August 30, Colombo (LNW): Sri Lanka’s small and medium-sized enterprises (SMEs) are poised for a significant transformation as the government partners with the International Finance Corporation (IFC) to harness their export potential. 

SMEs represent about 70% of the 1.3 million enterprises in the country, employing 2.2 million people and contributing over 50% of the national GDP. However, these enterprises are currently facing unprecedented financial challenges, with many deeply in debt.

The Cabinet of Ministers recently approved a cooperation agreement between the Export Development Board of Sri Lanka (EDB) and the IFC. This agreement, initiated by President Ranil Wickremesinghe in his role as Investment Promotion Minister, has received legal and diplomatic clearances, setting the stage for its implementation.

The business environment for 89% of SMEs has deteriorated, largely due to stringent legal measures taken by banks to recover loans. Official data reveals that, over the past eleven months, 1,183 SME assets have been seized and auctioned off under parate execution. 

This legal process, governed by Sri Lanka’s Banking Act, has forced many entrepreneurs to close their businesses as they are unable to meet loan repayments after the expiry of a moratorium provided by the Central Bank.

The cooperation agreement with the IFC aims to reverse this trend by transforming SMEs into active exporters. As part of the EDB’s broader initiative to foster new exporters and expand the export sector, this partnership will provide targeted support to SMEs.

 The focus is on helping these businesses scale up, enhance competitiveness, and successfully enter international markets.

Cabinet Spokesman Minister Bandula Gunawardena highlighted that this strategic partnership will bring significant benefits to SMEs, including access to valuable knowledge, training, and financial support. 

It aligns with the government’s broader goals of diversifying the export base, reducing economic vulnerabilities, and promoting sustainable development.

In response to the current SME crisis, State Finance Minister Shehan Semasinghe announced that the government has allocated Rs. 50 billion in the 2024 budget to support these enterprises.

 Of this, Rs. 30 billion is earmarked for rehabilitation efforts, which will be divided into two segments. 

A new facilitating institution will be established under the Ministry of Finance in January, with Rs. 50 million allocated for issuing guarantees and an additional Rs. 50 million for providing financial facilities at subsidized interest rates.

This initiative reflects the government’s commitment to revitalizing the SME sector, which plays a crucial role in the country’s economy.

 Through targeted support and international cooperation, Sri Lanka aims to turn its struggling SMEs into competitive players in the global market

August 30, Colombo (LNW): State Minister of Finance Shehan Semasinghe issued a stark warning that implementing promises made by opposition candidates could result in the immediate termination of the country’s International Monetary Fund (IMF) programs. He cautioned that such actions could jeopardize agreements with foreign debt holders and private bondholders, potentially leading to a severe economic crisis.

Speaking at a press conference at President Ranil Wickremesinghe’s political office in Colombo, Semasinghe emphasized the need to adhere to the IMF agreements. He noted that discussions with the IMF are ongoing regarding amendments to Pay As You Earn (PAYE) taxes, aiming to provide public relief with tax reductions expected by April 2025.

He also highlighted President Wickremesinghe’s newly launched presidential election manifesto, “Five Triumphant Years for Sri Lanka With Ranil,” crediting the President with transforming the country from the brink of economic collapse to a more stable state.

The State Minister stressed that the economy is the most pressing issue facing the country and pointed out that while various parties have proposed different economic strategies, there is little understanding of their feasibility. He emphasized that the benefits of the economic stability achieved are gradually being passed on to the people, with a portion reinvested to bolster economic resilience and mitigate the impact of the reform program on the public.

August 30, Colombo (LNW):President’s Counsel Anuj Premaratne informed the Maligakanda Magistrate’s Court that former Health Minister Keheliya Rambukwella is at a severe risk of becoming fully disabled or crippled. This statement was made during the hearing of the case concerning the distribution of substandard antibody vaccines in Sri Lankan hospitals.

Premaratne argued that granting bail to Rambukwella would be futile if he were to become totally disabled and requested the court to release him on suitable bail, citing inadequate treatment received from government hospitals. Deputy Solicitor General Lakmini Girihagama, representing the prosecution, suggested that Rambukwella’s bail could be considered after consulting a board of experts and reviewing their reports.

The magistrate directed Rambukwella to be examined by a board of expert medical practitioners and called for an urgent report. Additionally, the court ordered prison officials to refer Sudath Janaka Fernando, the owner of the pharmaceutical company and the first suspect in the case, to the Angoda National Institute of Mental Health following evidence of severe mental confusion and a suicide attempt in prison.

In a related case, Colombo High Court Judge Navaratne Marasinghe ordered prison officials to present Rambukwella to a medical panel, including a specialist in physical diseases at the Colombo National Hospital. This order was issued during the hearing of a case filed by the Bribery or Corruption Investigation Commission against Rambukwella and two other defendants, dating back to the 2015 presidential election when Rambukwella, then Minister of Media, allegedly misused 990,000 rupees in public funds to purchase 600 GI pipes.

