January 22, Colombo (LNW): President Anura Kumara Dissanayake has announced that vehicle permit holders will be given a chance to import vehicles when the country resumes vehicle imports, following a five-year hiatus.

Speaking on the Satana programme on Sirasa TV, the President outlined the rationale behind this decision and the careful steps being taken to manage its potential economic impact.

In 2018, Sri Lanka’s vehicle imports amounted to nearly US$ 2 billion, with a slight decline to approximately US$ 1.4 billion in 2019. On average, the nation imports between 1 and 2 billion US dollars worth of vehicles each year.

While the decision to lift the suspension on vehicle imports was not driven by robust foreign reserves, the President stressed that it was a strategic move to stimulate the country’s economy.

However, he cautioned that the reintroduction of imports must be carefully managed to minimise its effect on the country’s dollar reserves and prevent further economic instability.

President Dissanayake explained that, at present, the vehicle market includes cars imported at the 2019 dollar exchange rate, which was around Rs. 190 to the US dollar. With the rupee now nearing Rs. 300 to the dollar, the cost of vehicles is expected to rise by around 40 per cent, reflecting the currency devaluation.

He also highlighted the presence of a substantial number of second-hand vehicles in the market, many of which were purchased through leasing arrangements.

If the price difference between new and second-hand vehicles becomes too narrow, it could create a new crisis, particularly in the second-hand vehicle market, with potential negative repercussions for leasing companies and financial institutions.

The President emphasised the importance of striking a balance in vehicle prices to avoid instability. If new vehicles become too expensive, it could lead to disruptions in the second-hand vehicle market, where many consumers have already made significant investments.

He stated that the government would need to carefully monitor the situation and adjust policies to prevent market imbalances.

Discussions have also been held with the Central Bank to ensure that the allocation of foreign currency for vehicle imports is managed prudently.

The President confirmed that vehicle imports will be phased throughout the year to avoid putting excessive strain on the country’s foreign exchange reserves, particularly in February when imports are set to begin.

A sudden influx of vehicle imports, potentially worth up to US$ 1.2 billion in just one month, could lead to further economic strain, he warned.

On the issue of vehicle permits, President Dissanayake made it clear that it was unlikely permit holders would be given preferential treatment this time. In 2018, permit holders used US$ 1.9 billion to import vehicles, a figure that the government is keen to reduce.

The aim is to limit vehicle imports to around US$ 1.2 billion annually, while taking into account the market’s capacity and the potential rise in prices.

The President acknowledged the risks involved in this decision, noting that further actions would depend on how the market evolves.

January 22, Colombo (LNW): The deadline for the submission of tenders for the construction of a new passenger terminal at Bandaranaike International Airport, Katunayake, has been extended until March, according to the Deputy Minister of Ports and Aviation, Ruwan Kodituwakku.

This significant project is being supported by the Japan International Cooperation Agency (JICA), which is assisting in both financing and technical expertise.

Speaking about the development, Deputy Minister Kodituwakku confirmed that, following the extension, construction work is now expected to begin in June.

The new terminal will play a crucial role in enhancing the airport’s capacity and modernising its infrastructure to meet the growing demand for air travel.

Once completed, the new terminal will greatly increase the airport’s ability to handle passengers, with a target of reaching 15 million annual passengers by 2028.

January 22, Colombo (LNW): Minister of Public Security Ananda Wijepala, revealed in Parliament yesterday (21) that the Financial Crimes Investigation Division (FCID) will recommence its operations next week, as part of the government’s renewed effort to combat financial crimes and corruption.

During the adjournment debate on the Clean Sri Lanka programme, Minister Wijepala addressed Parliament, outlining the government’s firm commitment to tackling financial misconduct and ensuring that justice is upheld across the country.

He reassured lawmakers that the authorities would leave no stone unturned in investigating financial crimes, even those that had been buried and overlooked in the past.

Minister Wijepala highlighted that the Criminal Investigation Department (CID) currently holds over 29,000 case files related to various crimes, many of which involve financial mismanagement.

He explained that with the reactivation of the FCID, these cases would be meticulously reviewed, and the division would be specifically tasked with handling financial crime cases.

This move, he emphasised, is intended to ensure that those responsible for financial wrongdoings are held accountable.

The reinstitution of the FCID is expected to bolster ongoing efforts to restore public trust in government institutions and promote transparency in both the public and private sectors.

January 22, Colombo (LNW): The Paddy Marketing Board has announced the formation of a dedicated committee tasked with reviewing and potentially amending the certified price of rice in Sri Lanka.

