June 27, Colombo (LNW): The teacher-principal trade unions persist with their strike action today (27 June), in response to the use of tear gas and water cannons by police to disperse their protest march in Colombo yesterday (26).

The unions initiated an island-wide trade union action by reporting sick leave on 26 June to press several demands.

Concurrently, members launched a protest in Colombo, beginning near the Colombo Fort Railway Station.

Police employed tear gas and water cannons to disperse the protesters near the Lotus Roundabout in Fort as they attempted to march towards the Presidential Secretariat.

The strike significantly disrupted educational activities across schools nationwide.

Many schools saw notably low attendance, with some students having to return home as they could not enter the premises.

Despite the ongoing strike, the Education Ministry confirmed that all government schools will operate as usual today (27).

June 27, Colombo (LNW): India has expressed its approval of Sri Lanka’s debt restructuring agreement with a coalition of creditor nations and reaffirmed its commitment to supporting the island nation’s economic recovery through long-term investments, the Press Trust of India (PTI) reported.

As a co-chair of the Official Creditors Committee (OCC), established in April last year to devise a debt restructuring plan for Sri Lanka, India played a crucial role in finalising the agreement.

The Sri Lankan government announced it had secured a long-awaited debt restructuring deal worth USD 5.8 billion with its bilateral lenders, including India and China.

India’s Ministry of External Affairs (MEA) stated that after multiple rounds of negotiations, the OCC signed a Memorandum of Understanding (MoU) on debt restructuring on June 26.

The MEA highlighted that this significant achievement underscores Sri Lanka’s progress in stabilising its economy and advancing towards reform and growth.

“As a co-chair of the OCC, alongside France and Japan, India has remained steadfast in its commitment to the stabilisation, recovery, and growth of the Sri Lankan economy,” the MEA said.

“This commitment was further demonstrated by India’s unprecedented financial support of USD 4 billion to Sri Lanka. India was also the first creditor nation to provide financing assurances to the International Monetary Fund (IMF), which facilitated Sri Lanka’s access to the IMF programme.”

The MEA reiterated India’s dedication to supporting Sri Lanka’s economic recovery, including through the promotion of long-term investments in key economic sectors.

Following the IMF’s approval of the Extended Fund Facility (EFF) programme for Sri Lanka on March 20 last year, the OCC was formed to engage Sri Lanka’s bilateral creditors in discussions to finalise a debt restructuring plan.

Sri Lanka faced a severe economic crisis in 2022, with a decline in foreign exchange reserves leading to a default on foreign debt. India and several other nations extended assistance to help Sri Lanka navigate the crisis.

June 27, Colombo (LNW): Two Supreme Court judges have recused themselves from deliberating on the contempt of court petition filed against former State Minister Diana Gamage.

The petition, submitted by former chairman of the Weligama Urban Council Rehan Jayawickrema, accuses Gamage of contempt for remarks made during a press conference subsequent to the Supreme Court’s ruling that disqualified her from serving as a MP.

The case was presented before a three-member Supreme Court bench, consisting of Justices Preethi Padman Surasena, Kumuduni Wickremasinghe, and Janak De Silva, on June 26.

However, Justices Janak De Silva and Kumuduni Wickremasinghe declared their decision to recuse themselves from the case.

The Supreme Court has subsequently ordered the petition to be recalled on August 5.

June 27, Colombo (LNW): Showers will occur at times in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara Eliya, Galle and Matara districts, with several spells of showers being expected to occur in Matale and Hambantota districts, the Department of Meteorology said in its daily weather forecast today (27).

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.

Marine Weather:

The Ceylon Chamber of Commerce and the Board of Trade of Thailand have renewed iys partnership signing a Memorandum of Understanding (MOU) to further enhance trade, investment and tourism between Sri Lanka and Thailand.

A seven member delegation led by the Thai Chamber of Commerce and the Board of Trade of Thailand Chairman Sanan Angubolgul met with the Ceylon Chamber Chairman Duminda Hulangamuwa, along with senior representatives of the Chamber yesterday, culminating in the renewing of a Memorandum of Understanding .

