- President Ranil Wickremesinghe yesterday said the government will introduce relief packages for education and fishing sectors with the launch of satellite internet services in Sri Lanka. Starlink’s implementation will be transformative for Sri Lankans, especially those struggling to stay connected with reliable, high-speed internet, he said.
- Muslims in Sri Lanka will celebrate the Hajj festival on Monday, 17th June 2024, as the crescent for the month of Dhul Hajj was sighted today (7).
- The Locomotive Operating Engineers’ Union of Sri Lanka Railways says that the strike action launched from midnight of 06th will continue further. The trade union action is being carried out over delays in second-class promotions of locomotive drivers and several other issues, according to the Locomotive Operating Engineers’ Union.
- Public Security Minister Tiran Alles has instructed IGP Deshabandu Tennakoon to direct the Criminal Investigation Department (CID) to investigate into the alleged threats SJB MP Dr. Harsha de Silva has received. Speaking in Parliament, the opposition parliamentarian and economist claimed that he is faced with threats to his life.
- Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka said that an allowance of LKR 10,000 will be provided to every household affected by the flood. He stated that this financial assistance is intended for cleaning the houses. Additionally, once the assessment reports on all partially and fully damaged houses and buildings are received, the subsequent steps will be implemented promptly.
- The Parliament of Sri Lanka has passed the ‘Public Debt Management Bill’, State Minister of Finance Shehan Semasinghe said. Posting on ‘X’, the Finance State Minister highlighted that the bill will provide for Public Debt Management including the authorization to borrow, issue and to service public debt for the government.
- The Sri Lanka Podujana Peramuna (SLPP) Politburo has granted permission to initiate disciplinary action against Minister Wijeyadasa Rajapakshe, MP S. B. Dissanayake said.
- Sri Lanka’s official reserve assets has recorded a marginal drop by 0.9% to USD 5.42 billion in May 2024 compared to USD 5.47 billion in April 2024, according to the Central Bank of Sri Lanka (CBSL). However, this includes proceeds from the swap with People’s Bank of China (PBoC) equivalent to around USD 1.4 billion, which is subject to conditionalities on usability.
- State Minister of Finance Shehan Semasinghe disclosed the government’s domestic and external debt figures in the Parliament. Accordingly, he stated that the domestic debt stood at Rs. 17,051 billion as of December 31, 2023, and increased to Rs. 17,252 billion by March 31, 2024. Additionally, he highlighted the external is debt USD 37 billion, including outstanding external debt installments amounting to USD 5.5 billion from April 2022.
- Minister of Sports Harin Fernando announced that a complaint has been lodged with the International Cricket Council (ICC) regarding the lengthy travel times and hardships the Sri Lankan team faced during the Group Stage matches of the 2024 T20 World Cup.
Sri Lanka Original Narrative Summary: 08/07
Says Sri Lanka is an unsinkable aircraft carrier “The country manufactures poverty as politics is more profitable than its industries” – Major Gen. Dr. Boniface Perera
- If political business is earning more profit than country’s industries, that country will never prosper but will manufacture menace
- Ministers should not have authority to approve tenders
- After the war when I was appointed as the Competent Authority in Wanni, I treated all the communities equally. In fact I gave preference to Tamil community
- Military intelligence should not be there to find out the details of politicians, opponent parties, but to hunt for economic opportunities even outside the country
- Our defence policy or national security policy should be ‘Active Defence’
- No national unity no nationals security”
- Poverty is the worst enemy and it is a breeding ground for terrorism
- National Security is very wide spectrum. Before we go further we must understand national survival
- If there is no national economy there cannot be national security
- The National Security Policy should be very carefully drafted
- Sri Lanka is like an unsinkable aircraft carrier
Major Gen. Dr. Boniface Perera a battle hardened Infantry officer served the Sri Lanka Army for more than 36 years dedicating 20 years in the battlefield. He was the former Security Forces Commander of the Wanni Region and Eastern province in addition to being the Competent Authority to resettle 300000 displaced people in the North. Having secured a PhD in economics, presently Major Gen. Perera is working as an International researcher and international writer. He has authored more than 100 research articles and 16 scientific books. He is an advanced researcher in the university of science and technology in Taiwan.
Following is an excerpt of an interview.
