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Bangladesh and Sri Lanka Accelerate Preferential Trade Agreement to Boost Bilateral Trade

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By: Staff Writer

October 31, Colombo (LNW): Bangladesh and Sri Lanka are actively working to expedite negotiations on a Preferential Trade Agreement (PTA) to unlock substantial potential in bilateral trade.

This focus was underscored during a recent meeting between Sri Lankan High Commissioner to Bangladesh, Dharmapala Weerakkody, and Bangladesh’s Foreign Secretary, Md. Jashim Uddin, held at the Foreign Ministry in Dhaka.

At this meeting, the foreign secretary highlighted ongoing reforms and priorities within Bangladesh’s interim government, aimed at ensuring transparent, inclusive elections.

Both countries reviewed existing agreements and pending Memorandums of Understanding (MoUs) and emphasized the importance of concluding critical agreements on coastal shipping, double taxation avoidance, and administrative assistance in customs.

 They also discussed the necessity of convening Foreign Office Consultations to address broader aspects of bilateral relations. Following Sri Lanka’s upcoming parliamentary elections scheduled for November 14, new dates for these consultations are expected to be proposed.

A significant challenge for South Asian countries, including Bangladesh and Sri Lanka, is the region’s limited intra-regional trade, which remains below its full potential despite active trade partnerships. One of the reasons is similar production patterns and competing sectors.

The PTA discussions aim to address these issues, with both countries identifying ways to reduce trade costs. Detailed knowledge of products with high export potential is expected to inform the agreement and optimize economic benefits.

Since PTA discussions began in 2018, trade between the two countries has seen modest growth. In 2018, Sri Lankan exports to Bangladesh reached USD 133 million, while imports from Bangladesh were around USD 37 million.

Sri Lanka has consistently maintained a trade surplus with Bangladesh, which could help mitigate its own trade deficit concerns.

Sri Lanka’s list includes 925 products protected under the South Asian Free Trade Area (SAFTA), covering around USD 6.2 million or 23.8% of its imports from Bangladesh.

In contrast, Bangladesh’s sensitive list includes 993 items, accounting for USD 77.6 million or 62% of its imports from Sri Lanka. Thus, lifting or reducing sensitive lists could be advantageous, particularly for Sri Lanka.

For Sri Lanka, the PTA could increase involvement in production value chains, particularly in textiles, while also building on financial support provided by Bangladesh during Sri Lanka’s recent foreign currency shortage.

While removing sensitive lists might promote trade growth, political and economic considerations may prevent it. Both countries are expected to act defensively, as some sensitive list items are crucial for employment and revenue.

The success of the PTA will depend on how many high-export-potential products are included in the final agreement. For example, Sri Lanka’s “offensive list” includes products currently imported by Bangladesh from other global sources, where Sri Lanka has the production capability and a comparative advantage.

If tariffs on the sensitive lists are eliminated, there will be modest export gains for Bangladesh and Sri Lanka in absolute terms. Sri Lanka will gain USD 24.7 to 49.7 million of exports to Bangladesh, while Bangladesh will gain USD 2.1 to 4.5 million of exports to Sri Lanka.

Elimination of sensitive lists will generate a higher tariff revenue loss to Bangladesh, ranging between USD 13.5 million to USD 19.1 million. By contrast, Sri Lanka’s revenue loss will be slight at USD 1.4 million to USD 1.9 million.

US Ambassador urges SL to strengthen investment climate for increased foreign investment

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By: Isuru Parakrama

October 31, Colombo (LNW): The United States Ambassador to Sri Lanka, Julie Chung, has encouraged Sri Lanka’s new government to enhance its investment environment, tackle corruption, and promote governance that is transparent and business-friendly.

According to Ambassador Chung, these improvements would not only fortify Sri Lanka’s appeal to foreign investors but could also attract more international manufacturers to establish operations in the country.

The Ambassador made these remarks at a groundbreaking event for the Indiana-based SHIELD company’s new seatbelt manufacturing facility, marking a significant move as SHIELD relocates its production from China to Sri Lanka.

