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Sri Lanka secures $100 mn ADB loan for water sector reforms

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September 12, Colombo (LNW): The Ministry of Water Supply and Estate Infrastructure Development has expressed its approval following the Asian Development Bank’s (ADB) decision to grant Sri Lanka a US$ 100 million policy-based loan.

The loan is set to drive transformative reforms in the country’s water supply and sanitation sector, aimed at improving sustainability, climate resilience, and operational efficiency.

This initiative builds on ongoing efforts by the Ministry to ensure equitable access to clean water while modernising infrastructure to meet the challenges posed by climate change.

With growing concerns over water scarcity and environmental degradation, this programme is seen as a crucial step towards addressing these issues on a national scale.

The ADB’s Water Supply and Sanitation Reform Programme is structured into two main sub-programmes.

These will focus on establishing comprehensive national-level policies and strategies while ensuring their effective implementation through the National Water Supply and Drainage Board (NWSDB), the primary agency responsible for managing water distribution in Sri Lanka.

The reforms seek to resolve pressing issues, including the fragmented management of water resources, insufficient adaptation to climate change, and governance inefficiencies that have hindered progress in the sector.

Amongst the core elements of the reform package are the development of a Climate Change Resilience Roadmap, frameworks for climate-resilient project appraisals, and business efficiency action plans.

Additionally, the programme will encourage private sector participation and implement water safety plans to ensure long-term water quality and safety.

A key aspect of the project is its emphasis on gender-sensitive service delivery and the equitable allocation of water resources, ensuring that marginalised communities are not left behind.

The NWSDB will play a central role in these reforms, tasked with improving its operational performance, reducing water wastage, and promoting sustainable water usage practices across the country.

By supporting these reforms, the ADB loan is expected to strengthen the resilience of Sri Lanka’s water supply system, ensuring it can meet future challenges and serve the growing needs of the population amidst the increasing threat of climate change.

Speaker endorses Bill to increase Minimum Wage ahead of Presidential Election

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September 12, Colombo (LNW): Just days before Sri Lanka’s presidential election, Speaker Mahinda Yapa Abeywardena has signed off on a bill that raises the national minimum wage by 12.5 per cent.

The bill, titled the National Minimum Wage of Workers (Amendment) Bill, was formally endorsed on Wednesday, following its swift passage through Parliament.

The bill, which underwent a second reading in Parliament on September 3, was passed without any amendments or the need for a vote. The legislation, amending the National Minimum Wage Act of 2016, is now set to elevate the monthly minimum wage to 12,500 Sri Lankan rupees, up from the previous 10,000 rupees.

Similarly, the daily minimum wage will increase from 400 rupees to 500 rupees.

This wage increase is expected to benefit employees primarily within the private sector, giving a financial boost to low-wage workers who have long advocated for better compensation in a struggling economy.

Given the proximity of the wage hike to the upcoming presidential election, some analysts have speculated about its potential impact on the election’s outcome, as economic issues remain a central concern for voters.

Announcing the bill, the Speaker’s office emphasised that it had been approved in accordance with Article 79 of the Constitution, marking a significant legislative achievement.

The timing of the bill’s passage, however, is noteworthy, as it follows various economic reforms aimed at addressing the rising cost of living and unemployment across the island.

In recent years, Sri Lanka has faced mounting economic challenges, including high inflation, currency devaluation, and rising prices for essential goods, placing significant pressure on low-income workers.

Weather forecast (Sep 12): Showers, thundershowers to continue in multiple areas

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September 12, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (12).

Showers or thundershowers may occur at several places in Uva province and in Ampara and Batticaloa districts during the evening or night.

Strong winds about (40-50)kmph can be expected at times over Western slopes of the central hills, Northern, North-central and North-western provinces and in Hambantota, Monaragala and Trincomalee districts.

