July 23, Colombo (LNW): Education Minister Susil Premajayantha has committed to resolving the grievances of teacher-principal trade unions within this week.
Several trade unions have initiated a two-week work-to-rule campaign starting yesterday (22), protesting the government’s delay in addressing salary discrepancies.
Teachers and principals have declared they will only perform their regular academic duties during this period.
Ven. Ulapane Sumangala Thero, Convenor of the National Collective Against Teachers’ & Principals’ Salary Disparities, expressed opposition to union actions aimed at political agendas.
Minister Premajayantha assured that academic activities in schools would remain unaffected by the trade union action.
July 23, Colombo (LNW): During the “Abhiman-2024” event at Epitome Hotel, Kurunegala, President Ranil Wickremesinghe urged foreign employment agencies to attract tourists from countries where they place workers, promising support from the Ministry of Tourism.
At the event, President Wickremesinghe awarded certificates and gifts to agencies significantly contributing to the economy.
He reflected on his two-year presidency, noting the progress made despite the challenging economic crisis faced by Sri Lanka.
He credited the recovery to the efforts of Sri Lankans working abroad and emphasised the need for the country to become an export economy.
He highlighted the importance of training workers for better job opportunities and urged foreign employment agencies to bring business opportunities to Sri Lanka.
He encouraged innovative thinking and promised government support for initiatives like food exports to the countries where Sri Lankans are employed.
Minister of Labour and Foreign Employment, Manusha Nanayakkara, praised the President’s leadership during the economic crisis and acknowledged the significant role of foreign employment agencies in channelling USD 12 billion in foreign exchange this year.
He urged continued efforts to support the nation’s development.
The event was attended by notable figures, including Governor of the North Western Province Ahamed Nazeer Zainulabdeen, State Ministers, and leaders from foreign employment agencies.
July 23, Colombo (LNW): Several spells of showers will occur in Western and Sabaragamuwa provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, with a few showers being expected to occur in the North-western province, the Department of Meteorology said in its daily weather forecast today (23).
Strong winds of about (50-55) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Trincomalee, Monaragala and Hambantota districts.
Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island.
Marine Weather:
Condition of Rain:
Showers may occur at a few places in the sea areas off the coast extending from Colombo to Matara via Galle.
Winds:
Winds will be westerly to south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to 60 kmph at times in the sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil. Wind speed can increase up to 50 kmph at times in the sea areas off the coasts extending from Trincomalee to Kankasanthurai via Mullaittivu.
State of Sea:
The sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil can be rough or very rough at times. The sea areas off the coasts extending from Trincomalee to Kankasanthurai via Mullaittivu can be fairly rough at times. Naval and fishing communities are requested to be attentive in this regard.
July 22, Colombo (LNW): Opposition Leader Sajith Premadasa has called for an urgent, comprehensive national strategy to tackle the critical issue of child poverty in Sri Lanka.
At an event at Mahagama Sekara Maha Vidyalaya, Premadasa revealed that 25 per cent of the nation’s children suffer from poverty, with 42 per cent facing multidimensional poverty, as per international data.
Premadasa stressed the urgency of the situation, advocating for the creation of a Presidential Task Force focused on eliminating child poverty.
The Opposition Leader proposed that this initiative be implemented through District Secretariats in all 25 districts to ensure effective local-level action.
Criticising the government’s lack of a plan to address the crisis, Premadasa highlighted the detrimental effects of child poverty, describing it as a relentless cycle.
He further explained that poverty hinders children’s education, resulting in poor academic performance, unemployment, and perpetuated poverty.
July 22, Colombo (LNW): Sri Lanka’s banking system saw a significant improvement in its net foreign assets (NFA) in May 2024. Official data showed the combined NFA of commercial banks and the central bank reached approximately $311 million, recovering from a negative $178 million in April. This turnaround is largely attributed to the current interest rate structure and domestic credit adjustments.
The NFA improvement comprises a positive $1.9 billion in foreign assets held by overseas banking units and a negative $811 million position, resulting in a net positive $1.13 billion for banks.
However, the central bank’s position remained negative at about $821 million, though this was a substantial improvement from a negative $4.5 billion during the peak of the previous currency crisis.
The central bank and commercial banks have accumulated reserves or repaid debts amounting to $6.7 billion since a significant interest rate hike in April 2022.
