By: Staff Writer

September 10 (LNW):SriLankan Airlines and flydubai, the Dubai-based carrier, have announced today an interline agreement commencing from 09 September 2024, introducing more travel opportunities between Sri Lanka, the UAE and beyond on select routes on the carriers’ networks.

This interline agreement will enable passengers travelling with SriLankan Airlines to seamlessly connect via Dubai’s aviation hub to more than 30 destinations that flydubai operates to in Africa, Central Asia, Central and Southeast Europe as well as the Middle East. This includes unique holiday destinations such as Bucharest, Istanbul, Krakow, Mombasa, Naples, Sofia, Tashkent and Zanzibar.

In addition, the interline will offer flydubai passengers access to 16 destinations on SriLankan’s robust network spanning Southern and East Asia, the Middle East and Australia – including Melbourne, Seoul, Singapore and Tokyo.

“We are excited to partner with flydubai to provide our passengers seamless connections and greater convenience. This partnership reinforces our strategy to broaden our network and global reach, presenting customers with more travel choices and flexibility. We look forward to collaborating with flydubai and welcoming their passengers aboard our flights to experience an authentic SriLankan journey,” said Richard Nuttall, Chief Executive Officer of SriLankan Airlines.

SriLankan Airlines and flydubai are committed to delivering convenient and reliable travel options for their valued customers. Passengers can expect the signature hospitality and onboard services that both airlines are renowned for when travelling with SriLankan and flydubai.

Commenting on the interline agreement, Ghaith Al Ghaith, Chief Executive Officer at flydubai, said, “we’re excited about our new interline agreement with SriLankan Airlines that will further strengthen trade and tourism relations between the UAE and Sri Lanka. Since the start of operations to Sri Lanka in 2010, we have seen consistent demand for travel between our two countries over the years. Dubai remains an important thriving aviation hub and through these interline agreements, this will open up new horizons for our passengers, giving them more options to explore the world with ease.”

The new agreement will offer passengers the convenience of single-ticket itineraries, through-checked baggage and coordinated flight schedules for travellers.

Interline flights under the agreement between SriLankan Airlines and flydubai are now available for booking through the respective airline websites, www.srilankan.com and www.flydubai.com, as well as through travel agents and online travel agencies.

By: Staff Writer

September 10 (LNW): Sri Lanka has established a robust regulatory framework to enhance its competitiveness in attracting foreign investments within the Asian region.

The government’s recent enactment of the Economic Transformation Bill marks a significant step toward preventing future economic crises and securing long-term development goals.

 This legislation sets clear targets for the country’s growth, ensuring that Sri Lanka will not face similar economic hardships again, according to Dr. Bandula Gunawardena, the Minister of Transport, Highways, and Mass Media.

The Economic Transformation Bill is designed to facilitate rapid national development through both public and private sector initiatives. It mandates adherence to specific targets, setting the stage for substantial structural changes that will enhance Sri Lanka’s economic competitiveness.

 The act aims to secure a high standard of living for citizens, with continuous improvements in living conditions and greater access to leisure and cultural opportunities.

A key component of this legislation is its focus on transforming Sri Lanka into a highly competitive, export-driven digital economy. This transformation involves deep structural reforms that are expected to elevate the nation’s economic standing on the global stage.

The bill introduces a comprehensive national policy to achieve this goal, including the establishment of several key institutions such as the Economic Commission of Sri Lanka, Investment Zones, the Office for International Trade, the National Productivity Commission, and the Sri Lanka Institute of Economics and International Trade.

 Furthermore, it repeals the Board of Investment of Sri Lanka Law No. 4 of 1978 and related statutes to streamline the investment framework.

The government has set ambitious targets to achieve under this legislation, such as reaching net zero emissions by 2050, integrating more closely with the global economy, maintaining stable macroeconomic balances, and ensuring sustainable debt levels.

 Another focus is modernizing agriculture to increase productivity, enhance farmer incomes, and boost agricultural exports, all while promoting inclusive economic growth and social progress.

The Cabinet of Ministers is responsible for ensuring the achievement of these targets, which include a GDP growth rate of 5% annually by 2027, reducing unemployment to below 5% by 2025, and increasing female labor force participation to at least 40% by 2030 and 50% by 2040.

Additionally, the act aims to keep the current account deficit of the Balance of Payments below 1% of GDP annually and increase exports to 25% of GDP by 2025, 40% by 2030, and 60% by 2040.

The government anticipates net Foreign Direct Investment (FDI) to reach at least 5% of GDP by 2030, with 40% of GDP generated from exports of goods and services.

The primary balance of the government is expected to be 2.3% of GDP until 2032, with a target of maintaining at least 2% thereafter. Government revenue is projected to exceed 15% of GDP post-2027, while the multidimensional poverty headcount ratio is targeted to drop below 15% by 2027 and under 10% by 2035.

