November 04, Colombo (LNW): In the first half of 2024, Sri Lanka’s state-owned Ceylon Petroleum Corporation (CPC) saw a significant reduction in its petroleum import costs, dropping to USD 1.235 billion from USD 1.38 billion in the same period of 2023. This reduction, as reported by the Finance Ministry, stemmed primarily from lower import volumes, influenced by the entrance of new competitors in the market, despite rising international crude oil prices.
The drop in import costs positively impacted CPC’s cost of sales, which decreased by 17.2% to LKR 467.7 billion, compared to LKR 564.6 billion in the first six months of 2023. However, CPC’s turnover simultaneously experienced a more substantial decline of 20.1%, dropping from LKR 681.5 billion in the first half of 2023 to LKR 544.3 billion in 2024.
This reduction in revenue significantly affected the company’s profitability, with net profits falling sharply by 70.2% to LKR 20.7 billion, compared to LKR 69.5 billion in the previous year. The lower profitability was attributed to increased competition and lower sales, despite the overall decrease in the cost of imports.
Furthermore, CPC’s financial obligations improved over the same period. The organization has now cleared all liabilities to Sri Lanka’s Bank of Ceylon and People’s Bank, thanks to a government initiative that took on CPC’s dollar-denominated debts from state banks. The debt owed to the National Iranian Oil Company, which had stood at USD 230.9 million at the end of 2023, also decreased to USD 191 million by the end of June 2024.
The Finance Ministry report highlighted that CPC’s prior debt was largely due to dollar loans taken from state banks to cover supplier credits during times of currency shortages. These shortages often arose from the central bank’s policy of flexible inflation targeting, which involved printing money to encourage inflation and stimulate economic growth.
However, when money was created to finance imports, it led to a widening current account deficit and subsequent currency devaluations, causing CPC to incur substantial losses.
The economic challenges CPC faced were not new. During past currency crises, including one tied to the Iranian debt two decades ago, CPC had relied on suppliers’ credit.
Analysts noted that this pattern of incurring debt from money printing has continued to burden Sri Lanka’s economy. Additionally, the central bank’s approach of maintaining low interest rates through open market operations had similar consequences, contributing to the country’s financial instability.
After Sri Lanka’s civil war, the government pursued heavy debt accumulation, enacting the Active Liability Management Law to manage its debts actively. This approach, combined with unsustainable interest rate policies, eventually pushed Sri Lanka towards default.
However, since the last quarter of 2022, Sri Lanka’s central bank has maintained relative monetary stability, which has been advantageous for state energy firms like CPC. This stability, along with a gradual currency appreciation, has somewhat mitigated the impact of global oil price surges on CPC’s operations.
These changes have allowed CPC to reduce debts and manage costs better, even as profits and revenues shrink amid heightened market competition.
November 04, Colombo (LNW): The Sri Lanka-Canada Business Council (SLCBC), under the Ceylon Chamber of Commerce, recently completed a successful trade and investment mission to Canada.
Held from October 14 to 22, this nine-member delegation, led by SLCBC President Priyantha Chandrasekara, aimed to bolster trade and investment opportunities between the two countries.
The mission involved high-level discussions with Canadian business leaders, government representatives, and academic institutions, highlighting opportunities in critical sectors.
Prior to the delegation’s departure, Sri Lankan Prime Minister Dr. Harini Amarasuriya expressed support, underscoring the government’s commitment to strengthening Sri Lanka’s economic ties with Canada.
In 2023, total merchandise trade between Canada and Sri Lanka was US $654.4 million. Canadian merchandise exports to Sri Lanka were $149 million in 2023; cereal and vegetable products made up 65.2% of all exports. Canadian merchandise imports from Sri Lanka reached $505.4 million in 2023. Garments made up 62.3% of all imports
The mission identified promising areas for Canadian investment, particularly in agriculture, education, transportation, cleantech, and life sciences.
