February 09, Colombo (LNW): The Ministry of Urban Development, Construction, and Housing has announced that water tariffs will be adjusted in response to the recent decrease in electricity prices, with the new rates due to come into effect at the end of February.

Ministerial Secretary Ranjith Ariyarathne confirmed that a proposal from the National Water Supply and Drainage Board (NWSDB) to lower water tariffs had been received.

This proposal, which was drawn up by the relevant committee, has now been forwarded to the Minister for approval.

Ariyarathne assured the public that once the revised rates are approved by the Cabinet of Ministers, they will be officially announced.

The NWSDB has indicated that the reduction could range from 10% to 30%, providing significant relief to consumers.

This move comes as part of a broader effort to align utility costs with recent drops in electricity prices.

The government hopes this will ease the financial burden on households and businesses alike, encouraging more sustainable consumption of both water and energy.

February 09, Colombo (LNW): Mainly fair weather will prevail over most parts of the island, the Department of Meteorology said in its daily weather forecast today (09).

Fairly strong winds of (30-40) kmph can be expected at times over Eastern slope of the central hills and Northern, North-central, Eastern, North-western and Uva provinces and in Hambantota district.

Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces and in Galle, Matara and Badulla districts during the morning.

Marine Weather:

The Sri Lankan government is set to restructure the Paddy Marketing Board (PMB) to provide better support to farmers and ensure stable rice prices amid prevailing market challenges.

Previously inactive and burdened with a Rs. 28 billion debt to state banks, the PMB will now play a crucial role in directly purchasing paddy from farmers at guaranteed prices, eliminating inefficiencies and market manipulation.

President Anura Kumara Dissanayake has directed officials to strengthen the PMB by upgrading paddy storage facilities and involving small-scale millers in rice production.

Additionally, the government aims to cultivate 1.3 million hectares of land during the Yala and Maha seasons to boost annual rice production.

These steps are designed to curb excessive profits made by large-scale millers, ensuring fair prices for both farmers and consumers.

Despite these measures, inefficiencies within the Food Department, cooperative societies, and even the PMB itself continue to hinder progress.

To counter this, the government plans to purchase between 300,000 and 400,000 metric tonnes of paddy during the 2024–25 Maha season for processing and distribution through cooperative networks such as Sathosa.

This strategy is intended to challenge the dominance of large-scale rice millers, who have been accused of artificially inflating prices.

While Sri Lanka’s daily rice consumption stands at 6,500 metric tonnes, the PMB’s recent intervention only resulted in the purchase of 119 metric tonnes of Keeri Samba rice last season. Expanding the storage capacity of PMB warehouses to 400,000 metric tonnes through renovations could significantly improve stock management and price stabilization efforts.

Agriculture Ministry Secretary M.P.N.M. Wickramasinghe emphasized that market manipulation, rather than actual supply shortages, is the primary cause of rice scarcity. Even with price controls, farmers struggle to sell their paddy, leading to market imbalances.

 To address immediate shortages, the government will import 70,000 metric tonnes of Nadu rice through state-run agencies like Sathosa and the State Trading Corporation (STC). These imports, priced at Rs. 220 per kilogram or lower, will commence on December 15, according to Trade Minister Wasantha Samarasinghe.

Although Sri Lanka produces 3.53 million metric tonnes of rice annually, unaccounted surpluses and industrial redirection, such as the use of rice in arrack production, contribute to supply issues. The country’s annual rice consumption is estimated at 2.4 million metric tonnes, with a monthly production of 200,000 metric tonnes.

The cost of rice production stands at Rs. 25 per kilogram, while retail prices have surged to Rs. 220 per kilogram. Government intervention is expected to reduce prices to a more manageable range of Rs. 150–160 per kilogram.

The revival of the PMB is seen as critical for small and medium-scale millers, many of whom have struggled with debt and closures. According to their association’s president, P.K. Semasinghe, nearly 10,000 mills have shut down over the past decade, leaving only 700 in operation.

He stressed that if the PMB purchases paddy and supplies it to small millers, rice prices could be maintained below Rs. 220 per kilogram. This initiative could benefit both farmers and consumers by stabilizing the market and preventing price manipulation by large-scale millers.

 The European Union (EU), through the UNIDO-led BESPA-FOOD initiative, is backing Sri Lanka’s coconut industry in implementing a 10-year strategic roadmap to transform it into a $2 billion export powerhouse.

This ambitious plan is being developed in collaboration with key industry stakeholders, including the Coconut Development Authority (CDA), the Coconut Research Institute (CRI), the Coconut Cultivation Board (CCB), and the newly formed Ceylon Chamber of Coconut Industries (CCCI).

To kickstart the initiative, the Ministry of Plantation and Community Infrastructure recently organized a workshop that brought together public and private sector representatives.

 A select committee, chaired by the Ministry Secretary, will convene in mid-February to assess the workshop’s findings and formulate the next steps for executing the roadmap.

Ministry Secretary Prabath Chandrakeerthi emphasized that Sri Lanka’s coconut industry stands at a pivotal juncture. While production and supply challenges persist, the roadmap will offer a structured strategy to enhance global competitiveness and long-term sustainability.

