September 05, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts, the Department of Meteorology said in its daily weather forecast today (05).

Showers or thundershowers may occur at a few places in Uva province and in Batticaloa and Ampara 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 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.

The sun is going to be directly over the latitudes of Sri Lanka during 28^th of August to 06^th of September due to its apparent southward relative motion. The nearest places of Sri Lanka over which the sun is overhead today (05) are Ahungalla, Neluwa and Yala about 12.08 noon.

Marine Weather:

1. President Ranil Wickremesinghe believes NPP Presidential candidate Anura Kumara Dissanayake will surpass SJB candidate Sajith Premadasa in the upcoming Presidential election and become the main opposition leader: criticises Premadasa’s performance as opposition leader and suggested that the SJB will lose its position as the main opposition to Dissanayake’s party.
   
2. Opposition Leader Sajith Premadasa pledges to increase the contribution of Sri Lanka’s Northern and Eastern provinces to national development under a future SJB government: proposes a development system based on statistics and called for a donor conference to fund regional growth: Promises include subsidised fuel, affordable fertiliser, and improved transportation, alongside boosting tourism to accelerate development in these areas.
   
3. NPP leader and Presidential Candidate Anura Kumara Dissanayake assures his party will adhere to the Constitution if elected on September 21, governing for one and a half months until Parliament is dissolved: dispels fears of constitutional violations, stating options include a caretaker government or a small cabinet: also pledges to appoint new leadership for key government bodies by September 23.
   
4. Leader of the House Susil Premajayantha announces 750,000 passports will be brought down within a month as an interim measure until the full implementation of E-passports: The delay in issuing E-passports was attributed to technical issues and poor planning by the Immigration Department: Opposition leader Sajith Premadasa criticised the crisis, blaming the government’s decision-making and lack of contingency planning.
   
5. The Sri Lanka Foreign Employment Bureau claims approximately 1.6 million Sri Lankans residing abroad will be unable to vote in the 2024 Presidential Election: The revelation comes after a threatening comment allegedly made in public by MP Rajitha Senaratne, warning those living overseas to not come to Sri Lanka to vote for the National Peoples Power: The leftist party has lodged a complaint to the Election Commission against the MP’s comments, claiming that such threatening comments violate election laws and hinder a free and fair electoral process.
   
6. Laugfs Gas PLC announces it will not revise domestic LP gas prices for September: The prices remain at Rs. 3,680 for a 12.5kg cylinder and Rs. 1,477 for a 5kg cylinder: Similarly, Litro Gas also decided not to change its prices, maintaining Rs. 2,892 for a 12.5kg cylinder and Rs. 1,198 for a 5kg cylinder.
   
7. Two of the 35 dogs recently imported from the Netherlands by the Sri Lankan police have given birth to 13 puppies: The dogs, Denperds and Lia, belong to the Belgian Malinois, German Shepherd, and English Springer Spaniel breeds. The puppies and their mothers are healthy and currently housed at the Asgiriya Police Dog Headquarters in Kandy.
   
8. The Court of Appeal has postponed the decision on former Health Minister Keheliya Rambukwella’s bail application to 3 October: Rambukwella, currently in remand custody over the alleged import of substandard Immunoglobulin injections, filed a writ petition seeking bail, claiming that the Maligakanda Magistrate repeatedly denied his bail requests without reasonable grounds.
   
9. Two women, aged 38 and 58, were killed, and a three-year-old child was injured in a van-motorcycle collision near Katiyawa Junction on the Thalawa-Kekirawa road: The accident occurred when the van driver, allegedly a police sergeant, fell asleep at the wheel, veering into the motorcycle: The injured child is being treated at Anuradhapura Teaching Hospital.
   
10. The 9th Inter-Regiment Handball Tournament concluded at the Army Physical Training School in Panagoda, featuring 224 athletes from 13 regiments: The Sri Lanka Army General Service Corps won the women’s category, while the Sri Lanka Sinha Regiment secured the men’s title: Trophies were awarded by Major General Mihindu Perera, with notable players including Corporal M.M.N.S Adhikari and Private S.A.S.M Perera.

September 04, Colombo (LNW):The charter for the Upcountry Plantation Community in Sri Lanka is set to be implemented, as announced by Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardhana during the weekly Cabinet media briefing at the Government Information Department yesterday.

