October 16, Colombo (LNW): The government has taken steps to re-establish the Food Policy Committee, initially formed in October 2022, to ensure the steady supply of essential items to the market and mitigate the rising cost of living. This decision, approved by the Cabinet, was presented by President Anura Kumara Dissanayake.

The committee is tasked with overseeing the coordination of efforts across multiple sectors to prevent shortages of essential food items and control price hikes. It will include key officials such as the Secretary to the President, Secretary to the Prime Minister, and Secretaries from various ministries, including Finance, Agriculture, Health, Trade, and Energy, among others.

The re-established committee aims to take a collaborative approach to decision-making to ensure that market supply chains remain stable and essential goods remain accessible to the public.

October 16, Colombo (LNW): Dr. Chithran Hathurusinghe, Consultant STD Specialist at Kurunegala Teaching Hospital, revealed that 1,327 AIDS patients were identified in 2023 after testing donated blood samples. This announcement was made during the North Western Province AIDS Prevention Programme, held in conjunction with National AIDS Prevention Day.

Dr. Hathurusinghe expressed concern over the 27% increase in AIDS cases this year, with many patients falling between the ages of 15 and 29. Since 2003, the country has seen a steady rise in HIV/AIDS cases. He emphasized that the spread of HIV can be curtailed if early detection is achieved, with 95% of patients potentially able to reduce the virus to undetectable levels through proper treatment. However, current efforts have only identified 82% of cases.

In addition to AIDS, other sexually transmitted infections, such as syphilis, have also been detected during blood donation screenings. Dr. Hathurusinghe stressed the importance of political support in effectively combating these diseases.

National STD and AIDS Prevention Programme Director, Dr. Vindya Kumarapeli, also addressed the event, alongside healthcare professionals, law enforcement officials, and representatives from voluntary organizations dedicated to AIDS prevention.

October 16, Colombo (LNW): Senior Advisor to the President on Economic and Financial Affairs, Prof. Anil Jayantha, has refuted media reports suggesting that the government has engaged in extraordinary borrowing following the appointment of President Anura Kumara Dissanayake.

Addressing inquiries about allegations that local and foreign borrowings have surged since the new president took office, Prof. Jayantha clarified that the government is only conducting regular fundraising activities, such as selling treasury bills and bonds, to meet essential expenses and repay maturing debts.

“This is a standard process carried out by any government to ensure the smooth running of services and day-to-day operations,” he said. “There has been no special or unusual borrowing apart from the normal financial activities.”

Prof. Jayantha also pointed out that these fundraising operations, such as selling treasury instruments and collecting US dollars, have been in place prior to the current administration, and any claims of increased borrowings need to be carefully investigated.

He stressed that the Central Bank of Sri Lanka is responsible for maintaining the stability of the financial market, and its recent actions are part of the regular efforts to sustain economic balance. The professor reiterated that there is no basis for the claims of unusual financial activities and urged further scrutiny into the actual amounts borrowed from both local and foreign markets.

October 16, Colombo (LNW): In response to the increasing fuel prices and economic challenges faced by Sri Lanka’s fishing industry, the government has announced a fuel subsidy aimed at providing relief to fishermen. The decision, made during the Cabinet meeting on Monday evening at the Presidential Secretariat, will support fishing vessel owners by subsidizing fuel costs for both diesel and kerosene.

Under the scheme, vessel owners will receive an allowance of Rs. 25 per liter of diesel, capped at a maximum of Rs. 300,000 per month. For those using kerosene, an allowance of Rs. 25 per liter will be provided, limited to 15 liters per day for up to 25 working days per month. The subsidy ensures that fishermen receive a 7.5 percent concession on the market value for diesel and a 12.5 percent concession on kerosene.

The programme, set to begin on October 1, 2024, will be in effect for six months and is subject to price revisions based on the fuel price formula. The subsidies aim to alleviate the financial strain on small and medium-scale fishermen who have been severely impacted by fluctuating fuel costs, ensuring the continuity of the country’s vital fishing operations.

Approval of the subsidy is contingent on the Election Commission’s consent, and the Cabinet of Ministers has backed the proposal presented by President Anura Dissanayake, who also serves as the Minister of Agriculture, Land, Livestock, Irrigation, Fisheries, and Water Resources. This measure comes after a prior decision to address the adverse effects of fuel price hikes on the fishing industry, which had yet to be implemented.

October 16, Colombo (LNW): Sri Lanka is progressing towards significant economic reforms, despite facing numerous challenges, as part of the IMF-supported Extended Fund Facility program.

 U.S. Ambassador to Sri Lanka, Julie J. Chung, emphasized the importance of economic and governmental reforms for good governance during her address at the USA Business Council Annual General Meeting. 