You as a senior Infantry Officer in the rank of General with more than 2 decades of fighting experience and in addition have gained an exceptional academic background including an PhD in economics. Can you explain the wider spectrum of national security?
National Security is very wide spectrum. Before we go further we must understand national survival. National survival depends on six to seven fillers. Mainly national economy, then national security, national culture, national diplomacy, science and technology and information and innovation and lastly political capability.
So national security is part of national survival.
This is academically accepted and also I have done research in 28 countries to study national security policy for Sri Lanka and how it suits Sri Lanka. So by the look you can understand the importance of national security in relation to national survival. So national security is not about shooting a terrorist or gangsters or declaring curfew, firing water cannons and tear gas and arresting people. It is very primitive and basic or I would say very tactical. National security has to be linked with national economy. If there is no national economy there cannot be national security. So national security should be linked with national culture. Without culture no nation can exist. National security again should be linked with diplomacy. If our diplomacy is OK and if we share peace with everyone we can cut down so much money that will be spent on national security. So there is a direct correlation between national security and national diplomacy. Then again national security is linked with science and technology. Now this is AI (Artificial Intelligent) era. During a digital era we cannot grow manioc or sweet potato and run a country. So national security will have to be always connected with science and technology. Then we come to information and innovation. Information is money. Information is data. Without innovation no nation can move forward. So innovation and information are very much linked to national security. So lastly it is political capability. All of us know very well since independence what happened to us. Since we didn’t understand political capability the country is now bankrupt. It has become almost a failed state. So we never had visionary leaders. We never had honest leaders. We never had leaders with genuine ideas for people. They just come to earn their bucks. They just come to entertain their families, cousins and relations and they just come to enjoy their tenure. That is what has happened if we really study their behaviour. From the President downwards, up to the lowest level of politicians we would observe all these features.
Therefore, in Singapore, for one to enter parliament there has to be the holder of a degree. In our country anybody can enter parliament. Most of the people who are in the parliament are not qualified to be in a normal office; even to hold the post of office assistant (peon). But they are in parliament and some are even ministers. So therefore with that type of background in the parliament how can we ensure national security? Therefore, national security largely depends on all these aspects.
So what should be the national security policy for Sri Lanka?
The National Security Policy should be very carefully drafted. Regarding National Security, one cannot say “We are offensive or we are defensive. That has to be linked with national culture. What is our culture? We are religiously bias as people. We are God fearing people. There are 71 percent Buddhists. The balance are Christians, Muslims and Hindus. All these are good people. Actually they fear to do wrong things. Given that type of culture, mainly the majority, be it Buddhists, the theme of Buddhism is Ahimsa and Madhyaprathipada. That is the central path and we don’t harm anyone. So therefore our culture says non-align and our foreign policy derives from culture that is non-aligned. Non-aligned means ‘Meda Mawatha’ or Madhyaprathipada’ Ahimsa means we are friendly with everyone and enmity with no one. We are friends. Therefore, only we have to prepare our national security policy. Our National security policy therefore cannot be offensive. Our national security policy should be defensive. Because we cannot forget the fact that Sri Lanka has faced numerous threats, internally and externally since the birth of Jesus Christ. We had the 1971 insurgency and in 1983 the Northern problem. We also had the Easter Sunday attack. So just because we are defensive we cannot sit and wait in the barracks. Our defence must take an active form. Therefore our defence policy or national security policy should be ‘Active Defence’.
So, likewise, in the United States, the defence policy is preemptive; that means you attack before the enemy attacks you. You won’t wait till the enemy attacks you. In Russia they use a ‘deterrent’. Russia has so much of power. So no one is going to attack Russia. So that is a deterrent. Even a lion can attack a giraffe. It is very unlikely that buffalos will attack snakes. This is because there is a deterrent. With regard to China it is ‘active defence’. China will not be the first person to use nuclear weapons. They will use it, but they will never go on the offensive. They are defensive, but they are active. So these are the three important countries in the world who have national defence policies. Based on that and taking our culture and foreign policy into consideration, all three must be considered when deciding on national security. The national security policy should be ‘Active Defence’. Nobody can say we are going on the offensive. If we are offensive we are violating basic principles of Buddhism and basic principles of our culture.
