August 17, Colombo (LNW): In view of the ongoing heavy rains, steps have been taken to issue pre-slide warnings for three districts. Accordingly, landslide warnings have been issued for Neluwa, Elpitiya, Nagoda, Yakkalamulla in Galle district, Horana, Matugama in Kalutara district and Pitabeddara in Matara district.
Sri Lanka, batik industry has been given an elevated status in collaboration with Indonesia Fostering Cultural and Economic collaboration between the two countries. .
In addition to these focal points, the meeting also highlighted the thriving collaboration between Sri Lanka and Indonesia. Both nations expressed keenness to explore avenues for increased trade, particularly in industries like batik production.
Notably, the trade volume between the two countries has seen a remarkable 6% increase in recent years, growing from 49 million to 475 million in 2021.
It was revealed that Indonesia’s diverse economy, supported by sectors such as manufacturing, agriculture, and services, presents numerous opportunities for partnership.
Trade, tourism, and the exploration of new avenues for cooperation are central to the objectives of strengthening the relationship between Sri Lanka and Indonesia, encompassing both economic and cultural aspects.
Batik originated in Indonesia and was introduced to Sri Lanka by the Dutch. But the batik industry in Sri Lanka has developed into a unique form of textile art exclusive to the country.
The Indonesian Embassy in Colombo, in partnership with the Professional Business Coaches Association (PBCA), recently organized an engaging Batik Workshop at the BMICH, featuring the expertise of two distinguished Batik artists from the Museum Tekstil Indonesia.
These artists shared their knowledge and skills with 42 Sri Lankan Batik artists, making the event a notable exchange of cultural and artistic traditions.
In addition to the Batik artists, the workshop was attended by representatives from the Ministry of Industries and prominent Batik entrepreneurs from Sri Lanka.
Indonesian Ambassador Dewi Gustina Tobing expressed her deep appreciation to all the attendees and emphasized the dual significance of Batik as both a cultural heritage and an economic opportunity.
She highlighted how Batik has bolstered Indonesia’s cultural influence and economic growth, suggesting that similar opportunities could be harnessed within Sri Lanka’s Batik industry.
Participants in the workshop enthusiastically engaged in the Batik-making process, crafting their own pieces and gaining a deeper appreciation for this intricate art form.
To complement the cultural immersion, the Indonesian Embassy also provided a variety of traditional Indonesian snacks, allowing participants to savor the rich culinary traditions of Indonesia.
This initiative was part of the Embassy’s ongoing efforts to promote Indonesian culture in Sri Lanka.
Beyond the artistic and cultural aspects, the event underscored the thriving collaboration between Sri Lanka and Indonesia, with both nations expressing a strong interest in exploring new avenues for trade, particularly in Batik production..
The diverse Indonesian economy, with its robust manufacturing, agriculture, and service sectors, offers numerous opportunities for partnership.
August 17, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) predicts that the headline inflation is expected to be below the target in the forthcoming months, and reach the 5% target with appropriate policies in the medium term.
In its monetary policy report for the month of August 2024, the CBSL has highlighted that the economic growth recovery towards the potential level is expected to continue over the medium term with appropriate policies.
Furthermore, it mentioned that the Central Bank of Sri Lanka conducts monetary policy under a Flexible Inflation Targeting (FIT) framework, aimed at maintaining inflation at the target rate of 5%, while supporting economic growth to reach its potential.
The Economic Research Department of the CBSL released its second Monetary Policy Report for 2024 in keeping with the requirements of the Central Bank of Sri Lanka Act, No. 16 of 2023, based on information that the Monetary Policy Board of the Central Bank considered in formulating the monetary policy decision during the July 2024 review.
The Monetary Policy Report provides forward-looking insights about the economy, particularly in terms of inflation and economic growth. The Report also aims to provide an assessment of risks to the projections on inflation and economic growth, considering the ongoing and expected developments on domestic and global fronts, the CBSL said.
Following a temporary rise in early 2024, headline inflation declined notably thereafter due to reductions in energy prices, a slowdown in food inflation, and subdued demand conditions.
Headline inflation is expected to remain well below the targeted level of 5 per cent (yearon-year) in the near term, and gradually stabilise around the targeted level over the medium term.