Additionally, Canada’s Feminist International Assistance Policy has enabled valuable initiatives in Sri Lanka, focusing on gender equality, inclusive governance, environmental resilience, and peace.
Programs such as the Canada Fund for Local Initiatives (CFLI) support small-scale projects in women’s empowerment and youth political engagement.
A significant event, the Sri Lanka-Canada Business Forum, took place on October 15, spotlighting collaborative potential in education, agriculture, tourism, IT, and startups. SLCBC leaders, including SLCBC President Priyantha Chandrasekara and Vice President Mohammad Hameez, emphasized Sri Lanka’s strategic advantages for Canadian investors, specifically in the Colombo Port City project and the Kankesanthurai Industrial Processing Zone.
Networking sessions hosted by the Canada Sri Lanka Business Convention (CSBC) facilitated valuable connections with Canadian business leaders, while interactions with the Council of Ontario Universities laid groundwork for partnerships in STEM fields and student mobility programs.
Additionally, discussions with the J’pura Canada Alumni Association highlighted demand for more extensive academic exchanges.In Ottawa, the delegation met with Canadian Member of Parliament Chandra Arya and the Sri Lankan High Commissioner, U.L. Mohammed Jauhar, to discuss reducing trade barriers and fostering a business-friendly environment.
In Montreal, Global Affairs Canada and food manufacturers explored opportunities to increase Sri Lankan exports, including coconut-based products.
Further, discussions in Vancouver with the Tri-Cities Chamber of Commerce and the Surrey Board of Trade emphasized potential growth areas in Agri-Tech, IT, and tourism. Meetings with local leaders like Surrey City Councillor Linda Annis and Honorary Consul Jim Bennett highlighted the influential role of the Sri Lankan diaspora in enhancing bilateral relations.
The mission concluded with strengthened commitments for future collaboration, setting a strong foundation for increased trade, investment, and educational exchanges between Sri Lanka and Canada. The SLCBC plans to host a Canadian delegation in early 2025, facilitating discussions with Sri Lankan business leaders and officials, further solidifying this growing partnership.
November 04, Colombo (LNW): The Public Utilities Commission of Sri Lanka (PUCSL) has instructed the Ceylon Electricity Board (CEB) to present a more robust proposal for lowering electricity tariffs, deeming the initial reduction insufficient.
The CEB has until 8 November to deliver an updated plan.
The initial proposal, submitted by the CEB on October 24 October, suggested tariff cuts between 4 per cent and 11 per cent.
However, stakeholders, including consumer advocacy groups, have raised concerns that these reductions fall short, particularly in light of the CEB’s improved financial performance in recent months.
Critics argue that the utility provider’s profitability should translate into more significant relief for consumers facing high electricity costs.
PUCSL Communications Director Jayanath Herath highlighted that, following the submission of a revised proposal by the CEB, the PUCSL will work on a counter-proposal.
This will aim to ensure that the final tariff adjustments are better aligned with both consumer expectations and the utility’s recent financial outcomes.
November 04, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates slight appreciation against the US Dollar today (04) in comparison to last week, as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US Dollar has dropped to Rs. 288.55 from Rs. 288.59, and the selling price to Rs. 297.60 from Rs. 297.64.
Meanwhile, the LKR indicates depreciation against several other foreign currencies, but indicates appreciation against Gulf currencies.
November 04, Colombo (LNW): Shashi Prabha Ratwatte, wife of former State Minister Lohan Ratwatte, was taken into custody following a court appearance at Nugegoda Magistrate’s Court in connection with the discovery of an unregistered luxury vehicle at her residence in Mirihana, Nugegoda.
The Nugegoda Magistrate subsequently ordered her remand until November 07.
The incident originated on October 26, when police located a high-end vehicle lacking registration plates at a three-storey residence owned by Mrs. Ratwatte.
This search, conducted following a tip-off received at police headquarters, uncovered the vehicle in the Embuldeniya neighbourhood.
