June 04, Colombo (LNW): Discussions were conducted with the tariff division of the Ceylon Electricity Board (CEB) yesterday to conclude the proposal for revising electricity consumer tariffs, Minister of Power and Energy Kanchana Wijesekera disclosed.
In a statement shared on ‘X’, he highlighted that the Government had established a policy mandate last year to enforce a cost-reflective tariff system, with tariffs scheduled for quarterly revision annually.
A discussion was held with the CEB tariff division yesterday to finalize the electricity consumer tariff revision proposal. The Government made a policy decision last year to implement a cost reflective tariff mechanism and that the tariffs will be revised quarterly every year.… pic.twitter.com/kTBxFz8LD9
— Kanchana Wijesekera (@kanchana_wij) June 4, 2024
Subsequently, the tariff proposal for July will be presented to the Public Utilities Commission of Sri Lanka (PUCSL) this week, the Minister noted.
June 04, Colombo (LNW): The Chairman of Litro Gas, Muditha Peiris, has announced a reduction in the prices of domestic LP gas cylinders effective from midnight today (04).
As per the announcement, the price of the 12.5 kg cylinder will decrease by Rs. 150 to Rs. 3,790.
Similarly, the 05 kg cylinder will see a reduction of Rs. 60, now priced at Rs. 1,522.
Furthermore, the price of the 2.3 kg cylinder will be reduced by Rs. 28, bringing the new price to Rs. 712.
June 04, Colombo (LNW): A temporary decrease in the heavy rain conditions in the southwestern part of the island is expected from today (04, the Department of Meteorology said.
Several spells of showers will occur in Western, Sabaragamuwa, Central, Southern and North-western provinces.
Showers or thundershowers may occur at a few places elsewhere of the island in the evening or night.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off coast extending from Kankasanthurai to Hambantota via Puttalam, Colombo and Galle. Showers or thundershowers may occur at a few places in the other sea areas around the island.
Winds:
Winds will be south-westerly and wind speed will be (25-35) kmph. Wind speed may increase up to (50-60) kmph at times in the sea areas off the coasts extending from Mullaitivu to Puttalam via Kankasanthurai, Mannar and from Hambantota to Pottuvil.
State of Sea:
The sea areas off the coasts extending from Mullaitivu to Puttalam via Kankasanthurai, Mannar, and from Hambantota to Pottuvil can be rough at times. Naval and fishing communities are also requested to be attentive in this regard.Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
June 03, Colombo (LNW): Sri Lanka explored potential investment opportunities and areas for collaboration, particularly in the oil and gas, textile and apparel, agriculture and several other sectors.
This was in the agenda ay the inaugural session of the Foreign Office Consultations between Sri Lanka and Turkmenistan was held recently.
This virtual event saw representatives from both nations engage in fruitful discussions aimed at strengthening ties across various domains.
Key highlights included the exploration of avenues for cooperation in the political and diplomatic spheres, parliamentary engagements, economic sectors, energy, transport, education, and culture.
Both sides acknowledged the potential for mutual benefit and emphasised the importance of sustained high-level visits to foster increased cooperation.
The dialogue explored potential investment opportunities and areas for collaboration, particularly in the oil and gas, textile and apparel, agriculture, food processing, pharmaceutical, and IT sectors.
Additionally, the possibility of organising a Turkmen-Sri Lanka Business Forum was proposed to facilitate business connections.
Both sides appreciated recently held online meetings to explore cooperation among Port authorities and Chambers of Commerce.
It was agreed to have online meetings between the legal teams of the two countries to finalise the pending agreements and strengthen the legal framework.
Other areas of cooperation such as culture, art, sport, tourism, and education were also discussed.
The Sri Lankan delegation was led by Ministry of Foreign Affairs Southeast and Central Asia Division Director General Sashikala Premawardhane, whilst the Turkmenistan side was led by Ministry of Foreign Affairs of Turkmenistan Asia-Pacific Department Director Gurbandurdy Saparov.
The delegations included representatives from several line agencies in the economic, trade sectors and the Foreign Ministry.
The consultations concluded with a proposal for the next round of Foreign Office Consultations between Sri Lanka and Turkmenistan to be convened in January 2025.
June 03, Colombo (LNW): Sri Lanka construction sector has been further contracted following the seasonal pattern where activities across many sectors slowdown during the traditional New Year celebrations, Central Bank report revealed.
