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M.A.L.S. Manthrinayake appointed Secretary to the Ministry of Fisheries, Aquatic, and Ocean Resources

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December 09, Colombo (LNW): Attorney-at-Law M.A.L.S. Manthrinayake has been appointed as the new Secretary to the Ministry of Fisheries, Aquatic, and Ocean Resources.

The appointment, made by President Anura Kumara Dissanayake, was officially confirmed today at a ceremony held at the Presidential Secretariat.

In a formal exchange, Dr. Nandika Sanath Kumanayake, the Secretary to the President, presented the appointment letter to Manthrinayake, marking the beginning of his tenure in this significant governmental role.

With a strong background in law and public service, Manthrinayake’s appointment to this key position comes at a crucial time for Sri Lanka’s fisheries and aquatic sectors, which are vital to the nation’s economy and sustainable development efforts.

His extensive expertise is expected to contribute significantly to the advancement of policies and initiatives aimed at enhancing the management and conservation of the country’s rich aquatic and ocean resources.

SL Navy marks 74th Anniversary with celebrations, new milestones, and commitment to national security

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December 09, Colombo (LNW): The Sri Lanka Navy has commemorated its 74th anniversary today, celebrating a proud legacy of maritime defence and national service.

Under the leadership of Vice Admiral Priyantha Perera, the Navy has organised a series of events across its commands, highlighting both the service’s enduring traditions and its vital role in securing the nation’s maritime boundaries.

As part of the anniversary celebrations, the Navy announced the advancement of 2,138 sailors to higher ranks, with promotions spanning across senior and junior levels.

This includes the elevation of 158 sailors to Ordinary Seaman, 279 to Able Seaman, 406 to Leading Seaman, 391 to Petty Officer, 539 to Chief Petty Officer, 354 to Fleet Chief Petty Officer, and 11 to Master Chief Petty Officer, a move that underscores the Navy’s ongoing commitment to recognising and rewarding its personnel.

The history of the Sri Lanka Navy dates back to 1937 with the establishment of the Naval Volunteer Force in colonial Ceylon. Over the decades, the force has evolved, first becoming the Royal Ceylon Navy in 1950 and later transforming into the Sri Lanka Navy in 1972, following the country’s transition to a republic.

From its humble beginnings, the Navy has grown into a powerful force dedicated to safeguarding Sri Lanka’s maritime interests.

In the early 1980s, as internal conflicts escalated, the Sri Lanka Navy transitioned from ceremonial duties to a key military force in the battle against terrorism.

The Navy played a crucial role in the successful humanitarian operation that brought an end to nearly three decades of conflict, acting as the nation’s first line of defence during critical moments of the war.

Today, the Sri Lanka Navy remains the only seafaring force in the country, actively contributing to regional stability. Its responsibilities extend beyond national security, including combating illegal activities such as drug trafficking, human smuggling, and piracy in Sri Lanka’s waters.

In partnership with the Combined Maritime Forces (CMF), the world’s largest maritime coalition, the Navy helps maintain a rules-based order on the high seas, ensuring safe passage for international shipping.

The Navy’s role on the global stage is set to grow even further, with the Sri Lanka Navy preparing to assume command of Combined Task Force (CTF) 154, a unit within the CMF, starting in January 2025.

This significant achievement further elevates the Navy’s stature internationally, positioning Sri Lanka as a respected contributor to maritime security and stability.

A key element of the Navy’s ongoing development is its “Maritime Strategy 2030 and Beyond”, a forward-thinking initiative aimed at enhancing the Navy’s capabilities through advanced technology, improved infrastructure, and the development of professional manpower.

The strategy is designed to ensure that Sri Lanka remains prepared for emerging challenges, including non-traditional maritime threats.

In line with its anniversary celebrations, the Sri Lanka Navy also held a series of religious ceremonies to mark this significant occasion. Multi-faith services included a Kanchuka Puja and Flag Blessing at the Ruwanwelisaya and Jaya Sri Maha Bodhi in Anuradhapura, a Christian Commemoration at St. Lucia’s Cathedral, and a Hindu Puja at the Sri Ponnambalawaneswarar Kovil in Colombo.

Islamic prayers were held at the Jummah Mosque, while an all-night Pirith Chanting ceremony was conducted at the Welisara Naval Complex.

