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Sri Lanka’s merchandise exports reach US$ 1.03 billion in June 2024

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By: Staff Writer

July 25, Colombo (LNW): Sri Lanka’s merchandise exports reached US$ 1,031.2 million in June 2024, marking a 2.58% increase compared to June 2023. 

This growth was driven by higher earnings from Apparel & Textiles, Tea, Rubber-based products, Coconut-based products, Food & Beverages, and Spices & Concentrates. Compared to May 2024, exports rose by 1.97%.

 The estimated value of services exports for June 2024 was US$ 323.13 million, up by 39.05% from June 2023. Combining merchandise and services, total exports for June 2024 stood at US$ 1,354.32 million, a 9.42% increase from the previous year.

Apparel & Textiles: Earnings rose by 4.22% year-on-year (y-o-y) to US$ 446.54 million, with a significant 13.28% increase in exports to the USA.

Tea: Earnings increased by 9.18% y-o-y to US$ 121.76 million, driven by strong performances in Bulk Tea and Tea packets. Exports to Russia, UAE, and Iran saw notable increases of 28.65%, 42.73%, and 131.36%, respectively.

Rubber Products: Earnings grew by 11.8% y-o-y to US$ 82.63 million, with Pneumatic & Retreated Rubber Tyres & Tubes up by 3.78% and Industrial & Surgical Gloves of Rubber up by 28.2%.

Coconut-based Products: Earnings rose by 15.54% y-o-y, with Coconut kernel products and Coconut shell products increasing by 30.91% and 18.06%, respectively.

Spices & Essential Oils: Earnings surged by 62.63% y-o-y to US$ 47.91 million, mainly due to strong pepper exports, which increased by 547% to India.

Food & Beverages: Earnings increased by 5.9% y-o-y to US$ 36.96 million, with Processed food exports up by 85.42%.

Seafood: Earnings rose by 14.86% y-o-y to US$ 20.56 million, driven by increases in frozen fish (22.91%) and fresh fish (69.59%).

The estimated value of ICT exports rose by 28.25% to US$ 141.64 million. Constructions services exports and Logistics & transport services increased by 4.89% and 52.96%, respectively.

Products & Service imports   have have recorded negative growth with Electrical & Electronics Components: Earnings fell by 19.69% y-o-y to US$ 36.21 million.

Other Export Crops and Flowers & Foliage: Exports decreased by 22.29% and 45.83%, respectively.

For the first half of 2024, cumulative merchandise exports increased by 3.87% to US$ 6,098.55 million. The estimated value of services exports rose by 12.28% to US$ 1,671.33 million. Total exports for the first half of 2024 were US$ 7,769.88 million, a 5.57% increase from the same period in 2023.

Among the top 10 export markets, the USA, UK, Netherlands, France, Canada, and China showed positive growth. Exports to the USA, Sri Lanka’s largest export destination, increased by 12.44% to US$ 254.2 million in June 2024, and by 0.36% to US$ 1,371.76 million in the first half of 2024.

Central Bank of Sri Lanka further reduces policy interest rates

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By: Staff Writer

July 25, Colombo (LNW): The Central Bank of Sri Lanka has further reduced the policy interest rates after assessing the current and expected macroeconomic developments.

The Monetary Policy Board of the Central Bank of Sri Lanka has decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 25 basis points (bps) to 8.25 per cent and 9.25 per cent, respectively.

The Board arrived at this decision following a careful assessment of the current and expected macroeconomic developments and possible risks and uncertainties on the domestic and global fronts with a view to maintaining inflation at the targeted level of 5 per cent over the medium term, while enabling the economy to reach its full capacity.

 In arriving at this decision, the Board considered the need to signal the continuation of the eased monetary policy stance, thereby inducing a further reduction in market lending rates to support economic activity, amidst a benign inflation outlook.

The Board noted that, based on the available information, inflation is likely to remain below the inflation target of 5 per cent by a sizeable margin for the next several months before aligning with the targeted level over the medium term.