Sri Lanka Purchasing Managers’ Index for Construction (PMI- Construction) compiled by the Central Bank decreased to an index value of 31.9 in April 2024.
“This indicates a contraction in construction activities compared to the previous month,” PMI- Construction compiler CBSL said.
As per the respondents, most construction sites were temporarily closed during the month due to the extended New Year holidays, leading to this month-on-month decline.
New orders decreased in April with the fewer working days. However, most respondents were confident that the increasing trend in tender opportunities will continue in the upcoming months.
Moreover, the participatory firms widely highlighted the intense competition in the market. The employment and quantity of purchases declined during the month, in line with the decline in total activities and new orders.
Further, the decreasing trend of the overall price levels continued in April as well. Meanwhile, suppliers’ delivery time lengthened at a comparatively slower rate during the month.
The industry outlook for the next three months is positive, mainly due to the expected increase in new construction projects, CBSL added.
Sri Lanka stands on the verge of losing a major industry – its construction sector, which notably contributes approximately 9.6% to the GDP and involves nearly 2.6 million stakeholders.
The industry has already seen a significant contraction by 60%, resulting in over 500,000 job losses and the emigration of more than 10,000 professionals.
In response, the government has established a task force, producing a 51-point report, from which 11 critical points were selected for action. Despite these measures, progress has stalled, necessitating urgent intervention to rejuvenate the industry.
The plight of contractors, particularly in the SME sector, is alarming. They face immense hardships from halted projects, non-payment, and financial pressures, often risking personal assets.
The competitive nature of acquiring projects, with minimal profit margins, exacerbates their vulnerability, leading to a detrimental cycle affecting their entire business operation.
As the industry contends with these challenges, the proposal is for a high-powered committee to address contractor grievances, improve contract terms, and establish fair compensation mechanisms.
Additionally, strategies include restarting halted projects, resuming donor-funded initiatives, maintaining and upgrading deteriorating infrastructure, managing construction costs and VAT effectively, and ensuring equitable work distribution among companies.
These steps are essential to prevent further decline and promote recovery in the construction sector, vital for Sri Lanka’s economic stability and growth in 2024.
June 03, Colombo (LNW): New loan relief package amounting to Rs 5 billion will be unlocked this week for Sri Lanka’s Micro, Small and Medium Enterprises (MSMEs) hit by the Covid-19 pandemic and economic crisis, Secretary to the Ministry of Industries Shantha Weerasinghe said.
The finance ministry in collaboration with ministry of industries will provide credit facilities of Rs 5 million each to 1000 selected existing MSMEs for further expansion and recovery of their businesses via licensed commercial banks and licensed specialised banks at concessional interest rate if seven percent.
The special feature of this loan scheme is that people who are blacklisted (CRIB) too could get the loans. Loans up to Rs. 5 million can be obtained under the scheme and settled in five years with a grace period of six months.
Loans will be given on personal guarantees up to Rs. 200,000 and a property collateral must be submitted for loans above that amount.
The final work on the loan scheme was completed last Wednesday and these loans will be provided through 10 State and private banks.
These loans can be applied for through the Regional Development Bank, People’s Bank, Bank of Ceylon, Sampath Bank, Seylan Bank, Commercial Bank, Cargills Bank, Sanasa Development Bank, Hatton National Bank and Nations Trust Bank.
Another aspect of this scheme is that loans up to Rs.15 million can be applied for investment purposes. For that too, the interest rate is seven percent and the repayment period is 10 years with a grace period of one year
Moreover special loan scheme amounting to Rs.3 billion will be implemented with support from the Asian Development Bank (ADB) in addition to the 2024 budgetary support.
The government is also considering the possibility of upgrading the Sri Lanka Savings Bank a subsidiary of the National Savings Bank to a MSME Bank or to set up a special purpose vehicle (SPV) to disburse loans easing the burden on the banking sector.
MSMEs are to be empowered by introducing digital literacy programs and providing affordable access to technology to compete in the global marketplace.
The micro, small, and medium enterprise (MSME) sector in Sri Lanka accounts for 90 percent of all businesses in the country, provides 45percent of employment, and contributes 52percent to the GDP.
A recent ILO study revealed that 79.8 percent of the one million MSMEs that operated in 2018 were still in operation Among the 20.2 percent businesses either permanently or temporarily closed, 8.3percent of closures were reported to be due to economic crisis while 11.9percent were due to reasons other than economic crisis.
