September 07, Colombo (LNW): Sri Lanka is advancing its sustainable finance landscape, with the private sector playing a pivotal role in shaping the country’s business future. 

The recent Sustainable Finance Week concluded with a strong emphasis on collaboration among the private sector, UN agencies, the UN Global Compact, and financial institutions. 

This event underscored the importance of long-term engagement and knowledge sharing, urging businesses to adopt proactive sustainability measures.

Azusa Kubota, the Resident Representative of UNDP in Sri Lanka, highlighted the transformative potential of sustainable finance. 

She stressed that in today’s evolving business environment, driven by climate change, resource scarcity, and changing societal values, integrating sustainability into business strategies is no longer a choice but a necessity. 

Kubota emphasized that aligning economic prosperity with sustainability is crucial for future success.

The event showcased the benefits of embedding sustainability into daily business operations. Sri Lankan companies that adopt sustainable practices can attract ethical consumers, enhance brand reputation, comply with emerging regulations, and tap into sustainable investment opportunities.

The United Nations Development Programme (UNDP) in Sri Lanka, in collaboration with the Colombo Stock Exchange (CSE), Ceylon Chamber of Commerce (CCC), United Nations Global Compact Network Sri Lanka (CNSL), and UNESCAP, organized a two-day workshop during the Sustainable Finance Week in Colombo. 

The workshop aimed to address the urgent need for businesses in Sri Lanka to integrate sustainability into their strategic frameworks.

Punyamali Saparamadu, Senior Vice President – Commercial at the Colombo Stock Exchange, emphasized the need for capacity building in Environmental, Social, and Governance (ESG) frameworks.

 She pointed out that while there is significant interest in green bonds, many companies lack clarity on how to proceed. Saparamadu noted that strong ESG frameworks not only enhance a company’s reputation but also help mitigate risks and reduce capital costs in the long term.

Throughout the workshop, experts led interactive discussions to help the private sector better understand and implement sustainable practices. 

Participants learned about aligning with the Sustainable Development Goals (SDGs) to unlock business opportunities, gained clarity on sustainable finance concepts, and received practical advice on integrating sustainability into their business models and investment portfolios.

Rathika de Silva, Executive Director of the United Nations Global Compact Network Sri Lanka, emphasized that sustainability is a business imperative, not just a buzzword. 

The event also covered topics such as green bonds, corporate bond issuance, and sustainability disclosures. Participants gained technical expertise in ESG frameworks and Impact Measurement and Management (IMM), and the workshop fostered networking and partnerships for future collaboration.

Sanjaya Ariywansa, Chief Economist at the Ceylon Chamber of Commerce, remarked that Sri Lanka has significant potential for sustainable growth, but challenges remain. He highlighted the private sector’s crucial role in driving this growth by measuring and managing their environmental and social impacts while accessing sustainable finance

September 07, Colombo (LNW): In alignment with its mission to enhance Sri Lanka’s dairy sector, Browns Pharmaceuticals has partnered with DFCC Bank PLC and Market-Oriented Dairy (MOD) through the innovative ‘Kiri Wyawasabhiman’ Loyalty Program. 

This tripartite collaboration is designed to support dairy entrepreneurs nationwide, especially during challenging periods, by ensuring easy access to essential products and services alongside various concessions and tailored financial products.

Through its Micro, Small, and Medium Enterprise (MSME) scheme, DFCC Bank offers dairy entrepreneurs a range of exclusive benefits, including special interest rates, flexible payment plans, and discounts on pharmaceuticals, medicines, and machinery from Browns Pharmaceuticals. 

Additionally, the partnership will provide capacity-building programs, delivering comprehensive solutions to support business growth.

The Memorandum of Understanding (MoU) highlights a three-pronged approach, integrating Browns’ 150-year legacy of trust, its extensive island-wide network, and unparalleled after-sales service with DFCC Bank’s expertise in MSME financing within the agriculture sector and its diverse financial product portfolio.

 Combined with MOD’s credibility and resources, this collaboration establishes a strong foundation for the success of dairy entrepreneurs.

Mangala Wijesinghe, the Browns Group Cluster Chief Operating Officer – Pharmaceuticals Consumer and Integrated Engineering Solutions, emphasized that this dynamic partnership aligns with Browns Pharmaceuticals’ vision to uplift the nation’s dairy sector through sustainable, long-lasting solutions.

 He expressed confidence in the MoU’s potential to positively impact the market’s growth and sustainability.

While Sri Lanka is largely self-sufficient in most animal products, dairy remains an exception. The consumption of dairy products has surged since the 1970s when the government embraced open economic policies. 

