- President Anura Kumara Dissanayake highlighted the critical challenge of transforming Sri Lanka’s public service into an efficient state mechanism. He pointed out that the newly appointed committee tasked with reviewing state institutions would make decisions without being influenced by political pressures.
- The Government has not held any discussions nor have entered into any agreements with India regarding the proposed Economic and Technological Cooperation Agreement (ETCA) between India and Sri Lanka during President Anura Kumara Dissanayake’s recent state visit to India. Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath said this during the special media conference.
- Lanka Sathosa has begun distributing imported rice stocks through its outlets from yesterday. Lanka Sathosa Chairman Dr.Samitha Perera said 1,500 metric tonnes of rice was purchased for this purpose.
- A Gazette notification has been issued establishing an 18 member Presidential Task Force to plan and implement the “Clean Sri Lanka” Programme, a key feature in President’s policy statement. They have been tasked with preparing a plan, guide, implement, review the progress, and complete the “Clean Sri Lanka” programme within a given time frame aiming to achieve the objectives of elevating society to a more advanced status through a social, environmental and ethical awakening.
- SLPP Member of Parliament D.V. Chanaka has been appointed as the National Convenor of the Sri Lanka Podujana Peramuna (SLPP).
- President Anura Kumara Dissanayake says that the Local Government Elections will be held next year before the Sinhala and Tamil New Year.
- The Panadura Magistrate’s Court has granted bail to notorious underworld figure and drug kingpin Salindu Malshitha Gunaratne, also known as ‘Kudu Salindu’, on three sureties of Rs. 01 million each.
- Sri Lanka will soon formulate a national policy on allowing visits by foreign research vessels, Foreign Minister Vijitha Herath said here on Friday, amidst frequent docking requests from Chinese surveillance ships which raised concerns in India. Herath’s comments came days after Sri Lankan President Anura Kumara Dissanayake’s visit to India.
- The Panadura Magistrate’s Court has granted bail to notorious underworld figure and drug kingpin Salindu Malshitha Gunaratne, also known as ‘Kudu Salindu’, on three sureties of Rs. 01 million each.
- Sri Lanka Cricket (SLC) has announced significant amendments to its Constitution following an Extraordinary General Meeting (EGM) held on Friday (December 20), including a substantial reduction in the total number of voting members from 147 to 60. The amendments reaffirm SLC’s commitment to fostering good governance, transparency, inclusivity, and efficiency in its management structure, the SLC said in a statement.
Sri Lanka Original Narrative Summary: 21/12
Lanka Sathosa Begins Distribution of Imported Rice Stocks
Lanka Sathosa has commenced distributing imported rice stocks through its outlets as of yesterday, according to Chairman Dr. Samitha Perera. A total of 1,500 metric tonnes of imported rice has been procured for this initiative.
Dr. Perera emphasized that the distribution of locally produced rice at controlled prices continues uninterrupted through Lanka Sathosa outlets, ensuring no shortage for consumers.
Meanwhile, the government has announced an extension of the deadline for rice imports until January 10, 2025. This decision was finalized during a discussion held at the Trade Ministry last night, providing additional time for importers to meet domestic demand.
Sri Lanka Customs reports that 35,600 metric tonnes of rice stocks ordered by private importers have already arrived in the country, further contributing to the available supply.
These measures aim to stabilize rice availability and prices in the market while addressing any potential shortages.
Presidential Task Force Established to Implement “Clean Sri Lanka” Programme
A Gazette notification has officially announced the establishment of an 18-member Presidential Task Force to spearhead the “Clean Sri Lanka” Programme, a cornerstone initiative in the President’s policy agenda. The task force is mandated to design, guide, implement, and monitor this initiative within a specified time frame to foster a social, environmental, and ethical transformation in the country.
The task force is led by Secretary to the President, Dr. N.S. Kumanayake, with Senior Additional Secretary to the President G.M.R.D. Aponsu acting as the Convener and Secretary. Its members include high-ranking officials, scholars, and representatives from various sectors, reflecting a multidisciplinary approach to achieving the programme’s objectives.
