwa police division, has been the subject of a lengthy judicial process, marked by extensive investigation and deliberation over the years.

The verdict was delivered on 16 October, with the High Court handing down the death penalty, bringing closure to a case that had remained unresolved for nearly 24 years.

This decision reflects the seriousness with which the court viewed the crime, particularly in light of the unlawful use of electricity as a method of murder.

The death penalty, although still legally permitted, is a subject of ongoing debate in Sri Lanka, with human rights advocates calling for its abolition.

Nevertheless, the court’s ruling reaffirms that severe punishment remains an option for cases deemed particularly heinous.

President calls for efficient road development to drive rural economic growth

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By: Isuru Parakrama

October 17, Colombo (LNW): President Anura Kumara Dissanayake has stressed the importance of boosting the efficiency of road development projects as a key strategy for advancing rural economic growth.

Speaking at a progress review meeting for the Ministry of Transport, Highways, Ports, and Civil Aviation, held at the Presidential Secretariat, the President outlined the need to streamline procurement processes to ensure wider community benefits.

Highlighting the risks of contract concentration in the hands of a few, the President advocated for a more inclusive approach, where local contractors and communities could play a greater role.

By doing so, he emphasised, the benefits of development projects would be more equitably distributed, helping to uplift rural areas and ensuring a stronger connection between infrastructure development and local economic prosperity.

A significant part of the meeting focused on the progress of ongoing projects, particularly the construction of the Kadawata-Mirigama segment of the Central Expressway.

The President underscored the importance of completing such high-impact projects, noting that strategic planning in the development of roads, ports, and airports is vital to accelerating national economic growth.

He highlighted how modernising these critical infrastructures could serve as a catalyst for broader economic improvements, benefiting industries and communities alike.

President Dissanayake also addressed concerns regarding environmental and community impacts, urging officials to adopt measures that mitigate any negative consequences of the road development projects.

He called for a balanced approach, ensuring that environmental sustainability, financial prudence, and the well-being of local communities are prioritised in the execution of these initiatives.

Timely and efficient project implementation, he noted, is crucial to avoiding delays and cost overruns, which could hinder the country’s development targets.

Additionally, the President emphasised the need to enhance safety protocols in railway development projects, particularly concerning the welfare of railway employees and the travelling public.

He urged ministry officials to ensure that safety measures remain a top priority in all aspects of infrastructure development.

Among those present at the meeting were Dr. Nandika Sanath Kumanayake, Secretary to the President, and K.D.S. Ruwanchandra, Secretary to the Ministry of Transport, Highways, Ports, and Civil Aviation, along with senior officials from the ministry’s affiliated institutions.

Their discussions also touched on future strategies for enhancing transport infrastructure, in line with the government’s broader objectives of economic transformation and sustainable growth.