Minister Gunawardena assured that all necessary economic measures have been taken to transform the fiscal and monetary landscape, indicating that no further reforms are required at this stage. However, there are plans for new legislation and revisions to existing laws, particularly focusing on structural reforms in executive and administrative sectors.

This includes laws on public finance, procurement, public-private partnerships, state enterprises, and offshore economic activities, highlighting the government’s commitment to modernizing governance, transparency, and accountability.

As part of this transformation, three new laws have been enacted to manage finances, debt, and the economy, along with two additional pieces of legislation aimed at combating corruption and streamlining state procurement processes.

These include the Public Financial Management Act, Public Debt Management Act, Economic Transformation Act, Anti-corruption Act, and Public Procurement Act.

Sri Lanka’s legislative transformation is poised to establish the country as a highly competitive, export-oriented digital economy with strong global economic integration, aiming for sustainable development and prosperity in the coming decades.

By: Staff Writer

September 08, Colombo (LNW): Litro Gas Lanka Ltd., the leading LP Gas provider in Sri Lanka, recently highlighted its crucial role in supporting the ceramics and glass industries during a technical session at the 18th Annual General Meeting of the Sri Lanka Ceramics and Glass Council (SLCGC) at The Kingsbury Colombo.

Sponsored by Litro Gas, the session focused on energy efficiency, sustainability, and innovation in these key sectors. Litro’s dedication to ensuring a steady energy supply and its collaborative approach underscores its commitment to the growth of energy-intensive industries, especially during challenging economic times.

The AGM also welcomed Aravinda Perera as the new President for the 2024/2025 term, who brings valuable experience and insight to the role. During the session, Jaisinh Sampat, Chairman of Pune Gas India and Lanka Gastech, stressed the importance of energy conservation for future competitiveness and highlighted the shift towards sustainable energy practices in the industry.

The ceramics and glass sector, a significant contributor to Sri Lanka’s export earnings, has shown remarkable resilience despite economic challenges. Litro Gas has played a vital role in maintaining stability in production operations during financial crises, enabling manufacturers to meet international demand and sustain exports.

Muditha Pieris, CEO-Chairman of Litro Gas Lanka, emphasized the company’s priority in supporting industries like ceramics and glass, recognizing their importance to the national economy. Litro Gas continues to provide a consistent energy supply and technical support to ensure uninterrupted production and growth.

Litro’s participation in the event reaffirms its commitment to large-scale industries and its leadership in promoting innovative and sustainable energy solutions. Through its robust network and strategic industry partnerships, Litro Gas is well-equipped to support businesses with resilient supply chains and advanced energy management strategies, reinforcing its status as a cornerstone of Sri Lanka’s energy sector.

The technical session also explored the future of energy usage within the industry, with discussions centred on long-term trends and emerging technologies. Litro Gas Lanka, with its robust network and extensive industry partnerships, is well-positioned to continue supporting businesses through resilient supply chains and cutting-edge energy management strategies.

Litro’s partnership with the Sri Lanka Ceramics and Glass Council is yet another testament to the company’s vision of powering progress across industries, reaffirming their status as the backbone of Sri Lanka’s energy sector.

By: Staff Writer

September 08, Colombo (LNW): BOI companies will face operational challenges to bring in investors, partners, stakeholders, potentially jeopardising their businesses It asserts move has also caused confusion among tourism industry stakeholders

Free Trade Zone Manufacturers Association (FTZMA) expressed disappointment with the lack of support from the Board of Investment (BOI) in resolving the issuance of business visas for investors and called for immediate action.

In a letter addressed to the BOI Chairman, FTZMA highlighted that following a Supreme Court determination, obtaining a business visa through a VFS service provider has been suspended for an indefinite period.

It is against this backdrop, the Government had earlier decided to ensure international visitors do not face any inconvenience when obtaining relevant business visas through the Sri Lanka missions overseas in the absence of an online visa platform.

“This method has been working perfectly for all BOI enterprises so far. However we note with disappointment as to why this facility has been suspended by the Government,” they added.

The association highlighted that business visas for foreign nationals who visit the country are now forced to obtain tourist visas from a facility available at the immigration counters in the arrivals terminal at the airport, as the prior practice of foreign missions issuing business visas from the origin country has also been halted.

“The BOI must intervene in this matter immediately by liaising with the relevant authorities to resume business visa issuance through the overseas Sri Lankan missions as they have done before,” they stated.

They pointed out that the suspension has also caused confusion among tourism industry stakeholders, who had previously assured travel agents and international partners that both business and tourist visas could be secured before arrival.

FTZMA warned of two potential repercussions if the situation remains unresolved: Foreign nationals who intend to visit Sri Lanka solely for business purposes will be deterred from entering on a tourist visa, and

BOI companies will face operational challenges as they struggle to bring in investors, partners, and stakeholders, potentially jeopardising their businesses.