The core responsibilities of the task force include:
- Formulating and implementing a comprehensive national-to-rural level structure for the programme.
- Engaging scholars, professionals, experts, and institutional representatives to contribute their subject expertise.
- Collaborating with a wide range of stakeholders, including government and semi-government sectors, private enterprises, research institutions, civil society organizations, non-governmental organizations, international bodies, religious groups, and the Sri Lankan diaspora.
- Raising and managing funds for the “Clean Sri Lanka” initiative.
- Aligning existing programmes by various stakeholders with the “Clean Sri Lanka” objectives.
- Identifying necessary legal provisions to ensure the programme’s long-term sustainability and establishing institutional frameworks for enforcement.
- Leveraging digital technologies to ensure effective planning, implementation, monitoring, and continuity of the initiative.
- Developing and implementing a multi-modal communication strategy to positively engage all stakeholders and promote widespread participation.
The programme emphasizes preserving Sri Lanka’s natural beauty, cleaning public spaces, and protecting coastal areas while addressing environmental challenges. It is structured to promote social, environmental, and ethical awakening, strengthening environmental sustainability alongside economic and social well-being.
Aimed at enhancing the efficiency of the state machinery, the “Clean Sri Lanka” initiative seeks to align efforts across various sectors to achieve its ambitious goals. The task force is required to submit progress reports to the President periodically, ensuring transparency and accountability in executing the programme’s tasks.
Through this comprehensive and collaborative approach, the “Clean Sri Lanka” Programme aspires to elevate the nation to a more sustainable and advanced future.
President Dissanayake Emphasizes Public Service Reform at Secretaries’ Conference
President Anura Kumara Dissanayake highlighted the critical need to transform Sri Lanka’s public service into an efficient and trusted state mechanism during the District Secretaries and Divisional Secretaries conference held yesterday (20) at the Home Affairs Ministry Auditorium in Narahenpita.
Speaking to attendees, the President acknowledged the nearly 200-year history of the public service but expressed concern over its current inefficiency and lack of public trust. He emphasized that the public service has deviated from its intended objectives and must undergo significant reforms to restore its effectiveness. He pointed out that both political authorities and public officials must introspect and determine their readiness to rebuild the system.
The President stressed the importance of leadership within the public sector and stated that the focus should be on the capabilities of those holding key positions. He highlighted the lack of dynamic leadership in certain areas and announced plans to provide training for 1,500 officials in India as part of a recently signed Memorandum of Understanding. He also revealed plans to offer scholarships for higher education abroad to Advanced Level students next year.
President Dissanayake reaffirmed his commitment to impartial decision-making by the newly formed committee tasked with reviewing state institutions. He assured that the committee would operate free from political influence and would focus on restructuring state institutions to improve efficiency rather than reducing their size.
He outlined plans to expedite the Digital Identity Card initiative and launch the “Clean Sri Lanka” project starting January 1, 2025. These initiatives aim to modernize public services, promote sustainability, and elevate the country’s overall development. The President also emphasized the government’s commitment to addressing high public sector expenditure by implementing structural and efficiency-focused reforms.
The President pledged his full support to public officials who face challenges while working toward these goals. However, he warned that any deliberate efforts to obstruct or neglect these tasks would result in firm action. He noted that collaboration between political authorities and public servants is essential to achieve the country’s development objectives.
President Dissanayake reiterated the importance of eradicating poverty, driving digital transformation, and reshaping societal attitudes to create a more efficient and effective public service. He assured attendees that these reforms would have his full political backing, aiming to create a public sector capable of meeting the nation’s evolving needs.
The conference was attended by Prime Minister Dr. Harini Amarasuriya, Public Administration Minister Dr. Chandana Abeyrathne, and other senior officials, along with District and Divisional Secretaries.