Sri Lanka Original Narrative Summary: 17/10

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  1. President Anura Kumara Dissanayake stresses the importance of enhancing road development efficiency to achieve rural economic growth, urging streamlined procurement to benefit local communities: emphasises the need for careful planning of highways, ports, and airports for economic progress: also calls for prioritising environmental, financial, and safety considerations in ongoing projects.
  2. Samagi Jana Balawegaya (SJB) leadership refuses to accept the resignation of Samagi Vanitha Balawegaya National Organiser Hirunika Premachandra, despite her focus on her Colombo election campaign: SJB General Secretary Ranjith Madduma Bandara confirms Premachandra will remain in her role, whilst other party members can assist during the campaign: Premachandra insists she cannot oversee national activities while running in Colombo’s intense competition.
  3. Former MP and Leader of Pivithuru Hela Urumaya Udaya Gammanpila accuses President Anura Kumara Dissanayake of committing ‘a greater crime than him being ever given damnation for’ for concealing a certain report pertaining to the Easter Sunday terror attacks, which he had previously claimed to have possessed, in retaliation to the ultimatum given to Gammanpila by Cabinet Spokesman Vijitha Herath to hand it over to the government within three days: insists he will not make the report public with respect to the sensitivity of its content affecting national security, until the President himself unveils it: Previously, the Pivithuru Hela Urumaya Leader had claimed that he received the report which to date has not been made public record by any of the regimes in power: Herath accused him of ‘committing a crime’ for not revealing it.
  4. Police Spokesman DIG Nihal Thalduwa reveals scam farms recently busted in Sri Lanka resemble Myanmar’s cyber camps where Sri Lankans are stranded: These “scamming camps” operate covertly, with workers restricted from leaving but paid salaries: Locations are secured under false company pretenses, and equipment is brought in for global online scams: Over 150 foreign nationals, including Chinese, have been arrested.
  5. The Police is seeking public assistance to identify two deceased individuals involved in separate incidents in Homagama and Kegalle: The first body, found in Homagama on 1 October, remains unidentified, and a post-mortem is underway: The second case involves a pedestrian killed in a road accident on 4 October in Molagoda, Kegalle: Authorities urge anyone with information to contact local police stations.
  6. The government re-establishes the food policy committee to ensure essential items, including food, are supplied without scarcity and to control the rising cost of living: This decision, approved by President Anura Kumara Dissanayake, involves multiple ministries, aiming for a coordinated approach to tackle food security and price stability challenges across the country.
  7. Amidst escalating conflict in the Middle East, particularly Lebanon, Sri Lanka is taking measures to ensure the safety of its nationals in the region: Sri Lankan Missions are providing regular instructions for protection, whilst families in Sri Lanka can contact the Consular Affairs Division for updates on their relatives: Sri Lankans in the region are urged to follow safety guidelines closely.
  8. The new government abandons plans to sell SriLankan Airlines but will restructure it for profitability: The President insists the airline should remain locally owned: Whilst it posted an operating profit in 2023, its debt is $1.2 billion: The restructuring aims to strengthen the airline’s finances, supporting tourism, which contributes significantly to the nation’s economy.
  9. Sri Lankan-born attorney Vincent Perera was sworn in as the new Attorney General of Seychelles: pledges to uphold the rule of law and plans to enhance prosecutors’ skills through training: aims to tackle case backlogs and bring changes based on his international experience: replaces Frank Ally and will serve for four years, providing legal advice to the government.
  10. Five Sri Lankan cricketers have been selected for the 11th edition of the Bangladesh Premier League (BPL) starting in December: Thisara Perera will play for Dhaka Capitals, Angelo Mathews and Binura Fernando for Chittagong Kings, Lahiru Samarakkon for Durbar Rajshahi, and Pathum Nissanka will represent Fortune Barisal.

India and Sri Lanka to Build $5 Billion Palk Strait Bridge Strengthening Bilateral Ties

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By: Staff Writer

October 16, Colombo (LNW):India and Sri Lanka are advancing their collaboration by planning to construct a US $5 billion bridge and railway line over the Palk Strait, enhancing connectivity between the two nations.

This project not only aims to boost economic cooperation but also reflects their commitment to strengthened bilateral relations.

According to Sri Lanka’s Environment Secretary, Prabath Chandrakeerthi, discussions are nearing completion for the construction of this road-and-rail link, with India set to finance the entire project.

This initiative is the first major bilateral infrastructure project announced by Sri Lanka following the election of President Anura Kumara Dissanayake.

It aligns with New Delhi’s strategic efforts to counter Chinese influence in the region. Currently, India stands as Sri Lanka’s largest trade partner and one of its most significant foreign direct investment contributors, with Indian investments amounting to approximately $142 million in 2021.

Chandrakeerthi emphasized the economic potential of this project during his recent meeting with Indian officials in New Delhi.

The proposed connection between Rameswaram in India and Trincomalee in Sri Lanka is expected to significantly reduce costs for businesses in both countries, facilitating easier trade with Europe and other regions.

The improved infrastructure will also open new opportunities for Indian companies to benefit from the Sri Lankan market.

The idea of a land bridge connecting Rameswaram in Tamil Nadu, India, to Talaimannar in Sri Lanka was initially proposed by the Sri Lankan government in 2002.

Though an agreement was signed, the project faced opposition from the Tamil Nadu government, leading to delays.