Minister Gunawardhana explained that the charter has been drafted as a foundational document to guide government efforts in fully integrating the Upcountry Plantation Community into the broader socioeconomic structure of the country. The charter aims to address the long-standing challenges faced by the plantation community and promote a more equitable society within Sri Lanka.

The proposal to implement the charter was presented by the Water Supply and Estate Infrastructure Development Minister and has received the necessary approvals to proceed with its objectives for the Upcountry Plantation Community.

September 04, Colombo (LNW): The Cabinet of Ministers has granted provisions to re-open nominations to protect the fundamental rights of voters who were previously deprived of their right to vote and be nominated for the upcoming Local Government elections, Cabinet Spokesman and Mass Media Minister, Dr. Bandula Gunawardhana announced. He was addressing the media at the Government Information Department yesterday.

Minister Gunawardhana highlighted that over 900,000 newly registered voters in the 2024 revised electoral list are at risk of losing their right to vote and be nominated in the forthcoming Local Government elections, which were initially scheduled for September 3, 2023, but have since been postponed. According to Article 4 of the Constitution, every citizen who turns 18 and is listed on the electoral register is eligible to vote; however, due to the delayed election, only those registered up to January 2023 can cast their votes.

Additionally, with the passing of the Local Government Elections (Amendment) Act No. 30 of 2023, a mandatory 25% youth representation is required in nominations submitted for Local Government elections. This requirement has been compromised due to the initial call for nominations in 2023, which did not account for the amended provisions.

To address these concerns, the Cabinet of Ministers approved a consolidated proposal submitted by the Prime Minister, in his capacity as the Minister of Public Administration, Home Affairs, Provincial Councils, and Local Government, along with the Minister of Justice, Prison Affairs, and Constitutional Reforms. The proposal aims to:

• Ensure that voters listed on the revised 2024 electoral register can vote in the upcoming Local Government elections.
• Protect the rights of over 900,000 youth voters newly registered in 2024 who might otherwise be excluded.
• Safeguard the rights of the youth community to receive their mandatory 25% representation quota as required by the Local Government Elections (Amendment) Act No. 30 of 2023.

The approved proposal includes calling back the nominations already submitted for the 2023 Local Government elections and instructing the Legal Draftsman to prepare a draft bill on local government elections (special provisions). This draft bill will grant the Elections Commission the necessary authority to call for new nominations based on the 2024 electoral register, in consultation with the relevant Commission.

September 04, Colombo (LNW): Sri Lanka is set to position itself as a regional leader in artificial intelligence (AI) with the recent approval of a national AI strategy by the Cabinet of Ministers. The strategy aims to enhance the country’s global competitiveness and economic resilience by 2030, with a focus on integrating AI across various sectors to drive innovation, efficiency, and growth.

The national AI strategy outlines a comprehensive roadmap for modernizing public services and boosting key economic sectors, including agriculture, manufacturing, energy, healthcare, education, and more. It emphasizes the need for increased investment in AI research and development (R&D), fostering innovation, and building the necessary infrastructure to support AI-driven initiatives.

Cabinet Spokesman and Minister Bandula Gunawardena highlighted the strategy’s goal of creating an empowered and digitized country, recognizing the transformative potential of AI in driving sustainable economic growth, reducing poverty, and ensuring equitable distribution of AI benefits across society.

Despite its progress in digital transformation, Sri Lanka has yet to make a significant impact on the global AI landscape. However, the government sees AI as a key enabler to boost efficiency in vital sectors such as agriculture, healthcare, and education, contributing to the nation’s economic transformation.

In agriculture, AI-powered drones and sensors could be used to monitor crops, optimize irrigation and fertilization, and improve yields, leading to more sustainable farming practices. In the manufacturing sector, AI could automate production lines, predict equipment failures, and optimize supply chain management, enhancing efficiency and global competitiveness.

The energy sector could benefit from AI algorithms that analyze energy usage patterns, optimize distribution, and enhance the efficiency of renewable energy sources such as solar and wind power. Similarly, AI-powered robots and drones could revolutionize the construction industry by streamlining processes and improving project outcomes.