Sri Lanka Clarifies Position on ETCA and Strengthened Ties with India During President’s State Visit
The Sri Lankan Government has confirmed that no discussions or agreements were made regarding the proposed Economic and Technological Cooperation Agreement (ETCA) with India during President Anura Kumara Dissanayake’s recent state visit. Foreign Affairs, Foreign Employment, and Tourism Minister Vijitha Herath made this clarification at a special media briefing held yesterday (20) at the Department of Government Information.
Minister Herath emphasized that the state visit was a significant success, further solidifying bilateral relations between the two countries. Key outcomes of the visit include strengthened cooperation in economic, cultural, digital, technological, environmental, and other sectors.
Key Agreements and Initiatives
Two Memorandums of Understanding (MOUs) were signed:
- Public Service Training: A two-week training program in India for 1,500 Sri Lankan state officials over the next five years.
- Double Taxation Removal: A measure to eliminate double taxation for Sri Lankan businesses in India and vice versa, fostering economic benefits for the business communities of both nations.
Discussions on Fisheries Issues
The ongoing issues between Sri Lankan fishermen and South Indian fishing communities were also addressed. President Dissanayake highlighted concerns over bottom trawling by South Indian fishermen in Sri Lankan waters and arrests for trespassing. Both governments agreed to expedite discussions to find a permanent solution.
Infrastructure and Economic Development Projects
India pledged support for various development projects, including:
- Housing Projects: Continuation of Indian-funded housing initiatives in Sri Lanka.
- Mahawa–Omanthai Railway Line Renovation: Conversion of the Indian loan into a grant to complete the railway renovation, including a traffic signal system and operationalization of two trains between Anuradhapura and Jaffna.
- Karainagar Boat Complex: Grant funding for the construction of a boat complex to benefit the fishing industry in the North and nationwide.
Energy Cooperation
Sri Lanka and India reaffirmed their commitment to several energy projects:
- Sampur Solar Power Project: Continued collaboration under an existing agreement.
- Renewable Energy Initiatives: Discussions on joint LNG and wind power projects, with plans to export excess electricity through India under BIMSTEC cooperation.
- Multi-Product Oil Pipeline: A proposed joint venture involving Sri Lanka, India, and the UAE to construct a pipeline to supply affordable energy.
Maritime and Security Assurances
President Dissanayake proposed initiating talks to finalize Sri Lanka’s Exclusive Economic Zone (EEZ) demarcation, a proposal India agreed to discuss. The President also assured India that Sri Lankan territory, including land and sea, would not be used by any foreign power to threaten regional security.
Commitment to Responsible Agreements
Minister Herath stressed that the Sri Lankan government remains committed to agreements that prioritize the country’s well-being. “The government under President Anura Kumara Dissanayake will not agree to anything that is detrimental to the country in any way,” he affirmed.
This state visit marked a pivotal step in fostering stronger ties between India and Sri Lanka, with mutual agreements and discussions aimed at long-term benefits for both nations.
WEATHER FORECAST FOR 21 DECEMBER 2024
Several spells of showers will occur in Western and Sabaragamuwa provinces and in Galle and Matara districts.
Showers or thundershowers will occur at several places in Eastern, Central and Uva provinces and in Hambantota and Polonnaruwa districts during the evening or night.
Misty conditions can be expected at some places in Central, Sabaragamuwa, Uva and Eastern provinces during the morning.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
Politics aside: 5 critical steps to safeguard Sri Lanka’s hard-won gains in 2025
This week, social media was abuzz with controversy surrounding the qualifications of certain politicians within the ruling party and Opposition. The Opposition emphasised the importance of transparency and honesty in leadership, arguing that openly sharing qualifications is essential for maintaining public trust and accountability. They assert that this underscores a core principle of democratic governance: honesty as the foundation of public trust as highlighted by the NPP.
However, less than a month after the last General Election, this very principle seems to have backfired on the NPP, following the Speaker’s debacle. It is worth noting that educational qualifications are not a requirement to serve as a Member of Parliament in Sri Lanka. The eligibility criteria are limited to citizenship and being over 18 years of age.