Talks on the project resumed in 2015 when India requested the Asian Development Bank to conduct a pre-feasibility study for financing the link.

The latest plan involves constructing the rail and road link up to Trincomalee instead of Talaimannar, as informed by Sri Lankan officials.

Historically, there has been no direct land connection between India and Sri Lanka. The closest Indian town to Sri Lanka, Dhanushkodi, lost its railway station to a cyclone in 1964, disrupting the once operational boat service that linked Talaimannar in Sri Lanka with Dhanushkodi in India.

While the exact project cost remains to be finalized, estimates suggest it could reach around $5 billion, which will be fully funded by the Indian government.

Chandrakeerthi mentioned that the project could feature bridges and underwater tunnels to ensure uninterrupted movement of maritime traffic. Environmental approvals are still pending, and further discussions are needed to finalize the details.

Queries regarding the project’s status sent to Indian government departments involved in transport, shipping, railways, and external affairs have not received responses as of yet.

 However, the development of this infrastructure project signals a significant step towards deepening economic and strategic ties between India and Sri Lanka, potentially redefining regional trade dynamics.

Sri Lanka Defends Debt Restructuring at Hamilton Reserve Bank Case

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By: Staff Writer

October 16, Colombo (LNW):Sri Lanka has reaffirmed its commitment to debt restructuring despite facing legal challenges from the Hamilton Reserve Bank (HRB).

In a response filed by Clifford Chance US LLP on behalf of the Democratic Socialist Republic of Sri Lanka, the country refuted HRB’s claims presented in its 1 October 2024 correspondence to the US District Court for the Southern District of New York.

The HRB, a creditor involved in litigation following Sri Lanka’s 2022 sovereign default, argued that recent political changes threaten the debt restructuring plan’s progress.

It claimed that delays in the proceedings could no longer be justified due to the instability following the unexpected election of Anura Kumara Dissanayake as President on 21 September 2024.

The bank argued that Dissanayake’s victory over former President Ranil Wickremesinghe had created uncertainty about the restructuring plan’s feasibility.

Despite these assertions, Sri Lanka’s legal team maintains that the new government remains fully committed to the International Monetary Fund (IMF)-backed economic program and is actively advancing the restructuring process.

They emphasized that the leadership change has not derailed their economic recovery efforts and that they continue to align their plans with IMF guidelines.

As the case progresses under the jurisdiction of Judge Denise L. Cote, a decision on whether to grant Sri Lanka’s request for a stay in proceedings is awaited.

 This decision is critical, as it will influence the nation’s ability to focus on debt restructuring without legal distractions.

Sri Lanka’s legal representatives argued that securing this stay is essential to proceed with a planned bond exchange, a key step in the restructuring process, which Citigroup Global Markets Inc. has been appointed to manage.

Sri Lanka countered HRB’s concerns about political instability by pointing to progress achieved in negotiations with international creditors.

The country stated that the restructuring terms have received validation from both the Official Creditor Committee (OCC) and IMF staff, suggesting that the recovery program is on a stable track.

However, HRB remains unconvinced, warning that President Dissanayake’s plans to renegotiate the IMF’s $3 billion bailout package and his administration’s stance against the existing framework pose significant risks.

The bank cited a legal precedent, Casa Express Corp. v. Bolivarian Republic of Venezuela, to argue against indefinite delays in sovereign debt cases, asserting that political instability, not the ongoing litigation, is the primary threat to restructuring efforts.

The dispute between HRB and Sri Lanka illustrates the complexities of managing sovereign debt during political transitions.

While Sri Lanka advocates for a stay in legal proceedings to focus on economic recovery, HRB argues that political uncertainty has already compromised the restructuring plan, making further delays unwarranted.

The outcome of this legal battle may set a precedent for how similar cases are handled when economic challenges coincide with political shifts.

Sri Lankan Airline Sale Abandoned in Favor of Restructuring for a Profitable Future

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By: Staff Writer

October 16, Colombo (LNW):Sri Lanka’s new government has decided to abandon plans to sell its national carrier, SriLankan Airlines, despite its financial challenges. Instead, the focus will be on restructuring the airline to ensure a more profitable future.