According to the Board, the committee will consist of representatives from a variety of key institutions, including the Hector Kobbekaduwa Agrarian Research and Training Institute and the Institute of Post Harvest Technology.

The committee’s primary objective is to evaluate the current pricing system applied to paddy cultivation and determine whether adjustments are necessary to reflect market conditions.

After conducting this thorough review, the committee will play a key role in setting the certified prices for rice that will guide purchases of stocks for the upcoming season.

Manjula Pinnalanda, Chairman of the Paddy Marketing Board, emphasised that the goal is to ensure that the certified price of rice aligns with the realities of both the farming community and consumers.

In the previous Yala season, certified prices for various types of rice were set at Rs. 105 per kilogram for Nadu rice, Rs. 115 per kilogram for Samba rice, and Rs. 130 per kilogram for Keeri Samba rice.

In addition to the pricing review, the Board also confirmed that storage facilities for the upcoming Maha season harvest have already been prepared.

With harvest time approaching, the purchase of paddy stocks for the Maha season is set to begin next month, ensuring that the country’s rice supply chain remains stable and secure.

The adjustments made through this committee will be crucial for managing the seasonal fluctuations in supply and demand for rice, a staple food in Sri Lanka.

January 22, Colombo (LNW): Sri Lanka’s Parliament is set to resume its discussions today, with the second day of the adjournment debate on the government’s Clean Sri Lanka initiative taking centre stage.

Under the guidance of Speaker Dr. Jagath Wickramaratne, the House will continue its deliberations, aiming to address critical matters concerning the country’s environmental and developmental goals.

The Parliament is scheduled to sit through until Friday, with each day dedicated to a range of important legislative discussions.

Tomorrow, attention will shift to the examination of several key pieces of legislation, including regulations under the Import and Export Control Act, proposed amendments to the Customs Ordinance, and updates to the Ports and Airports Development Levy Act.

These discussions are expected to be pivotal in shaping the country’s trade and infrastructure policies.

Friday’s session will be focused on a more sombre occasion, as the Parliament dedicates the entire day to tabling condolence motions for former Members of Parliament who have passed away.

January 22, Colombo (LNW): Dr. Hansaka Wijemuni, Deputy Minister of Health and Media, has announced that the prices of medicines in Sri Lanka have been significantly reduced due to the introduction of greater competition among pharmaceutical suppliers.

Speaking recently, Dr. Wijemuni explained that in the past, certain medications were only available from a single supplier, which led to monopolistic practices and inflated prices.

This reliance on a limited number of suppliers meant that the government had little leverage to negotiate lower prices, resulting in the purchase of medicines at much higher costs.

In response to this issue, the Ministry has expedited the process of registering new suppliers for medicines that were previously only sourced from one provider.

Dr. Wijemuni revealed that around 2,800 pharmaceutical companies had applied for registration, and their documentation is being reviewed swiftly. He assured that all qualified suppliers will be fully registered before March this year.

The Deputy Minister highlighted that by diversifying the pool of suppliers, the government can foster a competitive environment that will help drive down the cost of medicines, ultimately benefiting consumers.

This move is part of a broader effort to enhance the accessibility and affordability of essential medicines across the island.

Dr. Wijemuni also pointed out that the government’s commitment to ensuring quality standards will not be compromised during this process.

Each supplier will undergo a rigorous qualification check before being approved, guaranteeing that only those who meet the necessary criteria will be allowed to enter the market.

By broadening the supplier base, the Ministry hopes to create a more competitive pharmaceutical market, resulting in better prices and more choices for the public.

January 22, Colombo (LNW): Sri Lankan President Anura Kumara Dissanayake has announced that military personnel will be deployed to monitor and ensure compliance in rice mills that fail to adhere to government regulations.

This statement was made during a special television programme broadcast on the evening of January 21.

The President expressed serious concerns over the operations of certain large-scale rice mills, emphasising that if these mills do not follow the government’s directives, the military will be tasked with overseeing the transportation of rice from the mills to the designated storage facilities.

President Dissanayake highlighted the importance of rice as a crucial national resource, reiterating that the government has been keen to regulate the sector in a fair and transparent manner.

“Rice is a national asset, and it is vital that it is handled in a way that serves the best interests of the people,” he remarked. “We have taken every measure to ensure that the policies being implemented are just and reasonable, without any form of unfair regulation.“

The President’s remarks come amid growing concerns over rice shortages and price fluctuations in the country, and the government has been taking steps to streamline the supply chain to ensure that rice reaches local markets in a timely and equitable manner.

The deployment of military personnel to oversee rice mill operations reflects the government’s commitment to maintaining order and safeguarding the nation’s food security.