At this critical juncture, what matters far more is charting a viable pathway out of the ongoing economic crisis. Sri Lanka faces significant debt payments due by 2027, and as the new year approaches, the focus must shift toward recovery and reform. Peter Breuer, Senior Mission Chief for Sri Lanka, has consistently emphasised that while the country has made commendable progress in its recovery efforts, it is still not out of the woods. Safeguarding the hard-won gains remains imperative.
To fully overcome the man-made crisis of 2021, the nation must prioritise the following five key areas:
1. Stabilisation of the economy and debt management
Sri Lanka must restore economic stability through disciplined fiscal management and sustainable debt restructuring. Debt of Sri Lanka is unsustainable, the roots of the crisis, was commercial borrowing for development. Therefore it is important to restore debt sustainability. Continued engagement with international financial institutions, such as the IMF, will help build investor confidence. Attracting foreign direct investment (FDI) in sectors like manufacturing, tourism, logistics, power and technology is vital for recovery and long-term growth.
2. Strengthening energy security
Addressing the energy crisis is critical. Transitioning toward renewable energy sources—solar, wind, and hydropower—will reduce dependence on costly fuel imports while aligning with global sustainability trends. Investments in infrastructure and energy policy reforms can transform Sri Lanka into a more energy-resilient nation, lowering costs for low income households and industries.
3. Skill development
Reforming the education system to match global standards is essential. Emphasising digital literacy, technical skills, and critical thinking will prepare the youth for a competitive regional economy. Public-private partnerships for vocational training and entrepreneurship development can bridge the gap between education and employment, addressing both skill shortages and unemployment.
4. Agricultural productivity and food security
Boosting agricultural efficiency, distribution and ensuring food security remain crucial. Modernising farming techniques, improving supply chains, and incentivising innovation can reduce dependency on imports while strengthening rural economies. Policies that empower farmers and promote sustainable business practices will ensure long-term agricultural resilience.
5. Poverty reduction
Poverty reduction is a critical priority, particularly after the economic crises that have widened income inequality and worsened living conditions. Expanding and strengthening social safety nets to reach vulnerable populations is vital. Transparent and efficient delivery of subsidies, cash transfers, and food assistance can directly alleviate poverty while fostering inclusivity. Therefore the authorities need to keep an eye on this vulnerable sector.
The path forward
Focusing on five key areas—economic stability, energy security, education reform, agricultural productivity, and poverty reduction—will be critical for Sri Lanka to navigate 2025 successfully. Addressing these priorities with urgency and unwavering commitment will not only drive recovery but also lay the foundation for a sustainable and inclusive future.
While current headline-grabbing issues such as eliminating corruption, recovering stolen assets, rightsizing the public service, and curbing wasteful Government expenditure are very important, they represent longer-term structural changes to the national fabric. These initiatives, though crucial, primarily serve as short-term optics and will not deliver substantial national benefits in the immediate or medium term. They also demand sustained political commitment and determination to achieve tangible outcomes.
In reality, focusing on these issues full time now risks consuming valuable bandwidth that is urgently needed to address the key priorities articulated in this article. By concentrating on what matters most, Sri Lanka can channel its human and financial resources and efforts toward building resilience and ensuring a stronger economic trajectory.
References:
https://slguardian.org/imf-exposes-critical-failures-in-sri-lankas-debt-management/amp/
https://www.aljazeera.com/amp/news/2024/11/23/imf-approves-third-review-of-sri-lankas-2-9bn-bailout-but-warns-of-risks
https://economynext.com/sri-lankas-imf-program-review-what-can-happen-next-181847/
Chandrasekhar C. P,, J. Ghosh and D. Das (2023): “Paying with Austerity: The Debt Crisis and Restructuring in Sri Lanka”, Working Paper, https://peri.umass.edu/publication/item/1776-paying-with-austerity-the-debt-crisis-and-restructuring-in-sri-lanka
https://slhcs2024.com/wp-content/uploads/2024/09/HC-Summit-Report-2024.pdf
DAILY FT
Former President Wickremesinghe Urges Adherence to IMF Agreement Amid Economic Criticism
Former President Ranil Wickremesinghe, in a statement issued today (19), stressed the importance of maintaining Sri Lanka’s commitment to the International Monetary Fund (IMF) agreement, warning that any deviation could lead to renewed economic turmoil.