The decision comes after newly elected President Anura Kumara Dissanayake’s directive to maintain the airline as a state-owned entity that Sri Lankans can take pride in, according to the airline’s new chairman, Sarath Ganegoda.

Previously, the then government had initiated a plan to sell a 49% stake in the airline while retaining 51% control.

However, the process did not proceed as intended due to a lack of suitable investors. Six parties had initially expressed interest, but none were qualified to advance in the bidding process.

Anura Kumara Dissanayake, a left-leaning politician from the National People’s Power Party, won the recent presidential election with a promise to halt the sale of state assets.

His government swiftly dismantled the unit responsible for selling loss-making state agencies, including SriLankan Airlines. Ganegoda emphasized that the airline is crucial to Sri Lanka’s tourism sector, contributing to 50% of the country’s tourist traffic.

SriLankan Airlines, despite reporting an operating profit from April 2022 to March 2023, has an accumulated debt of $1.2 billion.

The airline’s accumulated losses reached Rs. 601.7 billion by March 2023, compared to Rs. 529 billion a year earlier.

 However, the airline showed signs of recovery with a reduced group loss of Rs. 71.3 billion in FY23, down from Rs. 163.5 billion in FY22, and an operating profit of Rs. 43.3 billion.

The government’s shift from outright sale to restructuring includes exploring alternative options to revitalize the airline.

The strategy aims to strengthen its balance sheet and align operations with a sustainable business model. Regulations currently allow up to 49% of the airline’s shares to be transferred to another entity, but there has been minimal interest from global investors.

The International Finance Corporation (IFC) served as the transaction advisor during the divestiture process, which initially shortlisted bidders like Air Asia Consulting of Malaysia, Hayleys PLC, and Supreme Global Holdings, among others.

 However, the process faced challenges due to a lack of qualified parties, leading the government to consider a potential homegrown consortium involving major Sri Lankan companies like John Keells Holdings, Hayleys, and Aitken Spence.

The government’s revised approach could involve a consortium taking majority ownership while the state retains a 49% stake, absorbing part of the airline’s debt.

This new plan aims to make the national carrier more competitive and aligned with its growth targets, including reaching three million tourists next year and five million by 2030.

SriLankan Airlines has a fleet of 23 aircraft and a route network covering 126 destinations in 61 countries. Its passenger load factor improved significantly from 49% during the COVID-19 pandemic to 77.65% in FY23.

The airline’s cargo services, contributing around 14% to its revenue, generated Rs. 51 billion in the same fiscal year.

The government’s decision to abandon the sale in favor of restructuring reflects a commitment to reviving SriLankan Airlines as a vital component of the country’s economy, particularly its tourism sector.

The restructuring efforts aim to create a sustainable and profitable future for the airline while maintaining its national identity and significance in Sri Lanka’s development strategy.

Manufacturing Shows Strong Growth, Services Sector Slows in September: CBSL

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By: Staff Writer

October 16, Colombo (LNW):The manufacturing sector in Sri Lanka experienced solid growth in September 2024, while the services sector saw a more moderate expansion, according to the Purchasing Managers Index (PMI) compiled by the Central Bank of Sri Lanka (CBSL).

The manufacturing PMI recorded a value of 54.1, indicating ongoing growth, although at a slower pace compared to the previous month.

CBSL noted that all sub-indices of the manufacturing sector, except for employment, remained above the neutral threshold, reflecting expansion.

Growth was largely driven by new orders and production in the food and beverages manufacturing sector. Additionally, the stock of purchases increased in preparation for the festive season, while employment continued to contract, albeit at a reduced rate.

The supplier delivery time also lengthened during the month. CBSL maintains a positive outlook for manufacturing in the next three months, fueled by expectations of increased demand towards the end of the year.

The services sector PMI showed an index value of 53.4 in September 2024, suggesting slower expansion in services compared to August.

Growth in the sector was supported by improvements in financial services, spurred by favorable interest rates, as well as advancements in education, professional services, programming and broadcasting, real estate, and transportation.

In contrast, the wholesale and retail trade, IT programming, and telecommunication sectors remained stable, while other sectors faced declines.