In this context, according to your view, is the national security of our country under threat?
National security will be under threat when the national unity is absent. National security can be enhanced through national unity. Therefore my theory is no national unity is possible where there is no national security. So the problem we face is mainly because our politicians have caused divisions in our people using nationality, race, religion and caste. So they were working against the national security. Basically they were not aware of the larger picture of the national security. The main aspect of national security is to protect the motherland, sovereignty and territorial integrity. National security will ensure the wishes of the people. It should pave the way for overall development of the country. So dividing nations will not help in the overall development. And selling important areas does not ensure national security. They are taking action against the national security policy.
You mentioned about selling. Geopolitically, we are sandwiched between so many super powers, We have to please China and also India. We have to please the USA and then Japan. In this context what can you say about our national security stands?
Sri Lanka is like an unsinkable aircraft carrier. Anyone who captures Sri Lanka, doesn’t need an aircraft carrrier. So the US has about 11, Russia has about 2 while China and India are developing in this aspect. If they capture Sri Lanka they have a carrier and this is the best aircraft carier; because this facility is unsinkable. Why the US is interested is because it wants to curtail China. Why India is interested is because we are located just South of India. Sri Lanka is by the main sea route and energy route of China and that passage is through Hambantota. There is so much oil and energy passing through Hambantota. Without Sri Lanka, China’s national security is under threat. If we move into China side India’s national security under threat. So the US also will lose its hegemony. So therefore as you rightly said, we are sandwiched in between global and regional powers.
We have to be very careful in handling this. In my opinion we should not take a side. This is because our foreign policy and culture do not allow us to take one side. We are on the Meda Mawatha or in other words we are non-aligned. We are following the concept of Ahimsa and cannot fight against anyone. Therefore it is true that we cannot satisfy everyone, but at the same time we should not take a side. That should be our foreign policy.
See how Singapore is dealing with the world. Singapore aligns with China and also is with the US. It is also good with India. So we can follow a certain amount of polices practised by Singapore. We must never take sides. We cannot fight India. We cannot antoganise India. If we antagonise India what would happen? The LTTE was created mainly by them. If India is going to invade us I don’t think anyone can do anything. We must keep this in mind. Again we need China because they gave so much of loans. Our developments were made thanks to Chinese loans and we have to repay them. So we have to be very closely associated with a neighbour who is fifty time bigger than Sri Lanka. We cannot think of fighting against India and we don’t have any other external enemies other than some extremist elements. So our defence must be active defence. We must keep monitoring how the people are coming and going. That aspect should be kept under surveillance.
What is the correlation between national security and economy and which is more important?
There is a country called Kuwait. It had so much of money. It had money for generations. They never had a defence system. They didn’t consider national security as having importance. What happened was suddenly a man by the name of Saddam Hussein from the adjoining country- Iraq- came and invaded this country. So Kuwait had to pay much money to the US and rescue Kuwait. In that sense national security has greater importance than the national economy. So what happened to Sri Lanka? Sri Lanka never had money to buy energy. This country never had money to buy gas and hospital units and the very basics. And at that time the priority was the economy more than security. So both national security and national economy are important; akin to the left hand and the right hand. So for Sri Lanka, at present, priority can be given to national economy. When we are fighting the LTTE it was national security. Now is the time to turn around the national economy and develop the country. When the economy flourishes, national security can also be enhanced.
As a decorated military officer, having a significant education background in the discipline of national security and national economy, what suggestions do you make to pull this country out of this current mess?
I will give the rulers of this country one solid advice. But I think no party leader or person would like to accept it. So would a country like this prosper with corruption? When the business of politics is earning more profit than country’s economy that country will never prosper. And it will manufacture menace. What has happened to Sri Lanka is it has manufactured menace. The number one business in Sri Lanka is politics. Corruption must be stopped. Waste must be controlled.
I suggest that any political leader should have under his purview about 25-30 ministries. And these leaders should not have any authority to approve tenders. Tenders must be handled by a 7-member council or committees for each ministry. If one can promise this set-up, the person who assumes power will achieve development goals. It can be UNP or any other party. The SLPP cannot do this because it already has an extremely bad record of corruption. If this can be done, corruption can be controlled 100 percent.
