July 22, Colombo (LNW): As of 18 July 2024, Sri Lanka has welcomed a total of 1,019,642 tourists this year.
Data from the Sri Lanka Tourism Development Authority (SLTDA) shows that 43,083 visitors arrived in the first week of July, followed by 42,343 in the second week.
Additionally, 23,967 arrivals were recorded in the first four days of the third week.
Indian tourists accounted for 25.2 per cent of the total, with 27,574 visitors up to 18 July, making them the largest group from any single country.
The United Kingdom, China, Germany, and the Netherlands also contributed significant numbers of tourists, according to the SLTDA.
July 21, Colombo (LNW): Teacher and principal trade unions have commenced a two-week ‘work-to-rule’ campaign starting today (22).
The unions have announced that they will abstain from participating in workshops, external professional activities, and training programmes mandated by provincial and zonal education offices from today onwards.
Parakrama Weerasinghe, General Secretary of the National Association of Principals, said over the next fortnight, they will focus solely on classroom teaching, withdrawing from all external activities.
However, Ven. Ulapane Sumangala Thero, Convenor of the National Collective Against Teachers’ and Principals’ Salary Disparities, has expressed that they do not endorse this union action, viewing it as an attempt to bolster political movements.
July 22, Colombo (LNW): A few showers may occur in Western and Sabaragamuwa provinces and in Galle and Matara districts, but mainly fair weather will prevail elsewhere of the island, the Department of Meteorology said in its daily weather forecast today (22).
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 (25-35) 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 and Puttalam to Hambantota via Colombo and Galle.
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 and Puttalam to Hambantota via Colombo and Galle can be fairly rough at times. The swell waves (about 2.0–2.5 m) height (this is not for land area) may increase in the sea areas off the coast extending from Kalpitiya to Pottuvil via Colombo, Galle, and Hambantota. Naval and fishing communities are requested to be attentive in this regard.
July 21, Colombo (LNW): The Sri Lanka Computer Emergency Readiness Team (SL CERT) has initiated an investigation into 40 government information systems in order to determine if they have been compromised by the mass global IT outage in software provided by a leading US-based cyber security firm.
enior Information Engineer of Sri Lanka CERT Charuka Damunupola confirmed that reports have been called to ascertain whether the relevant government information systems operate using Microsoft applications, which have been affected by the massive outage took place.
Furthermore, Mr. Damunupola stated that initial findings indicate four private institutions in Sri Lanka have been impacted, while unofficial reports suggest that two Sri Lankan banks are among the affected entities.
peaking to Ada Derana, he asserted that a rigorous investigation is underway to assess the full scope of the impact.
CrowdStrike, a cybersecurity firm with thousands of customers globally, admitted on Friday (19) that a defective software update had caused the major IT outage that is bringing airports, banks, hospitals, media outlets, and businesses to a halt worldwide.
Reports of outages began streaming in from around the globe early on Friday, with broadcaster Sky News in the UK forced off the air for several hours.
However, the CEO of CrowdStrike told CNN news agency that the IT issue causing a global outage has been identified and that a fix has been deployed.
CrowdStrike has advised customers to refer to its support portal for updates, and for organisations who use its services to continue communicating with CrowdStrike representatives “through official channels”.
Earlier today, SriLankan Airlines announced that its internet booking services have been fully restored as of 08:30 GMT (02.00 pm local time), following a global outage of third-party service providers that affected the airline’s online booking services.
“We understand that this may have impacted the experience of some of our passengers, and we sincerely apologize for any inconvenience caused,” the airline said in a brief statement.
Passengers are instructed to contact the Global Contact Centre at +94 19733 1979 for any further assistance with existing or new bookings, it added.
The National Center for Cyber Security in Sri Lanka says four information technology companies in Sri Lanka have been affected because of the global outage.
Sri Lanka Computer Emergency Readiness Team, which is known as Sri Lanka CERT, says that so far only four companies have informed them of being affected and the center attributed them to a problem with the cybersecurity platform CrowdStrike.
Charuka Damunupola, lead information security engineer at Sri Lanka CERT, says those companies were using CrowdStrike software and their systems “are in failure mode.”
July 21, Colombo (LNW): Sri Lankan exporters are strongly opposing the proposed elimination of the Simplified Value Added Tax (SVAT) system, citing significant negative impacts on the export sector and the economy.
The National Chamber of Exporters of Sri Lanka (NCE) has highlighted that the scheduled removal of SVAT in April 2025 will force exporters to pay VAT upfront on purchases, which will strain their cash flow and tie up essential capital. The NCE argues that SVAT should remain until an effective VAT refund mechanism is established.
