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National Consumer Prices continue to drop, offering relief to households amidst challenges

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December 26, Colombo (LNW): Sri Lanka’s national consumer prices saw a continued decline for the third consecutive month in November 2024, providing much-needed relief to households across the country.

The downward trend in prices, much sharper than the previous month, has been welcomed by many citizens who have faced years of soaring costs since 2022.

According to the latest data, the National Consumer Price Index (NCPI) dropped by 1.7 per cent in the 12 months leading up to November, following a smaller decline of 0.7 per cent in October.

This marks a notable shift from the extreme inflationary pressures that had previously burdened the public.

However, on a monthly basis, prices rose slightly by 0.1 per cent, reflecting a modest uptick in food costs, notably coconut, coconut oil, and rice, which have dominated both social and political discourse in recent weeks.

Coconut prices saw the steepest rise between October and November, driven by production setbacks and high demand from export industries.

Similarly, the price of rice became a contentious issue, prompting urgent measures from the government to address the supply shortage and stabilise prices, especially as the country approaches the festive season.

The Cabinet recently announced plans to import rice to prevent any further disruption to the market and ensure the availability of key varieties.

Despite these food-related price fluctuations, the overall food prices remained steady on a year-on-year basis up until November, with the exception of coconut and rice, which contributed to the 0.4 per cent rise in monthly prices.

In contrast, non-food prices continued their downward trend, falling by 3.1 per cent compared to November 2023.

The decline in non-food prices slowed slightly in November, with a more modest drop of 0.1 per cent compared to a sharper 0.6 per cent decrease in October.

The Central Bank of Sri Lanka has projected that the current deflationary conditions are likely to persist through the first half of 2025 before gradually aligning with the medium-term inflation target of 5 per cent.

In its recent assessment, the Central Bank noted that while price reductions could have negative implications for certain sectors, they are ultimately beneficial for the overall economy.

The easing of inflationary pressures allows consumers to regain some of their purchasing power, enabling them to spend more on goods and services they had previously cut back on.

This boost in consumer spending is expected to stimulate economic growth as the country emerges from a prolonged period of economic difficulty.

In addition to the ongoing deflationary environment, the government’s upcoming reduction in personal income tax is expected to further support consumer spending, providing households with additional disposable income to contribute to economic recovery.

Meanwhile, core inflation, which excludes volatile items such as food, energy, and transport, rose by 1.5 per cent in November from the previous year. While this marks a slight decrease from the 1.7 per cent increase recorded in October, it reflects a broader cooling of underlying inflation pressures within the economy.

This trend further suggests that inflationary forces are subsiding, providing a positive outlook for both consumers and businesses as the country seeks to stabilise its economic situation in the months ahead.

Customs resumes clearance of imported rice as supply efforts intensify

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December 26, Colombo (LNW): Sri Lanka Customs has announced the resumption of the clearance process for imported rice, which had been temporarily halted.

The clearance will recommence today (26), allowing businesses that imported rice to begin clearing their shipments once again.

Sivali Arukgoda, the Additional Director General and spokesperson for Sri Lanka Customs, confirmed that rice shipments, which had been delayed, can now be processed and released into the market.

This decision follows a brief suspension aimed at addressing concerns related to rice imports.

To mitigate the ongoing rice shortage in the country, the government permitted private-sector rice importers to bring in rice shipments between December 4 and December 20, 2024.

During this period, approximately 67,000 metric tons of rice were successfully imported into Sri Lanka.

In response to the continued demand for rice, the Cabinet recently extended the rice importation window until January 10, 2025, with the formal Gazette notification being issued on December 24.

With this extension, Sri Lanka Customs is now able to fully resume clearing the imported rice stocks, ensuring that the market supply improves in the coming weeks.

This step is expected to help stabilise prices and address the supply shortages experienced by consumers.

Meanwhile, Agriculture Deputy Minister Namal Karunaratne, provided an update on the government’s rice importation efforts, revealing that that the first shipment of 780 metric tons of rice, imported through the Sri Lanka State Trading Corporation, was expected to arrive at the Colombo Port on December 25.

The Deputy Minister assured the public that the government would expedite the distribution of this rice to ensure it reaches the market without delay.

Sri Lanka welcomes two millionth tourist as visitor numbers surge in 2024

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December 26, Colombo (LNW): Sri Lanka has reached a significant milestone in its tourism sector, recording its two millionth tourist arrival today, according to Sri Lanka Tourism.

The landmark achievement was celebrated with the arrival of a couple from Thailand, marking a moment of pride for the island nation as it continues to recover and thrive in the post-pandemic tourism landscape.

Data from Sri Lanka Tourism reveals that by December 22, 2024, the country had already welcomed 1,966,256 international visitors.

The final push to the two millionth arrival came in the latter part of the month, with a notable surge in tourist numbers over the course of December.

A total of 161,383 tourists arrived in Sri Lanka between December 1 and December 22, 2024, reflecting strong demand for the country’s vibrant tourism offerings.

India continues to be the leading source of international visitors, with 35,131 Indian nationals arriving during this period.