Currently, Sri Lanka meets about 15-20 percent of its milk product needs, relying heavily on imported milk powder.

The dairy industry holds significant potential to contribute to Sri Lanka’s economic development. As a traditional industry with a history spanning thousands of years, milk production plays a crucial role in combating nutritional poverty across all age groups and provides extensive employment opportunities.

The government has set an ambitious target to increase dairy production towards achieving 50 percent self-sufficiency in milk.

To reach this goal, the industry must grow by approximately 15 percent annually over the next eight years, a challenging feat given the current industry conditions that only supply about 20 percent of the nation’s dairy needs.

 This is a stark contrast to two decades ago when domestic sources provided nearly 80 percent of the country’s milk consumption before the economic liberalization in 1977.

Given the current levels of malnutrition, particularly among pre-school children and pregnant mothers, increasing milk production is vital for improving the nation’s nutritional status.

September 07, Colombo (LNW): Sri Lanka’s current economic reform program, supported by the International Monetary Fund (IMF), marks a significant departure from previous engagements.

 A key distinction is that debt restructuring is now a major pillar of the reform program. This program represents a new chapter in Sri Lanka’s relationship with the IMF, where restructuring debt has become central to achieving macroeconomic stability. Finnace Ministry clarified. 

The IMF’s lending rules prohibit support to countries with unsustainable debt. Consequently, Sri Lanka has had to undertake debt restructuring while simultaneously negotiating broader macroeconomic reforms with the IMF. 

The country is committed to ensuring that any agreements made with creditors will restore public debt sustainability, as assessed by the IMF. 

Unlike low-income countries, Sri Lanka falls under the IMF’s Market Access Sovereign Risk and Debt Sustainability Framework (MAC SRDSF), which applies to middle-income economies.

Once established, debt restructuring targets become fixed and can only be altered if there is substantial evidence that the targets are no longer viable.

 These targets are based on Sri Lanka’s debt-carrying capacity and are not influenced by shifts in the macroeconomic framework.

 The MAC SRDSF methodology, which is publicly available, uses a model that incorporates historical macroeconomic data and applies stress tests to determine near-, medium-, and long-term outcomes. , finance ministry emphasied 

These outcomes are primarily mechanical, although IMF staff can apply judgment to introduce additional stress tests or variables. However, this judgment is thoroughly reviewed and ultimately requires approval from the IMF Executive Board.

In Sri Lanka’s case, the mechanical and staff-assessed projections indicate high risks to medium- and long-term debt sustainability, mainly due to vulnerabilities to economic shocks and structural challenges such as an aging population and climate risks. 

These projections are updated regularly, particularly during IMF program reviews, which occur every six months.

While the MAC SRDSF model’s parameters are inflexible, the technical aspects of the Debt Sustainability Analysis (DSA) have been extensively negotiated between Sri Lankan authorities, their debt advisors, and the IMF.Itadded. 

 This includes discussions on the scope of public debt, refinancing assumptions, and the costs associated with recapitalizing the banking sector.

Since the beginning of its debt restructuring process in June 2022, Sri Lanka has developed its own DSA models to guide its negotiation strategy.

 These models, created with the help of debt advisors, are regularly aligned with IMF assessments. Sri Lanka uses these models to design offers to creditors and evaluate proposals to ensure compatibility with IMF constraints. Creditors, in turn, often create their own DSA models to inform their negotiating positions.

The IMF’s DSA plays a unique role in the sovereign debt restructuring process. Whenever Sri Lanka reaches an agreement with a creditor, the IMF confirms that the terms comply with the necessary debt relief targets. The IMF may also apply its judgment in addition to the mechanical outcomes to make its assessments.

Although a country could reject the IMF’s DSA if it disagrees with the outcomes, doing so would delay any financing program, potentially prolonging the economic crisis. 

For Sri Lanka, which faced severe challenges in mid-2022—such as depleted foreign reserves, soaring inflation, civil unrest, and a near-collapse of the socio-economic fabric—such delays would have been disastrous.

September 07, Colombo (LNW): Deputy Postmaster General Rajitha Ranasinghe has reported a high turnout for postal voting in the 2024 Presidential Election over the past two days. Speaking at a press conference, Ranasinghe stated that more than 80% of eligible voters have cast their postal ballots.

He explained, “According to reports, more than 80% of the postal votes have been used, and the registered reserved packs have been delivered to the post offices in the respective areas. We compare this with the number of postal packs received by post offices, and it is observed that a large number of votes were cast on both the first day and today.”

