Home Blog Page 586

Sri Lanka-UAE Trade Relations Strengthened and Diversified by New Product Launch

0

November 13, Colombo (LNW): Sri Lanka’s export ties with the UAE remain robust, with a diverse range of goods fueling the trade flow between the two nations. 

The UAE is considered one of Sri Lanka’s key trade partners in the Middle East, and the export of goods from Sri Lanka to the UAE has seen consistent growth in recent years.

A major highlight of Sri Lanka’s exports to the UAE is Ceylon Tea, which continues to be one of the most important products in the region. 

In addition to tea, Sri Lanka exports a variety of other goods including spices like cinnamon, pepper, and cardamom, which are highly sought after in the UAE market. Other notable exports include Rubber and Rubber Products, Seafood, Gemstones, Jewelry, and Coconut Products.

The UAE also acts as a major re-export hub for Sri Lankan apparel and textiles. Sri Lankan garments and textiles, including both ready-made garments and fabrics, hold a significant presence in the UAE market.

Coconut-based products such as coconut oil, copra, and other coconut derivatives are also key exports from Sri Lanka to the UAE, contributing to the range of Sri Lankan goods available in the region.

In a recent development, the Consulate General of Sri Lanka in Dubai and Northern Emirates supported the brand launch of ‘Naturalz,’ a new venture by NRS Group of Companies, which took place on November 5th at the Pullman Hotel in Deira, Dubai. 

Naturalz introduced a diverse array of premium Sri Lankan products, including fresh fruit pulps, spices, bottled fresh fruits, condiments, and a signature line of ice creams made from Sri Lankan fresh fruit pulp.

The brand also plays a key role in importing perishable items from Sri Lanka to the UAE, such as fresh fruits, vegetables, and king coconuts, in addition to processed foods like jackfruit. T

he ice cream range, made exclusively from Sri Lankan fruit pulp, is produced in a state-of-the-art, solar-powered facility in Sharjah, which adheres to the highest sustainability standards and ensures that all ice cream products are free from preservatives and additives.

During the launch event, Consul General Alexi Gunasekera emphasized the importance of diversifying Sri Lanka’s export offerings by focusing on value-added products, rather than depending solely on traditional exports and raw materials. 

He noted that initiatives like Naturalz are in line with Sri Lanka’s inclusive development strategy, which supports the value chain from farm to consumer. 

The Consul General also encouraged Sri Lankan professionals residing in the UAE to explore similar partnerships that promote mutual growth and reinforce the economic ties between Sri Lanka and the UAE, further supporting the government’s broader economic development goals.

 Attendees at the launch event had the opportunity to enjoy a variety of authentic Sri Lankan flavors, including fresh king coconut and fruit juices, desserts made with Sri Lankan fruit pulps, as well as savory items like cutlets, pizza, and pastries made from processed jackfruit.

EU Continues Support for Sri Lanka’s Economic Recovery and Trade Expansion

0

November 13, Colombo (LNW): The European Union (EU) remains committed to supporting Sri Lanka’s economic recovery and expansion, with a particular focus on strengthening trade relations. 

During a recent meeting with the Export Development Board (EDB) Chairman Mangala Wijesinghe, EU Ambassador to Sri Lanka, Carmen Moreno, reaffirmed the EU’s dedication to fostering economic stability in Sri Lanka. 

Accompanied by Deputy Head of Mission Lara Bredal, Moreno emphasized the critical role of anti-corruption measures and governance reforms in attracting further EU investments.

She praised Sri Lanka’s ongoing efforts to combat corruption and improve its institutions, noting that transparency is essential for building investor confidence.

Moreno also highlighted the country’s progress in anti-money laundering and counter-terrorism financing, along with its commitment to international environmental, labor, and human rights standards. 

These factors are crucial for encouraging foreign direct investment (FDI) from the EU, which is particularly sensitive to such criteria.

The EU has supported several infrastructure projects in Sri Lanka’s Uva region, including the establishment of a new Business Service Center in Nuwara Eliya, the renovation of a tea estate water supply system in Ragala, and a potato seed production unit in Kandapola. 

Through its support of over 600 micro, small, and medium-sized enterprises (SMEs), including more than 200 women-owned businesses, the EU has made a significant impact on income generation, market development, technology enhancement, and business skills. 

These initiatives have not only helped reduce barriers for women entrepreneurs in accessing finance but also contributed to the creation of over 1,500 jobs, significantly boosting female participation in the workforce.

In 2023, the EU became Sri Lanka’s second-largest export market, with merchandise exports surpassing $2.71 billion. The EU market remains a major destination for Sri Lankan apparel, which plays a key role in driving export growth and job creation. 