June 03, Colombo (LNW): President Ranil Wickremesinghe has invited King Charles III to visit Sri Lanka. The High Commissioner of Sri Lanka to the United Kingdom Rohitha Bogollagama extended this invitation when he presented his Letter of Credence to King Charles III on 30 May 2024 at a ceremonial event held at the Buckingham Palace.
High Commissioner Bogollagama and his spouse Deepthi Bogollagama, were escorted to the Buckingham Palace by traditional horse carriages of the Royal Mews.
High Commissioner Bogollagama extended warmest felicitations of President Ranil Wickremesinghe to the King as well as best wishes for his good health and well-being.
During his audience with the King, High Commissioner Bogollagama outlined the longstanding relations between the two countries.
The discussion also touched on Sri Lanka’s dynamic role within the Commonwealth fraternity, forthcoming Commonwealth Heads of Government meeting in Samoa in October.
On behalf of President Wickremesinghe, High Commissioner extended an invitation to the King to undertake a visit to Sri Lanka.
On the occasion of his Presentation of Credentials, High Commissioner presented King Charles III a special gift of exclusive selection of James Taylor Premium Ceylon Tea, symbolising its lineage from the UK.
Permanent under Secretary of the Foreign, Commonwealth and Development Office (FCDO) Sir Philip Barton was associated with the ceremony.
Pursuant to the Presentation of Credentials, High Commissioner and his entourage was escorted back to the High Commission in horse carriages and the journey concluded with the ceremonial feeding of the horses with carrots.
Upon arrival, a pirith chanting ceremony was held at the High Commission to invoke blessing on the High Commissioner.
In the evening, a Vin D’Honneur was held at the Sri Lanka House for UK dignitaries, members of the Diplomatic Corps, Members of the Houses of Parliament, representatives of the Foreign, Development and Commonwealth Office, journalists and corporate leaders in celebration of the Presentation of Credentials.
Addressing the audience, High Commissioner Bogollagama appreciated the support extended by the Government of the UK since his assumption of duties and hoped for further enhancement of this important relationship between the two countries.
High Commissioner Bogollagama had been a Member of the Parliament of Sri Lanka between 2000-2010 and has served in several key ministerial positions during his tenure, in addition to being appointed as the Governor of the Eastern Province from 2017-2019.
While being a Member of Parliament Mr. Bogollagama served as Minister of Industries (2001-2004), Minister of Advanced Technology and National Enterprise Development (2004-2005), Minister of Enterprise Development and Investment Promotion (2005-2007) and Minister of Foreign Affairs (2007-2010).
High Commissioner Rohitha Bogollagama is the first Sri Lankan envoy to present credentials to King Charles III.
President Ranil Wickremesinghe invites King Charles III to visit Sri Lanka during the presentation of credentials by High Commissioner Rohitha Bogollagama at Buckingham Palace: The invitation included warm felicitations and highlighted Sri Lanka’s role in the Commonwealth: A special gift of James Taylor Premium Ceylon Tea was presented: The ceremony was attended by Sir Philip Barton from the FCDO: Later, a pirith chanting ceremony and a Vin D’Honneur were held at the Sri Lanka House in the UK, with High Commissioner Bogollagama expressing gratitude for UK’s support and emphasising the importance of bilateral relations: Bogollagama, a former Member of Parliament, is the first Sri Lankan envoy to present credentials to King Charles III.
MP Thilak Rajapakshe from SLPP joins SJB: Rajapakshe is physician with military background and Viyathmaga member: Also, former SLFP Medawachchiya Constituency Organiser Tissa Karalliyadde switches to SJB, a seasoned politician and former Cabinet Minister, now co-organiser of SJB’s Medawachchiya Constituency.
The Colombo District Court extends the interim order preventing Justice Minister Wijeyadasa Rajapakshe from serving as SLFP Chairman: The decision was made during today’s session, with a follow-up scheduled for July 13 to allow time for objections: The injunction stays in force until the hearing date.
Defence State Minister Pramitha Bandara Tennnakoon says the toll of casualties due to adverse weather has reached 12: Additionally, five individuals are reported missing: Moreover, 23,707 people from 2,313 families have sought shelter in relief centres nationwide.
