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Department of Posts to Complete Distribution of Official Polling Cards by Tomorrow

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September 13, Colombo (LNW):The Department of Posts has announced that the delivery of official polling cards to households will be completed by tomorrow. Senior Deputy Postmaster General Rajitha Ranasinghe reported that 80 percent of the polling cards have already been distributed.

Ranasinghe assured that individuals who have not yet received their polling cards can verify their identity and collect them from the nearest post office between the 18th and 21st of this month.

Sri Lanka Original Narrative Summary: 13/09

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  1. President Ranil Wickremesinghe has slammed the sudden promises from presidential candidates Sajith Premadasa and Anura Kumara Dissanayake about reducing fertilizer prices and cutting farmers’ loans, questioning as to where they were when farmers were struggling without access to fertilizers. The President highlighted that his efforts, including discussions with world leaders to secure fertilizer subsidies, were instrumental in getting farmers back to their fields and boosting rice production in the country.
  2. Sri Lanka’s opposition leader contesting the presidential election next week said Thursday that if he comes to power he will renegotiate with the International Monetary Fund the 2022 economic reforms package to ensure that the rich pay more taxes and the poor see their conditions improve.
  3. The Presidential Candidate of the National People’s Power (NPP), Anura Kumara Dissanayake says that steps will be taken under his government to expand the country’s economy. He further added that the country’s economy is currently constrained and lacking in growth.
  4. The presidential candidate of the Sri Lanka Podujana Peramuna (SLPP), Namal Rajapaksa says that he will work to ensure that Sri Lanka is transformed into a developed nation in Asia within the next 10 years. He further emphasized his support for the local farmers by ensuring fair and stable prices for their produce such as tea leaves, pepper, and milk.
  5. The Postal Department says that around 77% of official polling cards for the 2024 presidential election have already been distributed thus far. Deputy Postmaster General Rajitha Ranasinghe says that the distribution of nearly 13.2 million official polling cards has already been completed. He further said that the polling cards will also be distributed to the voters on 13th and on 14th.
  6. The Inland Revenue Department (IRD) has announced that the total tax revenue collected for the period from January to August 2024 amounted to Rs. 1,229,245 million. Compared to the tax revenue collection of Rs. 956,418 million during the same period in 2023, revenue collection has increased by 28.5% in 2024, the department said in a press release.
  7. Sri Lanka has recorded nearly 1.4 million tourist arrivals during the period elapsed this year. The Sri Lanka Tourism Development Authority (SLTDA) stated that the total number of tourist arrivals from January 01 and September 08, stands at approximately 1,395,773. A higher number of tourists had visited the island in the month of February with that figure recorded as 218,350.
  8. Parliament Speaker Mahinda Yapa Abeywardena Wednesday signed a bill to raise the monthly minimum wage by 12.5 per cent, days ahead of the island nation’s presidential elections. The Speaker endorsed the certificate on the bill titled ‘National Minimum Wage of Workers (Amendment) Bill’ in accordance with article 79 of the Constitution, the Parliament’s Media office said in a statement.
  9. Presidential candidate and former Sports Minister Roshan Ranasinghe has pledged to slash fuel prices by 50% if elected in the upcoming Sri Lankan Presidential Election. He also promised to reduce the VAT rate to 10%, citing the need to provide relief to the public amidst rising living costs.
  10. Warrant Officer II Samitha Dulan, who recently set a new world record and won a silver medal in the F44 javelin throw event at the Paris 2024 Paralympic Games, was honoured by the Sri Lanka Army Military Police, at the Sri Lanka Army Military Police Regimental Centre in Polhengoda.

Sajith Premadasa Vows to Protect Public Institutions from Privatization Under SJB Government

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September 13, Colombo (LNW): Samagi Jana Sandhanaya (SJB) Presidential Candidate and Opposition Leader Sajith Premadasa assured that no government institutions will be sold under an SJB-led government. Addressing SJB trade union members from semi-government institutions in Colombo yesterday, Premadasa emphasized that a future government formed by the SJB will not privatize public institutions under any circumstances, unlike the current administration.

Premadasa promised that a government led by the SJB would establish a governance structure free from inefficiency, corruption, and waste, fostering an environment where professionals can work with pride. “Although the current government’s main objective is to privatize all profit-making public institutions, a coalition government led by us will ensure that these institutions remain under public control,” he stated. He cited examples such as Telecom and Litro Gas, which were at risk of privatization until opposition voices in Parliament, including those from the SJB, intervened.