The BESPA-FOOD project, funded by the EU, is set to provide technical expertise and solutions to address critical issues such as low productivity, value addition, and quality improvements.

Dr. Johann Hesse, Head of Cooperation at the Delegation of the European Union to Sri Lanka, reaffirmed the EU’s commitment to fostering sustainable economic growth through initiatives like BESPA-FOOD. 

He highlighted that clear, actionable steps are necessary to enhance productivity, improve quality standards, and empower rural communities involved in coconut farming.

The Institute of Policy Studies (IPS) is leading the formulation of the strategic roadmap, incorporating insights from industry stakeholders to address market challenges and build resilience. 

The plan will focus on boosting domestic production, optimizing supply chains, and increasing value addition to meet international demand.

Formation of the Ceylon Chamber of Coconut Industries

A significant milestone for the sector was the recent establishment of the Ceylon Chamber of Coconut Industries (CCCI). 

Officially launched on August 29, 2024, at the National Chamber of Commerce of Sri Lanka, the CCCI aims to unite key industry players to drive sustainable growth, foster innovation, and enhance global market access for Sri Lankan coconut products.

 Sri Lanka’s coconut industry currently generates over $800 million in annual export revenue, with aspirations to reach $1.5 billion. The CCCI, the first organization of its kind in the country, seeks to elevate product quality and global competitiveness through collaboration across industry sectors.

This initiative has been facilitated by UNIDO under the EU-funded BESPA-FOOD project, along with Ernst & Young.

Ranil De Saram, Senior Partner at Ernst & Young and the first General Secretary of CCCI, described the chamber as a platform to unify the industry, drive innovation, and advocate for policies supporting sustainable growth.

Meanwhile, Dr. Jairo Villamil Diaz from UNIDO stressed the importance of the chamber in modernizing the sector and enhancing the livelihoods of those involved in the coconut value chain.

The CCCI has received backing from key industry associations, including the Coconut Growers Association, various manufacturers’ associations, and state agencies such as the Ministry of Agriculture and Plantation Industries.

These partnerships aim to drive policy advocacy, promote sustainable farming, and expand market opportunities.Looking forward, the CCCI envisions a thriving coconut industry that ensures national food security, supports rural livelihoods, and strengthens Sri Lanka’s position in the global coconut market. 

By focusing on sustainability, value addition, and technology adoption, the chamber seeks to lead Sri Lanka’s coconut industry into a prosperous future

The Department of Motor Traffic (DMT) is set to introduce regulations for vehicle repair garages in an effort to enhance road safety and efficiency amid rising accident rates.

Addressing a press conference on the 6th, Chief Examiner of Motor Vehicles, Sujeewa Tennakoon, emphasized the need to scrutinize both the expertise of garage employees and the quality of repair equipment used.

This move comes as a response to concerns that negligence by vehicle owners contributes to road accidents.Tennakoon also advocated for digitization as a means of improving traffic management and safety.

He highlighted the importance of digital vehicle monitoring systems and the transition to digital driving licenses, which were approved by the Cabinet in 2024. He pointed out that the cost of printing physical licenses is substantial, making digital alternatives a more efficient solution.

In addition to vehicle maintenance issues, the police have identified pedestrian safety as a major concern. Deputy Inspector General of Police, Indika Hapugoda, noted that obstructions on pavements often force pedestrians to walk on roads, increasing the risk of accidents.

Unauthorized roadside businesses and illegally parked vehicles contribute significantly to this issue. Despite existing regulations prohibiting parking on pavements, enforcement remains a challenge. The police reiterated that illegally parked vehicles would be towed to ensure pedestrian safety.

Traffic congestion around international schools was another issue highlighted by Hapugoda. He attributed the problem to the limited use of public transport, leading to a high concentration of private vehicles during school hours. To mitigate congestion, he suggested implementing quality shuttle services and enhancing public transport options.

Meanwhile, the Sri Lanka Automobile Services Providers Association raised concerns about the growing preference for replacing car parts rather than repairing them. Association President,

Amal Piyatilake, noted that many dealerships now opt to replace damaged components instead of refurbishing them, negatively impacting local service workers who specialize in vehicle repairs.

He explained that in developed countries, it is common practice to sell damaged vehicles rather than repair them, as it is often more cost-effective. However, in Sri Lanka, where many depend on repair-based jobs, preserving this craft remains essential.

Piyatilake also argued that excessive imports of replacement parts contribute to currency depreciation. However, economists suggest that broader monetary policy reforms, rather than restricting imports, are necessary to stabilize the rupee.

The trend of using second-hand parts from Japan instead of new components has been growing in Sri Lanka over the past two decades. While this practice saves time, it reduces the need for extensive mechanical repairs.

During the import control era of the 1970s, Sri Lankan mechanics often had to fabricate spare parts using lathe machines, causing prolonged vehicle downtimes. A car owner who recently replaced a damaged bumper expressed no concerns about part replacement, as his insurance covered the cost and the vehicle looked as good as new.

However, independent auto repairers are feeling the impact of these changes, as they are losing business to authorized dealerships. Industry representatives claim that although 80 to 88 percent of accident-related repairs are handled by independent garages, dealerships claim 60 percent of total insurance payouts.

They are now calling for regulations to ensure fair competition and sustain the livelihoods of local repair workers.