December 29, Colombo (LNW): Several spells of showers will occur in Northern, North-central, Eastern and Uva provinces and in Hambanthota and Matale districts, with showers or thundershowers being expected to occur at several places in Western and Sabaragamuwa provinces and in Galle, Matara, Nuwara-Eliya and Kandy districts during the evening or night, the Department of Meteorology said in its daily weather forecast today (29).
Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, Southern and Uva provinces during the morning.
The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Shower will occur at several places in the sea areas extending from Mannar to Batticaloa via Kankasanthurai and Trincomalee. Showers or thundershowers may occur at a few places in the other sea areas around the island during the evening or night.
Winds:
Winds will be north-easterly in the sea areas around the island and speed will be (20-30) kmph. Wind speed can increase up to (40-45) kmph at times in the sea areas off the coast extending from Colombo to Trincomalee via Puttalam and Kankasanthurai.
State of Sea:
The sea areas off the coast extending from Colombo to Trincomalee via Puttalam and Kankasanthurai may be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
President Anura Kumara Dissanayake met with officials from the Department of Immigration and Emigration, Sri Lanka Customs, and Airport and Aviation Services on December 28 to discuss preventing narcotics entry, curbing corruption, and halting unauthorised departures: He proposed an integrated camera system, advanced scanners, and strict measures to restore public confidence in Sri Lanka Customs: The meeting included key ministers and officials.
The Ilankai Thamil Arasu Kachchi (ITAK) has appointed former MP Mavai Senathirajah as the head of its Central Committee and C. V. K. Sivagnanam as the Acting Leader: These decisions were made during the ITAK Central Committee meeting in Vavuniya on December 28: However, the appointments will remain in effect only until the next Central Committee meeting, according to MP Gnanamuththu Srineshan.
Sulochana Gamage, a former Western Provincial Council member, and a businessman were arrested by the Bribery Commission in Pitakotte for allegedly accepting a Rs. 9 million bribe: The bribe was intended to expedite compensation for land acquired by the Urban Development Authority: The Hulftsdorp Additional Magistrate ordered their remand in custody until January 6, 2025, following their arrest on bribery charges.
Health Minister Dr. Nalinda Jayatissa highlighted that Sri Lanka loses significant foreign exchange due to the import and prescription of unnecessary drugs: Addressing the growing issue of antibiogram resistance, which has caused around 2,300 deaths in Sri Lanka, the Minister emphasised the need for immediate action: The government plans to adopt scientific solutions and introduce laws to regulate drug imports and prescriptions to mitigate this health and economic issue.
The Sri Lankan government has decided to revamp the Financial Crimes Investigation Division (FCID), transforming it into a fully-fledged investigative body under a senior DIG, similar to the Criminal Investigation Department (CID): Public Security Minister Ananda Wijepala announced that a new Central Crime Investigation Bureau will oversee all criminal investigative units, aiming to streamline operations and clear a backlog of 29,000 CID complaints.
Sri Lankan Ambassador for Science, Technology, and Innovation, Dr. Bandula Wijay, advocates for establishing a medical school in Sri Lanka operating under the U.S. curriculum, similar to prestigious institutions like Harvard and Stanford: He believes this will boost foreign revenue and position Sri Lanka as a hub for higher education: Dr. Wijay also called for a think tank of U.S. and Sri Lankan experts to guide the country’s development and proposed a fund to finance innovative start-ups: He emphasised the importance of creating curricula that foster problem-solving and entrepreneurial skills in Sri Lankan youth.
The Criminal Investigation Department (CID) has summoned Yoshitha Rajapaksa, the second son of ex-President Mahinda Rajapaksa, to provide a statement about the ownership of a government-owned land in Kataragama: This follows a statement given by Major Neville Wanniarachchi, the former personal security officer of Mahinda Rajapaksa, on December 27: Yoshitha is scheduled to appear before the CID on January 3 for the ongoing investigation.
The Consumer Affairs Authority (CAA) has set new maximum retail prices (MRP) for certain canned fish, effective immediately: Under this directive, manufacturers, packers, distributors, and traders are prohibited from selling canned fish above the specified prices: The new MRPs are: Rs. 380 for 425g Tuna, Rs. 180 for 155g Tuna, Rs. 420 for 425g Mackerel, and Rs. 560 for 425g Jack Mackerel.