Highlighting the critical role of the IMF program in stabilizing the country’s economy, Wickremesinghe emphasized that neither the government nor the opposition has the leeway to exit the agreement. “If we do so, economic problems will arise in this country again,” he cautioned.
He revealed that Sri Lanka is on the verge of issuing new international bond coupons before December 20, marking a significant step in the country’s recovery process. “All related activities are now completed. What remains is a declaration that we have emerged from bankruptcy, which will pave the way for banks to implement necessary relief measures,” he noted.
Addressing the need for economic relief, Wickremesinghe acknowledged the incremental increase of the income tax payment threshold from Rs. 100,000 to Rs. 150,000, while indicating that his efforts to raise it further to Rs. 200,000 were not approved by the IMF. “We should act accordingly and provide more relief after the economy becomes stronger,” he said.
The former President urged the government and opposition to align their economic criticism within the IMF framework, emphasizing that constructive criticism is essential but must not undermine the program’s progress.
“We must stick with this program through good times and bad,” he asserted. Wickremesinghe also urged the opposition to focus on pragmatic critique, reiterating that while their role is to question the government, their criticism should remain within the context of the IMF agreement to ensure economic stability.
The statement underscores the delicate balance Sri Lanka must maintain to sustain its economic recovery under the IMF program while addressing the pressing need for public relief measures.
Concerns over Solar Energy Frauds and CEB Tender Scandal in Sri Lanka
The Sri Lanka Sustainable Energy Authority (SLSEA) has issued a public warning urging both homeowners and institutions to verify the legitimacy of service providers before installing rooftop solar systems.
This advice comes as a response to an increase in complaints about fraudulent companies falsely claiming authorization to install solar systems. With the growing demand for solar energy due to rising electricity costs and the push for sustainable energy solutions, the rooftop solar program has gained significant popularity.
SLSEA has stressed the importance of exercising caution when selecting service providers, advising the public to confirm that the provider is registered with the SLSEA.
Only service providers that are officially registered with the SLSEA are authorized to carry out solar installations.
To ensure the legitimacy of the service provider, consumers can check the official SLSEA directory, which is accessible online.
SLSEA has made it clear that no solar imports or installations outside the scope of registered providers are authorized, ensuring compliance with the required technical and regulatory standards.
Adding to the growing concerns surrounding energy in Sri Lanka, the Electricity Users’ Association recently protested in front of the Criminal Investigation Department (CID) regarding a controversial tender awarded by the Ceylon Electricity Board (CEB) for a 100 MW solar power project in Siyambalanduwa.
The protest, which took place on May 27, involved a formal written complaint submitted to the CID by the association. The complaint alleges that the tender was illegally awarded to a bidder with an inflated bid, resulting in an Rs. 8.7 billion fraud that could impact both electricity consumers and the national treasury.
Sanjeeva Dhammika, the National Secretary of the Electricity Users’ Association, highlighted that multiple companies were involved in this fraudulent activity.
However, he stated that the names of the companies would be disclosed later due to ongoing legal proceedings. If justice is not served, these companies’ identities will be made public in the future.
Further revelations have exposed questionable practices at the CEB regarding the awarding of this tender. Despite claims by CEB that it was incurring losses, leading to a proposed increase in electricity tariffs, concerns have been raised about the CEB awarding the tender to a “preferred” bidder.
This decision resulted in a massive loss to the government. The winning bidder is part of a consortium that includes Lakdanavi Limited, Blue Circle Pvt Ltd, and WindForce PLC. Lakdanavi is a subsidiary of Lanka Transformers Limited (LTL), in which CEB holds a 63% stake.