The bank said that the Sri Lankan economy expanded for the third consecutive quarter in Q1 2024, with a year-on year real growth of 5.3 per cent, as per the estimates of the Department of Census and Statistics (DCS).

The latest economic indicators suggest that real GDP growth in Q2 2024 also has been robust. The rebound in domestic economic activity is expected to sustain, buoyed by the transmission of relaxed monetary policy to broader market interest rates, enhanced supply conditions, the gradual rebound in external demand conditions, revival of tourism, and the dissipation of uncertainties surrounding debt restructuring.

The economy, which operates below its full capacity presently, is forecast to reach its potential over the medium term horizon.

The bank also said that while the external current account is likely to have recorded a surplus in the first half of the year, the cumulative merchandise trade deficit widened during this period compared to the same period in 2023. Earnings from tourism and workers’ remittances continued to be promising.

Gross Official Reserves (GOR) stood at US dollars 5.6 billion (including the swap with the People’s Bank of China) as of end June 2024, compared to US dollars 4.4 billion at end 2023.

Meanwhile, the Sri Lanka rupee witnessed intermittent volatility against the US dollar in recent months.

Overall, the Sri Lanka rupee appreciated by over 6.5 per cent against the US dollar thus far during 2024.

Govt, BOC, RDB provide interest-free agricultural loans

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July 25, Colombo (LNW): The Agriculture Modernization Project (ASMP) implenets with the goal of enhancing agricultural productivity, market access, and value addition for smallholder farmers and agribusinesses across five provinces: Northern, Eastern, Central, North-Central, and Uva.

The Ministry of Agriculture’s Project Management Unit will oversee the initiative in seven districts: Jaffna, Mullaitivu, Anuradhapura, Polonnaruwa, Batticaloa, Matale, and Monaragala providing interest free loans for farmers in collaboration with Bank of Ceylon (BOC) and Regional Development Bank (RDB).

ASMP aims to directly benefit 14,000 farm households through improved production capacity, better input supply and management, efficient technology, and strengthened market linkages.

Additionally, 20,000 farm households will benefit from the establishment of professional farmer organizations and capacity building through business and marketing training activities.

The project’s Agricultural Technology Demonstration Plots (ATDPs) and complementary production infrastructure investments target these seven priority districts.

A significant milestone was achieved with the signing of a Memorandum of Understanding (MoU) at the Presidential Secretariat. 

This MoU facilitates interest-free loans to agribusiness entrepreneurs and farmers, marking the first phase of the Agriculture Modernisation Program.

 The MoUs were signed between the Bank of Ceylon, Regional Development Bank, and Agriculture and Plantation Industry Ministry Secretary Janaka Dharmakeerthi. Another MoU with the People’s Bank is anticipated shortly.

Under this phase, Rs. 650 million has been allocated to fund projects through agricultural modernization centers in 26 selected Divisional Secretariat (DS) divisions. 

The scheme involves a revolving credit mechanism, with the government covering 70% of the costs and agribusiness entrepreneurs and farmers contributing the remaining 30%.

The Agricultural Modernisation Credit Scheme provides interest-free loans recoverable by a bank chosen by the beneficiary from the participating banks. 

This scheme was established through a Cabinet memorandum presented by President Ranil Wickremesinghe.

Approved projects will receive funds from an account held by the Agriculture and Plantation Industry Ministry Secretary at the Bank of Ceylon’s Head Office. Beneficiaries can process their loans through any of the three participating banks, with a concession period of up to six months and a maximum repayment period of five years.

Ministry Secretary Janaka Dharmakeerthi emphasized the need for production-oriented programs, aiming to support categories with production potential and provide necessary facilities to boost future production. 

Dharmakeerthi expressed confidence that the agricultural modernization program will achieve significant milestones and is crucial for the country’s long-term agricultural goals.

Dr. R.H.S. Samaratunga, Presidential Senior Advisor on Economic Affairs, highlighted that the Agricultural Modernisation Program was featured in two budgets presented by President Ranil Wickremesinghe. 