You being a war veteran have been campaigning to reduce military strength. Now there is also another problem where many cases of ex-military is involved in crimes. How should a country deal with so many 1000s of people who had undergone military and weapon training?
This is a very timely question. The theme for my PHd was “Translation of retired military personnel into economic actors through entrepreneurship” for which I spent more than 5000 night hours. The answer is in this study. I met Mahinda Rajapaksa, Basil Rajapaksa, Gotabaya Rajapaksa, Maithripala Sirisena and Sajith Premadasa. Sajith paid some attention to what I said, but the others did not. These are my findings. When I was in the Army I asked from the retiring solders what they are planning to do after retirement. There were four answers. ‘Sir I will hire a three wheeler, the next said that he would be a security guard, another said he has a paddy land and will be a farmer and the last person said that he hadn’t thought of doing anything. By the time they retired they had reached the active age of 40s. After 20 years of service they can be really of use to enhance the economy. How can we do it? I did a research and found out that 68 percent of veterans who are retiring prefer to be entrepreneurs. You must compare the characteristics of veterans and entrepreneurs. To be an entrepreneur you must be brave, loyal, know commerce and be able to take decisions. All these characteristics are there in the soldier by the time he retires. It is very easy to convert a soldier into an entrepreneur. In the US, 86000 veterans have created 85000 jobs. So they are contributing hugely to the American economy. After the war, till 2020, there were 50,000 soldiers who retired. Out of them, 68 percent said that they would like to be entrepreneurs. Let’s say that if 25000 veterans became entrepreneurs, three of them could create 75000 jobs. I can do that. I am confident that I can do that. But the interest of the politicians is not to serve the country. To convert a soldier to an entrepreneur we have to give human capital, social capital and financial capital.
When you were leaving Wanni you got an emotional farewell; especially from the Tamil community. Despite you being a Sinhalese and a senior military officer, the Tamil community there showed much affection. So as a military officer who worked with the Tamil community and who won their hearts what is your view as to why we couldn’t finish the ethnic problem despite the war having concluded militarily 15 years ago?
From a larger perspective our recognition would have been as Sri Lankans; not Sri Lankan Tamils or Muslims or whatever. And as I have said our defence policy should have been no “National unity no nationals security”. We are all one and we are all human beings. When I was in the Wanni I treated all the communities equally. In fact I gave preference to the Tamil community when I was the competent authority to resettle about 300,000 people. I was handling the tail-end of it. But I ensured that all the Tamils were resettled first, then the Muslims and then only the Sinhalese.
The arms struggle by the Tamil youth in the form of the LTTE was defeated militarily. According to your view, do you think that the Tamil community as a minority should live with a defeated mindset?
It should not happen. They are our people and are from our country. We are all Sri Lankans. We must give them confidence. Actually the last government did something for the North. There was development in the way of Uthur Wasanthaya. Whether those involved played out money or not we don’t know, but that was a welcome move. This is because they arranged some ways of transportation to the South. Trains, bridges, roads and infrastructure were provided. We can create a lot of jobs because it is seaborne area. We can have a coastal seaborne academy. Poverty is the worst enemy and it is a breeding ground for terrorism. So that has to be eradicated and we have to develop the North and the East more than any other place without thinking whether the people there are Tamils, Muslims or Sinhalese. This will be the foundation for long term peace. If poverty is eradicated terrorism won’t be there. There is no need to take up arms.
Especially after the Easter Sunday attacks there is a fear about Islamic terrorism in Sri Lanka. Even right now four Sri Lankans have been arrested in India on the suspicion that they were connected to the ISIS. Would there be any room for Islamic terrorism in Sri Lanka?
While national unity is very important at the same time we have to take all the possible actions to curtail extremism, terrorism and fundamentalism. We must not allow them to use media to antagonise others. It is important to be constantly vigilant on these people and their activities. So there is a need to improve our intelligence. Actually military intelligence might be not be there to find out the details of politicians and opposition parties. Our military intelligence should be deployed even outside the country to seek economic opportunities.
