October 05, Colombo (LNW): The International Monetary Fund (IMF) announced that the dates for the third review of Sri Lanka’s Extended Fund Facility (EFF) programme will be disclosed in due course. According to Julie Kozack, Director of the IMF Communications Department, Sri Lanka’s performance under the EFF is strong, with reform efforts already showing positive outcomes, such as revived economic growth, reduced inflation, increased foreign reserves, and improved revenue mobilization.

Speaking at a press briefing on the 4th, Kozack responded to questions about the status of the IMF’s EFF programme under the newly elected President Anura Kumara Dissanayake. She emphasized that a high-level IMF delegation, led by Krishna Srinivasan, Director of the Asia Pacific Department, and Senior Mission Chief Dr. Peter Breuer, is currently in Sri Lanka for discussions with President Dissanayake and other officials on recent economic developments and reform objectives. The IMF will provide further details on these discussions once the delegation’s visit concludes.

Kozack stressed the importance of maintaining reform momentum under the new administration, noting that while progress has been made, vulnerabilities and uncertainties remain.

Additionally, significant progress in Sri Lanka’s debt restructuring was confirmed by the IMF. Kozack highlighted that Sri Lanka, along with international bondholder representatives, reached an agreement in principle on September 18, pending confirmation of comparability by the country’s Official Creditor Committee.

Sri Lanka Eyes BRICS Membership as Fashion Leaders Shine at Moscow BRICS+ Summit

In a pivotal move that could transform its global diplomatic ties, Sri Lanka has revealed plans to join the BRICS+ group of nations.

 Janitha Abeywickrema Liyanage, Sri Lanka’s ambassador to Russia, confirmed these ambitions during an interview with Russian media outlet RT. Ambassador Liyanage expressed hope that joining BRICS+ would enhance Sri Lanka’s transport and food security.

BRICS, initially comprising Brazil, Russia, India, China, and South Africa, recently expanded by adding Ethiopia, Iran, Egypt, and the UAE. This coalition of non-Western economies has steadily gained global influence.

Moscow, a hub for both culture and luxury, is hosting the prestigious BRICS+ Fashion Summit from October 3 to 7. Ajai Vir Singh, founder of Colombo Fashion Week, is among the notable speakers. The summit gathers industry leaders, designers, and experts to discuss fashion’s future, sustainability, and emerging market trends.

Singh will address two key forums focused on Circularity and creating brands in new markets, with an emphasis on fostering cooperation in the fashion industry. The event aims to strengthen cultural and business ties, support emerging designer brands, and tackle innovation and sustainable development challenges.

The BRICS+ Fashion Summit will feature the “Heritage” International Exhibition, which highlights how national and cultural heritage from BRICS nations and regions like Asia, Africa, and Latin America influence modern fashion design.

Following the summit, Moscow Fashion Week will showcase designers from BRICS+ countries and beyond, including Brazil, China, India, Russia, South Africa, and the UAE, from October 4 to 9.

Colombo Fashion Week  founder Ajai Vir Singh is invited as a speaker at this prestigious forum in Moscow. 

This global event, the largest of its kind for the emerging fashion markets, will be held in Moscow and will bring together industry leaders, heads of fashion associations, manufacturers, designers, and experts from around the world to discuss the future of fashion. 

The week long program will include a comprehensive Business Program, an International Exhibition titled “Heritage”, which features modern interpretations of cultural codes in fashion design from across the globe, and educational events.

Vir Singh will speak at two forums with focus on Circularity and on creating brands in new markets, he is to also foster multi-vector cooperation in the fashion industry, strengthen cultural and business ties, and address pressing issues like innovation and sustainable development. 

As the key event in emerging fashion markets, the Summit focuses on the challenges and achievements of talented individuals, designers, and companies within the industry. Sri Lanka’s point of view in emerging fashion and culture will be invaluable in supporting emerging designer brands on a global scale. Summit discussions will also delve into topics such as artificial intelligence, investment, and manufacture. 