The MOU was signed in the presence of Ambassador designated to Thailand Wijayanthi Edirisinghe, and Sri Lanka – Greater Mekong Business Council of the Ceylon Chamber of Commerce President S.M.D. Suriyakumara.

This event marks a renewal of a historic partnership, as the Ceylon Chamber’s first MoU was originally established with the Board of Trade of Thailand in 1988. 

Angubolgul expressed his enthusiasm about the renewed collaboration, emphasising leveraging the Ceylon Chamber’s position as the leading business Chamber in Sri Lanka, to foster bilateral trade ties. 

He also expressed keenness to explore opportunities in several sectors including agriculture, food and investment especially in the area of religious tourism, SPA and restaurants in which he sees high growth potential for Sri Lanka and Thailand. 

Hulangamuwa echoed these sentiments, noting that facilitating greater exchange of ideas, technology, and commerce between the two countries is imperative, especially following the recent signing of the Sri Lanka – Thailand Free Trade Agreement.

 He underscored the Ceylon Chamber’s commitment to creating a conducive environment for businesses from both countries to thrive and expand their operations.

Debt-stricken Sri Lanka has already signed a trade pact with Thailand in a bid to boost trade and investment as the Indian Ocean island nation is struggling to recover from its worst economic crisis that hit two year ago.

The Sri Lanka-Thailand Free Trade Agreement covering trade in goods, investment, custom procedures, and intellectual property rights was signed in the capital Colombo in the presence of Sri Lanka President Ranil Wickremesinghe and Thai Prime Minister Srettha Thavisin. Severamyjs In march this year. Sri Lanka began talks with Thailand on a free trade agreement in 2016.

The countries’ two-way trade was worth about $352 million in 2022, with Thailand’s exports at $292 million and Sri Lanka’s exports at $58 million, according to Sri Lankan government’s data.

Sri Lanka exports include mainly precious stones, apparel, tea, and spices while exports from Thailand include smoked rubber sheets, natural rubber, plastic, and cement. Sri Lanka’s government expects the trade pact would boost two-way trade up to $1.5 billion.The two countries have agreed to promote investment in areas such as fisheries, food processing, tourism, and green energy

June 26, Colombo (LNW): Sri Lanka banking sector has come under fire of two leading Ministers Dr. Ramesh Pathirana and Dr. Wijeyadasa Rajapakshe 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 urged private enterprises to 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 pull the usual pattern of getting the 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 Development 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. 

“Banks are established to support industries, entrepreneurs and people, not to flaunt their large balance sheets and profits. State banks, in particular, were created to expand the economy by supporting agriculture and industrial development, rather than solely providing credit facilities to the wealthy,” he said.

He criticised the economic transformations post 1977, noting that these changes have had detrimental effects on the overall growth of Sri Lanka.

“Prior to the open economy, the Bank of Ceylon was established to assist farmers, with over 300 branches set up countrywide through Agricultural Service Centres under Prime Minister Sirimavo Bandaranaike. 

The People’s Bank was also directed to support enterprises. Unfortunately, the overnight privatisation of the National Development Bank (NDB) and the profit-driven focus of the two State banks — Bank of Ceylon and People’s Bank, have deviated from their original missions,” he elaborated.

The Justice Minister also revealed troubling practices in the banking sector, where loans are often granted based on personal connections and political influence rather than proper evaluations and compliance. 

He claimed that the two State banks have over Rs. 620 billion in non-performing loans (NPLs), asserting that at least half of this amount will likely be written off eventually, as the banks did not secure any collateral or guarantees.

June 26, Colombo (LNW): The Government will implement visa free policy to boost tourism following recommendations of the Inter-Ministerial Secretaries Committee appointed by President Ranil Wickremasinghe. 

Tourism Minister Harin Fernando yesterday anno-unced that the report on the process of granting visa-free status for select countries will soon be presented to the Cabinet for approval.