For an example when the Indian R&AW came to Sri Lanka they were trying to find out economic opportunities for Indians in Sri Lanka. Then they realised that in Sri Lanka, goods are transported using heavy vehicles, such as IZUZU from Japan. The price of that vehicle is very high. Sri Lankans couldn’t afford that. So they went with the great idea and suggested to their government that in Sri Lanka there is a huge market for lower priced heavy vehicles. And then TATA and Asok Laylend arrived here. And the entire country was captured by these two Indian companies. Who did it? Their intelligent force. Our military intelligent should be deployed in embassies outside and they must find out what the job opportunities for Sri Lanka are over there. What are the economic opportunities for entrepreneurships? These are the things they must do. When there is an attack on a Christ Church in New Zealand our Intelligent should have assessed the situation because it was done in a mosque. Muslim people were killed by Christians. So a similar issue can be present in Sri Lanka. That can come from anywhere. From a Sri Lankan context our intelligent people should have analyzed that Muslim extremists could attack the Christian community in Sri Lanka. There is a correlation between these attacks and the attack in New Zealand.
With so much of experience as a battle-hardened military officer and academically qualified in economics what is your expectations for the future?
My expectation is I need to join anyone who could give me an opportunity to transmute my ideas and whatever I have studied into action. One of the main expectations for me is to transform retired military people as economic actors through entrepreneurship. I will support anyone, any government or any leader who would give me the support to do this. By doing that I am not going to get a single rupee. I don’t want the 5000 night hours I burnt for my studies to go awaste. I invite any government to use my study and help me. And I also see that there is no hope for the people of this country. Fishermen have lost hope as they cannot go to sea due to high price of fuel. The farmer cannot go to the farm as he is not sure about the harvest as there is no manure. And the youth have lost hopes and they are going abroad. According to the figures available more than 60000 youth have gone abroad. The support the entrepreneurs are given is taxed in the form of VAT and SESS. The government is doing nothing for the entrepreneurs. Parents have no hope for their children they are sending them abroad. Which community has hope? No community has hope. Whoever can give hope to these people can build confidence. My expectation is that hope will be developed by someone.
By Susitha Fernando – Daily Mirror
Sri Lanka and Japan agree to resume stalled bilateral projects including LRT
June 08, Colombo (LNW): Sri Lanka and Japan agreed to resume stalled bilateral projects including a US $1.5 billion Japanese-funded light railway following the signing of the Official Creditor Committee (OCC) agreements signed next month.
The Government is working to restructure its foreign debt as part of a $2.9 billion bailout from the International Monetary Fund (IMF), after its worst financial crisis in more than seven decades in Sri Lanka.
It is confident of concluding the necessary agreements in time to complete the next IMF review, Japan expects the early signing of a Memorandum of Understanding (MoU) between Sri Lanka and the official creditor committee appointed to assist in restructuring Sri Lanka’s bilateral debt, which Japan co-chairs, finance ministry sources said.
The Sri Lanka government has taken a cabinet decision recently to resume the Japan International Cooperation Agency (JICA)-funded US$2.2 billion ‘Light Rail Transit (LRT) project, stretching from Malabe to Colombo Fort which was abruptly terminated by the previous regime, Presidential Secretariat sources divulged.
The government is set to renew the LRT project contract with the JICA loan facility due to its favorable conditions including low interest rates and the grace period of 12 years which was completely ignored by the previous regime.
The Urban Development Authority (UDA) will call for expressions of interests soon from interested international firms or joint venture companies to build the necessary infrastructure and implement the project, Urban Development and Housing Minister Prasanna Ranatunge disclosed.
It has ben planned to operate the light rail transit service to complete the journey from Malabe to Colombo Fort in 30 minutes.
On the advice of the then President Gotabaya Rajapaksa, Presidential Secretary Dr. P.B. Jayasundera had instructed the Ministry of Transport Services Management to review and terminate the project and close the project office with immediate effect.
He cited the reason for this action and a subsequent cabinet decision in favour of it to the high cost incurred for the LRT project and it was not being the appropriate cost effective transport solution for the Urban Colombo transportation infrastructure.
The consultants started work in early 2019. Their seven-year contract was signed with the Ministry of Megapolis and covered detailed design and related engineering services, procurement assistance, construction supervision, testing and commissioning as well as defect liability check.
The Government has not yet settled a claim of around Rs 5 billion from the project consultants Oriental Consultants Global of Japan and Sri Lanka’s Consulting Engineers & Architects Associated for the work already done, expenses and loss of profit caused by the cancellation of the project in 2020.