Premadasa further declared that his government would prioritize the job security of all public and semi-public service employees. He laid out a plan to enhance the efficiency of government institutions through a five-pronged approach aimed at transforming loss-making entities into profitable ones, creating an efficient public service. He stressed that his administration would implement new plans that promote employee safety and pride.

Thousands of trade union members from allied parastatals participated in the event, alongside key SJB trade union leaders like Subash Karunaratne and political figures such as Dayasiri Jayasekara and Patali Champika Ranawaka.

State Minister Shehan Semasinghe Praises President Wickremesinghe’s Leadership in Economic Recovery

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September 13, Colombo (LNW): State Minister Shehan Semasinghe commended President Ranil Wickremesinghe’s leadership in transforming a country once on the brink of bankruptcy into one where economic development and public support are now attainable. Speaking at the “Ranil ta Puluwan” (Ranil Can) rally in Medawachchiya, Semasinghe highlighted the steady financial stabilization since 2022 and the government’s significant efforts to improve the lives of the people.

“We faced a crisis with 13-hour power outages, and shortages of fuel, food, and gas,” Semasinghe said. “No leader was willing to take on the country at that time, but President Ranil Wickremesinghe stepped up, addressing the basic needs of the people, such as providing fertilizers to farmers and ensuring a support scheme amounting to Rs. 25,000 per farmer for the upcoming season.”

He criticized NPP Presidential Candidate Anura Kumara Dissanayake, stating that he “lacks the capability to address the country’s needs” and engage with the International Monetary Fund (IMF). Semasinghe argued that the National People’s Power (NPP), led by the Janatha Vimukthi Peramuna (JVP), has focused on maintaining public distress rather than offering solutions, citing their responsibility for halting the Sampur power plant and delaying the Uma Oya project by seven years.

Semasinghe also criticized opposition leader Sajith Premadasa, stating that despite his claims of having a capable team, they were unwilling to take charge during the 2022 crisis. “Only President Ranil Wickremesinghe took effective control, ensuring resources for the people without shortages and working to stabilize the economy,” he said.

Looking ahead, Semasinghe expressed optimism for the next five years, anticipating that President Wickremesinghe will continue to provide relief and enhance the quality of life for citizens. He highlighted the President’s allocation of funds for the development of the North Central region and support for the Mahakanadara project, as well as the planned increase of Rs. 25,000 in state employees’ salaries from next year.

He concluded by emphasizing the importance of granting President Wickremesinghe a mandate for the next five years, reiterating that under his leadership, economic development and public support are now achievable.

AKD Pledges Equality Before the Law and Strengthened International Relations

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September 13, Colombo (LNW):National People’s Power (NPP) Presidential Candidate Anura Kumara Dissanayake has pledged to uphold the principle that “everyone is equal before the law” if elected to office. He emphasized that all individuals — including Ministers, Members of Parliament, businessmen, and citizens — should be treated equally before the law, with no one being above it.

Addressing a public meeting on Wednesday (11) at the Wevelpitiya grounds in Mahaiyawa, Kandy, Dissanayake also stressed the importance of simultaneously fortifying the country’s economy and its legal framework. He highlighted the need to establish robust international relations as a foundation for economic growth, mentioning ongoing discussions with leaders from several countries, including Japan, India, and China, to shape foreign policy under a potential future people’s government. Dissanayake reiterated that national progress requires strong diplomatic ties and cannot be achieved in isolation.

Showers or thundershowers will occur at times in Sabaragamuwa province

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September 13, Colombo (LNW): Showers or thundershowers will occur at times in Sabaragamuwa province and in Kandy and Nuwara-Eliya districts. Several spells of showers will occur in Western and North-western provinces and in Galle and Matara districts.

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 (40-45)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 minimize damages caused by temporary localized strong winds and lightning during thundershowers.

UN Members Praise Sri Lanka’s Economic Stabilization, Reconciliation in HR Dialogue

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By: Staff Writer

September 12, Colombo (LNW): Several United Nations member countries have praised Sri Lanka for its progress over the past two years, notably in stabilizing the economy, implementing social protection measures, and promoting national unity and reconciliation through domestic initiatives.

The Foreign Affairs Ministry reported that numerous nations expressed support for Sri Lanka during the Interactive Dialogue on the country at the 57th Session of the Human Rights Council (HRC), which began in Geneva on September 9, 2024.