Highlighting this shift, Ambassador Chung remarked, “The decision by SHIELD to move its facility here underscores a rising interest in U.S. investment within Sri Lanka. The United States is already the largest export market for Sri Lanka, and we are thrilled to see this direct investment. It’s our hope to see bilateral trade and investment grow even further in the coming years.”

Chung further emphasised that such shifts in manufacturing, which align with global supply chain diversification trends, present a notable opportunity for Sri Lanka. She asserted that with a strengthened investment framework, Sri Lanka could attract more manufacturers like SHIELD.

“If you build it, they will come,” she said. “A robust investment climate will draw companies, leading to job creation, increased prosperity, and new research and development initiatives.”

Additionally, Ambassador Chung underscored the collaborative foundation of U.S.-Sri Lanka relations, which are built on mutual goals and respect.

She highlighted several joint efforts, from enhancing crop yields for local farmers to expanding school lunch programmes for underprivileged urban children in Colombo and bolstering Sri Lanka’s maritime security.

These projects, Chung noted, are part of a shared vision to support economic growth, improve quality of life, and ensure stability in the region.

Sri Lankan Embassy in Netherlands hosts event promoting Ayurveda Tourism

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October 31, Colombo (LNW): The Sri Lankan Embassy in the Netherlands, in partnership with Siddhalepa Ayurveda Resorts & Spa, recently organised a tourism promotional event highlighting the island’s indigenous Ayurveda practices.

Held on 22 October 2024 at the embassy premises, the event aimed to showcase Sri Lanka’s wellness and health tourism potential to Dutch industry professionals.

The gathering attracted a variety of Dutch travel agents, tour operators, and media representatives, who were introduced to the unique benefits of Sri Lankan Ayurveda and the wellness treatments available to international travellers.

Sri Lanka’s Ambassador to the Netherlands, Rekha Gunasekera, expressed her appreciation to the attendees, emphasising her goal of positioning Sri Lanka as a premier destination for Dutch holidaymakers.

She noted that the Netherlands is already a key market for Sri Lanka, with Dutch tourist numbers surpassing last year’s figures, positioning the country among the top 10 tourism sources for Sri Lanka.

During the event, Senior Marketing Manager of Siddhalepa Ayurveda Resorts & Spa, Ushan Edirisinghe, gave an insightful presentation on the rich history of Sri Lankan Ayurveda, detailing the resort’s offerings and its range of wellness products.

Participants sampled Siddhalepa’s natural health products and enjoyed a spread of healthy Sri Lankan cuisine.

Adding an extra touch to the evening, a raffle was held, with one fortunate guest winning a week-long stay at Siddhalepa Ayurveda Resort & Spa, promising an immersive experience in authentic Sri Lankan Ayurveda.

Ghosts that Create Rugby Documents without an Owner

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October 31, Colombo (LNW): Recently, Sri Lanka rugby documents are often seen circulating without accountability. At the moment, the authority of Sri Lanka Rugby is the Director General of Sports, and as he feels, the document circulating including the names of people in the committees to hold tournaments in the Rugby Stadium, was created without the knowledge of the Director General of Sports.

Currently, the use of official Sri Lanka Rugby documents by former officials is prohibited. Despite this, the controversial release of documents labeled under Sri Lanka Rugby, backed by certain sports clubs, is illegal. Such actions suggest an attempt to claim authority that Sri Lanka Rugby itself does not possess. By now, a letter containing the criteria issued by the Rugby administration, which was disbanded six months ago targeting coaches, referees, referees, match officials, etc., has started circulating again, based on the Director General. During our inquiry, the Director General of Sports confirmed that he did not issue the letter and that it was originally issued about six months ago.

In a scenario where it has been claimed that individuals named on the committees are unaware of a letter issued in an unofficial manner, which appears to be an official notice, there is a possibility that someone has misappropriated significant sponsorship funds using documents bearing those names. Those named in these documents should consider taking legal action to protect their reputation, however silence on the matter raises further concerns.

