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Sri Lanka Accelerates Investment Approvals and Reviews Trade Agreements

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By: Staff Writer

January 30, Colombo (LNW): Sri Lanka is implementing reforms to expedite foreign direct investment (FDI) approvals and reassess existing free trade agreements (FTAs) to stimulate economic growth.

 While these measures aim to support economic recovery, experts stress the importance of proper safeguards, transparency, and strategic negotiations to maximize benefits while mitigating potential risks. Senior officials emphasize the urgency of completing these reforms swiftly to prevent delays and their repercussions.

In July 2022, the Ministry of Technology and Investment Promotion simplified the FDI approval process by reducing the application form from 14 pages to a single page and introducing a digital system that enables approvals within 24 hours, provided all requirements are met.

This initiative aims to eliminate bureaucratic hurdles and accelerate investment decisions.Building on these efforts, the government established a new agency in November 2022 to oversee investment promotion and external trade, consolidating functions previously handled by entities such as the Board of Investment (BOI), Export Development Board (EDB), and Sri Lanka Export Credit Insurance Corporation (SLECIC).

The objective is to streamline investment approvals within four to five days through a unified platform.

President Anura Kumara Dissanayake has directed a review of Sri Lanka’s existing FTAs with India, Pakistan, Singapore, and Thailand. 

Additionally, the country is exploring membership in the Regional Comprehensive Economic Partnership (RCEP) and resuming negotiations with China to expand its FTA with India.

After a five-year pause, Sri Lanka and India resumed talks on the Economic and Technology Cooperation Agreement (ETCA) in October 2023. 

The 12th round of discussions covered trade in goods and services, rules of origin, customs procedures, and other key areas, reflecting a shared commitment to enhancing economic ties.

 To further improve the investment climate, President Dissanayake has announced that the BOI will reduce its average response time for investment applications from 80 days to just two weeks. Currently, investors require approvals from 82 state agencies, a process that takes over 2.5 years.

For instance, environmental approvals alone involve 11 agencies and take approximately 269 days. The government plans to cut this down to 82 days, while additional clearances from eight other agencies, which currently take 184 days, will be reduced to 102 days.

The government is also prioritizing a review of past FTAs before signing new agreements. Dissanayake emphasized the need to evaluate the effectiveness of the existing FTA with India and assess its benefits, challenges, and missed opportunities before proceeding with new trade deals.

These reforms are expected to attract investment, stimulate job creation, and improve investor confidence by reducing bureaucratic delays. Expanding FTAs could enhance trade opportunities, offering Sri Lanka better market access and stronger economic partnerships.

However, potential risks remain. Rapid investment approvals could result in inadequate scrutiny, leading to environmental and labor concerns. Poorly negotiated FTAs might increase imports of cheap foreign goods, negatively affecting local industries and worsening the trade deficit.

Furthermore, national security risks could arise if critical infrastructure falls under foreign control, and public backlash may emerge if citizens perceive that these policies favor foreign investors over local businesses.

Overall, Sri Lanka’s efforts to expedite FDI and review trade agreements are crucial for economic recovery. However, careful planning and execution are essential to ensure sustainable and inclusive growth.

Lanka Sathosa slashes prices of key essential goods

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January 30, Colombo (LNW): In an effort to provide much-needed relief to consumers, Lanka Sathosa has announced a reduction in the prices of several essential items, effective from today (30).

The price cuts come following instructions from the Ministry of Trade, Commerce, Food Security, and Cooperative Development.

The updated prices, which apply across all Lanka Sathosa outlets island-wide, are as follows:

  • Imported Big Onions: Reduced by Rs. 10, now priced at Rs. 220 per kilogramme
  • Bread Flour: Reduced by Rs. 10, now priced at Rs. 165 per kilogramme
  • White Sugar: Reduced by Rs. 5, now priced at Rs. 235 per kilogramme
  • Red Lentils: Reduced by Rs. 3, now priced at Rs. 285 per kilogramme
  • Imported White Kekulu Rice: Reduced by Rs. 1, now priced at Rs. 209 per kilogramme

Former Public Administration Secretary arrested

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January 30, Colombo (LNW): Priyantha Mayadunne, the former Secretary to the Ministry of Public Administration, has been taken into custody by the Criminal Investigation Department (CID) earlier today (30).