This movement contributed to a surplus in the external current account due to financial outflows for reserve collection and debt repayment. Specifically, the central bank gathered or repaid $3.45 billion, while other banks accounted for $3.2 billion.
Analysts caution that flexible inflation targeting may lead to external imbalances if private credit recovers and money is printed to lower rates. This approach could undermine the natural economic laws recognized by classical economists, potentially triggering currency crises.
Sri Lanka’s central bank encountered a negative NFA position starting in August 2021, spending borrowed dollars to cover imports and loan repayments while printing money to maintain low policy rates. This practice led to currency crises characterized by a cycle of credit expansion, dollar losses, and further monetary injections.
To stabilize and build foreign assets, the central bank needs to sell its domestic assets and purchase dollars from banks at appropriate interest rates, thereby moderating domestic credit. Modern practices by IMF-prone central banks often involve swaps to mis-target rates beyond their reserves.
The central bank’s negative reserve position peaked at around $4.5 billion in the third quarter of 2022, exacerbated by credits from the Reserve Bank of India. Borrowings from the IMF also contributed to this negative position, a result of repeated currency crises driven by money printing for rate cuts and growth targeting.
The external sector began to stabilize once credits from the Asian Clearing Union (ACU) ceased. The central bank has since been paying down the ACU credits steadily under the current interest rate structure. Notably, the use of a swap with the People’s Bank of China was restricted when gross reserves fell below three months of imports.
Sri Lanka’s private and state banks also faced negative foreign assets for years due to lending to the government via US dollar Sri Lanka Development Bonds and other credits, partially financed by foreign credit lines.
Following downgrades and worsening forex shortages, banks struggled to renew these credit lines, leading to the repayment of Sri Lanka Development Bonds in rupees and a shift of dollars to foreign accounts, ultimately improving the NFA position.
July 22, Colombo (LNW): Romania is set to regulate foreign employment opportunities for Sri Lankans as it had opened 100,000 foreign jobs earlier in the year.
Sri Lanka and Rumania foreign ministers identified key areas for bilateral cooperation, including ports, shipping, logistics, cyber security, education, ICT, anti-corruption initiatives, disaster risk reduction, and civil protection.
They emphasized the importance of regulating foreign employment opportunities for Sri Lankans in Romania, discussing avenues for establishing a government-to-government mechanism for sending semi-skilled and skilled workers to Romania
Foreign Minister Ali Sabry concluded an official visit to Romania from July 15–18, 2024, at the invitation of Romania’s Foreign Minister, Luminiţa Odobescu. Their bilateral talks marked a significant milestone in the longstanding relations between the two countries and aimed to further enhance the partnership, particularly in the context of Romania’s EU membership.
Minister Sabry highlighted Sri Lanka’s recent developments, focusing on economic stabilization and growth, and the progress made in ongoing reconciliation efforts. Foreign Minister Odobescu discussed Romania’s development drive and the potential for mutually beneficial engagement with third countries.
In the global context, they exchanged views on regional and multilateral issues such as climate change, energy security, and reforms to the international financial architecture. The Sri Lankan delegation included Ambassador Madurika Joseph Weninger, Director General Europe of the Ministry of Foreign Affairs Shobini Gunasekera, and other ministry and embassy officials.
Separately, Labour and Foreign Employment Minister Manusha Nanayakkara met with Romanian Ambassador to Sri Lanka Dr. Victor Chiujdea to discuss new employment opportunities in Romania for Sri Lankans some times back.
They had an extensive discussion on the provision of employment opportunities, with the Romanian Ambassador noting that Romania had opened 100,000 foreign jobs earlier in the year.
The Ambassador stated that the Romanian government would not directly intervene in providing these opportunities, which would be managed by private employment agencies. He mentioned that Romania had opened jobs in the construction, IT, and tourism sectors.
Minister Nanayakkara requested the Romanian Ambassador’s assistance in securing more employment opportunities for Sri Lankans, particularly in education.
They discussed the possibility of collaborating with the Romanian Employment Agencies Association to facilitate these opportunities.
The Minister also emphasized the need to regulate fees charged for sending workers to Romanian jobs and assured that strict legal action would be taken against groups trafficking workers under false pretenses.
Currently, about 2,500 Sri Lankan workers are employed in Romania. Discussions are underway to appoint a permanent consul to support these workers, as stated by Minister Nanayakkara.