Furthermore, offerings and prayers were held at several key religious sites, including the Temple of the Sacred Tooth Relic in Kandy and the Sandahiru Seya in Anuradhapura.

As part of its commitment to community welfare, the Navy also organised blood donation drives across the Eastern and Northwestern Naval Commands, with many personnel participating in this life-saving initiative.

In a heartfelt gesture, the Navy Welfare Directorate, under the guidance of Vice Admiral Priyantha Perera, is reaching out to the families of fallen or missing naval personnel.

This initiative is aimed at ensuring the well-being of these families, offering support and recognition for the sacrifices made by their loved ones in service to the nation.

Under the steadfast leadership of the Commander in Chief of the Armed Forces, President Anura Kumara Dissanayake, and the Ministry of Defence, the Sri Lanka Navy remains vigilant and prepared to face any maritime challenge.

Vehicle importers await official gov decision on resumption of imports

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December 09, Colombo (LNW): The Vehicle Importers’ Association of Sri Lanka (VIASL) has confirmed that, as of now, no official communication has been received from the government regarding the resumption of vehicle imports, leaving the industry in a state of uncertainty.

Prasad Manage, President of the VIASL, expressed concern over the ongoing uncertainty, which is having a negative impact on the vehicle market.

He noted that this lack of clarity is creating anxiety among both buyers and sellers in the sector.

“The vehicle import industry has been at a standstill for the past 4-5 years, and the current situation is pushing our sector to the brink of collapse. It is crucial for the government to act now and allow the resumption of imports,” Manage said. “Our initial focus would be on importing buses and lorries, with other vehicle categories following in later stages. However, we have yet to receive any formal decision from the authorities on this matter.”

The prolonged suspension of vehicle imports has left many vehicle owners in a difficult position, with some speculating about potential future price hikes, which in turn is affecting the resale market.

Manage has strongly urged vehicle owners to refrain from selling their vehicles at substantially lower prices due to these market speculations.

“We strongly advise vehicle owners not to succumb to the temptation of selling at reduced prices based on speculation or market rumour. No official timeline for the resumption of imports has been provided, and the uncertainty continues,” Manage added.

The VIASL president further stressed the need for the government to issue a clear statement on the matter, as such an announcement would help allay public fears and provide direction to the industry.

Until that time, vehicle owners are being urged to hold off on selling their vehicles at prices far below their true value.

Sri Lanka’s Dr. Nandadeva elected to UNESCO’s Intangible Cultural Heritage Evaluation Body

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December 09, Colombo (LNW): Dr. B. D. Nandadeva of Sri Lanka has been elected as an expert member of UNESCO’s Evaluation Body for the 2003 Convention on the Safeguarding of the Intangible Cultural Heritage (ICH) during the 19th session of the ICH Committee held in Asunción, Paraguay.

In a statement, the Sri Lankan Embassy in France confirmed that Dr. Nandadeva, a renowned cultural heritage scholar with more than four decades of experience, will serve on the prestigious body for a term of up to four years.

His extensive expertise includes in-depth knowledge of the ICH Intergovernmental Committee’s work and the complex process of inscription, making him a highly valuable addition to the Evaluation Body.

The ICH Evaluation Body, which is composed of twelve members, ensures broad global representation and covers a wide range of expertise.

This includes six state-nominated experts and six representatives from accredited non-governmental organisations, providing a balanced and diverse perspective on issues concerning cultural heritage.

The primary role of the ICH Evaluation Body is to assess and make recommendations regarding nominations for inclusion on UNESCO’s Lists of Intangible Cultural Heritage.

These lists include the Representative List of Intangible Cultural Heritage of Humanity, as well as the List of Intangible Cultural Heritage in Need of Urgent Safeguarding.

The body’s work is critical to ensuring the protection of various living cultural traditions, such as oral histories, performing arts, rituals, festive practices, traditional crafts, and other community-specific practices that are considered integral to cultural identity.

Dr. Nandadeva’s election highlights Sri Lanka’s significant and ongoing contribution to global efforts in preserving intangible cultural heritage.

This recognition also underscores the international community’s respect for Sri Lanka’s active participation in UNESCO’s initiatives and its commitment to safeguarding cultural traditions worldwide.

With Dr. Nandadeva’s expertise, Sri Lanka is now better positioned to play a key role in shaping cultural policy and safeguarding practices at the international level.