Additionally, Sri Lanka benefits from preferential access to the EU market through the reinstated Generalized Scheme of Preferences Plus (GSP+), which offers duty-free access on 66% of tariff lines, providing a critical boost to Sri Lanka’s economy.

The EU has also been instrumental in enhancing Sri Lanka’s trade capabilities. It provided valuable technical assistance to the EDB in securing Geographical Indication (GI) certification for Ceylon Cinnamon. 

Furthermore, the EU-funded Trade-Related Assistance project, which concluded in 2021, helped local SMEs boost their competitiveness in both EU and regional markets. Special focus was placed on strengthening value chains in sectors such as spices, processed foods, and IT/BPO services.

As a result, Sri Lankan SMEs entered new markets across Europe and Asia, with over 300 business meetings facilitated and 120 companies receiving tailored training to improve their export capabilities.

The EU’s collaboration with Sri Lanka is set to continue with a focus on deepening trade relations. At the conclusion of the meeting, both EU representatives and EDB officials expressed their commitment to enhancing cooperation and trade integration.

 EDB Chief Mangala Wijesinghe noted that political stability and policy consistency in the lead-up to Sri Lanka’s upcoming General Election would further enhance the country’s attractiveness for foreign investment.

The EU’s ongoing support plays a vital role in bolstering Sri Lanka’s economic prospects and positioning it as a competitive player in international trade.

Sri Lankans Cite Economic Struggles as Top Concern in Latest Opinion Survey

0

November 13, Colombo (LNW): The most recent Sri Lanka Opinion Tracker Survey (SLOTS), conducted by the Institute of Health Policy (IHP) from August to November, reveals that economic issues are of paramount concern for Sri Lankans, with 74% of respondents highlighting the economy as their top priority. 

Among economic challenges, inflation (44%) and unemployment (40%) emerged as the next significant concerns. T

he survey asked participants to name the two most pressing issues facing the country, and other concerns such as corruption and high taxes were also mentioned by 14% of respondents.

IHP, a non-partisan research institution based in Colombo, commissioned and designed the SLOTS survey. 

The survey’s lead investigator, Dr. Ravi Rannan-Eliya, brings over three decades of experience in public opinion polling, having been trained at Harvard University. 

The survey is conducted through random digit dialing of mobile numbers, along with a national panel of respondents, ensuring that the data is representative of Sri Lanka’s population. 

The sample is weighted for various demographic factors such as age, gender, education, ethnicity, and socioeconomic status to reflect the broader population.

The main objective of the SLOTS survey is to track public opinion and social conditions in Sri Lanka, offering valuable insights into the concerns and experiences of the population. 

The fieldwork, conducted daily by IHP staff, relies on random phone interviews to gather data, making it a timely and consistent tool for monitoring public sentiment.

The survey’s results indicate that Sri Lankans are deeply concerned about the economic situation in the country, particularly with respect to inflation and unemployment. 

This reflects a broader trend of economic discontent, exacerbated by the country’s ongoing financial crisis. 

The high levels of inflation, coupled with rising unemployment, have placed significant strain on household budgets and living standards, leaving many people struggling to make ends meet.

This survey underscores the urgency of addressing these economic challenges, which could have long-term social and political implications.

Other notable issues, such as corruption and high taxes, are also seen as significant barriers to economic recovery. 

The persistence of corruption within the political and public sectors undermines trust in government and its ability to manage public resources effectively.

High taxes, on the other hand, are perceived by many as an additional burden, particularly when wages are stagnant, and economic conditions are harsh.

In terms of funding, the SLOTS survey has been supported by various organizations, including the Velux Stiftung foundation and USAID, among others. 

However, these organizations have no influence over the survey’s design, analysis, or reporting, ensuring its independence.

 The survey results highlight the need for effective policy interventions to address Sri Lanka’s economic issues, focusing particularly on controlling inflation, reducing unemployment, and restoring public trust in governance. 

The findings also suggest that while economic challenges dominate, other issues like corruption and taxation must not be overlooked in the quest for sustainable recovery.

Sri Lanka Positioned as Asia’s Leading Destination with 40% Growth in Tourism by 2025,  

0

November 13, Colombo (LNW): Sri Lanka is projected to emerge as one of the fastest-growing travel destinations globally by 2025, with tourism spending expected to rise by 40%, according to the 2024 WTM Global Travel Report, created in partnership with Tourism Economics. 

This places Sri Lanka at the forefront of tourism growth in Asia, surpassing other destinations such as Laos and Cambodia, which are forecasted to see increases of 30% and 29%, respectively.