Last month, the Cabinet of Ministers approved a proposal tabled by President Ranil Wickremesinghe to establish an Inter-Ministerial Secretaries Committee tasked with addressing the concerns surrounding the visa system and delivering recommendations within a month.

The committee led by Secretary to the President Saman Ekanayake, was entrusted to recommend a well-coordinated framework in implementing a National Visa Policy. 

“Establishing a robust and transparent visa policy that aligns with national interests will promote tourism and facilitate international travel,” Minister Fernando told journalists at Presidential Media Centre.

The development follows intense criticism faced by the Government over the outsourcing of the visa system to a foreign entity which earlier operated under the supervision of the Department of Immigration and Emigration.

Industry stakeholders claimed that failure to implement attractive travel policies, pushed potential tourists to opt for competitive countries like Thailand, Singapore, Maldives and Malaysia.

A joint Cabinet paper by the Tourism Minister Fernando and Foreign Affairs Minister Ali Sabry proposing visa-free status for citizens of 67 countries was submitted aiming to stimulate tourism and promote Sri Lanka as a preferred travel destination, aligning with the country’s goal of achieving 5 million tourist arrivals by 2030.

Fernando said that the introduction of visa free would definitely attract more visitors and enhance the overall economic impact of the industry.

“Over 990,000 tourists have visited the country so far in 2024,” he confirmed.Noting that the average tourist expenditure is currently $ 180, he said the aim is to attract 20% to 30% of visitors to spend between $ 300 and $ 400 next year. 

He also outlined that five global promotional campaigns have been carried out in key markets China, Japan, India and Europe, whilst adding that a ‘must visit’ initiative is underway to further promote Sri Lanka’s unique attractions.

, Sri Lanka has successfully entered the top ten lists of global tourist destinations. A notable 33% of tourists are repeat visitors, indicating strong satisfaction with their experiences in our country,” the Minister explained. 

“Efforts are underway to enhance maritime tourism, particularly focusing on transforming Trincomalee and Arugam Bay into hubs for maritime activities. We will take Trincomalee to the world as a brand. Arugam Bay is already a well-known brand,” he stressed. 

 The Minister also highlighted plans to promote deep-sea diving in Arugam Bay and Trincomalee as part of the marine tourism strategy.

In addition, he reiterated plans to launch domestic flight services aimed at further developing the tourism sector

June 26, Colombo (LNW): Sri Lankan Cabinet Spokesperson, Minister Bandula Gunawardena, confirmed that there will be no relaxation of vehicle import restrictions in 2024. While President Ranil Wickremesinghe, who also serves as the Finance Minister, expressed hope for easing restrictions in 2025, this will depend on a careful evaluation and meeting International Monetary Fund (IMF) requirements.

Sri Lanka’s extended fund facility with the IMF necessitates specific targets for foreign exchange reserves, with goals of $8 billion by 2025, $10 billion by 2026, and $14 billion by 2027. The government cannot risk depleting these reserves through increased vehicle imports.

Minister Gunawardena emphasized that a committee under the Finance Ministry is currently gathering information and formulating a plan for potential future easing of restrictions. No final decisions have been made, and any changes will prioritize maintaining healthy foreign exchange reserves.

June 26, Colombo (LNW): Teachers and principals unions initiated a sick leave campaign on Wednesday (26), protesting the government’s failure to address salary discrepancies.

Joseph Stalin, Secretary of the Ceylon Teachers’ Union, announced that a protest will be held at the Fort Railway Station at 11 am on Wednesday (26), with participation from principals, teachers, and educators. He stated that the government should be held accountable for the disruption caused to the school system by the sick leave campaign.

Stalin highlighted that the government had provided only one-third of the salary increase recommended by a special committee appointed to address salary disparities in the principal and teacher services last year. The trade union action demands that the government provide the remaining two-thirds of the recommended salary.

He pointed out that a government sub-committee had acknowledged issues within the teacher and principal salary structure and proposed solutions within six months. However, progress has stalled.

Stalin further criticized the government’s reliance on parents to shoulder additional education costs, arguing that such practices contradict the principles of a free education system.