July 22, Colombo (LNW): The United States is enhancing Sri Lanka’s readiness for climate-related emergencies. Through the United States Agency for International Development’s (USAID) Bureau for Humanitarian Assistance (BHA), the US government provided essential equipment to the Disaster Management Centre (DMC) via the United Nations World Food Programme (WFP).
This donation, part of a larger $2.5 million USAID-funded WFP project, aims to support Sri Lanka’s efforts in improving disaster risk management.
The equipment includes submersible water pumps, kitchen sets, chainsaws, polysack bags, and tarpaulins.
It was handed over by Dustin Shiau, USAID BHA’s Regional Humanitarian Advisor for South and Central Asia, to Major General (Retired) Udaya Herath, Director General of the DMC, with officials from the Sri Lankan government and WFP present.
“Saving lives, protecting property, and minimizing the impact of disasters is central to U.S. humanitarian efforts in Sri Lanka and globally.
The United States, through USAID, collaborates with Sri Lanka’s disaster management authorities to enhance their disaster preparedness and mitigation efforts,” said Shiau.
“Our support reflects American values and the strong partnership between the United States and Sri Lanka, ensuring essential assistance reaches the most vulnerable during emergencies.”
Abdur Rahim Siddiqui, WFP Sri Lanka’s Representative and Country Director, emphasized the importance of preparedness in saving lives and livelihoods and preventing hazards from becoming disasters.
“As climate change intensifies, our focus is on mitigating its impacts to protect people’s access to food and nutrition. We appreciate the ongoing support from the United States in strengthening Sri Lanka’s climate shock preparedness,” he said.
Recent flooding from the South-west monsoon affected 20 of Sri Lanka’s 25 districts. A joint rapid assessment led by WFP and the Government of Sri Lanka identified the needs of affected communities and highlighted government priorities for response efforts.
The prepositioning of emergency supplies is one of several U.S.-funded initiatives to help Sri Lanka quickly assist communities during climate-induced disasters.
The United States is one of WFP’s largest global donors. Through USAID, WFP has supported Sri Lanka in emergencies and helped rebuild fragile food systems and improve access to better nutrition.
July 22, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates slight appreciation against the US Dollar today (22) in comparison to last week, as per the official exchange rates released by the Central Bank of Sri Lanka.
Accordingly, the buying price of the US Dollar has dropped to Rs. 298.89 from Rs. 299.23, and the selling price to Rs. 308.19 from Rs. 308.53.
The LKR indicates appreciation against several other foreign currencies, including Gulf currencies, as well.
July 22, Colombo (LNW): The Government has been urged to expedite Sri Lanka’s accession to Madrid Protocol to facilitate Sri Lanka exports a diverse array of goods under various trademarks, crucial for international trade and economic growth.
The National Chamber of Exporters of Sri Lanka (NCE) assists its members in exporting under their own brands, but the high cost of registering trademarks in multiple countries is a significant challenge.
Registering a trademark in ten countries incurs ten times the cost, making it prohibitively expensive for businesses. The Madrid Protocol offers a solution to this issue.
The Madrid System, managed by the World Intellectual Property Organisation (WIPO), is an international treaty that facilitates a streamlined and cost-effective way for businesses to register trademarks in multiple countries. Joining this system would benefit Sri Lankan exporters significantly.
A major advantage of the Madrid System is the reduction in trademark registration costs. Instead of registering trademarks separately in each country, businesses can file a single application with a single fee, selecting multiple countries for trademark protection. This consolidation reduces administrative and legal expenses.
Furthermore, the Madrid System simplifies the trademark registration process. With one application in one language submitted to one office, businesses can protect their trademarks in up to 128 member countries. This streamlined process saves time and effort for Sri Lankan exporters and allows centralized management of trademarks.
Jayantha Karunaratne, NCE President and a leading tea exporter, highlights the importance of Sri Lankan brands gaining recognition in international markets.
He asserts that registering their own brands brings numerous benefits to exporters and the country, enhancing the visibility and reputation of individual businesses and elevating the overall image of Sri Lankan products globally.
This recognition can lead to increased demand, better market access, and higher revenue for exporters, significantly contributing to the national economy.
Despite the clear advantages, Sri Lanka has yet to join the Madrid Protocol. The decision to accede to the Madrid Protocol has been debated for 3 to 4 years. Although Sri Lanka agreed to accede to the protocol in 2017, the process has faced delays.