While the report highlights a slower recovery in Chinese travel, particularly affecting neighboring countries like Thailand and Vietnam, Sri Lanka’s growth trajectory stands out. 

Although tourism spending in Asia remains below pre-pandemic levels, the report anticipates positive growth across more than 20 territories in 2025. By 2030, Sri Lanka’s inbound tourism spending is expected to increase by 109%, making it the second-fastest-growing destination in Asia after Thailand, which is predicted to see a 147% rise.

Globally, the number of international overnight arrivals is expected to surpass two billion by the end of the decade, up from 1.5 billion in 2024.

Developed markets will remain the largest sources of outbound travelers, but emerging markets like China and India are increasingly important. Between 2019 and 2030, countries including the United States, Germany, the UK, and Canada are anticipated to contribute significantly to global travel growth.

In response to a more cost-conscious travel environment, over 80% of tourism experts predict that price sensitivity will influence consumer behavior in 2025. Despite this trend, travelers continue to prioritize vacations, seeking more affordable travel options. 

The latest Tourism Economics Travel Trends Survey (TTS) indicates that most travelers are opting for longer stays, embracing “slow travel” to explore destinations more thoroughly. Additionally, many travelers are showing greater interest in cultural experiences and interactions with local communities.

At the World Travel Market (WTM) 2024 in London, Sri Lanka made a significant impact, showcasing its potential as a leading global tourism destination. 

The Sri Lanka Tourism Promotion Bureau (SLTPB), supported by the High Commission of Sri Lanka in London, participated alongside over 100 industry partners. 

The Sri Lanka stand was officially opened on November 5, 2024, by Duchess of Rutland Emma Manners and featured prominent figures like Sri Lanka’s High Commissioner to the UK and key tourism officials.

During the three-day event, Sri Lanka’s tourism leadership conducted multiple B2B meetings with UK travel companies and media outlets. 

The Sri Lanka stand was recognized for its business-friendly layout and was awarded “Best Stand for Doing Business.” Additionally, Sri Lanka received the prestigious “Most Desirable Island” Gold Award at the Wanderlust Travel Magazine Awards.

 Tourism in Sri Lanka is recovering strongly, with 1.6 million tourist arrivals recorded in October 2024, generating USD 2.5 billion in revenue. The UK remains one of the top sources of visitors, contributing 146,670 arrivals by the end of October.

Sri Lanka’s strategic participation at WTM 2024 underscores its commitment to becoming a top global travel destination, leveraging new tourism initiatives and international partnerships to shape its future growth.

Election Commission Outlines Voting, Security, and Campaigning Rules Ahead of General Elections

0

November 13, Colombo (LNW): A special media briefing was held at the Department of Government Information to provide updates on preparations for Sri Lanka’s upcoming general elections. Key officials, including the Chairman of the Election Commission, R.M.A.L. Rathnayake, and Police Spokesperson DIG Nihal Thalduwa, presented details on the voting process, security protocols, and other election-related matters.

Voting Process
Election Commission Chairman Rathnayake outlined the voting process, highlighting differences in ballot paper formats across districts. Monaragala, Polonnaruwa, and Kegalle districts will use a single-column ballot, while other districts will utilize a two-column format. Voters are instructed to mark their preferred party or independent group on the ballot and can select up to three preferences.

Security Measures
DIG Nihal Thalduwa announced that approximately 64,000 police officers, with support from an additional 70,000 auxiliary officers, will be deployed for election security. Up to 10,000 Army personnel may also be mobilized if required, and 11,000 Civil Defense Force officers will conduct mobile patrols to secure polling stations and maintain order.

Election Duty Compliance
Chairman Rathnayake emphasized the importance of strict attendance for election duties, warning that officials assigned to election roles must report on time or face penalties. Additionally, voters can obtain polling cards from post offices or the Election Commission’s website, though they are not mandatory if voters have valid identification.

Strict Campaigning Regulations
All regulations align with the Parliamentary Elections Act, enforcing strict compliance to ensure fair elections. This includes restrictions on campaigning near polling stations and a crackdown on campaign-related SMS messaging, which the Commission is addressing with the Telecommunications Regulatory Commission.

Election Results and Timeline
Rathnayake noted that the first election results, including postal votes, are expected by midnight on election day, though he advised against early result announcements to avoid confusion.

With a comprehensive security and operational plan, the Election Commission aims to ensure a safe and fair voting process for all Sri Lankans.