It has been revealed that senior engineers at CEB are allegedly promised lucrative jobs at Lakdanavi upon their retirement, creating a potential conflict of interest. The engineers are accused of awarding tenders to consortium partners, bypassing proper tender conditions.
The most senior engineers reportedly play a role in influencing tender decisions to favor these companies, with allegations suggesting that these actions disregard proper procurement procedures.
While the lowest bidder failed to meet technical requirements, they were allegedly denied the opportunity to submit necessary documents, raising further questions about the integrity of the tender process.
The controversy surrounding the CEB’s actions has fueled public distrust, with calls for greater transparency and accountability in Sri Lanka’s energy sector.
Casino Industry without a Regulator deprives Govt’s Potential Revenue
Sri Lanka’s casino industry is under scrutiny as authorities grapple with tax evasion, regulatory gaps, and political delays in establishing a gaming regulatory authority. Despite initial approval by the previous government, the current administration has yet to implement key policies to oversee and regulate casinos effectively.
Tax Evasion and Revenue Losses
The lack of regulatory oversight has resulted in significant revenue losses. As of recent estimates, $7.4 million in casino taxes remain unpaid. Additionally, two casino businesses owe Rs. 2.98 billion in levies and fines. Sri Lanka’s Inland Revenue Department (IRD) failed to enforce penalties for late payments, amounting to Rs. 1.56 billion. These lapses have been attributed to inadequate internal controls and the absence of systematic tracking of gross casino receipts.
Proposed Measures to Regulate Casinos
In an attempt to regulate the industry, the government previously introduced measures including a Rs. 500 million licensing fee, a 15% turnover tax, and entrance fees to discourage local participation in casinos. However, enforcement has been inconsistent. For example, a $50 entrance fee introduced in April 2023 has not been fully implemented. The current plan aims to raise this fee to $200 within three years.
The Casino Business (Regulation) Act of 2010 required licenses, but none were issued until recently. Ten new operators have applied for licenses, yet no approvals have been granted. Four casino operators currently manage six casinos in Colombo, including prominent names like Bally’s and Bellagio Entertainment.
Plans for Expansion and Foreign Investment
Amidst regulatory uncertainty, there are plans to expand the casino industry as part of broader tourism and economic development strategies. Singapore’s Kreate Design Pte Ltd announced a $1 billion investment to transform the Colombo Lotus Tower into an entertainment hub, including a casino. Similarly, a joint venture between Golden Island Hospitality Ltd. and India’s Majestic Group is set to develop the Majestic Pride Casino at the Lotus Tower.
Challenges in Establishing a Regulatory Authority
The establishment of a dedicated gaming regulatory authority has been stalled. The previous administration approved the proposal to oversee casino tax collection, counter criminal activities, and mitigate societal harms. However, no progress has been made under the current government. Officials from the Ministry of Finance and the Board of Investment (BOI) confirmed that no new proposals or discussions on this matter have occurred in recent months.
Regulatory Framework and Legal Gaps
Sri Lanka’s gaming industry operates under several laws, including the Gaming Ordinance (1889) and the Casino Business Act (2010). These laws mandate licenses and designate specific zones for casino operations. Amendments to licensing regulations in 2022 introduced steep fees for new investments, requiring Rs. 10 billion for projects with a minimum investment of $250 million.
However, regulatory enforcement has been weak. Reports by the National Audit Office (NAO) revealed systemic issues, including the IRD’s failure to recover fines and the non-submission of required financial reports during the pandemic. The absence of robust internal controls has hindered transparency and accountability in revenue collection.
Outlook
The delay in establishing a gaming regulatory authority and the inconsistent enforcement of existing laws highlight the challenges facing Sri Lanka’s casino industry. While foreign investments offer potential economic benefits, unresolved policy and enforcement issues may undermine revenue generation and regulatory objectives.