Other countries contributing significantly to the surge in arrivals include Russia, with 22,637 visitors, followed by the United Kingdom (12,822), Germany (9,998), and Australia (8,646).

The United States, China, Maldives, France, and Poland also contributed notable numbers of tourists, further diversifying the mix of international travellers flocking to the island.

The steady rise in tourist arrivals signals a strong recovery for Sri Lanka’s tourism industry, which had faced challenges in recent years.

Sri Lanka Tourism is optimistic about the continued growth of the sector as it positions itself as a leading destination in the South Asian region.

Read SLTDA Report: https://www.sltda.gov.lk/storage/common_media/WeeklyReportDECEMBER-01-22.pdf

Sri Lanka observes National Safety Day with a moment of reflection for victims of disasters

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December 26, Colombo (LNW): Sri Lanka marked National Safety Day today (26) with solemn remembrance for those who have tragically lost their lives in various natural disasters across the country, including the devastating 2004 tsunami.

The day serves as a poignant reminder of the importance of disaster preparedness and the resilience of the nation in the face of calamity.

In a nationwide observance, citizens paused to reflect on the lives lost in these tragedies, with a two-minute silence held across the island.

The moment of respect took place from 9:25 am to 9:27 am, during which time the country united in a shared act of remembrance for the victims of past disasters.

The Disaster Management Centre (DMC) facilitated the nationwide observance, underscoring the significance of the day in raising awareness about the ongoing efforts to strengthen disaster response and safety measures.

The DMC also highlighted the continued commitment to reducing vulnerabilities and improving the nation’s ability to withstand future emergencies.

National Safety Day is not only a time for reflection but also serves to remind the public and authorities alike of the importance of preparedness and resilience in the face of unforeseen events.

SLCERT issues warning over surge in online financial scams during Festive Season

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December 26, Colombo (LNW): The Sri Lanka Computer Emergency Readiness Team (SLCERT) has raised alarms about a concerning rise in online financial scams targeting unsuspecting individuals during the festive season.

SLCERT’s Chief Information Security Officer Nirosh Ananda has urged the public to be extra cautious, as reports of financial fraud have been steadily increasing in recent weeks.

Ananda explained that scammers are exploiting the festive spirit by contacting people with offers of fake prizes and gifts.

In many cases, individuals have received unsolicited calls informing them that they have won valuable items or money, only to be asked for personal details or financial information in return.

These fraudulent schemes often lead to significant financial losses for the victims.

In addition to these traditional scams, Ananda highlighted the growing use of artificial intelligence (AI) technology to facilitate fraudulent activities.

He noted that scammers are increasingly employing AI tools to impersonate legitimate organisations or even to manipulate online communications, making it more difficult for the average person to distinguish between genuine offers and deceptive schemes.

Given the sophistication of these scams, the SLCERT has called on the public to be especially vigilant.

We urge individuals to be cautious when receiving unsolicited calls or messages, particularly those that involve financial transactions or requests for personal information,” Ananda warned. “It is crucial to verify the authenticity of any such communications before taking any action.

SLCERT has also advised that individuals should report any suspicious activity to the authorities promptly.

As scams become more sophisticated, the organisation emphasised the need for increased public awareness to protect oneself from falling victim to these deceptive tactics, especially during the holiday season when such scams tend to proliferate.

Excise Commissioner orders tax compliance check ahead of permit renewals for 2025

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December 26, Colombo (LNW): Excise Commissioner General Udaya Kumara Perera has instructed the Inland Revenue Department (IRD) to compile and submit a detailed report regarding the tax compliance of licensed excise permit holders for the year 2025.

With nearly 2,000 excise permits due for renewal in the coming year, this step is intended to ensure a smooth and efficient process for both taxpayers and defaulters.

Commissioner General Perera confirmed that the IRD has already forwarded 1,636 applications for permit renewals, along with their respective tax clearance reports.

He emphasised that no permit renewal would be processed without confirmation of tax payments, which must be provided through official clearance documents from the IRD.

In light of this, Perera has recommended that the Department submit a full and comprehensive list of taxpayers well ahead of the renewal period to avoid delays and ensure prompt issuance of permits to those in good standing.

At present, the Inland Revenue Department is preparing to release 232 tax clearance reports, which will help expedite the permit renewal process as the new year approaches.

With approximately 4,500 excise permits required nationwide for the distribution and sale of alcoholic beverages, Commissioner General Perera stressed the importance of tax compliance for the proper functioning of the sector.

The excise system relies heavily on the prompt and accurate payment of taxes, and the streamlined submission of tax clearance certificates is crucial in maintaining the integrity of the licensing process.

Perera expressed confidence that the Inland Revenue Department would work efficiently to provide the necessary documentation, ensuring that only those who have met their tax obligations are granted renewed licences.

New ‘Aswesuma’ welfare payment scheme to commence in Jan 2025

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December 26, Colombo (LNW): President Anura Kumara Dissanayake in his capacity as the Minister of Finance, Planning and Economic Development has issued a formal Gazette notification detailing the revised monthly allowances for beneficiaries under the ‘Aswesuma’ welfare scheme, set to commence in January 2025.