SLWJA stages demonstration remembering Black January (PHOTOS)

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January 30, Colombo (LNW): The Sri Lanka Working Journalists Association (SLWJA) yesterday (29) organised a demonstration remembering Black January, an occasion marking media repression.

The event was held in front of the Colombo Fort Railway station.

Signatures were collected for a public petition as well.

January is still black, expedite justice for crimes against mass media” was displayed as the slogan of the protest.

The event also displayed portraits of journalists who were either assassinated, abducted or brutally assaulted during previous regimes across the history.

Black January predominantly represents voice against state-sponsored media repression, a movement spawned out of the trend of media personnel and media institutions being repressed quite frequently in the month January during previous regimes in power.

Photo Courtesy: Ajith Senevirathne

To watch full photos, visit READPHOTOS: https://www.readphotos.com/photo-stories/705/Black-January-25

New SLAF Commander unveils strategic vision for future growth

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January 30, Colombo (LNW): The newly appointed Commander of the Sri Lanka Air Force (SLAF), Air Vice Marshal Bandu Edirisinghe, has outlined an ambitious and multifaceted strategic vision aimed at enhancing the Air Force’s operational capabilities, technological advancements, and global presence, whilst also contributing to national development and maritime security.

In his first address as Commander, Air Vice Marshal Edirisinghe emphasised the importance of maximising the Air Force’s potential to respond effectively to national needs.

Central to his strategy is the goal of strengthening the SLAF’s airpower by acquiring advanced air platforms through military diplomacy, thus ensuring a fleet that is well-equipped to meet both current and future demands.

Under the framework of technological development, the new Commander highlighted plans to upgrade the Air Force’s air defence systems, enhance drone and UAV technology, and prepare the force for an era of innovation.

By embracing emerging technologies, he aims to future-proof the SLAF and maintain its operational edge in an ever-changing defence landscape.

In terms of global operations, Air Vice Marshal Edirisinghe outlined a focus on expanding the SLAF’s participation in United Nations peacekeeping missions, positioning the Air Force to contribute more significantly to international security efforts.

This expansion will ensure the SLAF remains a key player on the global stage, ready to respond to peacekeeping and humanitarian needs worldwide.

Maritime security was another key area of focus, with the Commander underscoring the SLAF’s ongoing commitment to safeguarding the Indian Ocean region.

By enhancing surveillance operations, the SLAF aims to bolster both national and international security, ensuring stability in one of the world’s most strategically important maritime zones.

The new Commander also reinforced the Air Force’s role in national development and environmental sustainability. He expressed full support for the “Clean Sri Lanka Programme 2025”, which aims to improve the country’s environmental standards, highlighting the Air Force’s contributions to national welfare beyond military objectives.

Edirisinghe’s address provided a clear and progressive roadmap for the future of the SLAF, ensuring the Force’s readiness to tackle evolving challenges whilst fulfilling both national security objectives and international responsibilities.

Air Vice Marshal Edirisinghe officially took over as the 20th Commander of the Sri Lanka Air Force this morning at the Air Force Headquarters. The ceremony included a Guard of Honour by the Air Force Colour Wing, after which the Commander delivered his inaugural speech to the entire Air Force, outlining his vision for the future of the organisation.

UN offers support to Sri Lanka’s efforts in tracing hidden assets

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January 30, Colombo (LNW): The United Nations has expressed its willingness to assist Sri Lanka in its ongoing efforts to uncover and recover hidden assets.

Marc Andrew France, the UN’s Resident Coordinator in Sri Lanka, made this commitment during a recent meeting with the country’s Minister of Foreign Affairs, Vijitha Herath.

During the discussions, France highlighted the significance of Sri Lanka working closely with the United Nations Peacebuilding Commission in New York.

He assured the government of the UN’s full backing in its fight against corruption and fraud, including the provision of financial and technical support to aid in these efforts.

France also took the opportunity to commend Sri Lanka for its compassionate handling of the Rohingya refugees who were rescued off the nation’s maritime borders.

He praised the government for its humane approach, acknowledging the country’s efforts to offer refuge to those in need during a time of crisis.

The Resident Coordinator further shared that UN Secretary-General António Guterres is expected to visit Sri Lanka towards the end of the year, a visit that is expected to further strengthen the ties between Sri Lanka and the United Nations.

Minister Vijitha Herath, in turn, remarked on the recent elections, describing the election of a new government—free from ethnic and racial divisions—as a historic achievement for Sri Lanka.