In healthcare, AI is expected to improve diagnostics, enhance telemedicine services, and increase access to healthcare, particularly in remote areas. In education, AI-powered platforms can personalize learning experiences, improving student engagement and learning outcomes.

Sri Lanka’s national AI strategy also envisions leveraging AI in finance, retail, technology, tourism, real estate, telecommunications, mining, entertainment, food and beverage, aerospace, automotive, logistics, environmental services, defense, chemicals, media, pharmaceuticals, and professional services. By integrating AI across these diverse sectors, Sri Lanka aims to unlock new opportunities for economic growth, innovation, and prosperity.

As Sri Lanka continues to embrace AI, the country is poised to become a hub for technological advancements, driving a more sustainable, resilient, and inclusive future for its people and economy. The implementation of this strategy is expected to significantly boost Sri Lanka’s global standing, providing opportunities for technological advancements that benefit all levels of society

September 04, Colombo (LNW): The Sri Lanka Gem and Jewellery Association (SLGJA), the leading body for the country’s gem and jewellery sector, has urged the government to take decisive actions to elevate the industry to new heights. 

Established in 2002, the SLGJA aims to position Sri Lanka as the “Sapphire Capital” of the world, where 80% of globally mined sapphires are processed locally, and more than half of the world’s sapphire jewellery is manufactured in the country.

In its recent appeal, the SLGJA highlighted the potential for the gem and jewellery sector to become a multi-billion-dollar industry, driving inclusive economic growth and sustainability in Sri Lanka. 

To achieve this, the association emphasized the need to improve the ease of doing business to attract raw materials, investments, and international branding opportunities.

The SLGJA outlined four strategic priorities: supply development, manufacturing development, market development, and investment promotion. 

A key aspect of this strategy is ensuring the free flow of raw materials at competitive costs, enabling the growth of a vibrant, value-added industry. Sri Lanka’s rich history as a top producer of high-quality sapphires provides a strong foundation for this vision. 

The SLGJA also recommended conducting a gem deposit survey using digital geoscience technologies to identify and systematically mine accessible gem deposits.

To streamline the industry, the association proposed digitizing the gem mining license application process and implementing a one-stop-shop concept for approvals, reducing delays and minimizing corruption.

Additionally, the SLGJA called for the development of sustainable mining standards to ensure safety, environmental protection, and land restoration for agriculture after mining activities.

The SLGJA advocated for several tax reforms to support the industry, including duty-free importation of worked and unworked gemstones, precious metals, and machinery essential for gem and jewellery production. 

It also emphasized the importance of establishing a robust traceability system to prevent the diversion of imported materials into grey markets.

To enhance Sri Lanka’s reputation in gem cutting and jewellery manufacturing, the SLGJA suggested establishing a world-class training school and encouraging the adoption of advanced technologies like 3D printing and artificial intelligence. Collaborations with universities and the establishment of international gem testing laboratories in Sri Lanka were also recommended.

In terms of market development, the SLGJA highlighted the importance of negotiating tax-free access to China and India, two emerging markets, and establishing a VAT refund mechanism for non-residents. The registration of a Geographical Indication for Ceylon Sapphire with the World Trade Organization (WTO) was also suggested to secure premium value for Sri Lankan gemstones.

 Finally, the SLGJA called for an international marketing campaign to enhance the brand image of Ceylon Sapphire and increase global demand by developing an “Ethical Sri Lanka Sapphire Standard” to boost consumer confidence and appeal. These strategic reforms are seen as crucial steps towards unlocking the full potential of Sri Lanka’s gem and jewellery industry

September 04, Colombo (LNW): LTL Holdings Limited, a leading power sector conglomerate in Sri Lanka with over 40 years of experience, has announced its plans to launch the largest Initial Public Offering (IPO) in the history of the Colombo Stock Exchange (CSE). 

The company plans to offer 1,379,310,400 new ordinary voting shares at LKR 14.50 per share, aiming to raise LKR 16 billion, with the possibility of increasing to LKR 20 billion through a greenshoe option. This IPO, opening on September 10, 2024, will make up to 22.3% of LTL’s shares available to the public.

The funds raised from the IPO will primarily support two major projects. LKR 13.5 billion will be used to partially finance a 350 MW combined cycle power plant in Kerawalapitiya, which will be Sri Lanka’s second LNG-powered facility.