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:
Showers or thundershowers may occur in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be south-westerly in direction and wind speed will be (30-40) kmph. Wind speed can increase up to 60 kmph at times in the sea areas off the coasts extending from Matara to Pottuvil via Hambantota and from Kankasanthurai to Puttalam via Mannar. Wind speed can increase up to about 50 kmph at times in the sea areas off the coasts extending from Trincomalee to Kankasanthurai and from Puttalam to Matara via Colombo and Galle.
State of Sea:
The sea areas off the coasts extending from Matara to Pottuvil via Hambantota and from Kankasanthurai to Puttalam via Mannar will be rough at times. The sea areas off the coasts extending from Trincomalee to Kankasanthurai and from Puttalam to Matara via Colombo and Galle will be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka Original Narrative Summary: 12/09

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  1. President Ranil Wickremesinghe addressing rally in Dambadeniya shares how a woman from Killinochchi gave him a cap as thanks for his aid during Sri Lanka’s economic crisis: reflects on his decision to take responsibility when the country lacked essential supplies and criticised political rivals for retreating: emphasises his priority was ensuring people’s survival before holding elections.
  2. Former Minister and SJB MP Imthiaz Bakeer Markar says many Leftist countries have abandoned outdated policies to meet current needs, and SJB leader Sajith Premadasa will similarly focus on addressing contemporary issues: emphasises Premadasa’s capability to develop the nation and curb emigration, especially of youth and professionals, by implementing proper economic development plans.
  3. The National People’s Power (NPP) expresses concerns that opposition forces might stage violent incidents after September 18, once election campaigning ends, blaming the NPP: JVP General Secretary Tilvin Silva suggests security forces should investigate politicians predicting violence, implying they might orchestrate such acts: also links this potential conspiracy to past incidents, like the Easter attack, which brought Gotabaya Rajapaksa to power.
  4. Speaker Mahinda Yapa Abeywardana endorses the National Minimum Wage of Workers (Amendment) Bill, which passed Parliament without amendments or a vote on September 3: The Bill, now recognised as the National Minimum Wage of Workers (Amendment) Act No. 48 of 2024, amends the 2016 National Minimum Wage Act and was endorsed under Article 79 of the Constitution.
  5. Former Health Minister Keheliya Rambukwella and two others allegedly involved in importing substandard human immunoglobulin vials have been granted bail by the Maligakanda Magistrate’s Court: Rambukwella was released on personal bail of Rs. 10 million and a cash bond of Rs. 100,000, with travel restrictions: The case involves 12 suspects, most of whom have been released on bail, except for one still in custody.
  6. The Government Medical Officers’ Association (GMOA) will launch an islandwide strike on 18 September, protesting a disciplinary inquiry against Assistant Secretary Dr. Palitha Rajapaksa without a formal complaint: Black flags will be displayed in hospitals for seven days: demands the suspension of the inquiry, claiming Dr. Rajapaksa advocated for the public regarding shortages at Badulla Hospital.
  7. Deputy Postmaster General Rajitha Ranasinghe announces over 10 million official polling cards for the 2024 presidential election have been distributed: The remaining cards will be delivered by 14 September: Voters who haven’t received theirs can collect them from local post offices with their National Identity Cards: There are 17.44 million registered voters for the election.
  8. Election monitors raise concerns over the involvement of children in political campaigns, urging parties to stop using minors for canvassing: Manjula Gajanayake of the Institute for Democratic Reforms highlights circulating videos of such incidents: The Elections Commission also receives complaints, with Commissioner Saman Sri Ratnayake stressing the National Child Protection Authority’s role in addressing this issue: Concerns began to mount after a video circulating on Social Media revealing Labour and Foreign Employment Minister Manusha Nanayakkara allegedly questioning a minor on stage about the country’s situation at a public rally.
  9. The Criminal Investigation Department (CID) is investigating a former Sri Lankan Army Major for allegedly making threats towards members of other political parties in a video posted online: The probe was initiated after complaints from an MP and several organisations: The National People’s Power claims the video was manipulated: Authorities are verifying the video and voice authenticity through forensic analysis, and further investigations are ongoing.
  10. Anton Roux, Sri Lanka’s men’s cricket team fielding coach, steps down from his role, with his last week concluding in August 2024: Roux, who joined in March 2022, reflected on Sri Lanka’s achievements during his tenure, including winning the 2022 Asia T20 Cup: He expressed gratitude for his time in Sri Lanka and praised the resilience of the national teams.