The Export and Import (Exim) Bank of Korea has committed to providing financial assistance for development projects in Sri Lanka, according to a statement from the President’s Media Division (PMD). 

This agreement was made during a meeting at the Presidential Secretariat on Thursday (October 3) between Exim Bank officials and Secretary to the President Nandika Sanath Kumanayake.

Support from the Korean Exim Bank had previously been halted due to Sri Lanka’s economic crisis and sovereign debt default. However, during the meeting, Exim Bank representatives expressed their readiness to offer subsidized interest loans to restart these vital projects. 

They also reiterated their intention to back future economically viable initiatives led by the Sri Lankan government.

Participants in the meeting included Director of Exim Bank Won-suk Ha, Deputy Director Hanui Han, and Project Manager Nalin Jayathunga. In a bid to enhance economic collaboration between the two nations, the Republic of Korea has agreed to provide concessional loans through the Economic Development Cooperation Fund (EDCF) managed by the Korean Eximbank.

The Exim Bank has officially informed Sri Lanka’s Ministry of Finance, Economic Stabilization, and National Policies of its decision to recommence EDCF Official Development Assistance (ODA) projects. 

This decision follows the finalization of a Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on June 26, 2024, as stated by the Korean Embassy in a media release.

The resumption of these financial flows includes signing loan agreements and advancing the bidding process for ongoing EDCF projects in Sri Lanka. This will facilitate the continuation of existing construction projects, such as the Ruwanwella Water Supply Project.

This development represents a crucial milestone in reinforcing the long-standing relationship between Korea and Sri Lanka. It is anticipated to aid in the recovery and stabilization of Sri Lanka’s economy while fostering sustainable growth.

The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to support the industrial development and economic stabilization of partner countries, thereby promoting economic cooperation with Korea. Since 1990, the EDCF has approved nearly USD 1 billion for 30 development projects in Sri Lanka.

October 05, Colombo (LNW): Upland farmers in the Nuwara Eliya region are expressing serious concerns over the economic impact caused by the cultivation of vegetables using imported hybrid seeds such as carrots, gourd, and beetroot. 

They point out that no assistance is being provided by the government to the upland vegetable farmers, stating, “We can never cultivate rice in Nuwara Eliya; only the vegetables like potatoes, carrots, gourds, and leeks can be grown here.”

Farmers from the Low country area, including Walimada, lament that they are unable to cultivate rice due to the lack of fertilizer support, and instead, they are resorting to growing unique vegetables, leading to instability in the pricing of their produce.

The main production problems faced by farmers are high input cost, lack of finance, water availability, quality seeds and poor extension. 

Additionally, farmers generally lack knowledge about proper pesticide management including safe pesticide handling and storage.

In the past, the people of Nuwara Eliya cultivated high-quality seeds that were exclusive to the region, but now the hybrid seeds are being planted everywhere. Due to the absence of a stable price for rice, farmers in Phaturata have begun to grow vegetables.

This situation is causing severe harm, as the prices of vegetables are rapidly plummeting. Simultaneously, the decline in rice production essential for consumption in Sri Lanka forces us to buy rice at higher prices from abroad. 

The current situation has reached a tragic state where purchasing a kilogram of rice requires selling four kilograms of carrots.

Farmers are suffering significantly due to this issue, as upland farmers are forced to cultivate their crops without any assistance, leading to a scenario where they have to sell their harvests at very low prices.

Farmers from Phaturata do not face such difficulties since they receive some fertilizer support, while we do not receive anything.

We are appealing to the current Minister of Agriculture, President Anura Kumara Dissanayake, to ensure the cultivation of rice in the Phaturata area and create an environment conducive for us to grow unique vegetables. If assistance is provided to both the Phaturata farmers and us, we will highly appreciate the initiative.

Even if it’s not possible to provide full assistance, if we can receive fertilizer support worth 50,000 rupees, it would be a significant help considering the current economic situation, they added.. .