A total of 712,319 voters were eligible for postal voting in this election. The third consecutive day of postal voting began today (06), with the Election Commission announcing that postal voting is available to staff in District Secretariat Offices, Election Commission Offices, Senior DIG and DIG Offices, SP and ASP Offices, Police Stations, Special Task Force (STF) Camps, Special Police Units, and VIP Security Divisions.

Officers of the three armed forces and staff from all other government institutions had the opportunity to vote yesterday and today, while police officers who missed voting yesterday were given the chance to vote today.

Additionally, Commissioner General of Elections Saman Sri Ratnayake announced that postal voters who were unable to cast their votes within these three days will be allowed to vote at their respective District Secretariats on September 11 or 12.

1. President Ranil Wickremesinghe emphasized that a true leader is someone who can work effectively with any team. He criticized Sajith Premadasa, stating that despite the opposition leader talking about teamwork, he fails to take responsibility as a leader. Wickremesinghe also claimed that Sajith is currently fulfilling an agreement by supporting Anura Kumara Dissanayake.
2. Sajith Premadasa has accused President Ranil Wickremesinghe and National People’s Power (NPP) leader Anura Kumara Dissanayake of forming a secret political alliance to divide power. Speaking at an election rally in Eheliyagoda, Premadasa claimed that the two leaders are engaged in a corrupt deal aimed at securing the presidency and premiership for themselves, describing it as a betrayal of the public’s trust.
3. National People’s Power (NPP) presidential candidate Anura Kumara Dissanayake urged voters to unite for a common goal at a rally held at Kilinochchi. Dissanayake emphasized the need for solidarity between the North and South, saying NPP has already secured over 75%-80 support in postal votes.
4. Independent presidential candidate and former minister Roshan Ranasinghe announced that his manifesto will include plans to reduce vehicle costs by at least 80% from their current prices. During a media briefing, Ranasinghe criticized other candidates’ manifestos, calling them mere documents with no feasibility.
5. The United Arab Emirates (UAE) government has launched a two-month amnesty scheme starting from 01 September 2024, which provides an opportunity for individuals to correct their visa status or return to their home countries without incurring fines or facing entry bans.
6. The Criminal Investigations Department (CID) has reported facts to the Colombo Magistrate’s Court, pertaining to an investigation related to the information received of a possible attack on one of the candidates contesting the upcoming presidential election.
7. Deputy Postmaster General Rajitha Ranasinghe stated that the turnout for postal voting in the 2024 Presidential Election was high over the past two days. Speaking at a press conference, he said that more than 80% have cast their postal votes during the last two days. A total of 712,319 voters were eligible to use postal voting in relation to the 2024 presidential election.
8. Sri Lanka’s official reserve assets have recorded a significant increase to USD 5.95 billion in August 2024, according to the Central Bank of Sri Lanka (CBSL). This is an increase by 5.3% compared to USD 5.65 billion recorded in July 2024.
9. The Supreme Court has ordered that the petition of intervention filed seeking an order suspending the interim injunction issued preventing Deshabandu Tennakoon from functioning as the Inspector General of Police (IGP), to be taken up for consideration on September 13 for the clarification of facts.
10. Sri Lanka Customs announced that for the first time in the history of the Customs Department, it has achieved an annual custom revenue of Rs. 1 trillion so far this year.

September 07, Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

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 (35-45) 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 minimize damages caused by temporary localized strong winds and lightning during thundershowers.

September 06, Colombo (LNW): Prime Minister Dinesh Gunawardena emphasized the importance of preventing the country from falling victim to extremist experiments, as Sri Lanka works to strengthen its international relations after emerging from isolation. He made these remarks during the launch of the Podujana Eksath Nidahas Peramuna, the broadest political alliance in the country, at the Water’s Edge Hotel in Battaramulla yesterday.

Speaking at the event, Prime Minister Gunawardena, who chairs the new alliance, stated, “Let’s not victimize the country to extremist experiments since it has already become able to deal with the international community through friendship.” The alliance, themed “Combination of Courage for a Winning Country,” aims to chart a new direction for Sri Lankan politics.

The alliance’s Secretary General, Minister Ramesh Pathirana, joined Prime Minister Gunawardena in unveiling the alliance’s new logo, a “trophy.” Following the unveiling, agreements were signed with leaders of various political parties that joined the alliance, including representatives from the Sri Lanka Podujana Peramuna (SLPP), Mahajana Eksath Peramuna, United Peoples Party, Eelam People’s Democratic Party, Tamil Makkal Viduthalai Pulikal Party, National Congress, United People’s Party, National Unity Front, and Deshapremi Janatha Balawegaya.