Lohan Ratwatte, who was also arrested in Katugastota, Kandy, on October 31, reportedly informed police that the unregistered vehicle had been brought to the Mirihana house by his private secretary about three weeks prior to the search.
According to Ratwatte and his wife, his mother-in-law was residing at the property.
In a tragic turn, the private secretary in question was recently found dead from gunshot wounds in Kandy’s Katugastota area, casting further complexity on the case.
Since his arrest, Ratwatte was initially admitted to the Prison Hospital on November 02 due to what prison authorities described as “sudden illness” and was later transferred to Colombo General Hospital for further treatment.
November 04, Colombo (LNW): The Board of Directors of Sri Lanka Telecom PLC has resolved to appoint Dr. Mothilal de Silva, as an Independent, non-Executive Director and Chairman of the Board of Sri Lanka Telecom PLC with effect from 04 November 2024.
With a career spanning over many decades, Dr de Silva is a result oriented multidisciplinary C-level executive in the telecommunication industry having experience in Sri Lanka and multiple countries in Asia and Pacific regions. He is a turnaround specialist and a strategist.
He was also the Group Chief Strategy Officer and Group Chief Corporate Officer of Dialog Axiata, General Manager (Sales, Marketing and Customer Service) of MTN Networks Pvt Ltd and Vice President Process Excellence and Group Operations of Axiata Group Malaysia.
Under his leadership as Group Chief Executive Officer, he turned around the Fiji’s state-owned telecommunication company Telecom Fiji Ltd sustainably after 5+ consecutive loss-making years.
During his tenure at Telecom Fiji, the company registered consistent growth in profit, dividend and investment for network modernisation. He sat on the Board of Directors of Lanka Communication Services Pvt Ltd, a telecommunication service provider for enterprises in Sri Lanka.
As a C-level executive at Dialog, Mothilal set up Corporate Planning, Strategy, MIS, Business Intelligence, Performance Management, Quality, Process Reengineering, Enterprise Program Management and Corporate Development divisions from scratch while apprenticing young set of managers who had progressed to become leaders in Dialog and Axiata Group subsidiary companies. He was also instrumental in winning GSMA awards, International Asia Pacific Quality Award, Asia CSR award for Dialog Axiata and many national awards.
Mothilal obtained Doctor of Business Administration from PPA Business School, Paris, with a distinction for his dissertation “Corporate Venture Capital as an engagement model for co-creating 5G ready services”. He has a MSc in IT from Keele University UK, MBA from PIM, SL, BSc (Engineering) SL, Post Graduate Diploma in Strategic Management from Maastricht School of Management, Netherland and a Post Graduate Diploma in Marketing Management from PIM SL.
November 04, Colombo (LNW): The Litro Gas Company has announced that it will not increase the prices of its domestic LP gas cylinders for November 2024, maintaining current rates to support consumers amidst rising global gas costs.
Channa Gunawardena, Chairman of Litro Gas, confirmed that the company decided to absorb the impact of global price hikes, prioritising consumer relief over potential profits.
This decision, he noted, was made possible through effective stock management and operational efficiencies within the state-owned enterprise.
As a result, the prices for domestic Litro LP gas cylinders will remain as follows:
12.5kg cylinder – Rs. 3,690
5kg cylinder – Rs. 1,482
2.3kg cylinder – Rs. 694
Litro’s move to stabilise prices offers some financial reprieve to households, especially as global energy markets experience fluctuations.
November 04, Colombo (LNW): In a significant ruling, the Supreme Court has dismissed a fundamental rights petition that sought to challenge the scheduled date for the upcoming general election, set for November 14, 2024.
The decision was reached today (04) by a three-judge panel, following a thorough examination of the arguments presented.
The petition was brought forth by H.M. Priyantha Herath, the Secretary of the Api Sri Lanka National Organisation and a civil rights activist.