Sri Lanka urged the UN Human Rights Council (UNHRC) to avoid politicisation and double standards and to focus on dire humanitarian situations that require urgent action to maintain its credibility.

Sri Lanka’s Permanent Representative, Ambassador Himalee Arunatilaka, responded to the Human Rights Office’s report, emphasizing the country’s success in stabilizing its economy through careful financial decision-making and governance. Ambassador Arunatilaka reiterated Sri Lanka’s commitment to working with the UN, the Universal Declaration on Human Rights, and related treaties.

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,she disclosed.

While economic growth for the prosperity of Sri Lankans remains a priority, Sri Lanka continues its efforts in fostering national unity and reconciliation. Domestic mechanisms, such as the Office on Missing Persons (OMP) and the Office for Reparations (OR), were highlighted alongside the Office for National Unity and Reconciliation (ONUR), and the Interim Secretariat for the Truth and Reconciliation Mechanism (ISTRM).

Additionally, social welfare programs like Aswesuma have been implemented to assist vulnerable populations. However, Sri Lanka criticized the UN’s report for exceeding its mandate by delving into macroeconomic issues outside its jurisdiction.

The country also rejected UN Resolution 51/1 and the external mechanisms established by the OHCHR, describing them as unwarranted and counterproductive.

During the dialogue, 55 countries participated, with the majority recognizing Sri Lanka’s economic recovery efforts, democratic stabilization, social protections, and the continued engagement with the Human Rights Council. Many also questioned the legitimacy of the “Sri Lanka Accountability Project,” calling it unjustified and inconsistent with the UN Charter.

Sri Lanka’s delegation at the session included representatives from its Permanent Mission to the United Nations in Geneva and the Ministry of Foreign Affairs.

Sri Lanka repays US$450 million to India for aid given during economic crisis

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By: Staff Writer

September 12, Colombo (LNW): India has strengthened its influence on neighboring Sri Lanka by extending financial assistance, providing a total of US$3.8 billion in 2022 to help the country navigate its economic crisis.

As part of the recovery process, Sri Lanka is now required to repay the loans extended by the Reserve Bank of India (RBI).

Official records indicate that by the first half of 2024, Sri Lanka’s central bank had repaid US$450 million to the RBI, with the total amount owed standing at US$2,001.43 million by June 2024.

When these figures were first disclosed in the third quarter of 2023, Sri Lanka owed the RBI US$2,601.43 million, signifying that at least US$600 million has been repaid in the interim. India’s Reserve Bank had offered Sri Lanka a currency swap agreement and permitted arrears to accrue under the Asian Clearing Union (ACU) arrangement.

According to an International Monetary Fund (IMF) report, Sri Lanka’s outstanding arrears to the RBI under the ACU agreement, along with penalty interest, have been consolidated into a US$2.2 billion swap.

This swap was combined with an additional US$400 million loan provided by the RBI under the South Asian Association for Regional Cooperation (SAARC) framework. Sri Lanka’s total liability of US$2.6 billion is set to be repaid between 2023 and 2026.

In response to these developments, the IMF program has adjusted a ceiling on Treasury guarantees to accommodate a Treasury guarantee for the swap. Critics argue that central bank borrowings through swaps enable the suppression of interest rates, delaying necessary corrections

They claim such actions exacerbate external imbalances and essentially refinance private sector debt with newly printed money by neutralizing the effects of foreign exchange interventions through liquidity injections. This mechanism is seen as contributing to further monetary instability.

Swaps, as a tool to delay rate hikes and inject liquidity into the economy, were first introduced by the Federal Reserve in the 1960s. T

his practice is believed to have played a role in the collapse of the Bretton Woods system between 1971 and 1973. However, since September 2022, Sri Lanka’s central bank has largely maintained a deflationary policy, avoiding inflationary measures such as excessive open market operations.

Despite these efforts, occasional pressure has been placed on the Sri Lankan currency due to the accumulation of liquidity from unsterilized dollar purchases, which has driven down interest rates and, in certain instances, prevented sufficient intervention to stabilize the local currency.

Financial Stability Fund to strengthen Sri Lanka bank resolution framework

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By: Staff Writer

September 12, Colombo (LNW): The government is set to establish a Financial Stability Fund aimed at boosting under the financial crisis management program led by the Central Bank of Sri Lanka (CBSL).

To kick start the Financial Stability Fund, an initial nominal amount of Rs. 1 billion will be allocated by the Finance, Economic Stabilisation, and National Policies Ministry, finance ministry sources revealed.  

