By: Staff Writer

October 29, Colombo (LNW): With an upcoming general election, Sri Lanka faces a critical turning point as voters prepare to elect new members of parliament. Following the recent presidential election, the business sector reflects renewed optimism, spurred by a favorable outlook.

The World Bank has raised its growth projection for Sri Lanka to 4.4% this year, signaling economic stabilization after a prolonged period of uncertainty.

Notably, the LMD-PEPPERCUBE Business Confidence Index (BCI) jumped by 39 points in October to 139, a peak not seen in over three years.

This confidence surge aligns with steady improvements in economic indicators, including inflation stabilization and a current account surplus, according to David Sislen, the World Bank’s Country Director. The IMF’s latest review, culminating in October, underscored positive reforms and lent further confidence to international lenders, with Fitch Ratings acknowledging reduced debt risks.

However, uncertainties remain; the upcoming general election on 14 November will shape the future economic climate and could influence parliamentary power dynamics, affecting the momentum of ongoing reforms.

This climate of optimism suggests that, barring any dramatic shifts in the political landscape, Sri Lanka’s business confidence is poised to remain steady, reflecting the overall positive sentiment of the business community in navigating potential challenges and growth opportunities.

Meanwhile, the business community has had its say on the outcome of the presidential election with optimism reigning supreme LMD high lighted. .

And in a welcome external economic assessment, the World Bank increased its growth forecast for this year to 4.4 percent (and a more modest 3.5% for 2025) – from 2.2 percent previously.

“Sri Lanka’s recent economic stabilisation, marked by four quarters of growth and a current account surplus in 2023, is a significant milestone,” affirmed David Sislen – the World Bank’s Country Director for Maldives, Nepal and Sri Lanka – in a 9 October news release.

THE INDEX In October, the LMD-PEPPERCUBE Business Confidence Index (BCI) surged by a whopping 39 basis points to reach 139 – the highest in as many as 42 months.

To put this spike in perspective, the last time the BCI gained as much ground in a month was back in January 2021, when Sri Lankans breathed a sigh of relief upon receiving news that the COVID-19 vaccine would be available to them.

Moreover, this is the highest point the index has reached in 2024 and marks the third time it registered triple digits this year – the previous instance being three months ago when the official rate of inflation began to fall to manageable levels.

PepperCube Consultants observes that despite the uncertainties faced by corporates in recent months, the election outcome has been positively received.

It adds that optimism about both the economy and business activity has risen significantly, following a period of heightened caution and a ‘wait and see’ mindset leading up to the 21 September election.

By: Isuru Parakrama

October 29, Colombo (LNW): The Attorney General’s Office has assured the Supreme Court that steps will be promptly taken to address salary disparities within the Sri Lanka Teacher Advisors’ Service.

This commitment was conveyed by Deputy Solicitor General Yuresha de Silva on behalf of the Attorney General during a hearing on 29 October.

The matter arose through a Fundamental Rights petition filed by the All Island Teacher Advisors’ Association, highlighting the discrepancy between the salaries of Teacher Advisors and classroom teachers.

Representing the petitioners, Attorney-at-Law Nuwa Bopage argued that the current salary structure has resulted in significant injustice, with advisors earning less than the teachers they support.

In response, the Deputy Solicitor General confirmed the government’s commitment to correcting the pay gaps, stating that adjustments would be made shortly.

Given these assurances, the court concluded the hearing, with the petitioners expressing satisfaction with the Deputy Solicitor General’s response.

By: Isuru Parakrama

October 29, Colombo (LNW): Cabinet Spokesman and Minister Vijitha Herath announced that there are no funds currently available to implement salary increases for public sector employees, in stark contrast to the claims made by the former administration.

The statement followed a report by Mr. Udaya R. Seneviratne, revealing that since January, no budgetary provision has been made to support any salary increments.

Minister Herath acknowledged that while the Cabinet can set policy directions, there is currently no fiscal route to support salary increases.

Former President Ranil Wickremesinghe on a previous occasion condemned the current administration for not releasing adequate funds for the expected increment for public sector salaries. He demanded that the NPP-led regime should clarify as to what happened to the allocated funds, had the government decided to not act on the proposal.

Prime Minister (Dr.) Harini Amarasuriya slammed the former President’s comments, emphasising that despite the previous administration’s announcement of making such an increase, no approval has been granted by either the Treasury to date, nor had there been any allocation of funds for the purpose, deeming it an election promise of exploitive nature made by Wickremesighe ahead of the 2024 Presidential Polls.

In early 2024, a directive was issued to adjust public sector allowances and pensions. However, Herath addressing today’s post-Cabinet briefing clarified that for the time being, financial relief is limited to an interim payment of Rs. 5,000 per month, which will continue until March 2025.

This arrangement leaves the long-promised pay rise uncertain.

“The public was misled regarding these commitments,” Herath said, and pledged that his government would prioritise transparency.

Whilst reaffirming the Cabinet’s dedication to fulfilling salary promises, he noted that any substantial increase would be only realistic from 2025 onwards.

By: Isuru Parakrama

October 29, Colombo (LNW): The Supreme Court of Sri Lanka has granted permission to name former President Ranil Wickremesinghe as a respondent in a petition contesting the appointment of Deshabandu Tennakoon as Inspector General of Police (IGP).

The case was brought forward by the Young Journalists’ Association, which raised concerns regarding Tennakoon’s suitability for the position.

The petition was reviewed today (29) by a two-member bench comprising Justices Preethi Padman Surasena and Janak de Silva.

During the proceedings, President’s Counsel Saliya Peiris, representing the petitioners, sought the court’s approval to include Wickremesinghe as a party to the case, highlighting the former President’s role in the appointment process.

In a significant ruling, the court allowed this request and has scheduled the next hearing for 11 November, when the petition will be recalled for further consideration.

By: Isuru Parakrama

October 29, Colombo (LNW): Cabinet spokesman and Minister Vijitha Herath has advised the public to limit passport applications at the Department of Immigration & Emigration to urgent cases only.

Speaking at today’s (29) post-Cabinet briefing, Herath explained that those without immediate travel requirements are encouraged to delay applications, as there is adequate stock available to meet future demand.

The Department is currently processing around 1,600 passports daily to keep up with requests, prioritising essential and time-sensitive applications.

This measure aims to streamline services and ensure that critical needs are met promptly, while reducing unnecessary crowding at the Department, he emphasised.

By: Isuru Parakrama

October 29, Colombo (LNW): Secretary to the President Dr. Nandika Sanath Kumanayake met with Xiong Hongfeng, Managing Director of CHEC Port City Colombo (Private) Limited, at the Presidential Secretariat to review the progress of the Colombo Commercial City project.

The discussions held yesterday (28) focused on strategic adjustments aimed at addressing potential economic challenges, according to the President’s Media Division (PMD).

The meeting underscored CHEC Port City Colombo’s commitment to both the project’s advancement and community welfare.

As part of its corporate social responsibility, CHEC Port City Colombo announced a Rs. 3 million donation to assist communities affected by recent flooding, showing support for recovery efforts.

Also in attendance was Xian Nan (Neo), Assistant Managing Director of CHEC Port City Colombo, contributing insights on project developments and community-focused initiatives.