July 18, Colombo (LNW): Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman announced a review of water tariffs is underway in light of the recent electricity tariff revision, with a decision anticipated by the end of the week.

The Minister noted that the Water Supply Board, which had been incurring monthly losses of LKR 2.8 billion, is now generating a profit of LKR 6.2 billion.

During the ‘Collective Path to a Stable Country’ press briefing at the Presidential Media Centre (PMC), Minister Thondaman stated:

“We commend Minister Kanchana Wijesekera for initiating the reduction of electricity tariffs. Given the close linkage between the water supply sector and electricity tariffs, this revision is likely to result in lower water tariffs as well.

Water availability is influenced by various factors. We previously committed to lowering water tariffs alongside reductions in electricity charges. Currently, the Ministry is not only focusing on electricity but also assessing the impact of reduced interest rates, down from 26% to 11%.

Additionally, we are studying the potential reduction in water tariffs based on changes in the dollar exchange rate. The cost of chemicals procured by the water supply board is influenced by the dollar exchange rate.

A decision on the extent of the reduction in water tariffs is expected by the end of this week. When I took office in January 2023, the Ministry faced challenges, unable to provide even 1,000 new water connections.

Moreover, I inherited a Ministry burdened with an USD 800 million debt and a Water Supply Board experiencing monthly losses of approximately LKR 2.8 billion. The board’s monthly recurring expenses of LKR 4.5 billion had a significant national impact.

Since then, we have delivered on our commitments. The number of new water connections has increased to 113,000, with plans to add approximately 30,000 more connections in the coming weeks.

We have successfully transformed the Water Supply Board’s monthly loss of LKR 2.8 billion into a monthly profit of LKR 6.2 billion. With a recurring expenditure of LKR 4.5 billion, we have ensured the sustainability of the water supply sector by allocating the surplus towards debt servicing.

Through the Ministry of Power and Energy, we secured a USD 100 million policy-based loan from the Asian Development Bank (ADB). Preparations are also underway for a sub-programme within the water supply sector.

Cabinet approval has been obtained for the final two issues of the ADB’s reform proposals: the water tariff formula and the investment framework criteria. Upon approval by the Asian Development Bank Executive Board, an additional USD 100 million is anticipated.

We are committed to safeguarding vulnerable and economically disadvantaged communities from the impact of water tariffs. Measures have been implemented to provide subsidies to hospitals, schools, and religious institutions classified as charitable entities.

We are also pleased with the success of the ‘Aswasuma’ programme and the President’s focus on increasing wages for plantation workers and granting land rights. The Upcountry communities have gained confidence in the President’s initiatives.

Despite challenges faced by Upcountry communities, we are optimistic about the direction we are heading. Many longstanding issues affecting Upcountry communities have been resolved.

Next month, discussions will be held with the Ministry of Industries and Estate Companies aimed at finding a lasting solution to the plantation workers’ wage issue. In response to our longstanding request, the President submitted a cabinet paper on land rights last Monday.

In Upcountry areas where numerous families reside, there is often only one Grama Sewa Officer, leading to inadequate distribution of government welfare benefits. This is exacerbated by historical land demarcation issues affecting Upcountry residents.

These challenges have impeded the development of Upcountry communities. To address this, the President’s cabinet paper proposes formally recognising Upcountry areas as villages.

Additionally, there is widespread agreement that priority should be given to providing housing rights to Upcountry people. Securing land rights enables individuals to build homes, fostering community development.”

July 18, Colombo (LNW): The prevailing windy conditions over the island are expected to continue further, due to the active South-west Monsoonal condition, the Department of Meteorology said in its daily weather forecast today (18).

Showers or thundershowers will occur at times in Sabaragamuwa province and in Kandy and Nuwara-Eliya districts, and fairly heavy showers about 50 mm are likely at some places.

Several spells of showers will occur in Western and North-western provinces and in Galle and Matara districts.

Strong winds of about (50-60) 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:

July 17, Colombo (LNW): Qatar has donated a consignment of drugs worth Rs 120 million to Sri Lanka for the treatment of heart and respiratory diseases.

This stock of medicines was handed over to Health and Industry Minister Dr. Ramesh Pathirana by Qatar’s Country Director S. Mahmoud Abukhalifa at the Medical Supply Division.

The Health Minister emphasized that such donations are vital for a country like Sri Lanka, which provides free healthcare services to all citizens.

Highlighting the long-standing cordial bilateral relationship between Qatar and Sri Lanka, Qatar’s Country Director Abukhalifa expressed Qatar’s willingness to further support Sri Lanka’s health sector.

The event was attended by Health Ministry Secretary Dr. Palitha Mahipala, Health Services Director General Dr. Asela Gunawardena, Medical Supplies Deputy Director G. Wijesuriya, Medical Supplies Division Director Dr. Dedunu Dias, and a group of officials representing the Health Ministry and the Qatar Embassy.