“The fund will be gradually built up through annual budgetary allocations, adhering to financial limitations,” Cabinet Spokesman and Minister Bandula Gunawardena said at the weekly post-Cabinet meeting media briefing yesterday.

Cabinet of Ministers on Monday approved the establishment of this Financial Stability Fund tostrenthen the country’s bank resolution framework.

The Financial Stability Fund, is a key measure under Section 15 of the Banking (Special Provisions) Act No. 17 of 2023, is designed to ensure the smooth resolution of financial institutions in crisis, safeguarding financial stability in the country.

Under Section 15(2) of the Act, the Financial Stability Fund will be managed independently, separate from the other assets held and regulated by the CBSL.

The urgency of establishing the Financial Stability Fund stems from its inclusion as a priority policy procedure in the second subprogram of the financial sector stability and reform program.

This initiative is also supported by a US$ 200 million loan from the Asian Development Bank (ADB) to implement effective resolution procedures, backed by comprehensive guidelines.

Gunawardena said the Financial Stability Fund is expected to play a crucial role in enhancing Sri Lanka’s financial crisis management framework, ensuring the stability of the banking sector.

The proposal was presented by President Ranil Wickremesinghe in his capacity as Minister of Finance, Economic Stabilisation, and National Policies.

By July 31, 2024, indicators tied to the second subprogramme of the financial sector’s stability and reform programme will guide the implementation of the fund.

 The Ministry of Finance will provide comprehensive guidelines for the fund’s operation, using the initial allocation to ensure an effective resolution framework.

The program adopts a programmatic policy-based loan (PBL) modality with two subprograms of $200 million each to properly sequence reforms and ensure the needed flexibility while implementing multi-year policy reforms in a crisis period.

Subprogram 1 prioritizes immediate reforms to enhance the crisis management regulatory framework and stabilizing the financial sector while subprogram 2 prioritizes follow-on reforms to build a resilient and inclusive financial system.

It will be supported by an attached transaction technical assistance (TA) for subprogram 2 and post-program partnership framework (PPPF) activities. 

A programmatic approach that combines policy-based loans, TA, and knowledge support was selected as it allows complex and challenging reforms to be addressed comprehensively.

Colombo Port City to become a regional financial Hub with new offshore banking laws

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By: Staff Writer

September 12, Colombo (LNW): Port City Colombo is set to transform into a leading regional financial center, driven by the recent enactment of Offshore Banking Regulations in parliament. This development is expected to attract significant Foreign Direct Investments (FDI) into the city with effective management and investor confidence.

Currently, discussions are underway with seven local banks and three international banking corporations to establish offshore banking branches in the Colombo Port City Special Economic Zone. Six prominent local banks, including Commercial Bank of Sri Lanka, Sampath, HNB, DFCC, NDB, and NTB, have already been authorized by the Colombo Port City Economic Commission (CPCEC) as official “Authorized Persons” (APs) to operate within this zone.

The operations of these offshore banking branches will be governed by regulations first gazetted on July 26, 2024. They will also be under the supervision of the Central Bank of Sri Lanka and the Financial Intelligence Unit, enhancing investor trust in the Port City as a regional investment hub.

These offshore banking regulations form the foundation of Port City Colombo’s financial ecosystem.

They offer a wide range of benefits to potential investors looking to establish their businesses, such as the ability to conduct transactions in designated foreign currencies with other offshore units or non-residents.

Banks can accept savings and time deposits from both Authorized Persons and non-residents, further enhancing the business environment in Port City.

Additionally, these regulations cover the extension of loans to non-residents, borrowing foreign currency, and conducting other approved financial transactions.

The offshore banking framework is expected to foster a thriving international banking ecosystem, paving the way for other financial products, including stock trading and fund management.

By enabling higher transactional efficiency and strengthening the exchange of securities, businesses can leverage their capital to expand.

 Companies focused on exporting services will also benefit from enhanced foreign currency transaction flexibility, helping retain more foreign currency within Sri Lanka.

The presence of international offshore banks will boost financial stability and create opportunities for large-scale investments. The increased flow of foreign currency within Port City will help establish a circular financial economy, further contributing to the city’s economic growth.

The offshore banking system will complement the existing incentives of the Colombo Port City Special Economic Zone, which includes tax exemptions for over 25 years, 100% capital and profit repatriation, and full foreign ownership.

These benefits reinforce Port City Colombo’s ambition to become a competitive offshore economy and a premier business destination in the region.