The agreement aims to allocate unused land to local entrepreneurs, fostering the development of export-oriented agriculture and establishing a commercial agriculture sector driven by local entrepreneurs.

EFC Inspires Inclusion to Forge a More Inclusive Workplace for Women

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By: Staff Writer

July 25, Colombo (LNW): The Employers’ Federation of Ceylon (EFC) recently hosted a forum to celebrate International Women’s Day, focusing on the theme “Inspire Inclusion to forge a more inclusive workplace for women.”

The event highlighted the declining participation of women in Sri Lanka’s labor force and emphasized the potential job creation that could result from policies supporting workers with family responsibilities, as noted by the ILO Country Director for Sri Lanka and Maldives, Joni Simpson.

In her keynote address, Simpson pointed out that the EFC is well-positioned to promote inclusivity and gender equality in workplaces through various policies and initiatives.

Adhil Khasim, Deputy Director General of EFC, reinforced this by stressing the EFC’s commitment to equity, diversity, and inclusion, and the importance of creating respectful, discrimination-free workplaces. Khasim noted that the event aimed to raise awareness and share best practices among enterprises.

The panel discussion featured three corporate leaders: Gayani de Alwis, Sandra de Zoysa, and Isuru Gunasekera, who shared insights from their respective companies on fostering inclusive workplaces. The session was moderated by Sonali de Silva, EFC’s Senior Industrial Relations Advisor.

Gayani de Alwis, Vice Chairperson of the Women’s Chamber of Industry and Commerce in Sri Lanka, and Founding Chairperson and Advisor of WiLAT Sri Lanka, emphasized the need to retain and upskill women in the workforce.

She highlighted the importance of adapting workplace policies to accommodate changing social dynamics, such as increased migration and the need for women to balance careers with caregiving responsibilities. De Alwis also called for better access to career guidance.

Sandra de Zoysa, Group Chief Customer Officer at Dialog Axiata PLC, discussed the vast potential for women in the digital world and the need for the industry to support a younger generation with different expectations.

 She stressed the importance of supporting the gig economy and enabling cross-discipline engagement. De Zoysa also noted the significance of flexible work arrangements and continuous education, as well as addressing mental health issues to ensure a productive and happy workforce.

Isuru Gunasekera, Chief People Officer and Head of Group Sustainability at John Keells Holdings PLC, shared best practices from his company, including gender clarity, addressing unconscious biases, mentoring programs, and promoting equal parenting.

He highlighted the company’s initiative of granting 100 days of maternity/paternity leave as a game-changer in championing the role of fathers in childcare.

All panelists agreed on the critical need to reskill the workforce to meet emerging job demands and to have the right narrative by 2030. The EFC’s event showcased the collective effort required to create inclusive workplaces that support women and foster gender equality in Sri Lanka.