The current VAT system is criticized for its inefficiencies and slow refund processes, which burden exporters with additional paperwork and prolonged delays in receiving refunds.
This situation exacerbates cash flow problems and creates financial uncertainty, potentially eroding exporters’ competitive edge by increasing costs and complexities. Smaller businesses, with less financial resilience, are expected to be disproportionately affected, risking their viability and growth.
The SVAT system was initially introduced to mitigate challenges faced under the traditional VAT framework.
It defers VAT payments and simplifies the refund process, allowing exporters to avoid upfront financial strain, better allocate resources, and streamline administrative processes.
This system has enabled exporters to maintain competitive pricing in global markets and ensured prompt VAT crediting, thereby providing financial stability.
The finance ministry plans to replace SVAT with a more efficient VAT refund mechanism as part of an economic reform program approved by the International Monetary Fund (IMF).
This program aims to speed up valid VAT refunds and abolish the SVAT system, aligning with broader fiscal reforms.
A parliamentary resolution to revise the VAT Act and abolish SVAT is expected to be presented soon, with official documents suggesting that reactivating the standard VAT could boost tax revenue by approximately 1.2 percent of GDP.
During a recent meeting with the Parliamentary sectoral oversight committee on economic affairs, representatives from various Sri Lankan exporters’ associations emphasized the need for a reliable VAT refund mechanism.
Finance Ministry officials assured that the government would implement an efficient tax system with a proper refund mechanism akin to those in developed countries.
Historically, the SVAT system was introduced to address significant delays in the VAT refunding process, which could take up to 18 months under the standard system.
The RAMIS system, established in 2016, aimed to improve this, but a proper refund system is still lacking. Exporters have also reported corrupt practices involving third-party groups and officials demanding commissions and bribes for expedited VAT refunds.
Overall, Sri Lankan exporters are advocating for the retention of the SVAT system until a robust and efficient VAT refund mechanism is in place. They argue that this is crucial for maintaining their financial stability and competitive edge in the international market.
July 21, Colombo (LNW): Leading business magazine LMD reports in its July edition that businesses are navigating both challenges and opportunities amid economic turbulence. The LMD-PEPPERCUBE Business Confidence Index (BCI) poll from June highlights widespread apprehension about the economic landscape.
According to the magazine, 30% of respondents to the monthly poll expressed optimism about the economy improving over the next 12 months, consistent with May’s results.
More than one in four executives (26%) expect the economy to remain the same, also mirroring the previous month. Meanwhile, 44% believe the economy will deteriorate, reflecting sentiments reported in May.
On the sales front, the magazine reports a slight improvement in outlook, with 34% of salespeople anticipating an increase in sales volumes over the next 12 months, marking a three-point rise from May.
Looking ahead to the next three months, nearly a third (32%) of respondents express optimism about improving sales numbers, a five percent increase from the previous month.
However, nearly a quarter expect their sales numbers to stay the same, a 5% decrease from the previous month, and 44% expect sales volumes to worsen, consistent with May’s figures.
The latest edition of LMD has been released, and its digital version has been shared on WhatsApp and the publisher’s social media platforms. LMD’s publisher, Media Services, highlights two significant challenges for Sri Lanka as a developing country: corporate governance and the skill gap.
Better corporate governance procedures are essential for attracting foreign investment and maintaining the integrity of Sri Lanka’s business environment.
Strong frameworks that guarantee ethical business conduct are crucial. Despite advancements, there is a notable deficiency in qualified management personnel. Educational institutions, business leaders, and the government must collaborate to create programs that address the evolving demands of the corporate world.
The youth population in Sri Lanka has made significant strides in management and entrepreneurship, contributing to the transformation of the business environment.
Their dynamism, inventiveness, and flexibility have sparked innovation, fueling economic expansion and promoting an entrepreneurial culture.
However, young business owners face several challenges, including difficult regulations, insufficient infrastructure, and restricted access to funding.
They may also lack the necessary networks and expertise, making it difficult to navigate the complexities of running a business. The absence of mentorship and support networks further hinders their performance.
Despite these obstacles, Sri Lanka’s young community has shown remarkable tenacity. Limited job opportunities for school leavers can lead to unemployment or underemployment, presenting additional challenges for the country’s economic development.
While there are pockets of optimism and improvements in certain areas, widespread apprehension about the economic landscape persists. Addressing corporate governance issues and the skill gap is crucial for sustained economic growth and development in Sri Lanka.
July 21, Colombo (LNW): A team from the International Monetary Fund (IMF) will visit Sri Lanka next week to evaluate the nation’s economic development, State Minister of Finance Shehan Semasinghe announced.