New business activities in financial services grew in September, although overall employment in the services sector continued to fall. Backlogs of work also decreased, reversing the improvement seen in the prior month.

CBSL’s outlook for the services sector remains optimistic for the upcoming three months, boosted by supportive macroeconomic conditions.

Further, business activities in education, professional services, programming and broadcasting, real estate and transportation also grew during the month.

However, business activities in the wholesale and retail trade, IT programming and telecommunication remained unchanged from the previous month, while declines were recorded in activities of all other sectors.

“New businesses increased in September, particularly with the expansions observed in financial services activities,” CBSL said.

Meanwhile, employment continued to decline in September. Further, backlogs of work decreased on month-on-month basis, following an improvement recorded in the previous month.

“Expectations for business activities for the next three months continued to improve, at a higher rate, supported by favourable macroeconomic conditions,” CBSL added.

Government Re-establishes Food Policy Committee to Address Market Supply and Cost of Living

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October 16, Colombo (LNW): The government has taken steps to re-establish the Food Policy Committee, initially formed in October 2022, to ensure the steady supply of essential items to the market and mitigate the rising cost of living. This decision, approved by the Cabinet, was presented by President Anura Kumara Dissanayake.

The committee is tasked with overseeing the coordination of efforts across multiple sectors to prevent shortages of essential food items and control price hikes. It will include key officials such as the Secretary to the President, Secretary to the Prime Minister, and Secretaries from various ministries, including Finance, Agriculture, Health, Trade, and Energy, among others.

The re-established committee aims to take a collaborative approach to decision-making to ensure that market supply chains remain stable and essential goods remain accessible to the public.

AIDS Cases in Sri Lanka Surge by 27% in 2023: 1,327 Cases Detected Through Blood Donations

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October 16, Colombo (LNW): Dr. Chithran Hathurusinghe, Consultant STD Specialist at Kurunegala Teaching Hospital, revealed that 1,327 AIDS patients were identified in 2023 after testing donated blood samples. This announcement was made during the North Western Province AIDS Prevention Programme, held in conjunction with National AIDS Prevention Day.

Dr. Hathurusinghe expressed concern over the 27% increase in AIDS cases this year, with many patients falling between the ages of 15 and 29. Since 2003, the country has seen a steady rise in HIV/AIDS cases. He emphasized that the spread of HIV can be curtailed if early detection is achieved, with 95% of patients potentially able to reduce the virus to undetectable levels through proper treatment. However, current efforts have only identified 82% of cases.

In addition to AIDS, other sexually transmitted infections, such as syphilis, have also been detected during blood donation screenings. Dr. Hathurusinghe stressed the importance of political support in effectively combating these diseases.

National STD and AIDS Prevention Programme Director, Dr. Vindya Kumarapeli, also addressed the event, alongside healthcare professionals, law enforcement officials, and representatives from voluntary organizations dedicated to AIDS prevention.

Government Denies Claims of Unusual Borrowing Post-Election

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October 16, Colombo (LNW): Senior Advisor to the President on Economic and Financial Affairs, Prof. Anil Jayantha, has refuted media reports suggesting that the government has engaged in extraordinary borrowing following the appointment of President Anura Kumara Dissanayake.

Addressing inquiries about allegations that local and foreign borrowings have surged since the new president took office, Prof. Jayantha clarified that the government is only conducting regular fundraising activities, such as selling treasury bills and bonds, to meet essential expenses and repay maturing debts.

“This is a standard process carried out by any government to ensure the smooth running of services and day-to-day operations,” he said. “There has been no special or unusual borrowing apart from the normal financial activities.”

Prof. Jayantha also pointed out that these fundraising operations, such as selling treasury instruments and collecting US dollars, have been in place prior to the current administration, and any claims of increased borrowings need to be carefully investigated.

He stressed that the Central Bank of Sri Lanka is responsible for maintaining the stability of the financial market, and its recent actions are part of the regular efforts to sustain economic balance. The professor reiterated that there is no basis for the claims of unusual financial activities and urged further scrutiny into the actual amounts borrowed from both local and foreign markets.