Sri Lanka Original Narrative Summary: 25/07

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  1. President Ranil Wickremesinghe reaffirms his commitment to Buddhist education: The “Presidential Scholarship Programme” 2024 awarded 3,000 scholarships to student monks, Seela Mathas, and lay students, with an initial Rs. 9,000 deposited and monthly Rs. 3,000 instalments: Successful students advancing in their studies will receive Rs. 6,000 monthly: The programme, funded by nearly Rs. 300 million annually, aims to support and enhance Buddhist education amidst economic challenges.
  2. Opposition Leader Sajith Premadasa calls for accountability and compensation regarding Sri Lanka’s mandatory cremation policy enforced during the Covid pandemic: criticises ex-President Gotabhaya Rajapaksa’s cabinet for supporting the policy, which he claims violated Muslim religious and cultural rights, inciting racism and religious zeal: demands transparency on the decision-making process and argues that a mere apology alone is insufficient.
  3. Justice Minister Wijeyadasa Rajapaksa confirms he will contest the upcoming Presidential Election: Previously, it was confirmed that Field Marshal Sarath Fonseka will also be contesting the Polls as a candidate.
  4. State Finance Minister Shehan Semasinghe announces in Parliament that The Finance Company PLC (TFC) has been issued a liquidation letter: The government aims to expedite the process and ensure swift compensation for insured depositors: Liquidation, deemed necessary after failed restructuring efforts, is expected to maximise depositor compensation and prevent further losses.
  5. The Supreme Court issues an injunction barring Deshabandu Tennakoon from serving as Inspector General of Police (IGP): The Cabinet, in response, holds an emergency meeting to discuss the ruling: The government plans to provide a detailed response to the court’s decision within two days after reviewing the legal implications.
  6. CB Governor Dr. Nandalal Weerasinghe says Sri Lanka’s economy grew by 5.3% y-o-y in Q124’, marking the third consecutive quarter of expansion: The growth is supported by relaxed monetary policy, improved supply conditions, and a rebound in tourism: The merchandise trade deficit widened, but a current account surplus was recorded: Inflation is expected to remain below target, and the Sri Lankan rupee has appreciated by over 6.5% against the US dollar this year.
  7. Three Supreme Court petitions challenge the new visa processing system at the BIA Airport by VFS Global, involving Minister Tiran Alles and the government: Opposition MPs Patali Champika Ranawaka, M.A. Sumanthiran, and Rauff Hakeem seek to halt the procedure, citing national security concerns and alleging a scam: A Parliamentary probe revealed potential issues with the selection process and cost.
  8. The Court of Appeal orders the Maligakanda Magistrate’s Court to grant bail to Dr. Kapila Wickramanayake, former Director of the Medical Supplies Division, who was held over alleged importation of substandard IVIG vials: The court directs his release following a writ petition challenging his remand: Dr. Wickramanayake and three officials were detained by the CID in connection with the human immunoglobulin scandal in November 2023.
  9. Dr. Vickramabahu Karunaratne, leader of the Nawa Sama Samaja Pakshaya (NSSP), passes away at 81: Known for his dedication to socialist ideals and social justice, Karunaratne was a prominent Marxist critic of capitalism: His leadership in the NSSP and advocacy for workers’ rights, anti-imperialism, and social equity left a significant mark on Sri Lankan politics.
  10. Sri Lanka Cricket appoints Charith Asalanka as the new T20 captain after Wanindu Hasaranga’s resignation: The squad, now training ahead of the India series, will feature a mix of LPL standout performers and new talent, including 21-year-old all-rounder Chamindu Wickramasinghe: Interim coach Sanath Jayasuriya emphasises improved batting and overall team performance: Paceman Dushmantha Chameera is out due to injury.

Dollar rate against LKR at SL banks today (July 25)

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July 25, Colombo (LNW): The Sri Lankan Rupee (LKR) happens to be steady against the US Dollar today (25) in comparison to yesterday, as per leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 297.87 from Rs. 298.36, and the selling price to Rs. 308.56 from Rs. 309.07.

At Commercial Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. Rs. 297.67 and Rs. 307.50, respectively.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 299 and Rs. 308, respectively.

Appeal Court grants bail to former Health Ministry Director in IVIG Case

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July 25, Colombo (LNW): The Court of Appeal has directed the Maligakanda Magistrate’s Court to grant bail to Dr. Kapila Wickramanayake, the former Director of the Health Ministry’s Medical Supplies Division.

Dr. Wickramanayake had been held in remand custody in connection with the alleged importation of substandard intravenous immunoglobulin (IVIG) vials.

Following a writ petition filed by Wickramanayake’s legal team, the Court of Appeal instructed the lower court to release him on bail under appropriate conditions.

The petition challenged the legality of his remand and sought his release.

Dr. Wickramanayake, along with three other senior officials from the Medical Supplies Division, was detained by the Criminal Investigations Department (CID) on 20 November 2023.

The officials involved include Assistant Director Devashantha Soloman, Accountant Neran Dhananjaya, and Stock Controller Sujith Kumara.