According to the information reported to us, behind these matters there are two people who have rejected by their school to step inside the school as former students of the school they studied, and there is another person who harbored dreams of occupying a prominent position in rugby until his death. One of the two individuals rejected by his own school possesses exceptional rugby skills. however, he was rejected due to his behavior not aligning with the country’s sporting regulations and his questionable credibility as a businessman. The other person is not an expert in the game of rugby, and luckily took the opportunity to take some responsibility and has been suspected of using the relevant letterheads and using them in this matter.

Suspicions have arisen that the person who was in the eternal first chair dream of determining the hero and the traitor based on the need for power and for their own existence is already involved in a tree business with the world in the name of Sri Lanka rugby. Within the rugby field, he is regarded as a fiery individual who entangles himself like vines around trees in advantageous positions.

However, when we asked the Director General whether he would notify the legal department to investigate who is distributing the documents he is not associated with, he did not provide a clear response.

*Adapted from original article, “අයිතිකාරයෙක් නැති රගර් ලේඛණ මවන්නේ භූතයෝ” by Nishman Ranasinghe published on 31/10/2024.

Matara District candidates protest unauthorised inclusion in NDF election list

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October 31, Colombo (LNW): Four individuals from the Matara District, whose names have been included in the National Democratic Front’s (NDF) General Election candidate list, have alleged that their nominations were made without their consent.

The candidates, who represent the NDF’s “car” symbol, reported their concerns to the Deniyaya Police after learning of their nomination through their polling cards delivered by the Postal Department.

Tharanga Deshapriya, Chamal Lasantha, Nishal Prinayantha, and Prasad Udaya filed the complaint, emphasising that they had no prior knowledge of their names being on the list and had not consented to stand in the election.

Shocked by the discovery, they sought immediate clarification and assistance from authorities.

The Deniyaya Police have now referred the complaint to the election office within the Matara Police Superintendent’s jurisdiction and alerted the Election Commission to investigate the matter.

Additionally, the four individuals were advised to submit a formal complaint to the Matara Returning Officer, as the incident raises serious concerns about electoral transparency and candidate rights.

Construction Sector faces September slowdown amidst election disruptions

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By: Isuru Parakrama

October 31, Colombo (LNW): Sri Lanka’s Purchasing Managers’ Index (PMI) for Construction recorded a decline in sector activity during September 2024, with the Total Activity Index falling to 48.6.

This drop, attributed largely to disruptions related to the national election, highlights a slight moderation in construction activities for the month.

The Central Bank of Sri Lanka (CBSL) noted that while new orders saw a rise in September, this was not enough to offset challenges faced by the sector.

Respondents cited intensified market competition and increased financial strain, despite a gradual resurgence of both foreign-funded and domestic private projects being opened for tenders.

Additional factors impacting the sector included a reduction in employment and purchase quantities, reflecting the operational slowdown as many construction firms adjusted to the month’s interruptions.

Meanwhile, supplier delivery times also remained prolonged, adding further constraints to an already impacted supply chain.

Ex-Minister Lohan Ratwatte arrested

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October 31, Colombo (LNW): Former Minister Lohan Ratwatte has been arrested by Police this (31) afternoon.

The arrest follows the discovery of an unregistered vehicle found at his wife’s residence in the Mirihana area, Nugegoda.

This is a developing story..

Enter Air launches direct Warsaw-Colombo flights, boosting Polish Tourism in SL

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By: Isuru Parakrama

October 31, Colombo (LNW): Enter Air, Poland’s leading private airline, has officially launched a new direct service between Warsaw and Colombo, connecting Poland and Sri Lanka with a fresh series of charter flights.

This service, inaugurated yesterday (30), is scheduled to operate through to March 2025, strengthening tourism and travel links between the two countries.

Upon its arrival at Bandaranaike International Airport in Katunayake, Enter Air’s inaugural flight was greeted with a traditional water salute.