Minister Warns of Potential Budget Crisis if Opposition Candidates Win Presidential Election

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September 11, Colombo (LNW): Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardhana has warned that the 2025 budget could be at risk if SJB Presidential candidate Sajith Premadasa or NPP Presidential candidate Anura Kumara Dissanayake come into power. He made these remarks at an election meeting held at the Handapangoda junction, which was attended by Buddhasasana, Religious, and Cultural Affairs Minister Vidura Wickremenayake yesterday.

Minister Gunawardhana criticized the opposition candidates, stating, “Presidential candidates Sajith Premadasa and Anura Kumara Dissanayake, who have no experience in governing a country, have announced that they will dissolve parliament on the same day if they win the presidential election.”

He further warned that if the budget is not passed within 100 days from September 21, senior citizens may not receive their allowances by January 10, 2025. “The poor people who are struggling for a living will not be able to receive their Aswesuma or Samurdhi benefits if the budget is not passed,” he added.

The Minister also emphasized that government employees might not receive their salaries on January 25 if the budget fails to pass in Parliament. “Whoever comes into power, the 2025 budget needs to be passed in Parliament, and payments should be approved by Parliament,” he said, underscoring that the President does not have the authority to make any payments without parliamentary approval.

Cabinet Approves IT Strategic Plan for Inland Revenue Department Digitization

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September 11, Colombo (LNW): The Cabinet of Ministers has approved the implementation of an IT Strategic Plan for the Inland Revenue Department, as announced by Cabinet Spokesman, Minister Dr. Bandula Gunawardhana. The decision was disclosed at a press conference held at the Government Information Department yesterday (10).

Minister Gunawardhana explained that the Inland Revenue Department was required to develop an IT Strategic Plan as a structural measure under the Extensive Credit Facility Programme of the International Monetary Fund (IMF). This plan, which aims to digitize the department, needed to be prepared and approved by the Cabinet of Ministers by the end of August 2024.

The proposal, presented by President Ranil Wickremesinghe in his capacity as Minister of Finance, Economic Stabilization, and National Policy, outlined the implementation of the IT Strategic Plan for the Inland Revenue Department for the period from 2025 to 2027. The plan received Cabinet approval.

Minister Gunawardhana further explained, “The IMF’s extensive credit facility program has set future goals that include maintaining the government’s revenue at a level of 15 percent or more of the gross domestic product. To achieve this, the Inland Revenue Department, along with Customs and Excise Departments, will integrate revenue-generating institutions. Through digitization, it will be easier to reach higher revenue targets by closing gaps in income generation channels. The digitization proposal was approved to meet these IMF conditions.

Sri Lanka to Secure $400 Million Loan from ADB for Financial Sector Stability and Reform

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September 11, Colombo (LNW): The Cabinet of Ministers has approved obtaining loan facilities from the Asian Development Bank (ADB) to support Sri Lanka’s financial sector stability and reform programme, Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardhana announced.

Speaking at the weekly Cabinet media conference, Minister Gunawardhana stated that the approval was granted at the Cabinet meeting held on September 25, 2023, to secure a loan of US$ 400 million on a policy basis under two sub-programmes aimed at stabilizing and reforming the financial sector in Sri Lanka. Of this amount, US$ 200 million has been allocated for the first sub-programme, effective December 2023.

To obtain the remaining US$ 200 million under the second sub-programme, 12 pre-policy activities need to be completed. Minister Gunawardhana noted that most of these activities have already been completed or are in the final stages of completion.