July 17, Colombo (LNW): The Cabinet of Ministers has granted its consent to the proposal on the criteria for minimum qualifications for enrolment of foreign students in 26 degree-awarding institutions in Sri Lanka, Cabinet Spokesman Transport, Highways and Mass Media Minister Dr. Bandula Gunawardhana announced. He was speaking at the weekly Cabinet media briefing held at the Government Information Department yesterday.

The Minister highlighted that five percent of the annual enrolment has been allocated for foreign students in the 17 universities under the University Grants Commission. This move aims to transform Sri Lanka into a knowledge hub by widening opportunities for foreign students to join the 26 degree-awarding institutions recognized under Section 25(A) of the University Act.

It has been identified that there is no definitive procedure to determine the minimum qualifications for university admission required by each country. To address this, the Cabinet approved the proposal presented by the Education Minister. The new criteria will consider the minimum qualification recognized for university admission by the 193 United Nations Member countries as the standard for enrolling foreign students in degree programs offered by institutions under the University Act in Sri Lanka.

Additionally, approval has been granted to validate exceptional opportunities not covered by the aforementioned qualifications through the UK NARIC institution.

July 17, Colombo (LNW): The Joint Apparel Association Forum (JAAF) welcomed the recent decision by the Public Utilities Commission of Sri Lanka (PUCSL) to implement a 25.3% reduction in industrial electricity tariffs, alongside a 27% reduction for domestic customers and a 22.5% overall reduction effective from July 16, 2024.

In addition to easing the burden on retail customers, JAAF commended the PUCSL decision for providing much-needed relief to Sri Lanka’s apparel industry, enhancing its competitiveness and supporting economic recovery.

The PUCSL decision was influenced by a submission made by the Ceylon Electricity Board (CEB), which initially proposed no change to the industrial tariff. Following a public consultation last week, where JAAF highlighted that Sri Lanka’s apparel exporters faced some of the highest electricity tariffs among their competitors, the approved reduction now positions Sri Lankan manufacturers more competitively.

Sri Lanka’s apparel industry, which contributes nearly half of the nation’s export earnings, has faced severe challenges due to high electricity costs. In 2022, tariffs soared from Rs. 6.58/kWh to Rs. 34/kWh, leading to a decline in apparel export revenue from US$ 5,591.5 million to US$ 4,535.5 million. The recent tariff reductions will alleviate some of these financial pressures, allowing the industry to stabilize and regain its competitive edge.

“We commend the PUCSL for recognizing the significant challenges faced by the apparel sector and taking decisive steps to reduce industrial electricity tariffs as well as tariffs for SMEs and minor industries, all of which were struggling with the higher rates. This decision is a welcome step in the right direction that will prove crucial for maintaining the competitiveness of Sri Lankan exports, supporting a broad-based economic recovery,” JAAF Secretary General Yohan Lawrence said.

JAAF remains committed to working closely with PUCSL, CEB, and other stakeholders to promote policies that support the apparel industry and the broader economy. By continuing to address systemic issues in energy policy and advocating for fair and sustainable practices, JAAF aims to ensure that Sri Lanka’s apparel sector remains competitive on the global stage.

Another key point in JAAF’s submissions to the PUCSL was its call for the urgent implementation of a rigorous least-cost generation plan using transparent competitive bidding processes for power purchase agreements. JAAF emphasized the need for policymakers to ensure that the country’s natural resources, such as wind and solar, are effectively leveraged at the lowest cost to support a sustainable transition to renewable energy. JAAF further noted that consistent and wide overestimation in the tariff forecasting for cost recovery submitted by the Ceylon Electricity Board (CEB) has driven retail and industrial tariffs unnecessarily higher.

In addition to placing a direct and undue burden on citizens of Sri Lanka, JAAF highlighted that these major inaccuracies in the tariff forecasting model had eroded the competitiveness of Sri Lanka’s apparel exports.

“Accuracy in the tariff forecasting model is an absolute must. While we are deeply grateful for the decision to reduce tariffs, we must also reiterate that the tariff increase in October 2023 was based on inaccurate forecasting and resulted in the CEB making a substantial profit of Rs. 61 billion in Q3 2023 and Rs. 58 billion in Q1 2024. While such significant profits eventually created clear space for a tariff reduction, it is fairer for all customers when tariffs are based on accurate forecasting at the outset,” Lawrence stated.

JAAF also reiterated support for policies aimed at scaling up renewable energy to supply 70% of the national grid by 2030, noting that such a transition remains vital for meeting the demand of global brands for decarbonization while ensuring sustainable energy pricing.

July 17, Colombo (LNW): State Finance Minister Dr. Ranjith Siyambalapitiya announced yesterday that the President’s Fund has increased the financial assistance provided to patients from 50% to 100%, ensuring that payments are made within a week of receiving the application.

The State Finance Minister made these remarks while responding to questions from journalists at a ceremony held in Kegalle yesterday to present scholarships and school bags to selected schoolchildren in the district. Over 3,750 schoolchildren benefited from this programme.

“Every patient receives 100% of the required funds, with payments processed within a week of receiving the application,” he said.