He also discussed the government’s ongoing efforts to return land to its rightful owners in the Northern and Eastern provinces, emphasising the importance of fulfilling this long-standing commitment.

Additionally, the Minister called for the UN’s cooperation in expanding the recruitment of Sri Lankan armed forces personnel for future UN Peacekeeping Missions, underscoring Sri Lanka’s continued dedication to contributing to global peace and security.

Public urged to avoid unapproved mobile phones: New software to block devices failing to comply with regulations

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January 30, Colombo (LNW): The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has issued a warning to the public, advising against purchasing mobile phones that have not been approved by the Commission.

A new software system will soon be introduced to identify and block mobile phones that are not in compliance with the country’s regulations, TRCSL Director General Retired Air Vice Marshal Bandula Herath explained.

This move is part of the Commission’s efforts to ensure that all mobile devices used in Sri Lanka meet the required standards and have been properly registered.

The TRCSL confirmed that as of January 28, 2025, all mobile phones currently in circulation within the country had been successfully verified.

However, the issue arises from phones that were brought into Sri Lanka after this date without going through the proper registration process.

Although the Commission is implementing the new system to monitor and block these unapproved devices, it has assured the public that this process will not take effect immediately.

The TRCSL emphasised that users of unapproved devices will be given time to resolve any issues before any action is taken.

This initiative aims to protect consumers from the potential risks associated with using unapproved or counterfeit mobile phones, which could pose security and safety concerns.

CBSL maintains interest rate at 8% as inflation eases

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January 30, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has opted to keep its Overnight Policy Rate (OPR) at 8.00 per cent during its first policy meeting of the year, in a bid to meet with the widespread expectations.

This decision was made with the belief that inflation will stabilise and reach the medium-term target of 5 per cent by the third quarter of 2025.

At the post-meeting media briefing, Central Bank Governor Dr. Nandalal Weerasinghe explained that the current period of deflation is primarily the result of significant reductions in fuel prices and electricity tariffs, which are supply-side factors not directly influenced by monetary policy.

Whilst monetary policy adjustments can effectively manage demand-driven inflation—by influencing the cost of money through interest rates—supply-side issues require different interventions, he emphasised.

In response to concerns that official price indices might not accurately reflect the true cost of living, particularly with rising food prices, Dr. Weerasinghe assured that the indices do indeed capture genuine price movements.

However, the CBSL Governor pointed out that since electricity and transport costs carry a significant weight in the overall Consumer Price Index (CPI), cuts in these areas can have a disproportionate impact on the index’s direction.

He also noted that deflation is likely to be deeper than originally forecast due to the substantial reduction in electricity tariffs, which were cut by an average of 20 per cent starting from January 18, 2025.

This reduction is expected to ease the financial burden on households.

Despite these positive developments, Dr. Weerasinghe acknowledged public frustration over the high cost of living, particularly as the prices of many goods have increased by over 70 per cent in recent years, without corresponding income growth.

He explained that this disparity would gradually resolve as economic growth continues, leading to higher incomes and a better balance between wages and living costs.

Looking ahead, the Governor expressed confidence in continued economic growth, supported by lower interest rates and expanding activity across most sectors.

He projected a 5 per cent growth in GDP for 2024, following a 5.2 per cent increase in the first nine months of the year. This marks the continuation of an economic recovery that began in the latter half of 2023.

Although Dr. Weerasinghe refrained from providing an official growth forecast for 2025, he indicated that the economic performance in 2024 had exceeded initial expectations, suggesting a more robust recovery than initially anticipated.

Central Bank data revealed that interest rates have now returned to near pre-crisis levels, with lending rates in many areas reflecting the easing of monetary policy.

However, some sectors still experience lending rates higher than desired. Officials also noted that short-term money market rates have adjusted downwards following the monetary easing in November 2024, with the Call Money Rate, aligned with the OPR, maintaining its targeted position.

Defence Secretary defends Navy’s actions amid protests from India

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January 30, Colombo (LNW): In the face of strong protests from India over a recent incident involving the Sri Lankan Navy opening fire, Defence Secretary Air Vice Marshal (Rtd) Sampath Thuyacontha has defended the actions of the Navy, stating that Sri Lanka will continue to search vessels entering its waters in line with established legal protocols aimed at preventing illegal activities.