New Economic Laws Set the Stage for Sri Lanka’s Stability and Growth:Minister  Bandula Gunawardena

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September 11, Colombo (LNW): In a significant turnaround from a severe economic crisis, Sri Lanka has made strides in stabilizing its economy under the leadership of President Ranil Wickremasinghe. Inflation, which once soared to 70%, has now been reduced to single digits, signaling a positive shift. 

The country’s borrowing costs have fallen, economic growth has exceeded expectations, and debt restructuring efforts have unlocked additional funding from international lenders like the IMF.

Minister of Transport, Highways, and Mass Media, Dr. Bandula Gunawardena, credited much of this progress to the new Economic Transformation Bill, passed unanimously in parliament. This law sets development targets and aims to prevent future economic crises by promoting national growth through public and private initiatives. 

The legislation focuses on modernizing key sectors, such as agriculture, while pushing for Sri Lanka to become a competitive, export-oriented digital economy.

The bill introduces a national policy framework, supported by new institutions like the Economic Commission of Sri Lanka, Investment Zones, and the National Productivity Commission. 

These bodies aim to implement structural changes to enhance the country’s economic competitiveness. Additionally, outdated laws, such as the Board of Investment Law of 1978, have been repealed to make way for these reforms.

Key goals outlined in the bill include achieving net-zero emissions by 2050, increasing female labor force participation to 50% by 2040, and maintaining a GDP growth rate of 5% annually until 2027, with an 8% growth target for the following 15 years. The government also plans to boost exports to 25% of GDP by 2025 and 60% by 2040.

Other objectives include lowering the unemployment rate to below 5% by 2025 and reducing the central government’s financing needs to less than 13% of GDP by 2032. The plan further targets increasing net Foreign Direct Investment (FDI) to 5% of GDP by 2030, with a significant portion of GDP driven by exports.

Additionally, new financial laws, such as the Public Financial Management Act and the Public Debt Management Act, are part of ongoing reforms aimed at increasing transparency and accountability in Sri Lanka’s fiscal policies. These reforms align with the International Monetary Fund (IMF) program to improve the country’s financial accountability and stability.

Dr. Gunawardena emphasized that these legislative changes are crucial for Sri Lanka’s long-term success and are designed to remain effective even under future administrations. He further stressed that any political party seeking power must clarify its stance on these reforms.

Apparel industry calls for proper business visa issuance system

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September 11, Colombo (LNW): The Joint Apparel Association Forum (JAAF) yesterday called on the Government to urgently resolve ongoing challenges related to the issuance of short-term business visas, which have been halted since 2 August. 

The JAAF noted that all official foreign business visitors, including buyers, machinery suppliers, and technical service providers, have faced significant hurdles entering Sri Lanka due to the lack of a proper business visa issuance system.

It said while tourist visas are available on arrival, there is currently no facility to issue business visas through this channel. Foreigners arriving for short-term business visits are not eligible for tourist visas, leaving a critical gap in the country’s ability to accommodate overseas business visitors.

The JAAF points out that these visitors are essential to the nation’s economic recovery, particularly in sectors like apparel and manufacturing, where international engagement is vital for exports and business expansion.

Adding to the confusion, the immigration website remains outdated, offering no helpful guidance for business visitors seeking entry to Sri Lanka. This lack of clarity is creating further uncertainty, impacting the flow of international business. 

Additionally, while there have been discussions around visa-free entry for 35 countries, the implementation of this policy has been delayed, further complicating the situation. 

“Sri Lankan enterprises are at a critical juncture in their ongoing recovery efforts. At such a moment, it is incumbent on the Government to take all possible measures to streamline the flow of not just goods, but also personnel. 

Business travellers often have specific requirements, including the need to carry samples, documents, and other material while travelling. 

For the benefit of Sri Lanka’s business and export community, swift action is needed to implement a solution that facilitates international business travel and restores confidence in Sri Lanka as a business-friendly destination,” JAAF Secretary General Yohan Lawrence said. 