Siyambalapitiya added that the President’s Fund provides scholarships to 11,600 children in need across the country. “Two years ago, the President’s Fund primarily focused on health, particularly heart surgery patients. In 2022, there were 8,000 requests from kidney patients and all funds were disbursed,” he said.

He added that the President’s Fund has selected deserving schoolchildren for the Presidential Scholarship Programme through a transparent process. Children from Kegalle, Mawanella, and Dehiowita areas have been chosen through the intervention of regional offices. “This change needs to be established across the country,” he said.

The ceremony was attended by North Central Province Governor Mahipala Herath, Foreign Affairs State Minister Tharaka Balasuriya, MPs Rajika Wickramasinghe, Udayakantha Gunathilaka, and Sudath Manjula, Sabaragamuwa Provincial Education Director Darshani Iddamalgoda, and Kegalle District Secretary Ranjana Jayasinghe, among others.

July 17, Colombo (LNW): AIA Sri Lanka said it continues to lead the way in digital innovation within the insurance industry, setting new benchmarks for customer convenience and technological advancement. 

Demonstrating its commitment to transforming the insurance landscape through cutting-edge technology, AIA Sri Lanka was honoured with four prestigious Information Technology awards, highlighting its dedication to providing unparalleled customer experiences.

At the esteemed Insurance Asia Awards last year, AIA Sri Lanka was honoured as the winner of the “Digital Transformation Initiative of the Year”.

 This prestigious recognition, awarded at a prominent regional awards ceremony, celebrates the company’s transformative efforts and reflects its unwavering dedication to empowering both employees and customers through digital innovation across Asia.

 Further cementing its position as a technological leader, AIA Sri Lanka received the title of “Most Effective Adoption of Technology” at the ICC Emerging Asia Insurance Awards.

 This accolade underscores the company’s expertise in utilising advanced technologies to enhance operational efficiency and drive sustainable growth in the dynamic insurance market of emerging Asia.

AIA Sri Lanka’s technological advancements have also significantly contributed to sustainability. The company earned the prestigious Zero Waste and Efficient Resource Utilisation, Waste Reduction Award at the ESG Business Awards organised by Charlton Media Group. 

This recognition highlights AIA’s innovative IT system developments that have substantially reduced paper usage, printing materials, and e-waste through digital solutions.

Additionally, AIA Sri Lanka’s prowess in data-driven decision-making was recognised at the FITIS Awards, where it secured the Bronze Award for Best Use of Data and Insight. This honour reflects AIA’s dedication to leveraging data insights to enhance customer interactions, ensuring exceptional service and tailored solutions.

AIA Sri Lanka Chief Technology Officer Umeshi De Fonseka, expressed heartfelt appreciation to AIA’s customers, partners, and employees for their support and dedication. 

“These awards are a testament to our relentless pursuit of excellence and our commitment to putting our customers at the heart of everything we do. We remain steadfast in our mission to drive digital innovation, foster meaningful connections and create positive impact in the communities we serve.”

 AIA Sri Lanka said as it celebrates these significant milestones, the Company looks forward to continuing its journey of digital transformation, driving innovation, and delivering unmatched value to customers across Sri Lanka.

With a focus on customer centricity and technological advancement, AIA Sri Lanka is well poised to shape a future characterised by prosperity, resilience, and wellbeing.

July 17, Colombo (LNW): Sri Lanka’s manufacturing and services sectors continued to expand in June, with expectations of a sustained recovery in the economy, according to a Purchasing Managers’ Index compiled by the central bank.

ri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 56.6 in June 2024, indicating an expansion in prdocuction . All sub-indices, except for employment, rose above the neutral threshold during the month, resulting in an overall increase in the index value.

“The expansion in New Orders and Production was mainly due to the growth in the manufacture of food and beverages sector,” a statement said.

Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 56.6 in June 2024, indicating an expansion in manufacturing activities. 

All the sub-indices, except for employment, remained above the neutral threshold during the month. 

The expansion in New Orders and Production was mainly due to the growth in the manufacture of food and beverages sector. Stock of Purchases also expanded, in line with the increase in New Orders and Production. 

However, Employement remained contracted during the month, as the firms are still cautious about refilling the vacant positions. 

Meanwhile, Suppliers’ Delivery Time further lengthened in June, mainly attributable to the congestion in the major shipping ports.

Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated a further expansion in services activities in June 2024 as reflected by the Business Activity Index, which recorded an index value of 63.5. 

The expansion in Business Activities was driven by the improvements observed across most sectors. Business activities in the wholesale and retail trade grew due to Haj festive season.

Further, business activities in the transportation services, financial services and other personal services also experienced a considerable growth during the month.

 However, business activities in the accommodation, food and beverages services remained at the same level as in the previous month in line with the sluggish tourist arrival during off-season.

New Businesses increased in June, particularly with the increases observed in financial services and other personal service activities. Employment increased in June due to new recruitments made by several companies. Meanwhile, Backlogs of Work continued to decline during the month.