1. Shahmy Shaheed, a young man from Beruwala who made headlines by walking 1,500 kilometers around Sri Lanka in just 45 days, was honoured by President Ranil Wickremesinghe at the President’s official residence in Colombo. Shahmy’s achievement serves as an inspiring example of how individual efforts can contribute to national pride and economic growth, particularly in the tourism industry.
2. The Samagi Jana Balawegaya’s (SJB) presidential candidate, opposition leader Sajith Premadasa has handed over his presidential election manifesto to the Chief Prelates of the Asgiriya and Malwathu Chapters. Accordingly, Premadasa’s presidential election manifesto will be released to the business community and the public on 04 September, 2024.
3. China had been an “easy source of money” for past governments and the National People’s Power (NPP) wants to ensure future investment isn’t wasteful, said Harini Amarasuriya, a lawmaker and a member of the NPP. Amarasuriya said the NPP wants to maintain ties with China since the country had been one of the few to back Sri Lanka when it faced global scrutiny for human rights violations as the civil war drew to a close.
4. The Election Commission has reported a total of 1,229 complaints related to the ongoing presidential election so far. Among these, a significant 1,172 complaints pertain to violations of election laws.
5. Sri Lanka Police says that more than 95% of the investigation activities into the recent killing of two persons including businessman Surendra Wasantha Perera, also known as ‘Club Wasantha’, have been completed thus far. Additionally, DIG Thalduwa also highlighted that all the main suspects including the two gunmen related to the case have already been identified, and taken into custody.
6. State Minister of Defence, Premitha Bandara Tennakoon, has announced that a significant change will be implemented in the system of providing ration allowances to armed forces personnel, effective from January. The Minister also emphasized that this adjustment aims to enhance the financial status of the personnel and improve transparency and accountability in financial matters.
7. Ambassador Andrés González thanked Sri Lanka for its support every year in the United Nations vote against the blockade of the United States against Cuba, an official source disclosed. In a meeting in Colombo with Dayani Mendis, director general of the United Nations and human rights of the Ministry of Foreign Affairs of Sri Lanka, González also highlighted that Sri Lanka is part of the group of 123 nations that signed a declaration before the Human Rights Council of the UN, demanding the exclusion of Caribbean Cuba from the list of State sponsors of terrorism created by Washington.
8. Sri Lanka’s Minister of Foreign Affairs Ali Sabry assured that Sri Lanka will not accept any resolutions brought forward by the United Nations Human Rights Council (UNHRC) regarding alleged human rights violations during the civil conflict that ended in 2009.
9. Former High Commissioner Milinda Moragoda presented a copy of the Pathfinder Foundation’s Study Group Report on India-Sri Lanka Physical Connectivity to Ajit Kumar Doval, National Security Advisor of India. Doval is in Colombo on an official visit.
10. Sri Lanka captain Dhananjaya de Silva won the toss and decided to bowl in the second test of the three-match series against England on Thursday under glorious sunshine at Lord’s. England made one enforced change from the side which won the first test by five wickets at Old Trafford last week, with seamer Olly Stone replacing the injured Mark Wood.

August 30, Colombo (LNW):Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts. Fairly heavy showers above 50 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle, Matara, Nuwara-Eliya and Puttalam districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts during the evening or night.

Strong winds about (40-50) 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.

The sun is going to be directly over the latitudes of Sri Lanka during 28^th of August to 06^th of September due to its apparent southward relative motion. The nearest places of Sri Lanka over which the sun is overhead today (30) are Vavuniya, Vannamoddai, Analkaddimady and Periyapandirichchan about 12.10 noon.

August 29, Colombo (LNW): Indian National Security Advisor Ajit Kumar Doval arrived in Sri Lanka today, where he is expected to hold discussions with several key presidential candidates, including the incumbent President Ranil Wickremesinghe and Sajith Premadasa, the candidate from the Samagi Jana Balawegaya (SJB).

Earlier in the day, Doval met with former Sri Lankan High Commissioner to India, Milinda Moragoda.

During their meeting, Moragoda presented Doval with a copy of the Pathfinder Indo-Lanka Physical Connectivity Report, a comprehensive study outlining strategies for enhancing physical links between the two nations.

The report, recently launched by the Pathfinder Foundation, serves as a detailed blueprint for developing infrastructure connectivity in the areas of road, rail, electricity, and petroleum.

The ultimate objective of this initiative is to foster closer economic integration between India and Sri Lanka, with the aim of boosting Sri Lanka’s annual economic growth rate from 3 per cent to 6 per cent.

The report, which Doval received during his visit, underscores the significance of strengthening bilateral ties through enhanced connectivity, which is seen as a vital step towards achieving sustained economic growth for Sri Lanka.

Photo Courtesy: Daily Mirror