T. Nandana Thilaka, the newly-appointed Chairman of Lanka Salt Company, has urged the public to avoid panic-buying and hoarding salt amidst rumours of a shortage: He reassured that the current salt supply is sufficient, with 6,000 metric tonnes in stock to last until January, and plans to import 30,000 metric tonnes: Thilaka also addressed the decline in salt production, attributing it to neglect of the Jaffna salt pans, but announced development activities will begin in mid-January, with production expected by March 2025.
The ICC announced the first shortlists for the 2024 ICC Awards, featuring nominees for the Emerging Men’s and Women’s Cricketer of the Year: The men’s shortlist includes Gus Atkinson (ENG), Saim Ayub (PAK), Shamar Joseph (WI), and Kamindu Mendis (SL): The women’s shortlist includes Annerie Dercksen (SA), Saskia Horley (SCO), Shreyanka Patil (IND), and Freya Sargent (IRE): Voting is open to fans, and winners will be announced in January 2025.
December 28, Colombo (LNW): The non-contributory structure of Sri Lanka’s Public Services Pensions (PSP) scheme has become a major financial burden on the nation, as pension payments are entirely financed through government revenue via general taxation, according to a study by the Institute of Policy Studies (IPS).
“With around 700,000 public sector pensioners, the system places a significant fiscal strain on the government,” the IPS report highlights.
Notably, nearly half of these pension payments benefit the wealthiest 20% of the population. IPS suggests implementing a gradual shift to a contributory pension model alongside broader structural reforms to alleviate this strain.
Addressing Sri Lanka’s pension-related financial challenges requires structural reforms and transitioning to a contributory scheme, particularly given the country’s recent economic difficulties.
Public sector pensions, which are entirely funded by tax revenue, account for 12% of government income, creating significant pressure on public resources. Moreover, the current PSP scheme is largely regressive, benefiting higher-income groups disproportionately.
The IPS estimates that nearly 50% of PSP payments go to the wealthiest 20% of households, while only 11% reach the poorest 40%. This inequality diverts critical resources from essential sectors like healthcare and education, further deepening inefficiencies in public spending.
The PSP scheme, Sri Lanka’s largest pension program for permanent public sector employees, has seen growing financial demands over the years. By 2023, pension payments totaled LKR 372.3 billion (approximately $1.15 billion), making up 7.9% of recurrent government expenditure and 12.1% of its total revenue.
Additionally, the number of pensioners has risen significantly, with total pension payments increasing by 20.5% in 2023 alone, driven by a 4.2% net growth in pensioners. This rapid growth is unsustainable given the country’s constrained fiscal capacity.
Currently, 43% of government revenue is allocated to public sector salaries and pensions, leaving little room for critical investments in innovation, training, and infrastructure development.
The economic crisis of 2022 exacerbated these challenges, as revenue shortages disrupted essential services, including public sector salaries, pensions, healthcare, and agricultural support like fertilizer.
The PSP disproportionately benefits high-income groups, as nearly 44% of recipients belong to the richest 20% of the population. A Commitment to Equity (CEQ) analysis further reveals that PSP is not a pro-poor program, reflecting a system that favors well-off segments of society.
Public sector employees, who constitute 15% of the workforce, enjoy stable incomes and pensions throughout their careers.
This stands in stark contrast to the 67% of Sri Lankans engaged in informal, precarious employment.
December 28, Colombo (LNW): Sri Lanka’s tea and apparel industries, known for their strong ethical reputation, have yet to experience significant shifts in demand or pricing following the implementation of Germany’s Supply Chain Act in 2023, according to a policy paper by the Friedrich Naumann Foundation.
While this landmark legislation mandates compliance with human rights and environmental sustainability standards among large German companies and their suppliers, its impact on Sri Lankan exports has been minimal so far.
However, challenges loom, particularly for smaller exporters and vulnerable supply chain segments, potentially jeopardizing these key industries.