Education Ministry Launches Investigation into Politically Biased Questions in A-Level Exam Paper

0


November 13, Colombo (LNW): The Ministry of Education has ordered an investigation following the discovery of five questions referencing a political party in an Advanced Level term paper at a school in the Kalutara district.

The exam, prepared by the school for A-level students’ second-term assessments, included content that raised concerns over potential political bias, prompting the Ministry to take immediate action.

Education Ministry Secretary Thilaka Jayasundara stated that a formal inquiry would be conducted to evaluate the issue and determine whether guidelines were breached in the preparation of the examination paper.

Sri Lanka Original Narrative Summary: 13/11

0
  1. The National Election Commission has received a total of 490 complaints related to election law violations via social media within the month from October 11, 2024 to November 11, 2024. Issuing a statement, the Election Commission said after being informed social media companies had removed links and content related to 184 complaints.
  2. The Department for Registration of Persons has announced that all public services including its one-day service will be unavailable on November 14, 2024. The statement explains that, due to the General Election being held on that day, department staff have been assigned to election duties and therefore, the services will not be operational.
  3. The Sri Lanka Computer Emergency Readiness Team (SL CERT) says the Department of Meteorology’s official website, which underwent a cyberattack last week, is being restored. According to SLCERT, the cyberattack was reported on November 01, which resulted in the disruption of the website’s services.
  4. The International Election Observers (IEO) present in the island noted that a peaceful election process throughout the island would pave the way for a free and fair election. Besides, a peaceful post-election season is expected even after the upcoming Parliamentary elections, they added. IEOs representing 10 countries announced this at a joint Press Conference in Colombo.
  5. The Ministry of Defence has informed former MPs, former Provincial Councillors, political party leaders and political organizations, as well as officers who held executive appointments in the government to surrender the firearms and ammunition issued to them at various periods, before December 30, 2024.
  6. The Court of Appeal today rejected the bail request of Randev Dinendra John, a director of W.M. Mendis Company, who has been sentenced to imprisonment. The bail application was heard before the bench of Court of Appeal Justices Sobhitha Rajakaruna and Mahen Gopallawa.
  7. The Ministry of Education (MoE) announced the launch of an immediate investigation at the ministerial level regarding the inclusion of questions of a political nature in a school term exam paper. In a statement, the Secretary of the Ministry of Education, Science and Technology, Mrs. J.M. Thilaka Jayasundara, noted that relevant officials have already been provided with instructions to address the issue.
  8. The Department of Examinations has issued a special notice regarding the issuance of exam certificates. Accordingly, the department announces that the issuing of exam certificates will not be carried out on November 14 due to the departmental staff being deployed for election duties.
  9. The Supreme Court has ordered the extension of the interim injunction issued preventing the execution of a gazette notification issued by the Ministry of Wildlife and Forest Conservation under the previous government to release 168 acres of land from the Vidataltivu Nature Reserve associated with the Wilpattu National Park for the establishment of a shrimp farm.
  10. Sri Lanka Cricket appointed former South African batsman Neil McKenzie as the National Team’s Consultant Coach for a short stint. Accordingly, he will work with a group of Sri Lankan players who departed for South Africa last night to participate in a pre-series camp ahead of the upcoming two-match Test series against South Africa.

Low-Pressure System in Bay of Bengal Could Bring Afternoon Thundershowers

0

November 13, Colombo (LNW): A low-pressure area is formed over the south west Bay of Bengal. Under its influence, atmospheric conditions are favorable for afternoon thundershowers in most parts of the island, today (November 13) and in the next few days.

Several spells of showers will occur in Northern Province. Showers or thundershowers will occur at several places elsewhere during the evening or night.

Heavy showers about 100 mm are likely at some places in Central, Uva, Sabaragamuwa, and Southern provinces and in Kalutara district.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Uva provinces and in Galle and Matara districts during the morning.

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

Policy Consistency Crucial for Boosting Sri Lanka’s Apparel Exports to $8 Billion

0

By: Staff Writer

November 12, Colombo (LNW): The Joint Apparel Association Forum (JAAF) has emphasized that policy consistency is vital for Sri Lanka to increase its apparel exports from an estimated $5 billion in 2024 to $8 billion in the coming year.

According to JAAF, one of the main factors holding back growth in the sector is the government’s failure to implement consistent policies, leading to stagnation in foreign investment and export growth.

JAAF Deputy Chairman Felix Fernando stressed that attracting larger markets and additional investments is essential for achieving this ambitious goal.

 He pointed out that Sri Lanka has not seen significant foreign direct investment in the apparel sector since the late 1990s, a situation that has worsened due to policy inconsistency. Fernando argued that achieving the export target will require strong government support and the creation of a stable policy environment.