The Education Ministry declares the closure of schools in several districts across the Western, Southern, and Sabaragamuwa provinces for Tuesday (04) due to the current adverse weather conditions: Affected districts include Ratnapura and Kegalle in the Sabaragamuwa Province, Galle and Matara in the Southern Province, and Kalutara in the Western Province: Additionally, all schools within the Homagama Education Zone in the Colombo District will also be closed: However, the Ministry confirms schools outside of these districts will operate as usual on Tuesday.
Sri Lanka Police establishes emergency hotlines to aid those affected by adverse weather: Hotlines include 0112421820 for emergencies, and additional lines: 0112439212, 0112013036, & 0112013039: The Disaster Management Centre (DMC) also offers support through their hotline at 117.
In April, Colombo Port saw slower transshipment growth due to Red Sea disruptions: Transshipment volumes rose by 8.1%, lowest since November, reaching 525,936 TEUs: Overall container throughput grew by 10.2%, hitting 626,926 TEUs driven by rising imports: Import container volumes surged by 22.7%, while export volumes rose by 6.6%: Restowing volumes spiked by 60.9% to 19,957 TEUs: Colombo International Container Terminal handled 268,513 TEUs, up 7.8%: Jaya Container Terminal and East Container Terminal managed 184,286 TEUs, a 3% growth: South Asia Gateway Terminal processed 174,130 TEUs, up 23.5%: April saw 312 vessel calls at Colombo Port compared to 345 last year.
Finance State Minister Shehan Semasinghe says the IMF’s Executive Board meeting on June 12 will review Sri Lanka’s Article IV Consultation and second EFF review: adds the session will evaluate economic policies and reforms: Sri Lanka seeks support for a successful review to unlock the third tranche, aiming to enhance economic stability and growth: Julie Kozack, IMF Communications Director, mentioned a staff-level agreement on economic policies, indicating progress towards completing the review: Approval by IMF Management could grant Sri Lanka access to approximately US$337 million in financing.
A new loan relief package worth Rs 5 bn will assist Sri Lanka’s MSMEs affected by the pandemic and economic downturn: Managed by the finance and industries ministries, the scheme will offer Rs 5 mn to 1000 MSMEs at a concessional interest rate of 7%, regardless of CRIB blacklist status: Loans can be repaid over five years, with a grace period of six months, and require personal guarantees for amounts up to Rs 200,000: Larger loans necessitate property collateral: Implemented through ten banks, the scheme also offers loans up to Rs 15 mn for investment, with a ten-year repayment period: An additional Rs 3 bn scheme, supported by the ADB, will complement the 2024 budgetary support: Measures to upgrade the Sri Lanka Savings Bank and enhance digital literacy aim to strengthen MSMEs, which contribute significantly to the country’s economy.
Breeda Jayasuriya, mother of Sri Lankan Cricket star Sanath Jayasuriya, has passed away aged 80 in Matara: Sanath, in the USA as a consultant coach, will return home upon hearing the news: Sri Lanka Cricket affirmed his return to support the family: The funeral is set for Wednesday in Matara: Breeda was celebrated for her steadfast support of her son’s cricket journey.
June 03, Colombo (LNW): The Ministry of Education has announced the closure of schools in several districts across the Western, Southern, and Sabaragamuwa provinces on Tuesday (04) due to the prevailing disaster situation.
As per the directive, the following districts and one education zone will suspend classes tomorrow:
Sabaragamuwa Province:
Ratnapura District: All schools
Kegalle District: All schools
Southern Province:
Galle District: All schools
Matara District: All schools
Western Province:
Kalutara District: All schools
Colombo District: All schools within the Homagama Education Zone
Additionally, the Ministry of Education has underscored that schools operating outside the aforementioned areas will continue with their regular schedule on Tuesday (04).
June 03, Colombo (LNW): The interim order barring Justice Minister Wijeyadasa Rajapakshe from serving as Chairman of the Sri Lanka Freedom Party (SLFP) has been further extended by the Colombo District Court.
The decision was made during today’s (03) session, presided over by Colombo District Judge Sandun Withana, who subsequently referred the matter to Colombo Additional District Judge Chamari Weerasuriya.
During the proceedings, Attorney-at-Law Jayamuditha Jayasooriya, representing the respondents, requested additional time to file objections pertaining to the case.
As a result, the court has scheduled a follow-up session on July 13 to accommodate the submission of relevant objections.
The interim injunction will remain in force until the scheduled hearing date.