Sri Lanka’s Auditor General has confirmed this claim adding that after loan agreement number 2019011 linked to the LRT was scrapped following a policy decision, a consultancy contract was terminated and the firm has demanded a sum of Rs.5.89 billion for losses and damages.
Ceylon Chamber of Commerce welcomes New Electricity Bill aimed at CEB reforms
June 08, Colombo (LNW):In a landmark decision, the Parliament of Sri Lanka has approved the long-awaited Electricity Bill, marking a significant milestone in public sector reform.
The Ceylon Chamber of Commerce, which has been advocating for this change for the past few years, warmly welcomes the decision, hailing it as a courageous and transformative step forward for the nation’s electricity sector.
The new bill paves the way for open access and the unbundling of the Ceylon Electricity Board (CEB), a reform that has been in the making since 2001.
This move is expected to enhance efficiency, promote competition, and attract much-needed investment into the electricity sector, ultimately benefiting consumers with improved services and more competitive pricing.
The Chamber commends the government and Parliament for their visionary leadership in passing this critical legislation.
This is a significant step towards modernizing our electricity sector, ensuring a reliable and efficient supply of electricity, and fostering a more competitive market environment.
While the overall reception of the bill is overwhelmingly positive, the Ceylon Chamber expresses a note of caution regarding the transfer of certain powers to an advisory council appointed by the minister, which can potentially undermine the role of the regulator, raising concerns about the independence and effectiveness of regulatory oversight.
The Chamber suggests a clear demarcation of roles where advisory council focuses on policy development, while the regulator retains its regulatory powers.
A strong, independent regulatory framework is essential for the success of these reforms. Therefore, the Chamber urges careful consideration of the advisory council’s structure and its potential impact on the regulator’s autonomy.
Despite these concerns, the approval of the Electricity Bill represents a pivotal moment in Sri Lanka’s journey towards a more efficient and sustainable electricity sector.
The Ceylon Chamber of Commerce remains committed to working with all stakeholders to ensure the successful implementation of these reforms and to address any challenges that may arise.
Currently loss making Ceylon Electricity Board (CEB) is now in for systematic restructuring process by unbundling it into eight separate corporate entities for power generation, transmission, and distribution, a recent board paper on administration specified.
The board paper clearly indicated that it plans to reduce massive losses of the CEB by transforming it into an efficient profit making institution by setting up these entities under eight new general managers.
These entities will undertake functions of the CEB relating to hydro electricity, thermal electricity, coal power and non renewable power generation, distribution, and other activities of CEB as well as Lanka Electricity Company (LECO).
Starlink connection to cost Sri Lankans heavily for best broad speeds
June 08, Colombo (LNW): Billionaire business magnet Elon Musk’s satellite internet company Starlink is already approaching broadband speeds. Actually, Starlink Premium, a new higher-end tier, surpasses some of the best broad speeds available in the U.S., albeit, at an absurdly high price.
While it’s still somewhat early on, Starlink is already having an impact on people living in rural parts of the world.
SpaceX has also launched Starlink RV which is a service meant for users on-the-go or who live in campers
So far, SpaceX has launched more than 5,300 Starlink satellites with new launches scheduled quite frequently.
These satellites will continue to help cover the continental U.S., Canada and the U.K. At the same time, NASA and SpaceX have come to an information-sharing agreement to help avoid orbital collisions.
Sri Lankans will need to pay between US$ 400 – US$ 600 to obtain a Starlink internet connection, once its services are launched in the country.
Director General of the Sri Lanka Telecommunications Regulatory Commission, Madusanka Dissanayake, said that the initial setup or the registration cost for the service ranges from between US$ 400 and US$ 600, with a monthly fee of US$ 99.
Starlink is not yet established as a telephone network company in Sri Lanka. However, the Telecommunications Regulatory Commission has approved it under Sections 17 and 22 of the Telecommunications Regulatory Act, granting it a frequency license.
The Act will be amended in the future to issue a Telecommunication Service provider license.The satellite technology allows for internet access anywhere in the world and offers speeds several times faster than the existing fibre technology in Sri Lanka.