With rice being a staple food and a critical commodity in Sri Lanka, the government is determined to prevent any disruptions in the supply and to maintain control over the distribution process.

January 22, Colombo (LNW): The Ceylon Chamber of Coconut Industries (CCCI), the leading body representing Sri Lanka’s vital coconut sector, has called on the government to urgently approve a proposal to import 200 million coconuts.

This move, the Chamber warns, is critical to preventing an imminent crisis that threatens both domestic consumers and the country’s export industry.

Speaking at an emergency press conference held in Colombo yesterday, CCCI President Jayantha Samarakoon expressed deep concern over the ongoing shortage, which is causing coconut prices to soar to alarming levels, with the cost of a single nut approaching Rs. 200.

The shortage is also severely impacting Sri Lanka’s coconut exports, an important source of revenue for the island nation.

Samarakoon pointed out that the lengthy approval process for the importation of coconuts, which involves several government ministries and departments, has been moving at a frustratingly slow pace.

He emphasised that the lack of swift government intervention is exacerbating the supply chain crisis and leaving little time to avert further disruption.

“This shortage is creating a dual crisis – one that directly affects households struggling with rising prices and another that threatens the livelihoods of thousands of people in the export sector,” Samarakoon said. “Immediate action is needed to secure the importation of coconuts and stabilise the market before the situation becomes even more dire.“

The CCCI’s appeal highlights the urgent need for coordinated action at the highest levels of government to safeguard both local consumers and the country’s valuable coconut export trade.

With coconut-based products being a staple in Sri Lankan diets and a key export commodity, the consequences of inaction could be far-reaching, affecting both the economy and the daily lives of many Sri Lankans.

Industry experts have warned that if the importation process continues to be delayed, the shortage could worsen, further inflating prices and potentially leading to supply shortages across the island.

The Chamber has urged the government to prioritise this issue and take immediate steps to ensure the coconut industry remains stable in both the short and long term.

January 22, Colombo (LNW): Martin Raiser, the Vice President for the South Asia Region of the World Bank, recently met with Sri Lanka’s Prime Minister, Dr. Harini Amarasuriya, in a cordial meeting at the Sri Lankan Parliament to discuss the country’s pressing development priorities.

The two leaders explored a range of critical issues that are central to Sri Lanka’s future growth, with particular focus on education, gender equality, and regional inclusivity.

The talks highlighted the necessity of addressing the country’s current challenges and advancing sustainable solutions. A key topic was the enhancement of the education sector, with both Raiser and Dr. Amarasuriya underscoring the importance of improving access to quality education across the country.

There was a specific emphasis on the Technical and Vocational Education and Training (TVET) sector, which the Prime Minister’s office noted as a crucial element in creating diverse and viable career options for young people.

The leaders agreed that integrating TVET more effectively with mainstream education systems would provide students with the skills needed to thrive in a rapidly changing job market.

Gender equality also emerged as a central theme of the discussions. Both parties acknowledged the significant barriers women still face in entering the workforce and the broader economic sphere.

They agreed that targeted policy reforms and support systems are essential to ensuring greater female participation in economic activities and achieving gender equity in the workforce.

In addition to these vital topics, the dialogue reaffirmed the strong commitment of Sri Lanka and the World Bank to work together on sustainable development initiatives.

Both sides expressed a shared dedication to fostering long-term solutions that promote education, economic inclusion, and balanced regional development across Sri Lanka.

The meeting was attended by several senior officials from both the World Bank and the Sri Lankan government. David Sislen, the Regional Country Director for Nepal, Maldives, and Sri Lanka, was present alongside other key figures, including Pradeep Saputhanthri, Secretary to the Prime Minister; Sagarika Bogahawatta, Additional Secretary to the Prime Minister; Samantha Bandara, Director General of the Department of External Resources; Dharshana M. Perera, Senior Director-General for Economic Affairs (Bilateral) at the Ministry of Foreign Affairs; and Lashinka Dammullage, Director of the Southeast Asia & Central Asia Division at the Ministry of Foreign Affairs.

January 22, Colombo (LNW): Showers will occur at times in Eastern, Northern, North-central, Central and Uva provinces and in Hambantota district, and showers or thundershowers will occur at several places elsewhere in the evening or night, the Department of Meteorology said in its daily weather forecast today (22).

Fairly heavy showers about 75 mm can be expected at some places in Eastern, North-central, Uva and North western provinces.

Showers may occur in Western province and in Galle and Matara districts in the morning too.

Fairly strong winds of (30-40) kmph can be expected at times over Eastern slope of the central hills and Northern, North-central, Eastern and North-western provinces and in Hambantota and Monaragala districts.

The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather: