August 12, Colombo (LNW): Sri Lanka’s remittances from overseas workers saw a continued rise in July, with inflows reaching $566.8 million, bolstering the country’s external sector.
The first seven months of 2024 recorded a total of $3.71 billion, reflecting a 10.3% increase compared to the previous year.
This upward trend, evident from the higher figures in July 2023 and June 2024, underscores the crucial role remittances play in stabilising Sri Lanka’s economy amid a global recovery.
The external sector, vital to the nation’s overall economic health, has shown remarkable improvement over the past two years, driven by recovering remittances, a resurgence in tourism, and the easing of energy and commodity prices post-Ukraine conflict.
The stabilisation is further supported by the country’s restored political and social order, allowing normal activities to resume after the economic crisis.
Additionally, the Central Bank of Sri Lanka’s decision to float the currency in March 2022, under the leadership of former Governor Ajith Nivard Cabraal, has attracted higher remittances, complemented by a growing number of Sri Lankans seeking employment abroad since 2021.
August 12, Colombo (LNW): Sri Lanka’s tourism industry, recently buoyed by the suspension of the VFS Global-led visa system, is now facing significant turmoil, reports claim.
The transition back to the Electronic Travel Authorisation (ETA) system has proven ineffective, leaving tourists and travel agents struggling to secure necessary entry approvals.
The Sri Lanka Association of Inbound Tour Operators (SLAITO) has reported a drastic decline in tourist arrivals and an increase in cancellations, as the only remaining option is visa issuance upon arrival.
Efforts to issue visas through foreign missions were halted on 6 August due to technical issues, and the online visa application system remains non-operational, threatening the winter tourism season.
Without a swift resolution, Sri Lanka risks losing winter bookings to regional competitors with more accessible visa processes.
The Ministry of Public Security has indicated that restoring the previous system will take months due to ongoing immigration system overhauls.
The situation is further complicated by the recent resignation of Harin Fernando as Minister of Tourism, following a Supreme Court ruling that upheld the suspension of his party membership.
August 12, Colombo (LNW): Sri Lanka’s manufacturing sector is showing signs of recovery after the severe foreign currency crisis of two years ago.
The June Index of Industrial Production (IIP) reached 93.0, a 3.3 per cent increase from the previous year, indicating a resurgence in industrial activity.
This revival is driven by a rise in both local and international demand, coupled with reduced production and funding costs.
The food manufacturing sector, in particular, saw a robust 17.9 per cent growth, reflecting increased domestic consumption and steady export demand.
Export earnings from food, beverages, and tobacco rose by 28.2 per cent in June, totalling $312.6 million for the first half of the year, marking a 25.6 per cent increase from the previous year.
However, the apparel sector remains under pressure, with a 10.6 per cent decline in June, primarily due to reduced demand from the US and Europe, although a recovery is anticipated as global economic conditions improve.
Other manufacturing segments, including chemical products and non-metallic minerals, also contributed positively, whilst some sectors like petroleum and beverage products saw declines.
August 12, Colombo (LNW): Atmospheric conditions are favourable for development of evening thundershowers in the island during the next few days, and showers or thundershowers, therefore, will occur at most places in the island during the evening or night, the Department of Meteorology warned in its daily weather forecast today (12).
A few Showers may occur in Kaluthara, Galle, Matara and Rathnapura districts during the morning too.
Heavy showers above 100 mm are likely at some places in Western, Sabaragamuwa, Central, Southern, Northern and North-central provinces.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers may occur at several places in the sea areas around the island during the afternoon or night. Showers will occur at several places in the sea areas off the coast extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota.
Winds:
Winds will be westerly to south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coasts extending from Galle to Batticaloa via Matara, Hambantota and Pottuvil.
State of Sea:
The sea areas off the coasts extending from Galle to Batticaloa via Matara, Hambantota and Pottuvil may be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
August 12, Colombo (LNW): The Government is spending a record Rs.206 billion on social welfare to assist the poor and vulnerable who are truly in need of assistance amidst the increasing poverty line.
The government implements a new welfare programme with defined costs, timelines and number of recipients under the provisions of Welfare Benefits Board Act.
This would be the largest expenditure on social welfare in post-independence Sri Lanka,” Cabinet Spokesman Minister Bandula Gunawardana said.
Sri Lanka’s official poverty line has witnessed a sharp threefold rise within the span of just over a decade, a recent report by the Department of Census and Statistics revealed.
The relevant report revealed that the poverty line has risen from Rs 5,223 in 2012 and 2013 to a whopping Rs 17,014 by January this year.
In 2016 the Poverty Line increased to Rs 6,117 from the Rs 5,223 recorded in 2013. Later, the poverty line increased to Rs 6,966 in 2019.
However, with the economic crisis in 2022 wreaking economic and social havoc, inflation skyrocketed pushing the poverty line to a twofold increase, reaching Rs 15,970, as per the report.
According to the report, Colombo reported the highest poverty line, ranking with Rs 17608 in May, dropping from Rs 18350 in January.
The Colombo district claimed the top spot in the district-wise comparison of the poverty lines, with a poverty line of Rs 17,608 being recorded in May this year down from a staggering Rs 18,350 recorded earlier in January.
The Gampaha district, neighbouring Colombo came in second with a poverty line of Rs 17,517, followed by Nuwara Eliya with Rs 17,169.
Other districts such as Monaragala, Kilinochchi and Hambantota have ranked lower with poverty lines of Rs 15,610, Rs 15773 and Rs 15,862 respectively.
The Official poverty line represents the minimum income required for an individual or household to cover essential living expenses such as food, shelter, and healthcare.
Unlike current welfare programmes, the proposed welfare programme is equipped with a mechanism to better target the most vulnerable groups in the society.
Around 3.1 million low-income families are expected to receive welfare benefits under this programme.
Multilateral agencies such as the World Bank and the Asian Development Bank have come on board to provide funding for this programme.
The government last year started establishing a new information system of welfare applicants in order to identify those who truly deserve benefits.
August 12, Colombo (LNW): The Excise Department will introduce a new safety sticker for liquor bottles starting October 1. Commissioner General of Excise, M. J. Gunasiri, announced this update, citing the need to address the limitations of the current system.
This change comes as the department aims to meet its highest-ever annual revenue target of Rs. 232 billion for 2024, a significant increase of Rs. 60 billion from the previous year’s income of Rs. 172 billion.
n 2022, the department generated Rs. 165 billion, with the production of absolute alcohol reaching 432 million liters. However, production dropped to 351 million liters in 2023 due to rising alcohol prices and decreasing demand.
Gunasiri highlighted that the decrease in alcohol consumption is primarily due to several factors, including a 14% increase in excise duty on alcohol, an 18% VAT, and a 2.5% hike in the social security contribution levy.
Additionally, higher raw material costs, fuel shortages, lockdowns, economic hardships, inflation, and alcohol price hikes since early 2022 have contributed to the drop in liquor demand.
In January 2024, liquor manufacturers responded to the economic challenges by raising the prices of all liquor products.
The price increases for Distilleries Company of Sri Lanka (DCSL) brands include Rs. 90 for 750ml bottles, Rs. 50 for 375ml, and Rs. 20 for 180ml. Sri Lanka’s annual liquor production is estimated to be between 540 and 600 million bottles, with over 5,000 liquor permit holders and 23 registered distilleries.
The hike in liquor prices has led to a 300% increase in the consumption of illicit liquor and other dangerous drugs like ice, cocaine, and marijuana. Gunasiri noted that not paying taxes genuinely to the state is akin to participating in illicit liquor manufacturing.
Gunasiri also addressed the recent revision of annual excise license fees, which took effect on January 12. Following objections from liquor distillers and associations, the department made another revision, effective February 1, to mitigate the impact on the already struggling industry.
The annual excise license fees, including those for taverns and liquor retail outlets, were revised. For example, the annual tavern license fee was reduced from Rs. 2.5 million to Rs. 2 million, and the license fee for bottling coconut toddy was decreased from Rs. 10 million to Rs. 1.5 million.
Similarly, the fee for bottling palmyra toddy was reduced from Rs. 10 million to Rs. 500,000, and the license fee for manufacturing vinegar was cut from Rs. 2.5 million to Rs. 500,000.
Retail license fees for liquor in municipal areas were also reduced from Rs. 15 million to Rs. 1 million, while those in urban council areas were lowered from Rs. 12.5 million to Rs. 800,000.
In other regions, the license fee was reduced from Rs. 10 million to Rs. 600,000. These adjustments were made in response to industry appeals and aim to balance government revenue needs with the challenges faced by liquor manufacturers.
August 11, Colombo (LNW): Novel public administration mechanism with digitalization of official services and modernization of procedures of state institutions is an urgent need in line with the current economic and social requirements of Sri Lanka, former finance minister Ravi Karunanayake emphasized.
The government has been implementing necessary reforms for effective human resource management in the public service.
He highlighted the need to replace the outdated system of issuing circulars with a new, updated digital system for government decisions, directives, and guidelines.
The current administration is developing IT systems and online platforms to manage human resources efficiently by reengineering processes, thus minimizing unnecessary steps and delays.
President Ranil Wickremasinghe has instructed relevant authorities to introduce reforms to create a future-oriented public administration mechanism through digitization.
The goal is to enhance efficiency, productivity, transparency, accountability, and people-centered decision-making in public service human resource management.
These objectives are expected to be achieved using new public management and digital-government methods. Necessary changes are being implemented to ensure efficient and effective public service delivery and to improve job satisfaction for the 1.4 million public sector employees.
The government’s aim is to streamline public service functions through a modern human resource management system, eliminating unnecessary paperwork and archaic circulars, Mr. Karunanayake stated.
The government is also working to increase transparency in the public service through digitization and the use of IT tools. Introducing simpler work processes in the public service is a priority for the President to create a service that meets future generation needs.
In Sri Lanka, public service delivery is hindered by inadequate systems, low skills, limited competencies, and frequent strike actions.
Employees and their representatives consistently raise concerns about the lack of opportunities to influence pay and service conditions, along with anomalies and inequities in the employment regime.
It is proposed that employees actively engage with their public service employer through consultation and negotiation processes to improve productivity and regulate changes in pay and conditions.
Process reforms, which focus on simplifying and streamlining operational processes to enhance efficiency, have significantly contributed to improving business ease, public service delivery, and removing outdated regulations. These reforms, although often involving minor changes, can have a substantial impact.
A major issue in Sri Lanka is the lack of skill development. There is a misconception that public sector modernization solely involves introducing new technology.
However, as seen in other countries, technology alone is not sufficient; staff must be trained to use it. It has also been noted that equipment bought or gifted often remains unused, highlighting a lack of accountability
The Sri Lankan public service currently operates with a mix of traditional and modern methods. The core of its bureaucratic activities, the filing system, primarily depends on extensive paperwork and manual record-keeping.
However, traditionally, the decision-making process in the public service follows a hierarchical, top-down structure, with senior officials wielding significant authority and decisions filtering down through various bureaucratic levels.
This structure often causes delays due to the need for approvals and reviews at each stage. The recent ‘delayering’ initiative aims to streamline this process by ensuring that files pass through no more than four officers in any ministry.
August 11, Colombo (LNW): Ambewela Dairy Farm, a leader in dairy production in Sri Lanka, has embarked on a significant development initiative under the guidance of President Ranil Wickremesinghe.
Established in 1943 and privatized in 2001, the farm has undergone extensive modernization to become a premier center for advanced dairy production and farm technology in South Asia.
In 2022, Ambewela’s daily milk production was around 40,000 liters. However, with ongoing modernization efforts, the farm is poised to reach a daily production of 52,000 liters by 2024, marking a notable 30% increase.
The farm’s goal is to achieve an annual production capacity of 20 million liters through the development of high-quality dairy cow breeds and the automation of livestock management.
During a recent visit, President Wickremesinghe emphasized the need to further enhance milk production and expand output by integrating the latest technologies and state-of-the-art facilities.
This strategy aims to strengthen Ambewela’s role in the national dairy industry. Additionally, the farm has opened its doors to students from Sri Lankan universities, providing them with valuable hands-on experience in advanced dairy farming techniques.
Ambewela Dairy Farm has also become a popular tourist destination, with efforts to improve visitor facilities and offer an enriching experience. On a notable day this year, the farm welcomed 9,000 visitors, highlighting its growing appeal.
Ambewela is renowned for its premium quality dairy products, which are produced with a focus on freshness and quality. The farm follows internationally certified processes to ensure the highest standards.
This includes Ultra High Temperature (UHT) processing, which preserves nutrients while maintaining a six-month shelf life for milk without refrigeration. The farm’s commitment to unadulterated, high-fat content milk sets it apart in the industry.
Ambewela CEO expressed the company’s dedication to uplifting Sri Lanka’s dairy industry and reducing the need for imports by promoting local products. Ambewela remains committed to delivering premium, unadulterated dairy products to consumers, from farm to family.
These initiatives underscore the farm’s commitment to excellence and its role as a leader in the dairy industry. The ongoing support and strategic direction provided by President Wickremesinghe remain crucial in driving the farm’s future success and its contributions to the national economy.
Ambewela delivers unmatched premium quality dairy products with its latest technology and innovation
Ambewela dairy products – manufactured by Lanka Milk Foods (CWE) PLC – is a household name synonymous with freshness and quality.