Passengers were then welcomed by Sri Lanka Tourism with an energetic performance showcasing the island’s vibrant cultural heritage.

The event underscored Sri Lanka’s commitment to hospitality and its eagerness to attract Polish tourists, enhancing cultural exchange and economic ties with Poland.

This Warsaw-Colombo route offers an appealing opportunity for European travellers to experience Sri Lanka’s unique offerings, including its beaches, heritage sites, and natural landscapes.

The seasonal service reflects growing European interest in Sri Lanka as a travel destination and is anticipated to draw an increased number of Polish visitors, benefitting Sri Lanka’s tourism industry as it gears up for a busy season.

China provides additional emergency aid to SL amid strengthening bilateral ties

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By: Isuru Parakrama

October 31, Colombo (LNW): The Chinese government has pledged a further Rs. 400 million in emergency humanitarian aid to Sri Lanka, enhancing its recent flood relief efforts.

According to the Chinese Embassy in Colombo, this new batch of emergency materials follows a cash donation of Rs. 30 million that was recently presented to the President of Sri Lanka to aid communities affected by severe flooding.

Prime Minister Dr. Harini Amarasuriya welcomed Chinese Ambassador Qi Zhenhong to her office on Wednesday (30) to discuss both the ongoing aid and future cooperative initiatives between the two nations.

Ambassador Qi reaffirmed China’s steadfast support for Sri Lanka’s relief endeavours, underscoring the commitment to assist in addressing urgent humanitarian needs.

In addition to flood relief, the conversation expanded to potential areas of economic cooperation, with a particular focus on investment opportunities designed to stimulate growth and build resilience in Sri Lanka.

Prime Minister Amarasuriya expressed deep gratitude for China’s timely assistance, highlighting how the enduring partnership has continually bolstered the country during times of need.

The meeting closed with both leaders affirming a shared vision for sustainable development, emphasising strengthened ties and new pathways for investment that could mutually benefit both nations.

PM responds to ex-President’s comments offering “lessons” about Constitution

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By: Isuru Parakrama

October 31, Colombo (LNW): Prime Minister Harini Amarasuriya openly challenged former President Ranil Wickremesinghe’s understanding of the Constitution, questioning whether she should be learning from a leader who, despite repeated public rejection, remains entrenched in politics.

Speaking at a recent public event, PM Amarasuriya emphasised that Wickremesinghe’s multiple electoral defeats—17 losses to date—have not deterred him from pursuing a political role, despite the evident shift in public sentiment.

“Wickremesinghe seems to struggle with understanding the evolving will of the people,” Amarasuriya stated, adding that her administration is paving the way for a new approach to governance.

She stressed that the people’s mandate lies at the core of the Constitution, expressing doubts about Wickremesinghe’s grasp of this fundamental principle.

Pointing out that a genuine understanding of constitutional basics involves respecting democratic processes, PM Amarasuriya argued that a true leader would not interfere with electoral timelines or compromise the authority of institutions such as the National Council or judiciary.

“A person with constitutional knowledge would avoid these actions. Perhaps he needs a clearer grasp of these essentials before advising others on the Constitution,” she remarked.

Further, PM Amarasuriya critiqued Sri Lanka’s longstanding political culture, which she claims has been marred by leaders acting with unwarranted authority.

According to her, the government led by Anura Kumara Dissanayake is committed to dismantling this approach, prioritising transparency and accountability in its place.

The Prime Minister also responded to Wickremesinghe’s recent assertion that Cabinet decisions need no departmental approval, stating, “That may have been his style, but our administration makes decisions that reflect the needs of the people and consider the guidance of relevant officials.”

She underlined that the new government prioritises public welfare and sound, informed decision-making.

The comments follow a recent clash between Wickremesinghe and Amarasuriya regarding procedural integrity in government decisions.

Amarasuriya had previously criticised the former government’s handling of public servants’ salary increases, alleging procedural lapses. Wickremesinghe, in response, suggested that the Prime Minister could benefit from further constitutional guidance.