June 28, Colombo (LNW): The Japanese government has decided to restart development projects in Sri Lanka that were previously suspended, due to the country’s progress in implementing economic reforms.
Japanese envoy in Colombo, Misukoshi Hideaki, announced that steps will be taken to resume these projects after the relevant Memorandums of Understanding (MoUs) regarding debt restructuring are signed.
Speaking at a press conference in Colombo, the Ambassador expressed satisfaction over the signing of debt restructuring agreements with bilateral creditors and reaffirmed Japan’s commitment to supporting Sri Lanka.
June 28, Colombo (LNW): The Kandy Esala Perahera Festival will commence on August 5 with the auspicious ‘Kap’ planting ceremony at the four main Devalayas (temples), as announced by Pradeep Nilanga Dela, the Diyawadana Nilame of the Temple of the Sacred Tooth Relic.
The ‘Kap’ planting ceremony, which marks the beginning of the festival, will take place facing the northwest direction at 4:10 am on August 5 at the Natha, Vishnu, Kataragama, and Pattini Devalayas, according to the Diyawadana Nilame.
This announcement was made during a discussion held on Wednesday, the 26th, at the multipurpose building of the Temple of the Sacred Tooth Relic, regarding the organizational arrangements for this year’s Kandy Esala Perahera.
June 29, Colombo (LNW): Several spells of light showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara Eliya, Galle and Matara districts.
Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts in the evening or night.
Strong winds of about (40-50) kmph can be expected at times over the Western slopes of the central hills, Northern, North-central and North-western provinces and in Trincomalee, Hambantota and Monaragala districts.
June 28, (LNW) Colombo : Further details on the grievance submitted to the Sports Ministry’s Ombudsman by Former Rugby President Rizly Illyas, calling for a probe into the officials accountable for the £50,000 penalty levied by the World Rugby Federation and the 55 million rupees debt to Sri Lanka Rugby during Asanga Senaviratne and Lasitha Gunaratne’s administration. Met with Ombudsman Chulananda Perera today to report the more information. After the meeting, he told the media that without consequences for such errors, future appointees might repeat them. Rizly Illyas believes that permitting the administration to continue without taking action against those responsible sets a detrimental precedent for the future.
The Former Rugby President said the media that the ombudsman comprehended the pertinent issues well, but emphasized that within his role, he must ascertain the feasibility of taking action in this matter. Nevertheless, Illyas also stated the media that the ombudsman will prepare a comprehensive report on the matter and ensure its submission to the minister. “The Sports Minister will take appropriate action regarding this matter.”
Rizly Illyas mentioned that he provided the necessary data to the ombudsman for verifying the facts he mentioned, emphasizing that it should not be difficult to ascertain all the relevant details. “The necessary documentation to verify this information can be obtained from the auditor. Additionally, details regarding the fine can be obtained from the World Rugby Federation.” After stating that, Rizly Illyas mentioned that the Minister and the World Rugby Federation can identify the improper influence of a group of individuals on the Sri Lankan rugby constitution, along with the motives of those influencing it, and the reasons behind this fine.
Two leading Ministers Dr. Ramesh Pathirana and Dr. Wijeyadasa Rajapakshe on Sunday lambasted the banking sector for half-hearted support to the struggling Micro, Small and Medium Entrepreneurs (MSMEs) thereby endangering a quicker recovery in the economy following multiple crises. Industries and Health Minister Dr. Ramesh Pathirana on Sunday urged enterprises to take a stand against unfair banking practices and to continue lobbying for their interests regardless of political affiliations.Speaking at an awareness conference organised by the Ceylon Federation of MSMEs on ’Business debt and finance management’ on the side-lines of the Industry Expo 2024, Pathirana insisted the need for businesses to create conversations and pressure policymakers to address their concerns. Dr. Pathirana warned that banks might channel most of the funds from international credit lines to their wealthy clients, calling for vigilance and protest against such practices.
“We learn that banks are trying to push most of the funding facilities to their already rich clients from the loans extended by the international agencies like the World Bank and the Asian Deve-lopment Bank,” the Industries Minister alleged. He also pointed out that promoting fair banking practices are essential to drive economic development in Sri Lanka. Separately at the same conference, in a scathing critique of the banking system, Justice Minister Dr. Wijeyadasa Rajapakshe criticised the policymakers for their failure to establish a credible economic policy to support enterprises and entrepreneurs. In practice no bank can survive if it alienates its customers. As with all business, it’s a balancing act. In general Government policies have been designed to limit bank failures and the panic they can ignite. Therefore the safety and soundness of banks is paramount, growing all banks to such levels of safety and soundness should be the deliverable, not just a handful of systemically important banks. The recent pronouncements on a development bank in Sri Lanka limited to serving the needs of the MSMEs, should be pursued with vigour.
True role of banks
Banks play a pivotal role serving as the backbone that the entire financial system rests on. Its primary role is to safeguard depositors and to disburse loans. Banks however as the primary supplier of credit as the Minister highlighted have a crucial role in stabilising the economy and supporting their customers. Banks in general accept deposits and provide loans, and derive a profit from the difference in the interest rates paid and charged to depositors and borrowers respectively. This process performed by banks of taking in funds from a depositor and then lending them out to a borrower is known as financial intermediation.
Through financial intermediation, certain assets are transformed into different assets or liabilities. As such, financial intermediaries channel funds from people who have extra money or surplus savings (savers), and then lend to those who do not have enough money to carry out a desired activity (borrowers). Banking thrives on the financial intermediation abilities of financial institutions that allow them to lend money and receive money on deposit. The bank is the most important financial intermediary in the economy as it connects surplus and deficit economic agents.
Way forward
Banks are vital institutions in any society as they significantly contribute to the development of an economy through facilitation of business. Banks also create money and facilitate the growth of savings in the economy, and are instruments of the Government’s monetary strategy, among many others. The most important service provided by a bank is the provision of credit. Credit fuels economic activity by allowing businesses to invest beyond their cash on hand, households to purchase homes without saving the entire investment in advance, and enables governments to smooth out their spending by mitigating the cyclical pattern of tax revenues, and to invest in huge public infrastructure projects. Therefore, the key role for a financial institution is to facilitate investment and employment to sustain the long-term economic growth of the country.
What Sri Lanka needs is four strong banks with an asset base exceeding Rs. 2 trillion each by 2025, to get us to an over-$ 100 billion GDP economy. Therefore, the Government should push for bank consolidation keeping in view synergies and the benefits of mergers, with the Government role purely as that of a facilitator. However in certain institutions there is certainly a need to get rid of board toxicity and the management capacity deterioration, and investigate the vested lending.
Therefore, in the final analysis, the President, as the Minister of Finance (which supervises the Central Bank and the Securities and Exchange Commission [SEC]), has a great opportunity to drive the financial sector reforms agenda, thereby giving a very strong signal to the financial markets that the Government is ready to support genuine investor appetite and provide competitive businesses the freedom to create wealth and growth. Whilst the banks need to ensure that they demonstrate to their clients that they have their best interests at heart.
June 28, Colombo (LNW): Former Colombo district Parliamentarian Hirunika Premachandra was found guilty of her involvement in the abduction of a youth using a Defender and was given a three-year prison sentence by the Colombo High Court today.
Colombo High Court Judge Amal Ranaraja sentenced Hirunika Premachandra to three years imprisonment after taking into consideration the seriousness of the offences.
June 28, Colombo (LNW): U.S. Ambassador Julie Chung emphasized the balance necessary for robust trade, stating, “The challenge lies in achieving an equilibrium between enabling smooth trade and ensuring robust security measures.
The United States works together with our partners to cultivate trading environments that support legitimate operations and restrict illegal activities, so that countries can not only foster economic growth but also develop that competitive edge within the global marketplace.”. she added
She was speaking at the launching ceremony of the first Sri Lanka Strategic Trade Forum which was organized US Embassy in Colombo, in partnership with the Sri Lanka Department of Import and Export Control.
This event brought together a diverse audience from government and the private sector to address critical aspects of trade security and explore the development of competitive practices for global trade hubs.
Following a welcome from Department of Import-Export Controller General T.T. Upulmalee Premathilaka, trade regulators from Malaysia, the Philippines and Singapore showcased their national strategies for overseeing the trade and transshipment of strategic items.
These items are any ‘dual use’ goods or technologies that can be used for both commercial and military applications and play a vital role in advancing innovation across various sectors, including software development, aviation, medicine, and sanitation.
The forum also featured insights from Singapore’s Centre for Trade Excellence and the U.S. Department of Commerce as well as Sri Lankan experts from CRDF Global, McLarens Maritime Academy, the Trade Finance Association of Bankers, and the Hub Operators Association.
These specialists provided valuable tips and strategies for establishing robust compliance practices to effectively navigate the complexities of a dynamic regulatory landscape.
The United States also emphasized the importance of both consulting with all relevant stakeholders in drafting labor legislation and providing adequate opportunities and time for public review and comment. In this regard, Sri Lanka elaborated on the procedures adopted in labor law reforms. The United States expressed its readiness to extend support in developing and implementing ongoing labor reforms.
The United States encouraged the reduction of agricultural trade barriers to bolster food security in Sri Lanka. The United States also advocated for greater market access for U.S. exports of various agricultural products, including input products such as animal feed to support demand in Sri Lanka’s domestic sector.
June 28, Colombo (LNW): Sri Lanka seeks a suitable investment partner, explore option of relocating Sapugaskanda Oil Refinery to be operated as government joint venture
The Government has called for expressions of interest to operate the Sapugaskanda Oil Refinery as a public enterprise independent of the Ceylon Petroleum Corporation (CPC).
“The rationale behind the move stems from the necessity of a ‘critical investment’ to modernise and upgrade the ageing infrastructure of the refinery. The aim is to ensure its operational efficiency and viability for at least another 25 years,” the Government Information Department noted.
Minister of Power and Energy Kanchana Wijesekera said that under the Ceylon Petroleum Corporation (CPC) restructuring plan, the CPC-owned refinery will be set up as a separate Government-owned and operated entity to attract and raise investments with the aim of improving fuel quality, efficiency, capacity, and reducing costs.
In a post on social media, he said that the restructuring plan includes revising the currently approved cadre and salary structure of the CPC while digital platforms will be introduced for multiple functions and service
The government’s aim is to get rid of the country’s only oil refinery with a capacity to supply 100percent of the country’s kerosene requirement, 50 percent of the aviation fuel requirement, and100 percent of the naphtha requirement.,
It was used to produce 30 percent of the diesel requirement, 14percent of the petrol requirement, 7-8percent of the gas requirement, and 75-100percent of the furnace oil requirement.
Initially designed to process 38,000 barrels of crude oil, the refinery currently has a capacity of refining about 50,000 barrels per day.
Sapugaskanda Refinery was built by Iran under the guidance of the Ceylon Petroleum Corporation (CPC) in August, 1969.
A senior engineer of the CPC said that the closure of the Sapugaskanda Oil Refinery would cost the country an additional sum of US$ 1.1 million a day to meet its crude oil requirement.He further claimed “The refinery has been shut down on several occasions and it has cost a lot of money to resume its operations. This was a national crime, he added
June 28, Colombo (LNW): Enterprise Analytics (EA), a leading Sri Lankan IFS and Acumatica partner with offices across the globe, has been chosen by Anunine Holdings to empower their digital transformation journey.
Anunine Holdings has selected Acumatica’s cloud ERP platform to enable them to streamline operations across the group and ensure one source of truth to enable stronger decision making. They will kickstart their digital journey by implementing Acumatica at their KSPA Embilipitiya Paper Mills and Recy Traders UK Limited operations first, setting the stage for future success. EA will carry out the implementation of the platform which will include planning, change management, user enablement and the rollout of the ERP.
Embilipitiya Paper Mills, which was set up in 1978, is the second oldest paper mill in Sri Lanka. However, operations at the mill ceased in 2003 and in 2022 KSPA Packaging, a subsidiary of Anunine Holdings, signed an agreement with the Board of Investment (BOI) to take over the mill and resurrect production. The project, which is a USD 16 million investment in its first phase, aims at manufacturing industrial grade papers for the direct and indirect export market by upgrading machinery and infrastructure.
“Our decision to partner with Enterprise Analytics for the implementation of Acumatica is a strategic move that will secure our future in a highly competitive marketplace. We are confident that their expertise, combined with Acumatica’s powerful capabilities, will significantly enhance our operational efficiency and enable us to make data-driven decisions. We are excited about this partnership and confident that it will be a key factor in driving our continued success,” said Nalin Anthony, CEO – KSPA Packaging.
EA has a proven track record of delivering successful ERP implementations and upgrades across the globe. The company has a deep understanding of the challenges businesses face in today’s fast-paced world and their people-first approach to providing solutions underlines their commitment to providing a world-class service to their customers.
Lalindu Samaraweera, Director of Enterprise Analytics, said, “We are excited to embark on this transformative journey with Anunine Holdings. As experts in providing advanced ERP solutions, we are eager to help them leverage the capabilities of the Acumatica Cloud ERP to drive operational excellence. Furthermore, this partnership underscores our commitment to empowering businesses with cutting-edge solutions thus ensuring that they are equipped with the tools they need to thrive in today’s dynamic business landscape.”
With a thirty-year history in entrepreneurship, Anunine Holdings is a privately held, family-owned, group of companies with over two thousand employees across nine industries. A vastly diversified organization, it is active in the fields of packaging, tyre manufacturing, sugar manufacturing, renewable energy, trading, plastic waste recycling, paper manufacturing, garment accessory manufacturing, agriculture, nanotechnology, and blockchain technology. Enterprise Analytics is an ERP and software development company that delivers strategic change to businesses globally. The company’s team of Acumatica certified consultants have the deep domain knowledge and extensive experience needed to accommodate the unique needs of organizations across a myriad of industries. With offices in Asia, the Middle East, Australia, the UK and America, EA’s specialist teams can deliver exceptional service across geographies. This broad reach has also allowed the company to offer 24/7 global support, thus guaranteeing their promise of Transformation Driven by People
June 28, Colombo (LNW): The new Sri Lanka Electricity Bill, passed in Parliament three weeks ago, received endorsement from the Speaker of Parliament yesterday (27), coming into effect immediately.
This landmark legislation aims to implement comprehensive reforms in Sri Lanka’s electricity industry. Key provisions include the establishment of the National Electricity Advisory Council and the designation of the Public Utilities Commission of Sri Lanka (PUCSL) as the industry regulator.
The bill mandates the creation of corporate entities under the Companies Act No. 07 of 2007 to manage the generation, transmission, distribution, trade, supply, and procurement of electricity. Additionally, it repeals the Ceylon Electricity Board Act No. 17 of 1969 and the Sri Lanka Electricity Act No. 20 of 2009, marking a significant shift in the legislative framework governing the sector.