The election process was facilitated by Sri Lanka’s Ministry of Foreign Affairs and the country’s Permanent Delegation to UNESCO, with assistance from Sri Lanka’s overseas diplomatic missions.

SL makes significant strides in combatting financial crime, ranks amongst top performers globally

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December 09, Colombo (LNW): Sri Lanka has made remarkable progress in the global fight against money laundering and terrorist financing, earning a place among the top ten countries showing the greatest improvement, according to the latest 13th Basel Anti-Money Laundering (AML) Index for 2024.

The country achieved an impressive 27 per cent enhancement in its efforts to tackle financial crime, as evidenced by the substantial reduction in its risk score, which fell from 5.42 in 2023 to 5.28 this year.

This improvement has moved Sri Lanka up the rankings, with the nation now sitting at 80th place among 164 jurisdictions, compared to 62nd in the previous year’s assessment, which included 152 countries.

This notable shift highlights Sri Lanka’s ongoing commitment to strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks.

Sri Lanka’s success in these areas reflects the positive outcomes of its recent reforms.

The Basel Index, which is a comprehensive, data-driven tool assessing global risks related to money laundering and financial crimes, recognises the significant strides made by countries that were once regarded as high-risk due to insufficient technical compliance with international standards.

Sri Lanka, which had previously been grey-listed by the Financial Action Task Force (FATF), is now widely seen as an example of how such designations can serve as a catalyst for necessary and transformative changes.

The Basel Index evaluates countries across five key domains that are critical in understanding money laundering risks: corruption, financial secrecy, public transparency, the effectiveness of AML/CFT measures, and overall governance.

These areas are assessed through data collected from 17 publicly available sources, allowing the Basel Institute on Governance to determine risk scores for each country.

Following its removal from the FATF’s grey list, Sri Lanka has made continued progress in aligning with FATF’s rigorous standards. The latest ranking confirms that Sri Lanka is not only a leader in South Asia but also stands out globally for its enhanced compliance efforts.

Notably, Sri Lanka remains the only South Asian nation to score above the global average in the Basel Index, even though both India and Nepal have been included in this year’s Public Edition due to improved data availability.

However, despite Sri Lanka’s positive strides, the broader South Asian region still faces significant challenges in several key areas. The report noted that issues related to public transparency and accountability remain a concern across the region, with the average regional scores in these areas still trailing behind the global average.

Globally, the 2024 report also highlighted a troubling trend in the Domain 2 category, which assesses corruption and fraud.

The risk scores for this domain rose from 5.02 in 2023 to 5.12 in 2024, a reflection of changes in both the inclusion of new fraud-related indicators and shifting performances on existing corruption and bribery metrics.

High-income nations with major financial hubs, such as New Zealand, Switzerland, and Singapore, were particularly affected by this increase, as nearly 44 per cent of countries saw higher risk scores in this domain.

Nevertheless, Sri Lanka emerged as one of the countries benefiting from the revision of indicators in Domain 2. Approximately half of the countries, including Sri Lanka, saw lower risk scores, positioning the island nation among the top twenty beneficiaries of this methodology change.

Looking ahead, Sri Lanka’s improved standing in the Basel Index provides a strong foundation for its upcoming Mutual Evaluation (ME) in 2025.

Showery conditions expected to further enhance due to low-pressure area in Southeast Bay of Bengal (Dec 09)

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By: Isuru Parakrama

December 09, Colombo (LNW): The Low-Pressure Area in the southeast Bay of Bengal is likely to move west-northwestwards and reach over southwest Bay of Bengal off Sri Lanka – Tamil Nadu coasts around December 11, the Department of Meteorology said in its daily weather forecast today (09).

Under its influence, showery conditions are expected to enhance in the Northern and Eastern provinces from tomorrow (10).

The Northeast monsoon condition also expected to establishing gradually over the island along with above condition.

Several spells of showers will occur in Northern and Eastern provinces and in Matale district.

Showers or thundershowers may occur at several places in Western and Sabaragamuwa provinces and in Galle, Matara, Nuwara-Eliya and Kandy districts during the evening or night.

Fairly heavy showers about 75mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.