During a recent webinar, JAAF Secretary General Yohan Lawrence highlighted the persistent lack of progress in the export sector, particularly the apparel industry.

Despite promises made in every presidential election manifesto to boost exports, Sri Lanka’s apparel export income has remained stagnant at between $5 billion and $6 billion for the past decade.

 Lawrence pointed out that the country lacks a clear, consistent policy framework to translate these promises into real action, which has led to a decline in global competitiveness and reduced investor confidence.

Fernando also reflected on the challenges of policy inconsistency, recalling how his company, Omega Line, which moved from Italy to Sri Lanka in 1999, has not seen any significant foreign investors enter the apparel industry since then, even during the height of Sri Lanka’s conflict.

He specifically criticized the government’s decision to abolish the Simplified Value-Added Tax (SVAT), a move recommended by the International Monetary Fund (IMF). While the aim was to improve tax transparency, exporters argue that the timing of the change could harm their cash flow and reduce competitiveness.

In addition to consistent domestic policies, Fernando also stressed the importance of trade agreements in attracting new investments.

He pointed to the success of countries like Vietnam, which has secured multiple free trade agreements (FTAs) despite its political system, and suggested that Sri Lanka should pursue similar agreements with countries like India, China, Japan, and South Korea.

Such agreements could provide significant trade concessions, helping Sri Lankan exporters compete more effectively in the global market.

 In conclusion, JAAF’s leadership calls for a unified approach to export policies, greater political stability, and stronger trade agreements to ensure the apparel industry’s growth and enhance Sri Lanka’s position in the global market.

Commercial Banks Face Risks from Suspending SME Debt Recovery

0

By: Staff Writer

November 12, Colombo (LNW): As Sri Lanka approaches the December 15 deadline for the temporary suspension of debt recovery under the Parate law, the government, Central Bank, and commercial banks are considering the impact of this move on small and medium enterprises (SMEs).

A recent meeting at the Presidential Secretariat discussed the challenges faced by SMEs in repaying loans, exploring potential actions to support these businesses before the suspension ends.

SMEs, which form the backbone of Sri Lanka’s economy, contributing 75-80% of total employment, are heavily reliant on loans from commercial banks.

However, the COVID-19 pandemic and subsequent economic crises have placed many of these businesses in a precarious financial situation, with difficulties in meeting their debt obligations.

In response, the Central Bank introduced loan moratoriums and restructuring options to ease the burden on SMEs. Despite these measures, many businesses continue to face significant financial strain.

At the recent meeting, officials from the Ministry of Finance, Central Bank, and the Sri Lanka Banks Association discussed ways to assist SMEs. They decided to compile a comprehensive report on SME loans, which will inform future relief efforts.

With outstanding loans to SMEs estimated at LKR 1.5 to 2 trillion (USD 4 to 6 billion), these loans form a major part of the banking sector’s exposure. The suspension of Parate execution, which allows banks to recover loans through foreclosure, has raised concerns about its long-term consequences for the financial system.

The Parate law serves as a safeguard for banks, allowing them to recover funds in cases of default. Without this legal tool, banks face a higher risk of non-repayment, potentially leading them to increase interest rates across the board.

This could make borrowing more expensive for SMEs, further contracting the economy during a period of financial instability. Additionally, the suspension of Parate execution may create moral hazard, encouraging borrowers to default on their loans, knowing that the banks have fewer legal options for recovery.

This situation also undermines businesses that continue to make loan payments despite financial hardship. These responsible borrowers may feel disincentivized, as they see no benefit in fulfilling their obligations when others may be able to default without consequence.

The risk of defaults may also have a negative impact on the banking sector, which is already grappling with rising Non-Performing Loan (NPL) ratios and exposure to sovereign debt restructuring.

The government has announced a bank recapitalization plan of LKR 450 billion in the 2024 budget to stabilize the banking sector. However, the suspension of Parate execution could undermine this effort by eroding depositor confidence. With the ability to recover loans compromised, depositors may become reluctant to place their funds in banks, further exacerbating the financial challenges.

The situation also complicates Sri Lanka’s relationship with international bodies such as the International Monetary Fund (IMF). The IMF had initially recommended a thorough assessment of the banking sector’s stability, and the suspension of Parate execution without consultation with banks may send the wrong signals during ongoing reviews.

Ultimately, the suspension of Parate law poses significant risks to both SMEs and the broader financial system. While it aims to provide short-term relief, it could have unintended long-term consequences, including higher borrowing costs, reduced loan recovery, and weakened depositor confidence.