October 05, Colombo (LNW): The Election Commission has granted approval to reinstate several benefits that were temporarily suspended during the presidential election period, including the fertilizer subsidy for the Maha season, the fuel subsidy for fishermen, and increased pension allowances.

In an official media release, the Commission confirmed that the increased pension benefits will be paid in October, along with arrears from September. They also urged the public not to be misled by false claims suggesting that these allowances would not be disbursed.

Additionally, the Commission highlighted the need for approval before making any recruitment, promotions, transfers, or restrictions concerning officials and employees. This step is intended to prevent the misuse of state resources during the upcoming parliamentary elections.

October 05, Colombo (LNW): The Ministry of Defense has issued a directive requiring all civilians in possession of firearms and ammunition for personal protection to temporarily surrender them to the government for a review process. In an official statement released this evening, the Ministry clarified that the firearms will be returned following the review.

All licensed firearm holders are instructed to surrender their weapons and ammunition to the Sri Lanka Navy Base in Welisara by November 7. Upon surrender, a copy of the receipt must be submitted to the reception of the Civil Security Department near the main gate of the Ministry of Defense.

The Ministry has cautioned that failure to comply with the order by the November 7 deadline will result in legal action under the Firearms Ordinance.

The directive specifically exempts firearms issued by the Ministry for property protection, agricultural safeguarding, and sports purposes.

October 05, Colombo (LNW): Indian External Affairs Minister Dr. S. Jaishankar informed his Sri Lankan counterpart, Vijitha Herath, that India has offered a grant of US$ 61.5 million to modernize the Kankesanthurai port. Additionally, payments for seven completed Line of Credit projects, totaling over US$ 20 million, could be converted into grants. This announcement was made during Dr. Jaishankar’s meeting with Minister Herath at the Ministry yesterday.

The Indian High Commission in Colombo stated that Dr. Jaishankar reaffirmed India’s commitment to advancing bilateral cooperation under the ‘Neighbourhood First’ policy and the SAGAR outlook. The visiting Minister also extended an invitation to Sri Lankan President Anura Kumara Dissanayake from Indian Prime Minister Narendra Modi to visit India at a mutually convenient date.

Dr. Jaishankar assured continued Indian support for Sri Lanka’s development through various projects prioritizing Sri Lankan interests. Notably, the Indian government has decided to donate 22 diesel locomotives to the Sri Lankan Railways.

During his meeting with President Dissanayake, Dr. Jaishankar discussed ongoing initiatives in energy production, fuel and LNG supply, solar electrification of religious sites, digital infrastructure, and health and dairy development. He highlighted these efforts as essential to driving economic sustainability and creating new revenue streams for Sri Lanka. He also expressed India’s willingness to expedite the conclusion of its bilateral Memorandum of Understanding (MoU) with Sri Lanka.

President Dissanayake assured Dr. Jaishankar that Sri Lankan territory would never be used in a way that threatens India’s security interests. He emphasized that India’s economic assistance is crucial to achieving his vision of a prosperous Sri Lanka and fulfilling the aspirations of its people. The President also discussed the potential for exporting renewable energy to India, which could help reduce production costs in Sri Lanka and generate additional resources. He recognized the contribution of Indian tourists to the Sri Lankan economy and noted its potential for further growth.

On the subject of Sri Lanka’s debt restructuring, Dr. Jaishankar recalled that India had been a strong supporter of Sri Lanka’s economic stability from the outset. India was the first country to offer financing assurances, enabling the IMF to finalize its Extended Fund Facility for Sri Lanka. Dr. Jaishankar confirmed India’s continued support in the Official Creditors’ Committee regarding Sri Lanka’s agreement with International Sovereign Bond holders.

The meeting also addressed the concerns of Indian fishermen detained in Sri Lanka. Dr. Jaishankar appreciated the release of 50 Indian fishermen the previous day but urged for further releases, including of their boats, and reconsideration of the heavy fines imposed on them. He emphasized that a humanitarian approach, focusing on livelihood issues, would provide a durable solution to the ongoing fishermen-related disputes between the two nations.