The Supply Chain Act applies to German companies with over 1,000 employees from 2024 and aims to enhance ethical standards across global supply chains. In theory, such legislation should benefit ethically robust sectors like Sri Lanka’s tea and apparel industries.
Yet, the policy paper attributes the limited immediate impact to the unique characteristics of these industries and the short time since the law’s enactment, which has not allowed German companies to adjust sourcing patterns significantly.
Sri Lankan apparel companies reliant on the German market have proactively embraced the associated compliance costs, including audits.
However, the tea industry, where Germany constitutes a less critical market, has expressed dissatisfaction with the new regulations.
Panelists at a discussion organized by the Friedrich Naumann Foundation noted that compliance increases costs for exporters, such as auditing and due diligence, making the German market less attractive.
In 2023, Germany ranked as the twelfth-largest destination for Ceylon tea, but exporters may pivot to markets with less stringent regulations, undermining the law’s intent to improve global ethical standards.
The policy paper highlights vulnerabilities within informal segments of Sri Lanka’s supply chains, such as child labor, ethical sourcing issues, and labor rights violations.
These risks pose significant challenges, especially given the Supply Chain Act’s reporting requirements for indirect suppliers. Failure to address these issues could lead to long-term repercussions for Sri Lanka’s exports.
To mitigate these risks, the report recommends several measures, including tightening compliance requirements for indirect suppliers, offering economic incentives for adherence, and raising awareness about the law among vulnerable communities.
For instance, incorporating financial incentives—such as higher premiums for compliant suppliers—could encourage adherence.
The Rainforest Alliance’s Sustainability Differential model, which rewards certified suppliers with payments above market prices, is cited as a potential framework for such incentives.
Another critical issue is the lack of awareness among key stakeholders, such as plantation workers and employees of smallholder farms. These groups, whom the Act aims to protect, remain largely unaware of the law and its complaint mechanisms.
This limits the effectiveness of the reporting channels established under the Act. The paper calls for awareness programs led by German government institutions, civil society organizations, and other stakeholders to ensure these communities can fully benefit from the law’s protections.
while Germany’s Supply Chain Act has not yet significantly impacted Sri Lanka’s tea and apparel industries, its long-term implications are substantial.
Addressing supply chain vulnerabilities and improving compliance mechanisms will be critical for these industries to remain competitive in ethical and regulated markets like Germany.
December 28, Colombo (LNW): Sri Lanka, under its new government, is keen to enhance its diplomatic and economic relations with Canada, alongside other global partners.
However, Canada’s engagement with Sri Lanka has not been as robust or sustained as that of other countries, such as Australia, France, the United Kingdom, and the United States.
These nations have fostered long-standing relationships with Sri Lanka, building the understanding and diplomatic connections necessary for effective engagement, particularly on sensitive issues.
In contrast, Canada’s approach has been more detached, missing opportunities to deepen ties with Sri Lanka and contribute positively to the country’s ongoing political transformation.
The recent political changes in Sri Lanka have ushered in a period of significant reform, with the new government seeking to solidify its democratic foundations and strengthen its international alliances.
To signal its support for this transformation, Canada’s foreign policy should actively engage with Sri Lanka through high-level visits and dialogues.
An early visit by Canada’s foreign minister to meet with Sri Lankan government officials, opposition leaders, and civil society representatives would be an important gesture of solidarity.
Such engagement would not only demonstrate Canada’s support for Sri Lanka’s democracy but also underscore the importance of political change in Sri Lanka.
It would send a clear message that Canada is committed to nurturing a deeper, more meaningful relationship with Sri Lanka, moving beyond the historical focus on political and ideological differences.
In this context The High Commission of Sri Lanka in Ottawa participated in the annual International Food Fair, a signature initiative of Global Affairs Canada (GAC) organized in support of the Government of Canada Workplace Charitable Campaign.
This vibrant event brought together over 400 attendees including representatives from Embassies and High Commissions accredited to Canada, to celebrate the rich cultural diversity and culinary traditions of the participant countries.
The High Commission of Sri Lanka showcased the country’s distinctive and delectable cuisine, offering attendees an authentic taste of traditional dishes, and served refreshing Sri Lankan tea.