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

The general public is kindly requested to take adequate precautions minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Navel and fishing communities, engaging activities over South-west Bay of Bengal are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regards.
Condition of Rain:
Showers will occur at several places in the sea areas extending from Batticaloa to Kankasanthurai via Trincomalee.Showers or thundershowers will occur at a few places in the sea areas off the coast extending from Colombo to Hambantota via Galle during the evening or night.
Winds:
Winds will be North-easterly in direction in the sea areas around the island. Wind speed will be (30-40) kmph.
State of Sea:
The sea areas around the island will be moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka Original Narrative Summary: 09/12

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  1. President Anura Kumara Dissanayake says political stability in Sri Lanka has created a favourable environment for investment: He assured that investment opportunities would not be influenced by political affiliations and that the Board of Investment (BOI) would have full autonomy to attract beneficial, clean investments: During a meeting with BOI officials, he emphasised the need for both political and financial stability, announcing plans to enhance the BOI’s efficiency and establish five new investment zones in the coming year.
  2. Opposition Leader Sajith Premadasa stated that the current government will honour the agreement made by the Ranil Wickremesinghe administration with the International Monetary Fund (IMF), leading to an additional burden of 2.3 billion US dollars for Sri Lanka’s debt relief: He made these comments during a Samagi Jana Balawegaya party meeting in Negombo, held under his leadership.
  3. Minister Vijitha Herath says for the first time, Sri Lanka has combined foreign affairs and tourism under a single ministry, reflecting their interconnected nature: He made this statement during the International Bazaar and Cultural Extravaganza 2024 in Colombo, which featured international cuisine, cultural performances, a fashion show, and a charity raffle: Prime Minister Dr. Harini Amarasuriya highlighted the need for Sri Lanka’s Apparel and Textile sector to become globally competitive: Funds raised from the event will support the M. H. Omar Liver Care Facility.
  4. The Essential Food Commodities Importers & Traders Association says the first shipment of imported rice is expected to arrive in Sri Lanka next week: Rice has been ordered from India and Pakistan, following the government’s decision to allow rice imports without control permits until December 20, 2024, due to local shortages: President Anura Kumara Dissanayake has also set regulated prices for rice, which rice mill owners began supplying to the market at controlled rates from December 8.
  5. Starting today (09), Lak Sathosa will sell 200,000 coconuts daily at concessionary rates: Minister Wasantha Samarasinghe announced that coconuts will be available for 130 rupees each at Sathosa outlets in Colombo and other urban areas: This is an increase from the previous 100,000 coconuts sold daily: Coconuts from state-owned plantations will be distributed through Lak Sathosa.
  6. Private companies have requested government permission to import salt due to challenges in domestic production: Minister Wasantha Samarasinghe confirmed the request, noting issues in local production: Lanka Salt Limited’s GM, R.M. Gunaratne, stated that while there is a 12-month supply, adverse weather has reduced production: Despite current reserves, some traders have raised prices amid concerns of a shortage: A final decision will follow consultations with the Ministry of Industry.
  7. The Department of Meteorology has issued an advisory for heavy rain, strong winds, and rough seas in the Southeast Bay of Bengal deep sea areas: A low-pressure area in the region is expected to move west-northwest and reach the southwest Bay of Bengal near Sri Lanka-Tamil Nadu coasts by December 11: Very strong winds of 60 km/h, heavy rainfall, and rough seas are forecasted: Fishing and naval communities are advised to monitor further updates.
  8. Japan has donated 300 million rupees in aid to Sri Lanka for disaster relief, including tents, mattresses, plastic sheets, and other essential supplies: The aid, delivered via a special cargo plane from Japan, was received at Bandaranaike International Airport by officials, including the Secretary of Defence and the Director General of the Disaster Management Centre: The Japan International Cooperation Agency (JICA) facilitated the donation.
  9. The 2024/25 Sripada pilgrimage season will begin on December 14, with a procession carrying sacred relics, the deity’s image, and royal regalia from Sripada Rajamaha Vihara to Sri Padasthanaya: The procession will follow multiple routes through Ratnapura, Hatton, and Nallathanniya: Authorities, under Ven. Bengamuwe Dhammadinna Thera’s guidance, have arranged facilities for pilgrims and prohibited plastic bottles and tobacco along the route: Police will ensure safety and prevent intoxicants.
  10. Sri Lanka’s young innovators excelled at the Asia Pacific ICT Alliance Awards (APICTA) 2024 in Brunei, with three students earning accolades: Dasindu Sithmira Mahabodhi won second place in the Junior Category, while Sineth Daham Bandara Jayasundera and Ramiru Thehan Wijayasiriwardhane received merit awards in the Senior Category: The competition, with 17 participating countries, highlighted their exceptional creativity and technological skills.