The case also includes several prominent figures, such as former Health Minister Keheliya Rambukwella, former Health Secretary Janaka Chandragupta, Additional Health Secretary Dr. Saman Ratnayake, and the proprietor of the company accused of supplying the problematic IVIG vials.

Supreme Court petitions challenge new VFS Visa procedure at BIA

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July 25, Colombo (LNW): Three petitions have been lodged with the Supreme Court challenging the visa processing system introduced at Katunayake Airport by VFS Global, involving Minister of Public Security Tiran Alles and the government.

Opposition MPs Patali Champika Ranawaka, M.A. Sumanthiran, and Rauff Hakeem are behind the legal actions.

They are seeking a court order to halt the new visa procedure, citing concerns over potential breaches of crucial national security data.

MP Ranawaka publicly criticised the system, alleging it is part of a multi-billion-dollar scam.

“We have challenged Minister Alles and the government in the Supreme Court over their role in this scandalous visa procedure,” Ranawaka said in a statement.

The scrutiny intensified after a local passenger highlighted issues with the VFS visa process, which was widely shared online.

A subsequent probe by the Parliamentary Committee on Public Finance (CoPF) revealed that VFS Global was selected without a competitive bidding process, which may have led to the Department of Immigration and Emigration missing out on more favourable rates.

CoPF Chairman MP Harsha de Silva noted that if competitive bids had been solicited, the government could have secured services at a lower cost, potentially under US$25, and even mentioned that Mobitel had previously offered to provide similar services for US$1.

The lack of specification documents for the visa service’s criteria has raised questions about the selection process.

The CoPF’s findings suggest that more competitive options might have been available if a transparent bidding process had been followed.

Govt mulls over ‘No-Fault Divorce’ law to reform divorce procedures

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July 25, Colombo (LNW): The government is contemplating the introduction of a new ‘no-fault divorce’ law, announced Justice Minister Wijeyadasa Rajapakshe.

During a parliamentary session this week, Rajapakshe revealed plans to overhaul the existing divorce legislation, with the aim of simplifying the process.

The proposed ‘no-fault divorce’ law would enable courts to grant divorces without prolonged proceedings, provided it is established that the marriage is irreparably broken.

The draft bill for this reform has been completed, and it is expected to streamline divorce cases significantly.

Additionally, the Justice Minister highlighted plans to facilitate the recognition of divorce judgments from foreign courts in Sri Lanka through the new Reciprocal Recognition, Registration, and Enforcement of Foreign Judgments Bill.

The new Civil Procedure Code (Amendment) Bill, recently passed, addresses challenges in divorce cases related to serving notices to respondents who have moved abroad.

This amendment allows for notifications via electronic methods such as email and WhatsApp, aiming to improve procedural efficiency.

Dr. Vickramabahu Karunaratne, Leader of NSSP, passes away at 81

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July 25, Colombo (LNW): Dr. Vickramabahu Karunaratne, the distinguished leader of the Nawa Sama Samaja Pakshaya (NSSP), has died at the age of 81.

Renowned for his unwavering dedication to socialist ideals and social justice, Dr. Karunaratne was a significant presence in Sri Lankan politics.

Karunaratne’s political journey began in his youth, marked by a steadfast commitment to Marxist principles. He emerged as a vocal critic of capitalist structures and an advocate for the working class.

Throughout his career, he championed numerous causes, including workers’ rights, anti-imperialism, and social equity.

His leadership in the NSSP was characterised by efforts to mobilise grassroots movements and challenge established political norms.

Dr. Karunaratne’s contributions to Sri Lankan politics were not confined to his party. He engaged in various coalitions and political alliances, striving to create a broader leftist front.

His intellectual rigor and eloquence made him a respected figure amongst both supporters and opponents.

Despite facing political and personal adversities, Karunaratne remained a staunch advocate for his beliefs, leaving a lasting legacy in the country’s socio-political landscape.