State Minister of Technology, Kanaka Herath, announced that the Telecommunications Regulatory Commission of Sri Lanka has granted preliminary approval for Starlink to provide satellite-based internet services in Sri Lanka.
The State Minister emphasized that a two-week period has been allocated for a formal public consultation process regarding the approval of this internet service. Following this period, the Telecommunications Regulatory Commission will take steps to implement the service in Sri LankaStarlink is also moving beyond providing satellite internet as SpaceX is also working on a Direct-to-Cell service that will start with text messages first before moving on to actual phone calls. In fact, the company sent out its first text messages at the beginning of 2024.
Sri Lanka Tea prices soar in May over declining volumes
June 08, Colombo (LNW): Sri Lanka tea industry is bracing for revival with soaring sales amidst drop in crop but upward trend in prices as well as exports. Tea Board sources claimed.
In the backdrop of declining volumes, tea prices are on the rise sharply with May establishing record National Sales Averages both in rupee and dollar terms.
Forbes and Walker Tea Brokers said in May, as well as year to date, have seen significant gains except for High and Medium grown.
In May, the total auction average of Rs. 1,266.80 per kilo, the High grown average of Rs. 1,162.31 per kilo, Medium grown average of Rs. 1,074.79 per kilo and Low grown average of Rs. 1,608.57 were the highest ever.
Sri Lanka’s tea crop in April 2024 has dropped to a four year low of 21.46 million kilos, which is also the lowest since the COVID-19 lockdown year of 2020.
Forbes and Walker Tea Brokers said the National Tea Sales Average (TSA) for May 2024 registered Rs. 1,266.80 ($ 4.25), reflecting an increase of Rs. 49.95 and $ 0.16 compared to the April 2024 average of Rs. 1,216.85 ($ 4.09).
This substantial growth also shows a positive year-on-year (YoY) variance, with the May 2023 average standing at Rs. 1,055.45 ($ 3.43).
It also added that the current figures mark an impressive increase of Rs. 211.35 and $ 0.83 over the previous year.
Breaking down the averages by region, the High Grown tea segment showed a month-on-month (MoM) increase of Rs. 4.81 and $ 0.01. However, there was a decrease of Rs. 83.38 and a positive variance of $ 0.10 YoY.
The Medium Grown tea average also recorded a positive MoM variance of Rs. 6.87 and $ 0.02, although it saw a slight YoY decrease of Rs. 5.36 while still achieving a $ 0.32 increase in Dollar terms.
Forbes and Walker Tea Brokers said the Low Grown tea segment particularly stood out, with increases in both rupee and dollar terms, recording Rs. 72.31 and $ 0.24 MoM. The YoY average for Low Grown tea also demonstrated substantial growth, with an increase of Rs. 18.35 and $ 0.47.
It added that despite some regional variances, overall, the tea industry has shown resilience. Both High and Mid Grown regions experienced negative variances in rupee terms during the period from January to May 2024 compared to the same period in 2023.
However, all elevations recorded positive variances in Dollar terms, underscoring the sector’s strong performance on the international market.
The figures also highlight the robust demand and strategic positioning of Sri Lankan tea in global markets, setting a promising outlook for the remainder of the year.
Automobiles assembly industry dominates the SL market releasing 44,430 vehicles
June 08, Colombo (LNW): Automobiles assembled in Sri Lanka with the involvement of world-renowned brands including Hyundai, Proton, BAIC, DFSK, Wuling, Mahindra, TATA, Bajaj, TVS, JMC and Lanka Ashok Leylandare flooding the local market despite the ban on vehicle imports.
State Minister of Finance Ranjith Siyambalapitiya yesterday revealed that 44,430 vehicles have been released to the market despite the import restrictions in place.
“This includes 38,144 motorcycles and 6,286 cars,” he said during a discussion held at the Finance Ministry with a group of local vehicle assembly representatives.
He pointed out that despite the restrictions on vehicle imports, the assembly and sale of vehicle parts have continued unabated.
The meeting saw representatives from various domestic vehicle manufacturing companies discussing the potential lifting of import restrictions.
They emphasised the need to balance import policies with the growth of local assembly businesses, which have seen a boost due to the import restrictions.
The representatives underscored that the restrictions have acted as a catalyst for the vehicle production industry in Sri Lanka.