Filed on October 21, the petition claimed that the announcement of the election date and the related nomination processes contravened the provisions outlined in the Elections Act of Sri Lanka.
In his arguments, Herath contended that the timing and manner in which the election date was declared were unconstitutional, posing potential implications for the electoral process.
However, the court found insufficient grounds to support these claims, ultimately leading to the dismissal of the petition.
The dismissal of this challenge clears the way for the electoral process to proceed as planned, ensuring that preparations for the election can continue without further legal hindrance.
November 04, Colombo (LNW): The political landscape in Sri Lanka is on the cusp of significant change, with the upcoming Parliamentary Election on November 14. One of the most noteworthy developments in this evolving scenario is the emergence of Anura Kumara Dissanayake, the leader of the National Peoples Power (NPP) and the Janatha Vimukthi Peramuna (JVP).
Looking from the perspective of marginalised communities of the country, significantly the eyes of the Sri Lankan LGBTQIA+ community, this marks a potential beacon of hope for them, in the backdrop where Dissanayake and his team have taken a groundbreaking stance in Sri Lankan politics by categorically recognising the rights of individuals from diverse sexual orientations, gender identities, gender expressions, and sex characteristics (SOGIESC).
This historic commitment marks a significant departure from the conservative political norms that have historically dominated Sri Lanka’s governance.
The NPP’s political manifesto prominently features a pledge to decriminalise consensual same-sex relations between adults. This move not only acknowledges the existence of the LGBTQIA+ community but also signals a potential shift towards a more inclusive and progressive political framework.
Such a change is particularly significant in a country where consensual same-sex relations are deemed a criminal offence since colonial times, despite having no definitive provisions in the legal framework to prosecute them for, leaving the queer community vulnerable to discrimination, harassment, violence and marginalisation.
By recognising these rights, the NPP has positioned itself as a forward-thinking party, setting a precedent for future political discourse in Sri Lanka.
Despite this encouraging stance, the NPP faces formidable challenges in realising these aspirations. The recently dissolved Parliament held only three seats for the NPP, hence the interim-Cabinet being managed by the trio, which limits its capacity to influence legislative change effectively. Dissanayake and his team are currently operating in an interim government, navigating the complexities of governance whilst preparing for an election that could reshape the future of the country.
The previous Parliament, which is largely contesting this year’s elections, has been characterised by a conservative majority that has historically resisted liberal ideologies and mocked the rights of the LGBTQIA+ community. This backdrop poses a significant hurdle for Dissanayake’s ambitious plans to secure their rights.
For the queer community in Sri Lanka, the prospect of a government that actively advocates for their rights has generated a palpable sense of hope, one activist told LNW. She emphasised that many community members view the NPP’s commitments as a validation of their struggles and aspirations.
There is a growing recognition that the new government could potentially provide a platform for the voices of queer individuals, allowing them to participate actively in decision-making processes that affect their lives. This involvement is crucial, as it fosters a sense of agency and empowerment within a community that has often felt sidelined in political discussions.
In 2023, the Supreme Court delivered a very crucial determination affecting this population, asserting that a bill proposing decriminalisation of consensual same-sex sexual relations between adults do not violate the Constitution, and, therefore, can be made into law by the approval of the simple majority in Parliament.
This response came in countering the fundamental rights (FR) petitions brought forward by certain political groups against a private member’s bill presented by former Ruling Party MP Premnath Dolawatta proposing decriminalisation of consensual same-sex relations. Upon query, the NPP responded to the bill, stating that they back it, despite sharing political rivalry with Dolawatta’s party.
The bill, however, was subjugated to lagging despite being taken in for parliamentary debate due to the dissolution by former President Ranil Wickremesinghe ahead of the 2024 Presidential Election, and remains behind closed doors, pending an uncertain approval.
