May 16, Colombo (LNW): Sri Lanka is planning to establish a small arms manufacturing facility and is in discussions with India regarding this initiative, according to Sri Lankan State Minister of Defence Premitha Bandara Tennakoon.
He mentioned that while the Sri Lankan military possesses expertise in weapons manufacturing, the current scale of production does not meet their expectations.
The Sri Lankan Armed Forces primarily use the Type 56 (T56) assault rifle, which fires 7.62×39 mm cartridges, along with various pistols that use 9 mm cartridges.
The Ministry of Defence has already announced plans to reduce the size of the Sri Lanka Army, the largest component of the defence forces, to approximately 100,000 personnel by 2030.
He mentioned that while the Sri Lankan military possesses expertise in weapons manufacturing, the current scale of production does not meet their expectations.
“So we are in touch with our Indian counterparts. And so there’s so much that we can take and learn from India. And with a little help, we also can do wonders here. So those discussions are ongoing at the moment he added
Speaking at the Presidential Media Centre under the theme “Collective Path to a Stable Country”, Tennakoon detailed Sri Lanka’s involvement in a presentation by Indian weapons manufacturers on 10 April, where he served as the chief guest.
Tennakoon clarified that Sri Lanka is not currently aiming to make any purchases, noting that such presentations are routine annual events.
“Connectivity is really good, and military-to-military connectivity. Indian and Sri Lankan military-to-military connectivity is at a high. So we maintain that. So that doesn’t mean that we are going to buy anything from anyone”, the state minister explained.
He also praised the growth of India’s defence manufacturing sector over the past two decades, suggesting that Sri Lanka could benefit from adopting a similar model.
“We can take a lot from the Indian model. So there’s nothing wrong with learning from them. And I think we also should get into the manufacturing”, he noted.
What you have to understand is the Indian defence manufacturing arm has boomed during the last two decades.
May 16, Colombo (LNW): Companies, representing both the manufacturing and services sectors, have taken breather during the festive period this year with scale down their production activities.
According to the monthly survey conducted by the Central Bank, manufacturing sector firms in particular recorded a contraction in their production while service sector continued with slower expansion.
Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 42.0 in April 2024, indicating a contraction in manufacturing activities following the seasonal pattern.
New Orders, Production, Employment and Stock of Purchases sub-indices declined during the month, resulting in an overall decline in the index.
As per the respondents, the decline in New Orders was mainly due to the end of the festive season’s demand, particularly for food & beverages.
Further, the decrease in Production was primarily due to the fewer working days in April, as most factories were temporarily closed for the Sinhala and Tamil New Year holidays.
Moreover, Employment and Stock of Purchases decreased during the month, in line with the decline in New Orders and Production.
Meanwhile, Suppliers’ Delivery Time further lengthened in April, owing to the extended holidays in the month.
Sri Lanka Purchasing Managers’ Index for Services (PMI – Services) indicated a slower expansion in services activities in April 2024 as reflected by the Business Activity Index, which recorded an index value of 56.7.
The expansion in Business Activities was driven by the improvements observed across several sub-sectors.
Accordingly, business activities in the financial services sub-sector continued to grow following the reduction in policy rates in March 2024.
Further, business activities in the wholesale and retail trade sub-sector experienced a considerable growth amid the seasonal demand.
Meanwhile, programming and broadcasting, telecommunication and real estate sub-sectors also recorded positive developments during the month.
Nevertheless, the accommodation, food and beverage sub-sector declined slightly during the month in line with the decline in tourist arrivals on a month-on-month basis.
New Businesses increased in April, particularly with the increases observed in wholesale and retail trade, financial services and real estate sub-sectors.
Employment declined in April despite some new recruitments made by several companies. Meanwhile, Backlogs of Work continued to decline during April.
May 16, Colombo (LNW): Renowned author V.V. Ganeshananthan has been awarded the esteemed Carol Shields Prize for Fiction 2024 for her compelling work, ‘Brotherless Night‘.
The novel, deeply rooted in the early years of the Sri Lankan civil war, captivates readers with its extraordinary narrative and rich storytelling.
Ganeshananthan, of Sri Lankan descent herself, drives the reader into the complexities of familial bonds, identity, and the human experience against the backdrop of conflict-ridden Sri Lanka.
Her prose, imbued with sensitivity and depth, explores the lives of ordinary individuals caught in the tumultuous events happened during the thirty year-war.
‘Brotherless Night‘ stands as a testament to Ganeshananthan’s mastery of storytelling and her ability to evoke powerful emotions in her readers.
The novel has garnered widespread acclaim for its nuanced portrayal of characters and its exploration of themes such as loss, resilience, and the search for belonging.