Economic activity continued to rebound in 2024, supported by the gradual restoration of macroeconomic stability, low interest rates and improving investor confidence.
The Sri Lankan economy is expected to continue its growth momentum in 2024, gradually moving towards its potential level over the medium term.
The Sri Lankan Government is implementing proactive measures to revitalize the dried fish industry by introducing online portals to streamline the registration process, thereby reducing costs and bureaucracy.
Simplified guides in Sinhala and Tamil are being developed to help SMEs navigate legal formalities, food hygiene standards, and Good Manufacturing Practices (GMP). T
o address the skill gap, companies are enhancing their onboarding processes and providing regular training to improve technical and interpersonal skills, crucial for adopting modern technologies and increasing productivity.
Additionally, the Government and industry stakeholders are intensifying extension and marketing services to expand the market for dried fish products.
By offering SMEs expert guidance on entering new markets and complying with industry standards, these efforts aim to overcome challenges such as limited market growth and the lack of comprehensive marketing strategies.
Trade fairs and exhibitions are also being leveraged to showcase Sri Lanka’s dried fish products and connect with potential international buyers.
The industry is undergoing a transformation driven by a collective vision of modernization, market expansion, skill development, and sustainability.
These efforts are expected to significantly boost the economy and ensure that Sri Lanka’s dried fish products meet high-quality standards, appealing to a global market. With continued Government support and private sector innovation, the future of Sri Lanka’s dried fish industry appears promising, poised for substantial growth both domestically and internationally.
The dried fish industry in Sri Lanka, a significant segment of the local economy, is undergoing a transformation aimed at overcoming long-standing challenges and enhancing its global competitiveness.
This sector, traditionally plagued by bureaucratic hurdles, outdated practices, and limited market access, is seeing concerted efforts from various stakeholders, including Government entities, industry associations, and private companies, to streamline processes, modernise operations, and expand market reach.
The dried fish sector has faced a multitude of difficulties, ranging from cumbersome registration and permitting processes to inadequate training and financial issues.
Historically, the process of formalising businesses within this industry has been burdened by complex legal procedures and slow dispute resolution mechanisms. These challenges have not only hampered the growth of the industry but have also made it difficult for small and medium-sized enterprises (SMEs) to thrive.
Furthermore, the industry has suffered from a lack of standardised vocational training programs, resulting in poor skill levels among workers. The absence of structured onboarding processes and regular training has exacerbated this issue, limiting the sector’s ability to innovate and maintain high-quality standards.
Sri Lanka’s Dried Fish Industry undergoes Modernization to Boost Competitiveness
The Sri Lankan Government is implementing proactive measures to revitalize the dried fish industry by introducing online portals to streamline the registration process, thereby reducing costs and bureaucracy.
Simplified guides in Sinhala and Tamil are being developed to help SMEs navigate legal formalities, food hygiene standards, and Good Manufacturing Practices (GMP). T
o address the skill gap, companies are enhancing their onboarding processes and providing regular training to improve technical and interpersonal skills, crucial for adopting modern technologies and increasing productivity.
Additionally, the Government and industry stakeholders are intensifying extension and marketing services to expand the market for dried fish products.
By offering SMEs expert guidance on entering new markets and complying with industry standards, these efforts aim to overcome challenges such as limited market growth and the lack of comprehensive marketing strategies.
Trade fairs and exhibitions are also being leveraged to showcase Sri Lanka’s dried fish products and connect with potential international buyers.
The industry is undergoing a transformation driven by a collective vision of modernization, market expansion, skill development, and sustainability.
These efforts are expected to significantly boost the economy and ensure that Sri Lanka’s dried fish products meet high-quality standards, appealing to a global market. With continued Government support and private sector innovation, the future of Sri Lanka’s dried fish industry appears promising, poised for substantial growth both domestically and internationally.
The dried fish industry in Sri Lanka, a significant segment of the local economy, is undergoing a transformation aimed at overcoming long-standing challenges and enhancing its global competitiveness.
This sector, traditionally plagued by bureaucratic hurdles, outdated practices, and limited market access, is seeing concerted efforts from various stakeholders, including Government entities, industry associations, and private companies, to streamline processes, modernise operations, and expand market reach.
The dried fish sector has faced a multitude of difficulties, ranging from cumbersome registration and permitting processes to inadequate training and financial issues.