U.S. Reaffirms Support for Sri Lanka’s Anti-Corruption Efforts

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By: Staff Writer

December 08, Colombo (LNW): The U.S. Assistant Secretary of State for South and Central Asian Affairs, Donald Lu, pledged unwavering support for Sri Lanka’s anti-corruption initiatives during a meeting with President Anura Kumara Dissanayake on December 7.

 Mr. Lu emphasized the United States’ commitment to providing financial and technical assistance to bolster Sri Lanka’s economy, security, and corruption eradication programs, according to the President’s Media Division.

Among the key areas of collaboration discussed was the recovery of funds illegally moved out of Sri Lanka? Mr. Lu also commended the Sri Lankan administration’s focus on addressing political, economic, and social challenges, reiterating U.S. support for preserving the country’s sovereignty and territorial integrity.

President Dissanayake acknowledged the deep-rooted influence of political culture on corruption and waste in Sri Lanka. He outlined his government’s initiatives aimed at fostering a new political culture, improving rural living standards, and reforming public services to enhance governance.

The Scope of Corruption in Sri Lanka

Sri Lanka ranked 115th out of 180 countries on the 2023 Corruption Perceptions Index (CPI) with a score of 34, reflecting widespread corruption in the public sector.

Transparency International describes corruption as the misuse of entrusted power for personal gain, which erodes trust, undermines democracy, hinders economic progress, and exacerbates social inequalities.

Corruption distorts democratic institutions by compromising electoral processes, weakening the rule of law, and encouraging bribery in bureaucratic systems.

The causes of corruption range from greed and political monopolization to weak democratic frameworks and lack of press freedom.

Inefficient bureaucracies and inadequate governance systems often perpetuate corruption, creating barriers to public service delivery. Although some scholars argue that corruption may occasionally “grease the wheels” of economic development, research consistently demonstrates that corruption-free institutions improve governance and overall human well-being.

Corruption in public services and state-owned enterprises (SOEs) further aggravates governance challenges. Ineffective institutions result in substandard delivery of essential services like healthcare, education, and law enforcement.

Meanwhile, SOEs—vital players in sectors like transportation, electricity, and telecommunications—are often exposed to corruption due to their proximity to governments, weak corporate governance, and involvement in politically sensitive processes.

 Global Lessons and Sri Lanka’s Path Forward

Governance reforms are crucial to addressing systemic corruption, but they require a delicate balance between expertise and democratic participation. Checks and balances, transparency, and an informed citizenry are essential for effective policy making and public accountability. While some reform efforts have succeeded in curbing corruption, others have failed, squandering resources and opportunities.

 The Organisation for Economic Co-operation and Development (OECD) has highlighted the disproportionate vulnerability of SOEs to bribery and corruption. Between 1999 and 2013, 81% of foreign bribery cases involved SOEs, underscoring their role in political financing and rent-seeking. Addressing these issues necessitates strengthening corporate governance and insulating SOEs from political interference.

 As Sri Lanka collaborates with international partners like the United States to combat corruption, the nation has an opportunity to lay the groundwork for a more transparent and accountable system. Governance reforms, alongside anti-corruption measures, can help restore public trust, attract foreign investment, and enhance the quality of life for all Sri Lankans.

SL Vehicle Verification System gets underway amid Luxury Car Fraud

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By: Staff Writer

December 08, Colombo (LNW): Sri Lanka Customs is set to launch a motor vehicle verification system to combat fraudulent vehicle imports and safeguard the country from revenue loss.

By accessing the Customs website and entering a vehicle’s chassis number, users can verify if the vehicle was legally imported.

This initiative aims to restore public confidence in vehicle transactions and address a significant tax evasion scandal.

The system’s introduction follows the discovery of a major fraud involving over 200 luxury vehicles.

These vehicles were falsely registered in the Motor Traffic Department (MTD) database as having been imported before 2005 to evade customs duties.

The scam, which involved high-end models like Jeeps, Land Cruisers, and Monteros, has caused the government an estimated loss of Rs. 3 billion in unpaid taxes.

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) initiated an investigation after receiving a tip-off about 400 vehicles registered without paying duties. Customs records for 51 of these vehicles were missing, prompting immediate legal action.