The JAAF is urging the Government to authorise Sri Lankan Embassies overseas to issue short-term, single-entry business visas as an interim solution. This would ensure that genuine business visitors can legally travel to Sri Lanka on the appropriate visa, preventing further disruption to trade and industry.

Recent discussions with the Sri Lanka Tourism Development Authority (SLTDA) and the Sri Lanka Tourism Promotion Bureau (SLTPB) suggest that efforts are being made to resolve the issue.

 However, no timeline has been provided, and businesses continue to experience significant delays and uncertainty

Sri Lanka Affirms Commitment to Human Rights amid Applause from Gulf Nations

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September 11, Colombo (LNW): Sri Lanka has reaffirmed its dedication to constructive engagement with the United Nations Human Rights Council (UNHRC) and various international human rights mechanisms. Himalee Arunatilaka, Sri Lanka’s Permanent Representative to the UN in Geneva, voiced strong opposition to Human Rights Council Resolution 51/1, which authorized an external evidence-gathering mechanism without Sri Lanka’s consent.

Arunatilaka highlighted the country’s ongoing economic recovery following its most severe economic crisis, pointing out significant developments such as a 5.3% economic growth in the first quarter of 2024, a strengthened currency, and a sharp drop in inflation from over 70% in September 2022 to just 1.7% by June 2024. These advancements, she noted, have brought tangible benefits to the citizens of Sri Lanka.

While acknowledging the short-term negative impacts of budgetary cuts on vulnerable populations, Arunatilaka stressed that economic stability is key to ensuring the enjoyment of economic and social rights. Welfare programs like the “Aswesuma” cash transfer initiative and the national school nutrition program are aimed at cushioning these effects.

The Gulf Cooperation Council (GCC) nations praised Sri Lanka’s ongoing engagement with international human rights mechanisms. 

During the 57th session of the UNHRC, Dr. Hind bint Abdulrahman Al Muftah, Qatar’s Permanent Representative to the United Nations Office in Geneva, delivered a statement on behalf of the GCC. 

The Gulf nations expressed appreciation for Sri Lanka’s efforts to promote reconciliation, accountability for human rights violations, and economic recovery.

The GCC countries welcomed Sri Lanka’s positive interaction with human rights bodies and its establishment of the Joint Ministerial Permanent Committee on Human Rights, responsible for implementing international recommendations. 

They also commended the country’s efforts to provide social support to poor families and bolster food security.

The GCC urged Sri Lanka to continue its progress with legislative reforms and to foster national reconciliation through effective dialogue. They also called for continued support through technical cooperation, capacity building, and constructive dialogue to enhance reconciliation and economic prosperity.

Transitioning from a debt-driven economic crisis toward stabilization and inclusive growth involves budgetary restrictions, which cause unfortunate short-term adverse impacts on various segments of society, particularly the vulnerable, Himalee Arunatilaka said. . 

This is an unavoidable consequence of the financial crisis and the stringent measures required for economic recovery—a reality not unique to Sri Lanka. Strengthening the economy is vital to the enjoyment of economic and social rights as well as the right to development.

Welfare measures, such as the *Aswesuma* cash transfer program, which will support nearly two million people in 2024, the national school nutrition program, which covers 1.6 million students, and the *Urumaya* land ownership scheme, which aims to grant freehold titles to all communities across 25 districts,mitigate the effects of fiscal austerity on vulnerable groups.

In parallel with our economic recovery, the Government continues to take steps to heal past wounds and to address the residual issues affecting civilians from all communities arising from decades of conflict. 

To promote national unity and reconciliation among our diverse communities, domestic initiatives such as the Office on Missing Persons (OMP), the Office for National Unity and Reconciliation (ONUR), the Office for Overseas Sri Lankans, and the Interim Secretariat for the Truth and Reconciliation Mechanism (ISTRM) have been established.