Historically, the process of formalising businesses within this industry has been burdened by complex legal procedures and slow dispute resolution mechanisms. These challenges have not only hampered the growth of the industry but have also made it difficult for small and medium-sized enterprises (SMEs) to thrive.
Furthermore, the industry has suffered from a lack of standardised vocational training programs, resulting in poor skill levels among workers. The absence of structured onboarding processes and regular training has exacerbated this issue, limiting the sector’s ability to innovate and maintain high-quality standards.
The Sri Lankan government has decided to relax the rules governing the repatriation of export earnings, responding to requests from exporters, their representatives, and various government agencies.
This decision comes despite the ongoing issue of some exporters stashing foreign currency in foreign banks, a practice that has been depriving the country of much-needed foreign exchange since 2009.
These fraudulent actions have been facilitated by the lack of strict enforcement of the Foreign Exchange Control Law, previously known as the Exchange Control Act, which mandates that export earnings be returned to Sri Lanka within six months.
The new regulations, titled ‘Rules 01 of 2024,’ were published in the Extraordinary Gazette on 1 July 2024 and are set to be enacted under the Sri Lanka Central Bank Act No. 16 of 2023.
These updated rules aim to provide greater flexibility for exporters in managing their earnings amidst the current economic challenges.
The proposal, presented by President Ranil Wickremesinghe in his capacity as the Finance Minister, received approval from the Cabinet of Ministers and is now awaiting final approval from Parliament.
The issue of exporters hoarding foreign exchange overseas has resulted in significant losses for Sri Lanka. The Central Bank has revealed that nearly $3 billion in export earnings were hoarded abroad last year alone. A report by an official think tank indicates that Sri Lanka has lost approximately $53.5 billion over the past 12 years due to this practice.
In response, the Central Bank’s revenue monitoring unit has been actively tracking export conversion and dollar earnings using a mechanism developed in collaboration with customs since July 2022. However, data collection has been challenging, with only 57 percent of exporters responding to a questionnaire sent by the Central Bank. This has made it difficult to assess the full extent of the issue.
Some traders have been found to manipulate the declared value of imports and exports, either overpricing or underpricing goods to transfer money overseas. The Central Bank issued regulations in February 2021 to oversee export earnings repatriation, requiring all licensed banks to submit reports to the Director of the Foreign Exchange Department.
Despite these efforts, the total merchandise export value is still based on statistical values submitted to Customs, which may not accurately reflect actual earnings.
The Central Bank emphasizes the need for a shipment-wise export remittance monitoring system, developed by the ICT Division of Customs, to address these discrepancies.
Sri Lanka Customs, governed by a 150-year-old ordinance, faces challenges in dealing with free trade agreements and export valuation, leading to issues such as the undervaluation or overvaluation of commodities like tea and products under the India–Sri Lanka Free Trade Agreement.
August 17, Colombo (LNW): The European Union (EU) has decided to deploy an Election Observation Mission (EOM) to Sri Lanka for the upcoming Presidential Election on September 21, following an invitation from the Election Commission of Sri Lanka. This marks the EU’s seventh EOM in the country, reflecting its ongoing commitment to supporting Sri Lanka’s electoral processes.
Josep Borrell, High Representative of the Union for Foreign Affairs and Security Policy and Vice-President of the European Commission, appointed Nacho Sánchez Amor, a Member of the European Parliament, as the Chief Observer of this mission.
Borrell emphasized that the deployment of the EOM underscores the EU’s dedication to ensuring credible, transparent, and peaceful elections in Sri Lanka, in line with their longstanding partnership. Chief Observer Nacho Sánchez Amor expressed his honor in leading the mission, highlighting the election’s significance in Sri Lanka’s ongoing recovery and reform efforts following the 2022 political and economic crisis.
August 17, Colombo (LNW): Palestinian Ambassador Dr. Zuhair M. H. Zaid paid a farewell visit to Sri Lanka’s Speaker of Parliament, Mahinda Yapa Abeywardana, on Wednesday, August 7th. The Secretary General of Parliament, Kushani Rohanadeera, was also in attendance.