They highlighted that developing a robust domestic vehicle manufacturing sector is a long-term endeavour that requires sustained support and investment. Minister Siyambalapitiya assured that the Government is committed to boosting local businesses.
Sector Advisory Committee for Automobile for the Ministry of Industries Chairperson Dimantha Jayawardena said, “Sri Lankan automotive component manufacturers went through one of the toughest business cycles from 2020.
The Sri Lanka Government is promoting automobile component manufacturing as a trust sector for growth and has a plan to grow exports from $ 200 million to $ 1 billion.
Accordingly, the approval to assemble a wide range of vehicles including SUVs, Cars, Two-Wheelers, Double-cabs, Trucks and Buses has paved the way for a diversified automobile assembly industry in the country catering to various consumer needs
Now electric bikes, KD Rize, Dyno and Senaro are also involved in the local assembly of motorcycles.
More than four assemblers including JAC and FOTON will be starting assembly in Sri Lanka and by the end of the year more than 30 assemblers will be in operation in the local automobile assembly industry.
These assemblers must provide a domestic value addition of more than twenty percent by using locally manufactured automobile components.
Following the Standard Operating Procedure (SOP) launched in 2021, there are over fifteen automobile and motorcycle assembly plants currently operating in Sri Lanka.
Four more assembly plants are due to begin operations within the next three months and another eleven have been registered by the Ministry of Industries. A Special Cabinet appointed Committee oversees the SOP and its governance.
Muslims in Sri Lanka Set to Celebrate Hajj Festival on June 17th
June 08, Colombo (LNW): Muslims in Sri Lanka will mark the Hajj festival on Monday, June 17th, 2024, following the sighting of the crescent for the month of Dhul Hajj on June 7th.
IMF Confident in Sri Lanka’s Progress on Debt Restructuring, Anticipates Agreements with Creditors Soon
June 08, Colombo (LNW): The International Monetary Fund (IMF) has expressed strong optimism that Sri Lanka will soon finalize agreements with external commercial creditors in line with program parameters. Julie Kozack, Director of the IMF Communications Department, stated during a press briefing on Thursday (06) that there has been “sufficiently strong progress on the debt restructuring front.”
On March 21st, IMF staff and Sri Lankan authorities reached a staff-level agreement on economic policies to conclude the second review of the economic reform program and the 2024 Article IV Consultation. The IMF Executive Board is scheduled to meet on June 12th to discuss this review and the Article IV Consultation.
Kozack noted that Sri Lanka’s macroeconomic policy reforms are yielding positive results, such as rapid disinflation, robust reserve accumulation, and initial signs of economic growth, while maintaining financial system stability. She highlighted that the program performance is strong, with most quantitative and structural benchmarks for the second review met or delayed, and ongoing reforms in some areas.
The next steps in the debt restructuring process include concluding negotiations with external commercial creditors and implementing agreements in principle with official creditors. Domestic debt operations are nearly complete, and discussions with external official creditors, including an MOU with the official creditor committee and final agreements with the Export-Import Bank of China, are well underway. Negotiations with external bondholders and the China Development Bank are also advancing.
“There is a strong expectation that agreements with external commercial creditors consistent with program parameters will be reached soon. So overall we assess that there has been sufficiently strong progress on the debt restructuring front,” Kozack reiterated.
Sagala Ratnayaka Announces New City for Residents Along Kelani River Bank
June 08, Colombo (LNW): Senior Advisor to the President on National Security and Chief of Presidential Staff, Sagala Ratnayaka, announced that an allowance of LKR 10,000 will be provided to every household affected by the recent floods. This financial assistance is specifically intended for cleaning the houses.
Ratnayaka emphasized that once the assessment reports on all partially and fully damaged houses and buildings are received, further steps will be promptly implemented.
He made these remarks during an observation tour today (07) to assess the welfare of residents in the Kolonnawa area impacted by the adverse weather conditions.
During the tour, Sagala Ratnayaka inspected the flood-affected houses and visited a medical clinic organized at the Kolonnawa Sri Sambuddharaja Purana Vihara to oversee the assistance being provided to the affected individuals. Following this, he participated in a discussion at the Kolonnawa Divisional Secretariat to review the current progress and future initiatives of the government’s relief program for the affected population.