Prime Minister Gunawardena described the alliance’s creation as a historic moment, emphasizing the shared commitment of its members to overcome challenges and secure the future of Sri Lanka. He referred to the political and economic crisis that led to the resignation of former President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, and the subsequent appointment of Ranil Wickremesinghe as President by a parliamentary majority.

Highlighting the alliance’s mission, he stated that unity and cooperation among national and progressive forces are crucial to developing the country through a new program based on parliamentary democracy and public trust. The Prime Minister emphasized the need to work toward achieving the goals of social and economic development expected by the younger generation and called for everyone’s support and contribution.

Alliance General Secretary Dr. Ramesh Pathirana criticized opposing groups for spreading misinformation and making false promises, reaffirming the alliance’s commitment to contesting future elections and urging people to set aside party differences to rebuild the country.

The newly formed Podujana Eksath Nidahas Peramuna is committed to winning the upcoming September 21 presidential election and future elections, working closely with all allied parties and forces.

September 06, Colombo (LNW): Ranil Wickremesinghe, who is running as an independent candidate for the upcoming presidential election, will receive the support of 36 out of 41 former members of the Sri Lanka Podujana Peramuna (SLPP) from the three Pradeshiya Sabhas in the Moneragala electorate area: Siyambalanduwa, Badalkumbura, and Moneragala. This development was announced during a press conference held yesterday (5).

The meeting was attended by former Pradeshiya Sabha chairmen R.M. Ratnaweera (Moneragala), Samarasinghe Abeysekera (Badalkumbura), Deputy Chairman Nishshanka Punchimahattaya (Siyambalanduwa), Pradeep Wijeratne (Moneragala), and other SLPP members from these Pradeshiya Sabhas.

Former Moneragala Pradeshiya Sabha Chairman R.M. Ratnaweera stated that during a period of anarchy and bankruptcy, the leaders of the SLPP, represented by the “Pohottuwa” symbol, vacated their positions. At that time, Ranil Wickremesinghe took over leadership, fully aware of the obstacles and challenges facing the country.

Ratnaweera highlighted that Wickremesinghe was instrumental in restoring normalcy by resolving gas, fuel, and food shortages. He also acknowledged Basil Rajapaksa’s crucial role in supporting Wickremesinghe’s presidency by rallying Members of Parliament to vote for him.

September 06, Colombo (LNW): Finance State Minister Ranjith Siyambalapitiya emphasized that President Ranil Wickremesinghe’s proposal to increase public sector salaries is not merely an election promise, as it has received approval from both the Treasury and the Cabinet. Speaking at a press conference held at President Wickremesinghe’s political office in Colombo, Minister Siyambalapitiya highlighted that, even during the peak of the economic crisis, the President firmly rejected suggestions to cut public servant salaries, insisting they should not be reduced under any circumstances.

Minister Siyambalapitiya further noted that despite the challenging economic environment, President Wickremesinghe managed to provide a Rs. 10,000 allowance to public servants. He recalled that when President Wickremesinghe took office as Finance Minister, the Government was struggling to pay salaries to its 1.38 million employees, with a total salary bill of Rs. 95 billion. Proposals to cut salaries were firmly rejected by the President, who instead opted for managing salaries by splitting payments.

In 2023, discussions with the Treasury led to the President emphasizing the need to increase public sector salaries, despite initial constraints. President Wickremesinghe later managed to raise public sector salaries by Rs. 10,000, a decision that increased monthly Treasury expenditure by over Rs. 12 billion.

To address salary and pension disparities and enhance productivity, President Wickremesinghe appointed a committee chaired by Udaya R. Seneviratne, which included members from both the public and private sectors. The committee’s interim report with 18 recommendations was presented to and approved by the Cabinet. Key recommendations for 2025 include raising the Cost of Living allowance to Rs. 25,000, increasing the minimum starting salary by 24% to 50%, setting the new minimum salary at Rs. 55,000, and introducing a comprehensive medical insurance plan for public sector employees and pensioners.

These measures, set to take effect on January 1, 2025, aim to significantly improve conditions for public servants. State Minister Siyambalapitiya dismissed claims that these initiatives are politically motivated, stating that the Government’s commitment to public servants has been evident even during challenging times.

The SJB has responded with a proposal to increase the minimum wage for Government employees to Rs. 57,000, while the NPP’s policy statement includes adjustments to the Cost of Living allowance every six months based on living expenses. Meanwhile, the Government continues to focus on enhancing efficiency in public services and streamlining the recruitment process, encouraging employees to take advantage of new professional development opportunities.