India raised a formal protest on Tuesday after the Sri Lankan Navy fired January 28 whilst detaining 13 Indian fishermen near Delft Island.

The Indian Ministry of External Affairs summoned Sri Lanka’s acting High Commissioner to lodge a complaint, asserting that the actions of the Sri Lankan Navy were unprovoked.

India also indicated that it had raised the issue with the Sri Lankan Ministry of Foreign Affairs.

In response, Defence Secretary Thuyacontha explained that the Sri Lankan Navy operates around the clock to curb illegal activities in its waters, including human trafficking, illegal fishing, and the smuggling of drugs and weapons.

He maintained that such operations are carried out within legal boundaries, and he reiterated that the Navy would continue to carry out its duties in enforcing maritime security.

Thuyacontha made it clear that the Navy’s actions were necessary and legitimate, highlighting that the search of vessels entering Sri Lankan waters is mandatory, regardless of their country of origin.

We are committed to ensuring that our waters are protected from illegal activities, and this will continue through legal, non-confrontational methods,” he said. “If foreign vessels cooperate, there will be no issues. But if resistance is met, the situation could escalate.

The Defence Secretary further pointed out that Sri Lanka’s recent efforts had yielded successful operations, including the seizure of significant drug shipments.

In addition to this statement, the Sri Lanka Navy’s Commander provided further details on the incident involving the two Indian fishermen who were injured during the apprehension.

He clarified that the injuries were caused by an accidental discharge of a firearm while the Navy was attempting to board a fishing vessel involved in illegal fishing activities near Kankesanthurai.

The operation had started on January 27 to disperse a group of Indian fishing boats operating illegally in Sri Lankan waters near Valvettithurai, Jaffna.

The Commander explained that the crew of the Indian fishing boat had resisted the Navy’s boarding attempt and had attempted to assault personnel, even trying to seize a firearm.

During the scuffle, a shot was discharged accidentally, resulting in minor injuries to two of the fishermen. The Navy swiftly administered first aid and transported the injured men to Jaffna Teaching Hospital for further treatment.

Despite the controversy, the Navy Commander reiterated that the Sri Lankan Navy would continue its operations to safeguard the country’s waters, assuring that these actions would be conducted professionally and in compliance with the law.

Prime Minister emphasises humanitarian focus of “Clean Sri Lanka” programme

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By: Isuru Parakrama

January 30, Colombo (LNW): Prime Minister Dr. Harini Amarasuriya has stressed the critical importance of the “Clean Sri Lanka” programme, highlighting its humanitarian goals as central to its mission.

Speaking at the Colombo District Coordination Committee meeting yesterday (29), held at the District Secretariat in Narahenpita, the Prime Minister explained that the initiative is far more than just a campaign for environmental cleanliness.

During the meeting, Dr. Amarasuriya elaborated on the multi-faceted nature of the programme, noting that it encompasses a range of complex objectives that go beyond the conventional focus on waste management and environmental health.

The discussions covered a variety of pressing issues, including the allocation of land for an explosives storage facility in Colombo, plans for the future development of local government institutions, and the implementation of community empowerment initiatives.

In addition to these topics, the meeting also addressed urgent matters such as resolving land disputes concerning paddy fields along the border of Maharagama and Kesbewa, the prompt removal of waste from the Colombo Main Bus Stand, and the need to halt the unsafe disposal of garbage into the Niripola paddy fields in Seethawaka.

Reiterating the promises made during the last election, Prime Minister Amarasuriya reminded attendees that the public had voted for change, and it was essential for the government to remain true to those expectations.

The ‘Clean Sri Lanka’ initiative is not just about cleanliness, policy execution, or legal enforcement,” she stated. “It is about improving behaviour, fostering quality relationships, and transforming the way we interact with one another and our environment.

Dr. Amarasuriya stressed that the change required would have to begin at the individual level, with each person taking responsibility for the difference they wish to make in their own communities.

She underscored the importance of delivering quality public services, ensuring that the public felt satisfied with the service provided.

This transformation cannot be achieved solely through directives or official orders; it must come from a collective effort and a shift in attitude,” she emphasised.

The Prime Minister reaffirmed the government’s commitment to ensuring the long-term success of the “Clean Sri Lanka” programme, calling on all stakeholders to join in fostering a cleaner, more organised, and community-oriented future for the nation.