Speaking to the media, the State Minister highlighted that after the second review to release the third instalment of the IMF bailout package, preparations must begin for the third review.
However, the upcoming discussions with the IMF delegation will focus on assessing the country’s economic progress and outlining future measures to strengthen the economy, rather than the third review, he noted.
The Minister further emphasised that Sri Lanka’s goal is to sustain the current stability and achieve an economic growth rate of 5.1 per cent in the first quarter throughout the year.
“While most forecasts predict a 2 per cent growth this year, we aim for it to be between 3 per cent and 3.5 per cent,” Semasinghe claimed.
He further expressed his hope that the election period will not impede economic growth, projecting an economic growth rate of 3.5 per cent for the year.
July 21, Colombo (LNW): President Ranil Wickremesinghe has unveiled plans to ensure that returning migrant workers can enjoy a dignified life after their service abroad.
He expressed gratitude for their critical contributions of foreign exchange during the recent economic crisis, acknowledging their significant role in the nation’s economic progress.
The President made these remarks at the launch of the “Wigamanika Harasara” initiative, held today (21) at the Sathyawadi Ground in Kurunegala.
This initiative recognises the impact of migrant workers on Sri Lanka’s economy.
To assess the economic contribution of migrant workers, the “Wigamanika Harasara” programme was initiated across the country, starting in the North West Province.
Around 5,000 migrants from the Kurunegala, Puttalam, Anuradhapura, Matale, and Kegalle districts participated in the initiative.
During the event, President Wickremesinghe awarded Rs. 50,000 each to migrant workers as seed capital to support their self-employment ventures, under a welfare programme managed by the Sri Lanka Bureau of Foreign Employment (SLBFE).
This initiative aims to empower the migrant community economically and socially, secure their rights, and gather ideas and proposals for policy development.
The President also engaged personally with migrant workers, inquiring about their well-being and participating in friendly conversations.
In his address, President Wickremesinghe elaborated on the government’s support for returning migrant workers, emphasising that this support is a right earned through their dedicated service.
He highlighted the crucial role of migrant workers in stabilising the economy during the crisis, stating that without their contributions, the country would not have been able to overcome the challenges faced.
The President also outlined the government’s plans to boost foreign exchange reserves, enhance formal training for those seeking foreign employment, and shift towards an export-driven economy.
He stressed the importance of increasing paddy production and modernising agriculture to further develop the country.
Other officials, including Manusha Nanayakkara, Minister of Labour and Foreign Employment, and Jagath Pushpakumara, State Minister for Labour and Foreign Employment, also spoke at the event. They praised the contributions of migrant workers and highlighted the government’s efforts to support them.
The “Aswesuma” and “Urumaya” programmes have been introduced to ensure that everyone in the country receives their rights.
Additionally, Rs. 50 billion has been allocated to provide essential loans for small and medium-sized businesses as part of the broader effort to foster grassroots development.
The event also saw participation from State Minister Shantha Bandara, Secretary to the Ministry of Labour and Foreign Employment R P A Wimalaweera, and other officials.
July 21, Colombo (LNW): The Sri Lankan government has decided not to sell its national airline, SriLankan Airlines, despite initially attracting interest from six firms and shortlisting three potential buyers.
The airline had accumulated over US $2 billion in debt by the end of the 2022/2023 fiscal year. Ports, Shipping, and Aviation Minister Nimal Siripala de Silva highlighted the preference for restructuring over selling, constrained by regulations allowing only 49% of the airline’s shares to be transferred to another entity, which limited investor interest.
The International Finance Corporation (IFC) served as transaction advisors for the potential sale. By mid-May, the government had shortlisted AirAsia Consulting, Hayleys PLC, and Supreme Global Holdings/Sherisha Technologies Ltd., which claimed Qatari backing.
However, the State-Owned Enterprises Restructuring Unit eventually called off the sale, leading the government to explore other options for reviving the airline.
Minister de Silva reiterated the focus on restructuring rather than outright selling, acknowledging that the 49% share transfer limit deterred suitable investors.
Only six individuals expressed interest, none meeting the required standards. Among the six firms, AirAsia Consulting, Hayleys PLC, and Supreme Global Holdings/Sherisha Technologies Ltd. were shortlisted, while FitsAir, Dharshaan Elite Investment Holding Ltd., and Treasure Republic Guardians Ltd. also responded.
Amidst speculation, the government considered involving top local companies like John Keells Holdings, Hayleys, and Aitken Spence in a consortium to take majority ownership and manage the airline.
This idea followed a poor global response to the initial Request for Qualifications (RFQ) for the airline’s sale. The restructuring proposal included retaining 49% state ownership and transferring $500 million of the airline’s debt to the Treasury.