Another unique factor is that Ambewela milk is never adulterated with milk powder or any other substitutes. The milk is in its purest form and premium with high fat percentages and milk nutrients.
The Friesian and Ayrshires cows at the Ambewela farms are considered the world’s best and the best pedigree siemens are picked for artificial insemination to deliver high quality milk.
The precise sequence of events leading to Sheikh Hasina’s resignation as prime minister of Bangladesh and departure for India on August 5 may not be available, but it appears to have followed the reluctance of the army to try and forcibly interdict the oncoming mass of people, as may have been the wish of the prime minister.
This left no option for her but to relinquish office and, as insisted upon by family, seek safety outside Bangladesh. In Nepal, too, in April 2006, the Royal Nepal Army refused to fire on fellow citizens, leading to the political retreat and eventual abdication of the king.
Sri Lanka was no different. Gotabaya fled to Maldives and returned. Had the current president Ranil Wickremesinghe allowed the protesters to take over parliament. Sri Lanka would have still been in crisis. Unlike in Sri Lanka, Bangladesh economy was performing. The economic performance of the Bangladesh government was commendable, and Bangladesh was poised to become a middle-income country by 2026, its per capita GDP already exceeding India’s.
On the other hand the Sri Lankan economy was in the doldrums and people were fighting for petrol, gas and electricity on the streets. Can we forget these so easily? Do some people want us to forget all this to please their masters back at their capitals? Do they have the right to so? Addressing a press conference yesterday former Stare Minister Ruwan Wijewardene said, “Citizens are coming together to vote for President Wickremesinghe as a gesture of appreciation, regardless of which party or candidate emerges in the election.”
There is much speculation that India wants a change at the top. India has for sure been closely monitoring developments in Sri Lanka, especially given the geopolitical significance of the island nation in the Indian Ocean region. India’s concerns often revolve around Sri Lanka’s relationships with other major powers, such as China, which has made significant inroads in the country through investments and infrastructure projects.
Economic Stability
The key issues for the public are very clear and different to what other powers want? The public is still struggling with the Economic crisis that is causing severe hardships for the population. Prices of essential goods, including food and fuel, skyrocketed, and many are struggling to afford the basic necessities. With the IMF package now in play, it may lead to a crisis if the terms and conditions are changed without the consent of the IMF.
We cannot afford to allow half baked inexperienced politicians to get away with political rhetoric. People’s livelihoods cannot be played around . Ironically, In 2027 nearly $9 Billion has to be paid. Are we going to borrow at commercial rates to repay ? We need answers. Ensuring political stability and effective governance is essential for implementing reforms and maintaining public trust. Managing diverse political factions and fostering an inclusive political environment are key challenges for the country.
The other issue is Social Equity and Living Standards. Addressing public dissatisfaction due to economic hardships is important. It is being used to garner political support . Policies aimed at improving living standards, reducing inequalities, and mitigating social tensions are crucial for maintaining social stability.
Sustainable Development and Environmental Protection is key. Implementing sustainable development policies, protecting natural resources, and addressing climate change impacts are significant concerns. These efforts are essential for long-term national development and environmental sustainability. The country needs a leader who can deliver on these fronts.
Country Future
Whilst there is no substantial evidence to suggest that India is actively pushing for a regime change in Sri Lanka. India should focuses on diplomatic engagement, economic cooperation, and regional stability. India should continue to ensure its interests are protected, rather than people perceiving that they are working for a change in leadership at the top.
Speculating about India’s involvement in regime change by our locals would most likely be based on misinterpretations of its diplomatic actions or concerns about regional security dynamics and back door commitments and communications and utterances by the diplomats and politicians on the ground.
India bailed out Sri Lanka in 2022. Whilst China and USA watched in Silence. People are grateful for that, therefore they must not leave room for any misunderstanding or squandering away that enormous goodwill. As John F. Kennedy the 35th U.S. President once said “Those who make peaceful revolution impossible will make violent revolution inevitable.”
JFKs statement speaks to the consequences of superpowers interfering in the internal affairs of other countries, often preventing peaceful political evolution and sowing the seeds of conflict. We just cannot afford to become the next Bangladesh given our weak financials.
August 11, Colombo (LNW): Sri Lanka’s men’s cricket team has risen to 6th place in the ICC Men’s ODI team rankings after their first series victory over India in 27 years.
Spinner Dunith Wellalage, with a career-best 5-27, has advanced five places to 76th in the bowling rankings.
Janith Liyanage and Avishka Fernando also made significant gains in the batting rankings following their standout performances in the series.