Moreover, the opportunity was utilized as a platform not only to celebrate Sri Lankan gastronomy, but also to promote the country as an attractive tourist destination.
Promotional materials and brochures highlighting Sri Lanka’s natural beauty, cultural heritage, and historical landmarks aimed at inspiring attendees to explore the island nation’s many attractions were displayed at the event.
The staff of the High Commission of Sri Lanka in Ottawa headed by Counsellor, Kumarasamy Kiritharan actively engaged with visitors at the event and shared information about cuisine and tourist attractions in the country.
The participation of the High Commission in the event underscored its commitment to promoting cultural diplomacy while strengthening ties with Canada and the international community.
December 28, Colombo (LNW): Minister of Labour Prof. Anil Jayantha Fernando recently addressed claims surrounding the restructuring of Sri Lanka’s external debt, clarifying that the current government’s role was limited to restructuring just one percent of the total debt, amounting to USD 300 million.
According to the Minister, the majority of the debt restructuring agreements, covering 99 percent of the external debt, were already established during the previous administration.
At a press briefing held at the President’s Media Centre, Prof. Fernando explained that the restructuring involved only bilateral debts owed to official creditors like Kuwait, Saudi Arabia, Iran, and Pakistan.
This process was handled by the Official Creditor Committee (OCC), co-chaired by France, India, and Japan, which represents 17 countries and other official creditors. An agreement on the terms and conditions was reached in June 2024, and restructuring with China Exim Bank was already completed in October 2023.
On the subject of restructuring International Sovereign Bonds (ISBs), Prof. Fernando noted that the previous government had agreed to the restructuring in principle just before the September 2024 presidential election.
The current government continued and successfully concluded this process on December 20, 2024, ensuring the issuance of new bonds to replace existing ones.
The restructuring of ISBs, which involves a total of USD 14.2 billion, including past due interest of USD 1.7 billion, was managed by the Ad Hoc Group (AHG) and a local banking consortium.
Prof. Fernando emphasized the government’s strong political commitment to economic stability, citing the positive recognition from rating agencies, which upgraded Sri Lanka’s credit rating due to the government’s timely actions and economic stabilization measures.
Responding to questions regarding Sri Lanka’s financial crisis, Prof. Fernando explained that the economic downturn was exacerbated by policies from previous governments, particularly the suspension of external debt servicing in April 2022, which led to the country’s financial troubles.
He assured that the current administration had laid the groundwork for financial stability and would continue steering the country towards economic recovery.
Looking ahead, Prof. Fernando expressed confidence that by the end of 2025, the results of the government’s efforts would be evident in the form of improved economic indicators and a better standard of living for the people of Sri Lanka.
Therefore, the government continued with the restructuring process and facilitated it to ensure the successful completion of the issuance of new bonds for the exchange of existing ones on 20th December 2024 in order to achieve the critical objective of stabilizing the economy in pursue of navigating the country with the growth and development trajectory towards a thriving nation and beautiful life,” he said.
December 28, Colombo (LNW): The Colombo Additional Magistrate has ordered that two individuals, including former Western Provincial Councillor Sulochana Gamage, be remanded in custody until January 6, 2025, following their arrest in connection with a bribery case.
The individuals, one of whom is a businessman, were detained by officers from the Bribery Commission while allegedly accepting a bribe of Rs. 9 million from another businessman in the Pitakotte area.
The arrest follows a formal complaint lodged by a resident of the Madiwela area in Kotte.
According to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), the suspects had solicited the bribe with the promise of facilitating the expedited compensation process for a piece of land belonging to the complainant’s relative.
The land in question was acquired by the Urban Development Authority (UDA) as part of a government project in the Torington Avenue area.
It is believed that the two individuals had used their positions and influence to promise the complainant’s relative quick processing of the compensation payment, which had otherwise been delayed.
December 28, Colombo (LNW): Agriculture Minister K.D. Lalkantha has issued a stern warning to corrupt government officials, asserting that he holds a list of individuals implicated in malpractice, including allegations of concealing important documents and misappropriating public funds.
Speaking at a meeting two days ago (26), the Minister addressed growing concerns about corruption and inefficiency within the public service.
Lalkantha’s remarks followed a public day held by the Ministry of Lands and Irrigation, where a significant number of grievances were raised.