The engagement of LGBTQIA+ voices in politics is vital for creating a more inclusive society. Dissanayake’s leadership and the NPP’s willingness to address queer rights can pave the way for policies that are more reflective of the diverse needs of the population.
This inclusion would not only benefit the queer community but also enrich the political discourse in Sri Lanka, fostering a culture of acceptance and understanding. The hope is that the new government will create spaces for dialogue, allowing queer individuals to share their experiences and challenges directly with policymakers.
Dolawatta’s bill proposed amendments to the Penal Code’s Sections 365 and 365A, which prohibit carnal intercourse against ‘the order of nature’ between persons, and acts of ‘gross indecency,’ respectively, despite failing to provide elaborative definitions for either.
365: “Whoever voluntarily has carnal intercourse against the order of nature with any man, woman, or animal, shall be punished with imprisonment of either description for a term which may extend to ten years, and shall also be punished with fine and where the offence is committed by a person over eighteen years of age in respect of any person under sixteen years of age shall be punished with rigorous imprisonment for a term not less than ten years and not exceeding twenty years and with fine and shall also be ordered to pay compensation of an amount determined by court to the person in respect of whom the offence was committed for injuries caused to such person.”
365A: “Any person who, in public or private, commits, or is a party to the commission of, or procures or attempts to procure the commission by any person of, any act of gross indecency with another person, shall be guilty of an offence, and shall be punished with imprisonment of either the description for a term which may extend to two years or with fine or with both and where the offence is committed by a person over eighteen years of age in respect of any person under sixteen years of age shall be punished with rigorous imprisonment for a term not less than ten years and not exceeding twenty years and with fine and shall also be ordered to pay compensation of an amount determined by court to the person in respect of whom the offence was committed for the injuries caused to such person.”
Neither of the clauses mention people of diverse sexual orientations, gender identities, gender expressions or sex characteristics, but the law enforcement authorities have long been known to have abused the aforementioned sections for the persecution of queer individuals in Sri Lanka.
The Attorney General’s Department on four consecutive occasions (2014, 2017, 2019 and most recently, 2022) asserted before the United Nations that the provisions of Article 12 of the Constitution do recognise LGBTQIA+ rights, and any law criminalising them, therefore, would be unconstitutional.
The discussion of LGBTQIA+ rights in Sri Lanka shall not be omitted from the national political dialogue, and recognising and protecting the rights of marginalised communities, including those of queer individuals, shall become a priority of the new regime, another activist said.
As the election date approaches, the hope amongst the queer community remains palpable. Many are cautiously optimistic that a vote for the NPP is a vote for a more inclusive Sri Lanka, one that recognises and celebrates diversity rather than suppressing it. In recent rallies, Dissanayake did promise legislative changes assuring equality for all marginalised communities. Nonetheless, activists do level criticism against the current regime’s low-key pitch about the queer issue.
A future Dissanayake-led administration must act in the interest of the public and shall not forget that 1.5 million people of the population have recognised themselves within the LGBTQIA+ spectrum and are registered voters. For many, this year’s election represents not just a chance for a change in the corrupt political system, but a critical opportunity to assert their identity and rights in a society that has often overlooked them.
November 04, Colombo (LNW): Fewer than 1,000 out of 8,888 candidates vying for seats in the upcoming parliamentary elections are currently involved in active campaigning, according to the People’s Action for Free and Fair Elections (PAFFREL).
This revelation was made by the executive director of PAFFREL during an appearance on a radio programme.
The local election monitoring group expressed concern over the lack of engagement among the majority of candidates, highlighting that many of them lack prior political experience or a strong political background.
This situation raises questions about the candidates’ preparedness to address the pressing issues facing their communities and to effectively represent their constituents in parliament.
The upcoming elections are critical for the country, as they will shape the future political atmosphere and determine the direction of governance in Sri Lanka.
PAFFREL’s findings suggest that a significant number of candidates may not be adequately prepared to connect with voters or articulate their policies and visions for the nation.