The Ministry of Finance, initiated the RFQ process on 31 October 2023, through international and local media, seeking potential investors for the airline’s shares. The pre-qualification application deadline was extended from 5 April to 22 April 2024 to facilitate the transfer of select Dollar and Rupee debt to the Treasury in March 2024.
As of 31 March 2023, SriLankan Airlines had accumulated losses of Rs. 601.7 billion, up from Rs. 529 billion the previous year.
The last audited accounts for FY23, released in October, reported a group loss of Rs. 71.3 billion, down from Rs. 163.5 billion in FY22. Excluding foreign exchange loss, the group posted an operating profit of Rs. 43.3 billion compared to Rs. 1.6 billion in FY22. The exchange loss was Rs. 63.1 billion, and the finance cost amounted to Rs. 51.5 billion.
Group revenue nearly tripled to Rs. 369.4 billion with a fleet of 23 aircraft. The cargo services segment, contributing around 14% of the airline’s income, generated Rs. 51 billion in FY23.
The airline carried 11.8 million passengers in FY23, up from 5 million in the COVID-hit FY22, with a passenger load factor of 77.65%, up from 49%.
Its route network expanded to 126 destinations in 61 countries, with significant growth in Indian cities. Major destinations like Male, Chennai, London, and Singapore account for 25% of the airline’s seats.
President Ranil Wickremesinghe proposes replacing the suspended Parate law with a new bill for restructuring loans of Micro, Small, and Medium Enterprises (MSMEs): The bill includes creating “Enterprise Sri Lanka” to support MSME entrepreneurs.
SJB Secretary General MP Ranjith Madduma Bandara says the SJB-led ‘Samagi Jana Sandhanaya’ will be launched in the first week of August this year: asserts the Alliance is prepared to contest the upcoming elections, including the Presidential Polls and the General Election: adds the discussions with other parties in this regard are at their final stage.
Ruling Party MP S.B. Dissanayake says the government has no chance at all for extending the President’s term, nor the dissolution of Parliament: asserts the 22A is being brought in only for the purpose of amending a mistake committed by Jayampathi Wickramaratne in the drafting of the 19th Amendment.
Finance State Minister Shehan Semasinghe announces the government is managing the budget deficit effectively, aided by the new Central Bank Act: In the 1H24’, the government repaid Rs 4,981 bn, exceeding Rs 4,852 bn borrowed: This marks a shift from reliance on central bank financing, which previously caused high inflation rates.
The Ministry of Agriculture and Plantation Industries launches a green gram cultivation initiative in Ipanella following the 2024 Yala season: Farmers will receive 25 kg of seeds per hectare for free and Rs. 25,000 each: The plan targets 63,750 acres, aiming to boost local production to achieve self-sufficiency: Agriculture Minister Mahinda Amaraweera is confident the initiative will meet domestic demand and reduce imports.
The Election Commission says Sri Lanka’s upcoming Presidential Election is expected to cost Rs. 10 bn, with Rs. 8 bn allocated for printing expenses: The surged cost is attributed to increased prices: This election will be governed by the Election Expenditure Regulation Act No. 3 of 2023, capping campaign spending and ensuring transparency: Candidates must report expenditures, and violations can be reported and investigated: Social media self-promotion will also be monitored.
Former Australian Prime Minister Scott Morrison lauds Sri Lanka’s tourism sector and cuisine: prepares mud crab and chicken curry using Sri Lankan spices, showcasing his admiration for local dishes: He arrived in Sri Lanka on 17 July for a vacation and attended the Sri Lanka Human Capital Summit 2024 as Guest of Honour on 18 July.
Sri Lanka will witness a rare astronomical event, the Lunar Occultation of Saturn, just after midnight on 24th July 2024: Starting at around 00:50 a.m. on 25th July, the Moon will obscure Saturn for about one hour and twenty minutes: The event can be viewed with the naked eye, though a telescope or binoculars will provide a clearer view: The next occurrence visible from Sri Lanka will be on 24th April 2037.
Asanka Abeygunasekara, the former Director General of the Institute of National Strategic Studies of Sri Lanka (INSSSL), was arrested at Bandaranaike International Airport: His arrest follows an outstanding warrant issued by the Inland Revenue Department (IRD): He was taken into custody by the police this morning.
In their opening Women’s Asia Cup match at Dambulla, Sri Lanka’s Udeshika Prabodhani narrowly missed a hat-trick in her first over, but Sri Lanka still restricted Bangladesh to 111 for 8 in 20 overs: Sri Lanka then won the match by seven wickets.