The Minister revealed that around 50 per cent of the complaints filed pointed directly to the actions of government officials, citing inefficiency and corruption as the primary reasons behind the public dissatisfaction.
The Minister warned that just as the public had recently taken a stand against bad politics, a similar movement could soon emerge to tackle corruption within the public sector.
He hinted at his readiness to spearhead such reforms, emphasising that the public service must be held accountable and that necessary changes would be made to restore faith in the system.
In his speech, Lalkantha also highlighted the dire state of public resources, referencing the severe limitations faced by key state institutions.
One example he pointed out was the Paddy Marketing Board, which he claimed only has a single lorry to serve the entire nation.
Such inefficiencies, according to the Minister, are symptomatic of broader issues plaguing the public sector and hindering progress.
Reflecting on his own personal adjustments, Minister Lalkantha reiterated his commitment to leading by example.
He spoke of his decision to adopt a simpler lifestyle, mentioning that he now dresses modestly, uses 8th-class vehicles, and shuns the extravagance often associated with public office.
His comments served to highlight the importance of public servants aligning their behaviour with the needs of the people they serve.
With the backing of the public, he suggested, significant reforms could soon reshape the way government officials carry out their duties.
December 28, Colombo (LNW): Sri Lanka’s Cinnamon Development Department has unveiled a plan to significantly increase the country’s annual revenue from cinnamon exports, with a target to double the current earnings of US$ 250 million to US$ 500 million.
Janaka Lindara, the Director General of the Cinnamon Development Department, emphasised that Sri Lanka currently produces around 25,000 metric tonnes of cinnamon annually, exporting approximately 19,000 metric tonnes.
Cinnamon is a major agricultural export for Sri Lanka, with key cultivation areas traditionally located in the southern and southwestern regions, including Galle, Matara, and Hambantota.
To achieve the revenue target, the department has outlined plans to expand cinnamon cultivation into new regions such as Kurunegala, Puttalam, and the Mahaweli zones.
This expansion aims to not only increase production but also diversify the areas in which cinnamon is grown, helping to ensure a steady supply for export.
A significant step towards reaching these goals was marked by the recent signing of a Memorandum of Understanding (MoU) with China, which will facilitate the commencement of cinnamon exports to the Chinese market starting in January 2025.
This partnership is expected to open up new opportunities for Sri Lankan cinnamon producers, with the potential for increased demand from one of the world’s largest markets.
Additionally, the Cinnamon Development Department is focusing on strengthening its presence in the European Union and other global markets, further broadening the reach of Sri Lankan cinnamon.
At present, the vast majority of the country’s cinnamon is exported in its raw form. However, the department is keen to shift towards producing more value-added cinnamon products, such as essential oils, spices, and cosmetics, to enhance foreign exchange earnings.
In a bid to support this transformation, the department is offering resources, training, and incentives to small and medium-sized cinnamon entrepreneurs. The goal is to empower local producers to add value to their products, ensuring greater profitability and market competitiveness.
December 28, Colombo (LNW): The police have announced that investigations will be initiated into the failure of parliamentary candidates to submit their income and expenditure reports, as required by law.
Police Media Spokesperson Buddhika Manatunga confirmed that the probe will be conducted in collaboration with the Assistant Election Commissioners of the respective provinces.
The Election Commission recently revealed that a total of 1,040 candidates have been referred to the police for neglecting to file their mandatory financial reports following the 2024 parliamentary elections.
This includes over 900 individual candidates, several political parties, and a number of members elected through the national list.
The deadline for submitting the required expenditure reports for the 2024 parliamentary elections was December 6, and any failure to comply with this deadline is considered a serious offence.
The Chairman of the National Election Commission, R.M.A.L. Rathnayake, has made it clear that any candidate found guilty of not submitting their financial statements will face disqualification, not only from the current election but also from contesting in future provincial council or local government elections.
In addition to the parliamentary candidates, the police spokesperson also disclosed that 13 candidates from the presidential election are currently under scrutiny for similar offences.
These individuals failed to submit their expenditure reports following the presidential election, and the matter has already been forwarded to the courts for further action.