Ganeshananthan through her work sheds light on lesser-known narratives and offers a platform for underrepresented stories to be heard.
Speaking on her win, Ganeshananthan expressed gratitude for the recognition of ‘Brotherless Night‘ and emphasised the significance of storytelling as a means of fostering understanding and empathy.
She hopes that her novel will serve as a bridge between cultures and spark conversations about shared humanity.
May 16, Colombo (LNW): Sri Lanka’s apparel industry is to get a big boost as the world’s largest textile producer, China is exploring possibilities of opening its huge domestic market to the island’s garment exports, an industry heavyweight said.
A prominent delegation of 30 members of the China National Garment Association (CNGA) visited Sri Lanka recently to explore fresh avenues of collaboration and investment in the Sri Lankan apparel industry.
This Chinese delegation led by Executive Vice President of XIE QING and Ningbo Garment Association Vice president and Secretary General MAO YIHUA met the Chairman/ CEO, EDB, Executive Director, BOI, and members of JAAF on the 9th of May 2024.
The CNGA is a leading industry association with over 1400 major members and covers most of the original apparel brands in China.
The primary objective of this high-level delegation was to bolster existing trade relations and explore fresh avenues of collaboration and invest in the Sri Lankan apparel industry.
During their stay in Sri Lanka, the delegation actively participated in a series of pivotal engagements, including business-to-business (B2B) meetings, insightful factory visits, and constructive dialogues with key governmental institutions.
These interactions were strategically designed to enhance mutual understanding, facilitate knowledge sharing, and lay the groundwork for investment opportunities and mutually advantageous partnership.
Central to their visit was a business session held at the EDB premises, during which the delegation had the opportunity to engage directly with 12 leading apparel companies in Sri Lanka.
The B2B meetings provided a conducive environment for fostering direct dialogue and exploring potential synergies between the Chinese representatives and their Sri Lankan counterparts.
EDB Chief Dr. Kingsley Bernard warmly welcomed the delegation, underscoring the importance of such exchanges in strengthening bilateral ties and fostering economic growth.
Further engagements were held with prominent individuals and institutions in Sri Lanka’s economic sector, highlighting the commitment of both sides to deepen cooperation and explore new avenues of cooperation.
The design, manufacture and export of textiles and apparel products is one of the biggest industries in Sri Lanka, and one which plays a key role in advancing the economy.
China apparel industry is exhibiting a stupendous growth over the past few years, owing to increasing domestic market, increasing foreign players’ participation and private players ‘expansion.
President Ranil Wickremesinghe will attend the 10th World Water Forum High-Level Meeting in Indonesia from May 18 to 20, invited by Indonesian President Joko Widodo: set to deliver a statement on “Water for Shared Prosperity” on May 20 and engage in several bilateral meetings, including one with President Widodo.
SLPP MP Mahindananda Aluthgamage says his party faces no challenge from the JVP: expresses confidence in the party’s prospects and states that decisions regarding elections are made collectively within the party: The MP’s response is in correspondence with reporters’ queries on the JVP-led NPP’s growing popularity in the country’s political landscape.
The Colombo District Court grants SLFP MP Duminda Dissanayake permission to argue against Justice Minister Wijeyadasa Rajapakshe’s appointment as SLFP Chairman: The court will decide on an injunction today: Rajapakshe’s counsel objected, citing a previous court order, but Dissanayake’s counsel argued it didn’t apply: The plaintiff seeks to prevent Rajapakshe and another from acting in SLFP roles and invalidate decisions from a recent meeting.
Sri Lanka plans to establish a domestic small arms ammunition manufacturing unit, with discussions underway with India for collaboration: Defence State Minister Premitha Bandara Tennakoon emphasises learning from India’s defence manufacturing success: adds while Sri Lanka aims to strengthen military ties with India, there are no immediate plans for equipment procurement.
Tourism Minister Harin Fernando remarks to CNBC that the Maldives boycott calls among Indian travellers are benefiting Sri Lanka’s tourism industry: notes a significant rise in Indian visitors to Sri Lanka, contrasting the decline in Indian arrivals to the Maldives: Despite temporary visa price increases, Sri Lanka experienced higher arrivals in the 1Q24’ compared to the previous year: emphasises the strong ties between Sri Lanka and India, citing various attractions and robust connectivity as key factors driving Indian tourism to Sri Lanka.
First Capital Research (FCR) in a report forecasts the Sri Lankan Rupee (LKR) is expected to depreciate to Rs. 310-320 against the US Dollar by year-end due to increased import demand and foreign loan repayments post-External Debt Restructuring (EDR): In the first half, the LKR might appreciate to around Rs. 295 due to high taxes reducing consumer demand: The USD/LKR spot rate was Rs. 300.83 as of yesterday: Tourism earnings and worker remittances are projected to rise, supporting the Rupee: However, import relaxations and loan repayments later in the year may offset this appreciation: The Central Bank aims to build foreign reserves, impacting the exchange rate.
The Joint Apparel Association Forum (JAAF) responds to criticism of Sri Lanka’s garment industry minimum wage, stating that the official minimum wage doesn’t reflect workers’ total earnings: clarifies the current system includes fixed basic wages supplemented by productivity-based payments and non-cash benefits: The industry-agreed minimum wage, including government allowances, is approximately Rs. 24,000 per month: emphasises the article didn’t consider variable cash payments and non-cash benefits, like production bonuses and subsidised meals, provided to employees: also notes inflation has reduced since early 2023 and remain confident in achieving US $4.5 billion in apparel export earnings this year.
The Tea Exporters Association (TEA) voices deep concern over the newly introduced 18% VAT and a 30% corporate income tax on the tea industry, adding strain to an already challenging period: With the tea sector contributing annually about USD 1.3 billion in revenue, the sudden tax increase could hinder its revival efforts: Over 90% of tea is exported, and the VAT on exports might diminish competitiveness in the global market: While the tax is reimbursed later through SVAT, the process adds administrative burden and disrupts industry efficiency: SL tea sector, unlike its counterparts, operates uniquely with over 95% of tea sold in weekly auctions, ensuring transparency.
President Ranil Wickremesinghe orders the immediate construction of the “Ashraf Memorial Museum” in Kalmunai, honouring the late M.H.M. Ashraf, founder of the Sri Lanka Muslim Congress: The initiative, prompted by MP H.M.M. Haris and the local Muslim community, commemorates Ashraf’s 24th death anniversary: Wickremesinghe allocates Rs. 25 million for the project, recognising Ashraf’s significant contributions to the Eastern Province’s Muslim population.
Sri Lanka’s men’s volleyball team achieves a historic 3-0 victory against Iran, marking their first-ever win over the volleyball powerhouse: Led by Captain Deepthi Romesh and Vice-Captain Lasindu Methmal Wasanthappriya, Sri Lanka dominated the match, securing their spot in the Asian Championship: Today’s match against Turkmenistan is crucial, determining their fate in the tournament.
May 16, Colombo (LNW): The Tea Exporters Association (TEA) expressed grave concern over the introduction of the 18 percent Value Added Tax (VAT) on the industry adding fuel to the fire ignited by the government by imposing 30 percent corporate income tax.
The Tea Export sector that annually brings revenue of about USD 1.3 billion is concerned about the corporate income tax of 30% by the government on the export sector as it could seriously hinder the industry efforts for revival.
The sector is currently going through a challenging period due to a number of internal and external issues and this increase of corporate income tax by more than 100% from this month could further aggravate the plight of tea exporters..
VAT on a commodity which over 90% is produced and sold purely for exports, could hamper its competitiveness in global market, they added.
600 tea producers/factories in tea industry should get themselves registered for VAT and SVAT to be eligible for issue of VAT invoices to buyers.
Sri Lanka’s tea exporters are now paying 18% value added tax (VAT) on exports after the government decided to widen the tax net.
Although the tax money is later reimbursed to exporters through a system called SVAT (Simplified Value Added Tax), the move has brought with it a host of other issues on top of administrative woes, according to industry experts.
Primarily, making the tea industry pay a hefty tax and then have it refunded is “quite meaningless,” Tea Exporters Association (TEA) of Sri Lanka Chairman Ganesh Devanayagam said.
He called the government decision a “first of its kind in the sector’s history” because Sri Lanka’s tea products, where 90 % is exported, have always enjoyed tax-exempt status.
Acting on International Monetary Fund (IMF) recommendations to help the ailing Sri Lankan economy, the government hiked the existing 15% VAT on businesses to 18% from January 1 this year.
The government insisted that every single industry in the country should come under a uniform tax regime.As a result, the industry is now having to deal with a “ton of paperwork,” said Devanayagam.
There may not be a massive financial loss—apart from added administrative cost—as taxes paid to the government are refunded. But it has taken its toll on the sector’s efficiency, he said.
Unlike other counterparts such as India and Kenya, Sri Lanka’s tea sector is in a unique position in terms of how it operates locally:
Over 95% of the country’s tea is sold in weekly auctions making the whole process transparent, he said.
Weekly tea auctions sell nearly 6 million kilos of tea separated into almost 10,000 different types.
May 16, Colombo (LNW): The Sri Lankan Rupee indicates slight depreciation against the US Dollar today (16) in comparison to yesterday, as per leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has increased to Rs. 296.89 from Rs. 296.16, and the selling price to Rs. 306.94 from Rs. 306.18.
At Commercial Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 295.23 and Rs. 305.50, respectively.
At Sampath Bank, the buying price of the US Dollar has increased to Rs. 297.50 from Rs. 297, and the selling price to Rs. 306.50 from Rs. 306.
May 16, Colombo (LNW): As Sri Lanka marches towards its presidential elections due before October 17, 2024, political temperatures are soaring. The incumbent President, Ranil Wickremesinghe, has indicated a preference for a presidential poll over parliamentary elections, contrary to the aspirations of SLPP chief Basil Rohana Rajapaksa. The strategic meetings and movements of key political figures underscore a landscape brimming with anticipation and strategies to capture leadership.
President Wickremesinghe’s international advisory team has been reportedly convening in Sri Lanka to finalise their campaign strategy, signalling a proactive approach towards his election bid. This move to prioritise the presidential election is constitutionally necessitated, yet it reflects a tactical choice in the face of rising opposition momentum.
Sajith Premadasa of the SJB and Anura Kumara Dissanayake from the JVP/NPP have been active on the campaign trail for months, positioning themselves as frontrunners in the impending election. Recent opinion polls present a mixed picture, though a notable controversy has emerged over fake polling data circulated with the UN logo, muddying public perceptions.
The SLPP camp, still reeling from the legacy of Mahinda Rajapaksa, faces a dilemma. With constitutional constraints sidelining Mahinda, Basil and the ageing Chamal Rajapaksa out of the limelight, the focus has shifted towards Namal Rajapaksa. Discussions within Namal’s circle suggest a calculated risk to propel him as a candidate, despite the possibility of a loss in 2024, aiming for a longer-term political establishment by 2029. However, emerging SLPP leaders like Kanchana Wijesekera, Shehan Semasinghe, Pramitha Bandara Tennakoon, Tharaka Balasuriya and Dilum Amunugama are reportedly leaning towards backing President Wickremesinghe, highlighting a potential rift or strategic realignment within the party.
Three additional candidates—Dhammika Perera, Dilith Jayaweera, and Justice Minister Wijedasa Rajapakshe—are stirring the political pot. Rajapakshe, in particular, has garnered attention with his decisive move to enter the race, influenced by a controversial faith healer’s advice and substantial backing from influential sectors within the Sinhala Buddhist community. His campaign, driven by his son Rakitha and supported by billionaire Nishshanka Senadhipathi, underscores the intricate interplay of personal ambition and financial power in shaping electoral contests.
The impending declaration by President Wickremesinghe of his candidacy in mid-June is expected to set the stage for a tightly contested race. With various camps pushing diverse agendas, the political landscape is poised for a dynamic showdown. While the Rajapaksa camp banks on a solid 30% bloc vote from their enduring base, the opposition’s predicted poll lead presents a formidable challenge.
LNW, with a history of fifteen years of fearless reporting despite threats, intimidation and harassment in the past, will be covering the 2024 presidential election with regular updates. We welcome any presidential campaign teams to contact the LNW editor-in-chief with facts for our campaign reporting to provide unbiased reporting to a few million readers and viewers on all LNW digital platforms and allied digital platforms.
May 16, Colombo (LNW): Sri Lanka, the wonder of Asia, continues to maintain silence against the recent progress towards the rights of people of diverse sexual orientations, gender identities, gender expressions and sex characteristics (SOGIESC).
Despite repeated promises from lawmakers, Sri Lanka continues to uphold laws that criminalise same-sex sexual conduct, perpetuating discrimination and violating the human rights of its queer community.
The failure to decriminalise same-sex conduct highlights a persistent gap between political assurances and legislative action in the island nation.
Sri Lanka’s Penal Code, a relic of British colonial rule, contains provisions that criminalise “carnal intercourse against the order of nature” and “gross indecency,” effectively used by by law enforcement officers targetting same-sex activity, despite the book having no specific definition for such terms.
Sections 365 and 365A of the Penal Code, enacted in 1883, prescribe penalties that include imprisonment for up to ten years. These laws have remained unchanged for over a century, despite growing calls for reform from local and international human rights advocates.
In recent years, there has been a series of pledges from Sri Lankan politicians to decriminalise same-sex relations. During the 2015 presidential campaign, then-President Maithripala Sirisena and his coalition government vowed to address human rights issues, including LGBTQIA+ rights, only to have them wiped out later in a shameful public statement made by the former Head of State during the 2018 October Political Coup, referencing queers to ‘butterflies‘.
Similar commitments were echoed by various lawmakers and political parties over subsequent years, particularly in the context of Sri Lanka’s obligations under international human rights treaties.
Sri Lanka faces significant pressure from the international community to amend its discriminatory laws. The United Nations Human Rights Council (UNHRC) and various human rights organisations have repeatedly urged the Sri Lankan government to repeal sections 365 and 365A.
During its Universal Periodic Review (UPR) sessions, Sri Lanka has received multiple recommendations to decriminalise same-sex conduct, reflecting a global consensus on the need for legislative reform.
The Attorney General’s Department assured, precisely on four occasions, in 2014, 2017, 2019 and 2022, that Article 12 of the Constitution protects the rights of queer individuals, and that any law authorising discrimination against such individuals would be unconstitutional.
In a groundbreaking verdict in 2022, the United Nations supported a legal challenge on Sri Lanka’s prohibition on same-sex intimacy among women, deeming it a violation of human rights.
This pivotal case propelled LGBTQIA+ rights to the forefront of Sri Lankan political discourse.
The Supreme Court of Sri Lanka in 2023 delivered a landmark determination, assuring that consensual same-sex conduct between adults do not violate the Constitution of Sri Lanka, and a bill to decriminalise such acts, therefore, can be made into law with a simple-majority in Parliament, in correspondence with a private member’s bill proposing decriminalisation tabled by SLPP MP Premnath Dolawatte being legally challenged by a group of political stalwarts, ironically of the same party in which Dolawatte serves.
Despite these pressures and promises, little progress has been made. Activists argue that deep-rooted societal prejudices, coupled with political reluctance, continue to hinder legislative change.
The bill will be subject to Parliament scrutiny in the first week of June this year, a prominent activist told LNW. Consequently, June is recognised worldwide as the PRIDE month, remembering the 55th anniversary of the Stonewall Riots, the most momentous event in documented history advocating for LGBTQIA+ rights.
The National Peoples Power (NPP) remains the sole political party which recognises LGBTQIA+ rights in its written policies, whilst the main Opposition Samagi Jana Balawegaya (SJB) categorically recognises LGBTQIA+ rights, despite having no confirmed report of possessing such policy in its manifestos.
The recent resurgence of conservative and nationalist sentiments in Sri Lankan politics further complicates efforts to advance queer rights.
The continued criminalisation of same-sex conduct has profound and damaging effects on the lives of LGBTQIA+ individuals in Sri Lanka.
It fosters a climate of fear and secrecy, leading to social exclusion, discrimination in employment and education, and limited access to healthcare.
Reports of police harassment and blackmail are not uncommon, further exacerbating the vulnerability of the queer community.
The path to decriminalisation and equality for LGBTQIA+ individuals in Sri Lanka requires a multifaceted approach.
A recent islandwide survey by the Westminster Foundation for Democracy asserted that about 72.5 per cent of the Sri Lankan population favour the idea of same-sex conduct being decriminalised.
Legislative reform is crucial, but it must be accompanied by broader societal changes to challenge and dismantle prejudices.
Current President Ranil Wickremesinghe commented that he poses no objection to the proposition that consensual same-sex activities between adults be decriminalised.
Advocacy groups continue to play a vital role in raising awareness, providing support to affected individuals, and lobbying for legal changes.
International solidarity and pressure remain essential in holding the Sri Lankan government accountable to its human rights commitments.
Sri Lanka’s failure to decriminalise same-sex conduct, despite repeated promises from lawmakers, highlights a significant human rights issue that needs urgent attention.
While the road to equality is fraught with challenges, continued advocacy, both domestically and internationally, is essential to achieving legislative reform and ensuring the protection and dignity of all individuals, regardless of their identity.
The government’s inaction not only contravenes its international obligations but also perpetuates a cycle of discrimination and injustice that affects countless lives.
It is imperative for Sri Lanka to move beyond empty promises and take concrete steps towards decriminalising same-sex conduct, fostering a more inclusive and equitable society.
May 16, Colombo (LNW): President Ranil Wickremesinghe is set to attend the 10th World Water Forum High-Level Meeting in Indonesia, following an invitation from his Indonesian counterpart, President Joko Widodo.
The Sri Lankan President will participate in the Forum from 18 to 20 May, according to the President’s Media Division (PMD).
On May 20, Wickremesinghe will deliver a statement at the High-Level Forum, themed “Water for Shared Prosperity.”
In addition to his participation in the Forum, the President will engage in several bilateral meetings, including a meeting with Indonesian President Joko Widodo.