She highlighted that Sri Lanka’s journey towards stability requires openness, transparency, and accountability from its leaders.

The United States has been actively supporting Sri Lanka’s efforts by collaborating with the Ministry of Finance to provide technical assistance in developing the National Trade Single Window. 

This initiative aims to streamline trade processes, enhancing efficiency and transparency. Additionally, U.S. efforts include support for the AccelerateHER program, which empowers women entrepreneurs, and the SPARK competitions that nurture the next generation of innovative entrepreneurs. 

These initiatives underline the U.S.’s commitment to fostering a thriving business environment in Sri Lanka.

In the area of trade, the U.S. has also played a crucial role in boosting cybersecurity resilience at Sri Lankan ports and supporting sustainable port planning. 

One of the significant contributions has been the investment of half a billion dollars in Colombo’s West Container Terminal port by the U.S. Development Finance Corporation, aimed at stimulating innovation through private sector funding rather than increasing government debt. This partnership signifies a robust commitment to helping Sri Lanka’s business community thrive.

Ambassador Chung highlighted the recent electoral changes in Sri Lanka, noting that the people’s call for change through the ballot box reflects their desire for a better future. 

She stressed that the responsibility for realizing this vision rests not only with the government but also with business leaders, academia, civil society, and the press. These groups are instrumental in ensuring that anti-corruption measures and governance practices are effectively implemented for sustainable economic development.

Business leaders were called upon to take an active role in shaping the country’s future by promoting good governance and transparency in trade and investment processes. Ambassador Chung emphasized that a predictable and stable governance system is essential for attracting foreign investment and driving economic growth. She also urged Sri Lankan businesses to embrace diversity and inclusion, particularly by empowering women and the next generation, which she believes will unlock the country’s full economic potential.The U.S. and Sri Lanka share a long-standing relationship based on mutual trust and shared values. For this partnership to flourish, the ambassador noted, Sri Lanka must continue to adhere to the IMF’s economic reforms, combat corruption, and create a stable business environment. By doing so, Sri Lanka can attract more investments, create jobs, and drive economic growth

October 16, Colombo (LNW): Sri Lanka is uniquely positioned as India’s closest maritime neighbor, presenting a significant opportunity to align with India’s dynamic growth and leverage this partnership for its own economic resurgence.

This perspective was highlighted by the Indian High Commissioner to Sri Lanka, Santosh Jha, during his address at the 45th National Conference of the Chartered Accountants of Sri Lanka. 

He emphasized the importance of a strong partnership between the two nations, underlining their shared history, geography, and a future that naturally binds them together.

High Commissioner Jha emphasized the evolving global dynamics, noting the shift from G7 to G20 as the principal forum for global discussions.

 He pointed out that traditional institutions like the United Nations, World Trade Organization (WTO), and World Health Organization (WHO) are becoming less effective in addressing current global challenges, indicating the need for new strategies and partnerships.

One of the key proposals from High Commissioner Jha was the creation of a connectivity corridor between India and Sri Lanka, aimed at enhancing access to global markets and fostering economic opportunities.

 He stressed India’s commitment to a people-centric foreign policy toward Sri Lanka, focusing on direct benefits to its people through investments, grants, and development projects rather than creating debt burdens.

 Jha noted that India’s development projects are currently active in all 25 districts of Sri Lanka, with a significant number already completed and more underway.

Highlighting the strategic importance of Sri Lanka’s economic revival, Jha reiterated India’s support for Sri Lanka’s debt restructuring and efforts to secure International Monetary Fund (IMF) assistance. 

He emphasized the necessity of both countries transcending past hesitations to work collaboratively towards shared goals for regional stability and prosperity.

Jha urged a transformation in the mindset of both nations, advocating for a proactive approach to embrace mutual goals. 

He remarked, “We are intertwined by our geography, history, and shared future, and attempts to create divisions would only harm our common aspirations.” 

His message stressed the importance of a united front to navigate the rapidly evolving geopolitical landscape, particularly in the Indo-Pacific region, which he described as the epicenter of global growth.

Looking ahead, Jha highlighted India’s ambitious economic targets, referencing predictions that India could become the world’s second-largest economy by 2050.

 He noted the goal set by India’s Prime Minister for the nation to achieve developed status by 2047, in line with its 100th year of independence.

 He concluded by underscoring India’s rising influence in the global economic arena, asserting its crucial role in shaping the future of the region.

This renewed focus on cooperation between Sri Lanka and India suggests a path forward that leverages shared strengths, with both nations standing to benefit from deeper economic ties and a collective vision for growth and development.