During their meeting, Speaker Abeywardena inquired about the current situation in Palestine, to which Dr. Zaid provided an update on the political, social, and humanitarian challenges the region is facing. The Ambassador expressed his heartfelt gratitude to the Speaker and the people of Sri Lanka for their steadfast support during difficult times in Palestine. He also thanked Sri Lanka for the hospitality he received during his tenure and highlighted the historical ties between the two nations.
Dr. Zaid emphasized that the potential for increased private investments could be realized through the conduct of democratic elections. Speaker Abeywardena commended Dr. Zaid for his significant contributions to strengthening the diplomatic and cultural ties between Sri Lanka and Palestine during his time as Ambassador.
August 17, Colombo (LNW): Sri Lanka’s Foreign Minister Ali Sabry, PC, summoned the Canadian High Commissioner to express strong objections regarding the foundation stone laying for a proposed “Tamil Genocide Monument” in Chinguacousy Park, Brampton, Canada. The foundation stone was laid on August 14, 2024, despite previous protests from Sri Lanka.
Minister Sabry emphasized that the Government of Sri Lanka firmly rejects what it describes as a “false narrative” of genocide, which it believes is being promoted for political gains within Canada. He noted that the City Council of Brampton’s decision to support the monument is offensive not only to Sri Lankans but also to peace-loving Canadians. Sabry argued that the genocide allegations are unfounded and not supported by any credible national or international authority.
The Foreign Minister highlighted Sri Lanka’s ongoing efforts to foster reconciliation and peace in the country, particularly in the wake of its recent economic challenges. He asserted that such actions in Canada could undermine these efforts by glorifying terrorism and promoting division, which is contrary to the democratic values upheld by both Sri Lanka and Canada.
Minister Sabry urged the Canadian government to intervene and prevent the construction of the monument, recognizing the potential harm this narrative could cause to bilateral relations between the two countries. He called for immediate action to prevent further deterioration of these relations.
August 17, Colombo (LNW): US Ambassador to Sri Lanka, Julie Chung, emphasized the critical role Sri Lanka plays in enhancing maritime security and curbing illegal activities in the Indian Ocean, during a speech on Thursday (15) at the inauguration of the “Ship in a Box” training facility at the Kirinda Coast Guard station.
Ambassador Chung highlighted that Sri Lanka’s strategic location in the Indian Ocean places it at the forefront of efforts to secure vital trade routes and combat transnational crime. “Sri Lanka’s waters host vital trade routes that maintain the global supply networks and carry goods all over the world. Uniquely positioned in the Indian Ocean, Sri Lanka plays a key role in leading efforts to increase maritime security and prevent the illegal activities and movements of illicit enterprises,” she stated.
She underscored that strengthening Sri Lanka’s criminal justice and maritime security sectors remains a cornerstone of the US-Sri Lanka partnership. The Ambassador acknowledged the economic challenges Sri Lanka has faced in recent years and reiterated the United States’ commitment to supporting the country through efforts aimed at promoting economic prosperity, food security, and inclusive governance. She stressed the importance of the rule of law, equal access to justice, and accountability as pillars essential to the safety and well-being of all Sri Lankan citizens.
The “Ship in a Box” simulator, funded by the US Export Control and Border Security (EXBS) Programme, is designed to enhance the training of Sri Lanka Coast Guard personnel and allied agencies, including the Sri Lanka Navy. This innovative facility will provide practical experience in maritime tactics within a controlled environment, preparing security forces for real-world scenarios.
Ambassador Chung also addressed the growing concern over maritime-related crimes, which are on the rise due to factors like economic hardship and poverty. She called for collective efforts to raise awareness and support maritime law enforcement agencies in combating the transportation of narcotics, human trafficking, and other smuggling activities.
“The U.S. Government, along with our partners and friends, recognize just how important the ports and shipping industries are to economic development in Sri Lanka, and other countries across the Indo-Pacific region,” she said, stressing the need for international collaboration to protect vital shipping lanes and maintain global supply chain integrity.
In her remarks, Ambassador Chung acknowledged the contributions of the private sector and international partners, including Aitken-Spence and Amentum Corporation, in supporting Sri Lanka’s maritime security efforts.
The event at the Kirinda Coast Guard station marks a significant step in bolstering Sri Lanka’s capabilities in maritime security, aligning with broader US efforts to ensure freedom of movement and safety in the Indo-Pacific region.