 Additionally, LKR 6 billion will be allocated to acquire a 50% equity stake in the 100 MW Siyambalanduwa Solar Power Project. These initiatives underscore LTL’s commitment to cleaner energy and mark a significant step in the company’s growth strategy.

LTL operates across various sectors, including power generation, engineering services, and manufacturing of power distribution equipment. 

The company has 894 MW of existing power generation capacity across Sri Lanka, Bangladesh, and Nepal, with plans to surpass 1,000 MW, making it the largest Independent Power Producer (IPP) listed on the CSE.

 LTL also holds a dominant position in transformer manufacturing and galvanizing, with a strong export presence in over 30 countries, particularly in South Asia and Africa.

LTL’s future plans include expanding its power generation projects, enhancing manufacturing facilities abroad, and exploring opportunities in LNG infrastructure. 

The company’s current shareholders include the Ceylon Electricity Board (CEB), West Coast Power (Pvt) Ltd, Teckpro Investment Limited, and Peradev Limited. LTL’s Board of Directors comprises experts from various fields, contributing to its robust governance.

Financially, LTL has demonstrated strong performance, with consolidated revenue of Rs. 59.8 billion and a profit after tax of Rs. 5.8 billion for the financial year ending March 31, 2024.

 Seventy percent of the company’s revenue is linked to foreign currency, highlighting its international reach. 

The company’s total assets and equity stood at Rs. 133.6 billion and Rs. 74.4 billion, respectively, as of March 2024. With a 5-year average profit after tax margin of 35% and a return on equity of 27%, LTL is well-positioned to benefit from emerging energy trends both in Sri Lanka and globally.

The IPO is managed by NDB Investment Bank Limited and CT CLSA Capital (Private) Limited, with F J & G de Saram serving as legal advisors, SSP Corporate Services (Private) Limited as registrars, and Hatton National Bank PLC and Sampath Bank PLC as the bankers for the issue.

September 04, Colombo (LNW): Sri Lanka’s Inland Revenue Department (IRD) has made significant strides in tax collection and compliance by the end of June 2024. 

The IRD collected 55% of defaulted taxes, amounting to Rs. 104 billion, from a total of Rs. 188 billion owed outside the appeals process as of 2023. Additionally, the IRD surpassed its target by collecting Rs. 902 billion in the first half of 2024, exceeding the goal of Rs. 826 billion.

The Ministry of Finance announced that while Rs. 1,066 billion in taxes were defaulted by the end of 2023, Rs. 878 billion of these are still in various stages of the appeals process. 

To expedite the collection of these taxes, judicial reforms are being implemented, focusing on making the appeals process more efficient. 

The Treasury emphasized that Sri Lanka’s democratic system ensures checks and balances, allowing citizens to appeal tax assessments they find unfair. 

The government acknowledges the necessity for a faster appeals process but rejects the idea of bypassing due process to collect taxes unilaterally.

In a broader effort to ensure tax fairness, the IRD launched the High Wealth Individuals Unit (HWIU) on March 7, 2024. 

This specialized unit within the Large Taxpayer Office is designed to enhance tax compliance among the country’s wealthiest individuals and associated entities, such as corporations, private trusts, and family members.

 The goal is to ensure that high wealth individuals (HWIs) contribute their fair share to the country’s revenue.

The HWIU’s scrutiny is not just limited to HWIs but extends to their related groups to ensure a comprehensive assessment of their tax obligations.

 HWIs are advised to review their tax filings meticulously, especially for complex and offshore investments, to avoid any compliance issues. Professional tax advice is recommended for navigating the complexities of tax legislation.

The IRD has identified higher-risk cases based on complex financial arrangements and offshore investments, which are more susceptible to tax evasion and avoidance. 

Despite public concerns about potential political influence, the IRD has assured that the HWIU operates impartially, without political interference, ensuring fairness and integrity in the tax system.

The establishment of the HWIU and the IRD’s focus on tax compliance among high wealth individuals are crucial steps towards creating a more equitable tax system in Sri Lanka. 

By promoting transparency and adherence to tax laws, these initiatives are expected to enhance government revenue for socio-economic development while building trust in the integrity of the tax system.