 On April 5, 2024, Colombo Chief Magistrate Prasanna de Alwis issued an interim order suspending ownership changes of the 51 vehicles in question.

At a press conference, Customs Media Spokesman Additional Director General Seevali Arukgoda highlighted the benefits of the new system.

 Users will be able to verify vehicle import details from anywhere in the world, ensuring transparency and reducing fear among buyers about unknowingly purchasing illegally imported or assembled vehicles.

Additionally, Customs has implemented a new data and tracking system to facilitate smoother import-export processes. The system enables importers to track the location of containers worldwide, addressing congestion and inefficiencies in customs clearance.

Legal action has been swift, with the Colombo Chief Magistrate’s Court issuing summons to six individuals, including a Deputy Commissioner of the Motor Traffic Department, a software developer, clerks involved in vehicle registration, and two importers.

They face charges under the Anti-Corruption Act of 2023, the Bribery Act of 1994, and the Customs Ordinance. Twenty seized vehicles have been handed over to Customs for further investigation.

The fraudulent activity reportedly stems from a loophole exploited during the pre-2021 period, before the government imposed a vehicle import ban due to the economic crisis. With restrictions on imports set to be lifted in February 2025, concerns about systemic vulnerabilities persist.

 CIABOC has pledged to take strict legal action to address the financial losses and ensure accountability.

Investigations into the remaining 349 vehicles continue, with the Bribery Commission working to bring all perpetrators to justice. Sri Lanka Customs hopes that the new verification system and stricter monitoring will prevent future incidents of corruption and bolster the integrity of the import-export process.

New Government Plans Relief Measures for SMEs tackling Debt Crisis

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By: Staff Writer

December 08, Colombo (LNW): The Sri Lankan government is preparing a comprehensive relief scheme targeting small and medium enterprises (SMEs) as a suspension of parate executions (foreclosures) ends on December 15.

Deputy Finance Minister Harshana Suriyapperuma revealed that the government, in collaboration with the Central Bank, is devising mechanisms to support SMEs in financial distress.

Speaking in Parliament, Suriyapperuma noted that the administration has analyzed debt data to assess the scale and nature of SME challenges. “We are finalizing a system to deliver maximum benefits to the largest number of SMEs, which will soon be submitted to the Cabinet for approval,” he said.

The analysis revealed that many bad loans date back over five years, including those incurred before the 2019 Easter Sunday bombings and during subsequent economic crises.

The country has provided multiple debt moratoria in the past, starting after the Easter Sunday attacks, followed by relief during the pandemic and the economic fallout from the currency collapse.

However, SMEs have continued to face difficulties due to reduced consumer demand, inflation, high production costs, and elevated interest rates.

The government is prioritizing SME relief through high-level discussions involving the Finance Ministry, Central Bank, and commercial banks.

The President’s Media Division (PMD) reported that a meeting chaired by Senior Additional Secretary for Finance and Economic Affairs G.N.R.D. Aponsu explored ways to support SMEs as the temporary suspension of debt recovery nears expiration.

The meeting also considered preparing a comprehensive report on SME loans to guide future relief measures.

Central Bank and commercial banks are reviewing options for extending the temporary suspension of parate executions.

This comes as SMEs, which account for 70% of Sri Lanka’s 1.3 million businesses and over 50% of GDP, struggle for survival. Many are burdened with unprecedented levels of debt, leading to operational shutdowns and financial crises.

According to former State Finance Minister Shehan Semasinghe, the 2024 budget proposal has allocated Rs. 50 billion for SME rehabilitation, emphasizing their importance to the national economy.

Of this, Rs. 30 billion will support SME recovery, while Rs. 50 million will be used to establish a facilitating institution under the Ministry of Finance in January. Another Rs. 50 million is earmarked for subsidized financial facilities to alleviate high borrowing costs.

However, Mahendra Perera, President of the National Trade Protection Council, cautioned that many SMEs are trapped in debt from earlier low-interest loans. He stressed the need for clear criteria in selecting eligible SMEs for the new relief scheme, noting past misuse of financial facilities. Perera also highlighted the impact of debt moratoria, which accrued interest on interest, leaving many SMEs vulnerable to parate executions.

The government’s new measures aim to balance SME recovery with prudent financial management, providing much-needed relief to stabilize Sri Lanka’s economy.