“We have been approached by many of our member organisations by making complaints about their displeasure with this change thus resulting in a deadlock to those who are genuinely visiting the country for business purposes, particularly shareholders, directors, buyers, vendors and trainers who are coming on a business visa to our member companies.

If they arrive for business on a tourist visa that is a violation of immigration regulations in the country thus creating a dreadful situation for our investors,” they stressed.

Therefore, the FTZMA strongly recommended the BOI being the facilitator, to create a conducive environment for investors to do their business with ease.

By: Staff Writer

September 08, Colombo (LNW): Looking ahead, the Sri Lanka Customs (SLC) strategic plan is focused on overcoming challenges while ensuring revenue generation, streamlining operations, and adhering to international standards. Guidance from the International Monetary Fund (IMF),

 Sustainable Development Goals (SDGs), and a deep understanding of global trade dynamics will inform future initiatives. The upcoming launch of the ASYHUB system in 2024 underscores the SLC’s commitment to technological progress.

Over the next five years, the SLC’s strategic focus will center on four key areas: revenue generation, eco-social protection, trade facilitation, and organizational development.

By aligning with global standards, fostering innovation, and tackling challenges head-on, the SLC aims to become a resilient and efficient customs administration, even amidst economic uncertainties.

In an unprecedented achievement, Sri Lanka Customs has recorded a revenue of Rs. 1 trillion within the first eight months of this year.

This remarkable accomplishment is credited to the autonomy granted to the administrative authority and officials, allowing them to operate without external interference.

The IMF has set a revenue target of Rs. 1,534 billion for 2024. With Rs. 1 trillion already achieved, Director General of Customs, Sarath Nonis, expressed confidence that the annual target can be surpassed within the remaining four months of the year. He noted that the previous highest revenue was Rs. 975 billion in 2023.

Director General Sarath Nonis emphasized that the department’s success is due to its independence and the new operational methods and advanced technical processes introduced over the past two years.

These reforms have allowed the department to streamline operations effectively. He also credited the entire customs staff for their dedication in fighting fraud, corruption, and smuggling.

 Additionally, the department continues to refine its administrative activities through an annual action plan, ensuring regular updates and quality improvements in customs procedures.

This success has been supported by the leadership and guidance of President Ranil Wickremesinghe, in his capacity as Finance, Economic Stabilization, and National Policies Minister, along with contributions from State Ministers of Finance, Ranjith Siyambalapitiya, and Shehan Semasinghe.

By: Staff Writer

September 08, Colombo (LNW): Taking inspiration from Singapore, the Sri Lankan government has announced the immediate implementation of a visa-free policy for travelers from 38 countries. This move comes after a month of issuing visas on arrival, following the suspension of the country’s e-Visa system due to management issues with a foreign consortium.

To simplify entry procedures and boost tourism, Sri Lanka recently launched a visa-free initiative for citizens of 35 countries, effective from October 1, 2024. As the country continues to explore options such as e-Visas, Electronic Travel Authorizations (ETAs), or free Visas on Arrival, it has now introduced another measure to ease entry for international visitors.

On September 2, Sri Lanka’s Minister of Foreign Affairs, Ali Sabry, announced via X (formerly Twitter) that the Cabinet has authorized the President to implement visa-free access for 38 nationalities immediately, adopting a streamlined approach similar to Singapore’s.

This decision aims to alleviate congestion at visa counters, as recent reports from Sri Lankan media indicate long queues at the visa on arrival counters at Colombo Bandaranaike International Airport.

Despite these efforts, Sri Lanka’s tourist arrivals in August fell significantly short of the monthly target, marking the largest gap observed this year. Provisional data from the Sri Lanka Tourism Development Authority (SLTDA) shows a 20.7% year-on-year increase in arrivals, with 164,609 visitors in August.

However, this number was still 38,298 short of the projected 202,907 arrivals for the month. Year-to-date (YTD) tourist arrivals have reached 1.36 million.

The shortfall exceeded the previous largest gap recorded in June, which was also impacted by visa-related issues.

Although the first half of August showed promise with an average of 6,545 daily arrivals, the momentum dropped sharply in the latter half, with a low of 2,804 arrivals on August 28. The daily arrival average for August was 5,310, down from July’s 6,058.

India remains the largest source of tourists, with 33,031 arrivals in August, followed by the UK with 17,587 and China with 11,333. Germany and Italy also ranked among the top five, with Russia returning to the top 10 markets, contributing 4,351 visitors.

India continues to lead as the top source market for the year, with 258,672 arrivals, while the UK surpassed Russia to take the second spot with 127,776 visitors. Russia is now in third place with 123,033 arrivals.

For 2024, Sri Lanka has set a goal to attract 2.3 million tourists and generate over $4 billion in revenue.