As of February 2020, the Sri Lankan government had approved accession to the Madrid Protocol, but the process remains incomplete. Necessary legal provisions must be included in the National Intellectual Property Act No. 36 of 2003 to finalize this accession. While the bill has been drafted, it has not yet been enacted.
In his 2023/2024 National Budget Speech, President Ranil Wickremasinghe acknowledged the hurdles exporters face in registering trademarks globally, citing time and financial constraints. During a November 2023 meeting, the Secretary to the Ministry of Trade, Commerce, and Food Security assured stakeholders that the accession process would accelerate, in line with the President’s commitment outlined in the budget speech. However, as of June 2024, the Director General of the Intellectual Property Office reported that the legal draftsman had forwarded the draft bill relating to accession to the Madrid Protocol to the Attorney General for a constitutional review, and feedback is still awaited.
President Ranil Wickremesinghe says he will announce a decision regarding his candidacy for the upcoming presidential election at the ‘appropriate time’, despite Minister Prasanna Ranatunga’s urgent call: emphasises the need for a national agenda and opposition cooperation to transform Sri Lanka into a developed nation: also mentions successful creditor agreements and urged the main opposition to support national revival efforts.
The Colombo High Court orders the release of former MP and SJB member Hirunika Premachandra on bail: The decision was issued by High Court Judge Amal Ranaraja today (22), following the consideration of an appeal filed by her legal representatives.
NPP Leader MP Anura Kumara Dissanayake pledges that he will disclose details of his foreign trip expenses upon returning from Japan: This statement followed accusations by ruling MP Premnath Dolawatta that Dissanayake spent over Rs. 70 million on political meetings abroad: Dissanayake insists no government funds were used and calls for transparency on expenses related to President Ranil Wickremesinghe, Tourism Minister Harin Fernando, and Minister Manusha Nanayakkara’s foreign trips.
The People’s Action for Free & Fair Elections (PAFFREL) urges the government to avoid introducing amendments requiring a referendum, citing the current economic crisis: Executive Director Rohana Hettiarachchi highlights that a referendum would cost Rs. 10 bn, stressing that it’s imprudent while Local Government elections are postponed due to financial constraints: accuses the government of prioritising power retention over urgent national issues.
The Foreign Affairs Minister Ali Sabry announces Poland plans to recruit Sri Lankan workers through a government-to-government agreement, with simplified visa procedures: The announcement, made after Sabry’s visit to Poland, follows a proposal from Polish counterpart Radosław Sikorski: Sabry’s visit, which also included Romania, aimed to strengthen bilateral relations.
UNICEF donates nine refrigerated trucks to Sri Lanka’s Ministry of Health to improve vaccine distribution for children, funded by the Japanese Government: Presented by Japanese Ambassador Mizukoshi Hideaki and UNICEF’s Ms. Begoña Arellano, the trucks are part of a USD 3 million aid package from Japan, including cold chain equipment: This support will enhance vaccine transport and storage nationwide.
The Medical Research Institute (MRI) faces criticism for allegedly neglecting 50% of its testing duties, with several specific tests not being performed: Trade unions raise concerns, but MRI Director Dr. Suranga Dolamulla counters that the figure is outdated and now stands at 20%: attributes improvements to better systems and efficient resource use, despite funding challenges.
The Sri Lanka Shippers’ Council condemns successive governments for inconsistent policies and widespread corruption harming industries: Chairman Sean Van Dort criticises inadequate responses to corruption within Sri Lanka Customs and the Inland Revenue Department: highlights issues like unsanitary warehouses, outdated equipment, and private sector corruption: calls for improved governance and service, rejecting government handouts in favour of effective operational support.
The Acting Magistrate of Nuwara Eliya orders Police to arrest and bring Ceylon Workers’ Congress General Secretary, Minister Jeevan Thondaman, to court: Thondaman is accused of unlawfully intervening, threatening law enforcement, and exhibiting unruly conduct at a Nuwara Eliya tea estate: The police were instructed to apprehend Thondaman and others who failed to attend court.
The Jaffna Kings won their fourth LPL title by defeating the Galle Marvels by nine wickets with 26 balls to spare: Rilee Rossouw scored an unbeaten 106 and Kusal Mendis 72 in a record 185-run partnership: Galle Marvels, batting first, set a target of 185 with Bhanuka Rajapaksa scoring 82. Jaffna chased the target in 15.4 overs.