The new structure categorises recipients into four distinct groups, with each group set to receive different amounts of financial support based on their needs.

Starting from January 2025, the ‘Extremely Poor’ category will receive a monthly payment of Rs. 17,500, which will continue until June 2026.

A total of 480,000 individuals have been identified in this group, who will benefit from this financial assistance aimed at alleviating their hardships.

Those in the ‘Poor’ category, which includes 960,000 individuals, will be granted Rs. 10,000 each month over the same period, from January 2025 to June 2026.

Meanwhile, the ‘Vulnerable’ group, which faces specific challenges that leave them at risk, will receive a monthly payment of Rs. 5,000 throughout 2025.

The government has also introduced a ‘Transitional’ category for individuals who are in the process of moving out of the most critical conditions of poverty.

Those in this category will receive Rs. 5,000 per month, but only from January to March 2025.

In total, the new programme is designed to support 2.4 million individuals, with the intention of providing vital financial assistance to those in need.

The earlier iteration of the ‘Aswesuma’ welfare scheme, launched on May 17, 2024, has now been officially replaced by this updated structure.

However, payments under the previous scheme will continue until the end of 2024 for those whose payments were delayed for various reasons.

Additionally, the government has made provisions for individuals who have not yet been selected for inclusion in the new programme. Once their eligibility is confirmed, they will receive the corresponding benefits.

This includes applicants who have already submitted appeals, as investigations into their qualifications are still ongoing.

Furthermore, the government has recognised the particular needs of elderly citizens and individuals with specific health conditions.

As such, 820,000 elderly citizens will receive an additional monthly allowance of Rs. 3,000, and 50,000 individuals diagnosed with chronic kidney disease will continue to receive Rs. 7,500 each month as part of a dedicated support scheme.

The assistance does not stop there; Rs. 7,500 per month will also continue to be provided to 410,000 differently-abled individuals under a separate allowance programme.

Rise in shootings linked to drug trade: Police

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December 26, Colombo (LNW): Recent shootings across Sri Lanka are largely the result of escalating conflicts between rival drug traffickers, Police said.

Acting Inspector General of Police (IGP) Priyantha Weerasuriya confirmed that investigations are actively underway to uncover further details surrounding these incidents, which have raised concerns about public safety.

Over the past few weeks, gun violence has been reported in several regions, including Galle, Dadalla, Meegoda, Yakkala, Maligakanda, Ja-Ela, Wellawa, and Kurunegala.

In total, the country has seen 101 shooting incidents so far this year, which have tragically claimed the lives of 56 individuals.

The police attribute much of this violence to turf wars between competing drug dealers seeking control over key areas for their illicit activities.

In light of the increasing number of shootings, the police have formed a new organised crime control committee, under the leadership of Acting IGP Priyantha Weerasuriya, aimed at tackling the surge in violent crimes.

The committee, designed to coordinate efforts between various law enforcement agencies, will be led by the Senior Deputy Inspector Generals (DIGs) overseeing the Western and Southern Provinces.

This team will also comprise the Commander of the Police Special Task Force, the DIGs responsible for the Police Special Branch, Criminal Investigation Department (CID), as well as 10 other DIGs from various regions.

The committee will additionally include senior officers from key divisions such as the Crimes Intelligence Analysis and Prevention Division, the Colombo Crime Division, and Crime Divisions from Kalutara, Galle, and Matara.

An officer from the State Intelligence Service will also be part of the committee, which brings together a total of 20 experienced officers.

This collective effort aims to target the root causes of the violence, with a particular focus on the growing influence of the drug trade, and to restore peace and order in the affected communities.

The police have emphasised that tackling this issue requires a multi-faceted approach, combining intelligence gathering, targeted operations, and collaboration with other law enforcement agencies to dismantle the organised crime networks fuelling the violence.

Police directed to enhance safety measures during night-time vehicle inspections

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December 26, Colombo (LNW): Acting Inspector General of Police (IGP) Priyantha Weerasooriya has issued new directives aimed at bolstering the safety of police officers conducting vehicle inspections during the night.

According to the Police Media Division, the new guidelines require all officers engaged in night-time checks to wear high-visibility luminous jackets and gloves to ensure they are clearly seen by drivers, especially in low-light conditions.

Additionally, the officers have been instructed to use only the designated red signal torches provided by the department when signalling vehicles to stop.

This step is being implemented to standardise the equipment used during such operations, ensuring maximum visibility and safety for both officers and the public.

Fair weather to prevail across SL (Dec 26)

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By: Isuru Parakrama

December 26, Colombo (LNW): A few showers may occur in Northern and Eastern provinces, with mainly fair weather being expected to prevail elsewhere in the island, the Department of Meteorology said in its daily weather forecast today (26).

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, Southern, Uva and North-central provinces during the morning.

Marine Weather:

Condition of Rain:
Mainly fair weather will prevail in the sea areas around the island.
Winds:
Winds will be North- easterly in the sea areas around the island and speed will be (20-30) kmph.
State of Sea:
The sea areas around the islandwill be slight to moderate.