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Cabinet approves one-year buyback agreements for local medicine procurement

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By: Isuru Parakrama

October 15, Colombo (LNW): The Cabinet of Ministers has granted approval to establish buyback agreements for the procurement of locally produced medicines and medical supplies from identified institutions for a period of one year.

This decision aims to bolster domestic pharmaceutical production and ensure a more self-sufficient supply of medical products in Sri Lanka.

This latest decision builds upon previous initiatives dating back to November 2013, when the Cabinet first approved the purchase of locally manufactured medicines under the Buyback Agreement procedure.

This move sought to prioritise the State Pharmaceutical Corporation (SPC) and incentivise local drug manufacturers.

Additionally, in October 2018, a further extension was approved, allowing contracts with local pharmaceutical companies to last up to 15 years. This agreement prioritised medicines produced in collaboration with the Sri Lanka State Pharmaceutical Manufacturing Corporation (SPMC), with agreements set for a 10-year supply period.

The latest decision will allow local pharmaceutical manufacturers to continue playing a pivotal role in the country’s healthcare system. A pricing committee has been established to oversee the costs of these medicines, ensuring that they remain affordable and accessible to the public.

Currently, the buyback agreements cover approximately 20 per cent of Sri Lanka’s medical supply needs. However, there is potential for this to increase to 40 per cent, given the existing capacity within local production lines.

According to the Ministry of Health’s Medical Supplies Division, 49 local pharmaceutical manufacturing companies have been identified, capable of supplying 454 different medical products, including vital drugs.

With the new agreement in place, these manufacturers will have the opportunity to contribute significantly to the nation’s medical supply chain.

Prime Minister Dr Harini Amarasuriya, in her capacity as Minister of Health, spearheaded the proposal. She emphasised that this initiative will not interfere with the pharmaceutical manufacturing processes of the SPMC nor with the local pharmaceutical companies that have already been sub-contracted.

EC to finalise candidate preference numbers ahead of General Election

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By: Isuru Parakrama

October 15, Colombo (LNW): The Election Commission has announced that the preference numbers for candidates contesting the forthcoming general election will be made public by tomorrow (16).

A spokesperson for the commission confirmed that the necessary information has already been collected from all districts and is currently undergoing the verification process.

Once the verification is complete, the preference numbers will be submitted back to the respective district secretaries for final approval.

The commission is working diligently to finalise the issuance of these numbers between today and tomorrow to ensure that all procedural timelines are met ahead of the election.

In addition to this, a meeting between representatives of political parties and the Election Commission has been scheduled for this morning.

The gathering will serve as a platform to discuss key matters related to the upcoming parliamentary election, with a particular focus on the maximum expenditure allowed per candidate.

Industrial production sees 1.2% growth in August 2024, Poverty Line slightly declines

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By: Isuru Parakrama

October 15, Colombo (LNW): The Department of Census and Statistics has reported a 1.2 per cent increase in Sri Lanka’s industrial production for August 2024 compared to the same period in 2023.

The department’s latest Index of Industrial Production (IIP) report revealed a modest month-on-month growth of 0.1 per cent from July to August.

According to the report, the overall manufacturing sector index rose to 91.3 per cent in August 2024, up from 90.2 per cent the previous year.

Significant contributions to this increase came from industries such as textiles, wearing apparel, food products, and paper manufacturing.

These sectors played a crucial role in driving industrial growth, demonstrating resilience amid challenging economic conditions.

However, not all sectors experienced growth. The report highlighted a decline in the production of beverages and tobacco products in August 2024, compared to the same period the previous year.

This reduction may signal shifting consumer trends or the impact of policy measures targeting these industries.

In addition to industrial production figures, the report also touched upon the Official Poverty Line at the national level. For August 2024, the poverty line showed a slight reduction, dipping to Rs. 16,152 from Rs. 16,373 in July.

The decline is attributed to a lower National Consumer Price Index (NCPI) for the month, reflecting a slight easing of inflationary pressures.

Moreover, the slight improvement in the poverty line suggests progress but highlights the ongoing need for efforts to alleviate economic hardship for vulnerable populations.

Cabinet approves appointment of new Government Analyst

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By: Isuru Parakrama

October 15, Colombo (LNW): The Cabinet of Ministers has approved the appointment of Mrs Pathirage Sandhya Kumuduni Rajapakse as Sri Lanka’s new Government Analyst.

This decision was made following the retirement of Mrs Deepika Seneviratne, who concluded her service on October 11, 2024.

Cabinet Spokesman Vijitha Herath announced the appointment during the Cabinet press briefing held this (15) morning, emphasising that the decision aligns with the seniority protocols within the Sri Lanka Scientific Service.

Rajapakse, who previously held the position of Additional Government Analyst, has been recognised as next in line among special grade officers, solidifying her eligibility for this crucial role.

Her appointment was proposed by Prime Minister Dr. Harini Amarasuriya, who also serves as the Minister of Public Administration, Home Affairs, Provincial Councils, Local Government, and Labour.

This appointment comes at a significant time, as the Government Analyst’s Department plays a vital role in handling forensic and scientific evidence pertaining to investigations pivotal to law enforcement and the judicial system of the island nation.

Entire University Grants Commission resigns following President’s request?

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By: Isuru Parakrama

October 15, Colombo (LNW): The Chairman and members of Sri Lanka’s University Grants Commission (UGC) have collectively stepped down from their positions.

Their resignations were submitted to the President on Monday (15), reportedly following a request from the Presidential Secretariat urging them to vacate their roles.

Amongst those resigning were Senior Professor Sampath Amaratunga, who held the position of Chairman, and Senior Professor Chandana P. Udawatte, the UGC’s Vice Chairman.

The commissioners, appointed alongside them in 2020, also submitted their resignation letters to President Anura Kumara Dissanayake, officially relinquishing their duties.

This move has drawn attention as the current UGC members were originally set to serve until March 2025.

Their early departure raises questions about the future direction of Sri Lanka’s higher education sector, particularly in a period where the education system faces numerous challenges, including ongoing student demands for reforms and the need for strengthened university autonomy.

Whilst the exact nature of decisions behind the Presidential Secretariat’s request for their resignation remains undisclosed, it has stirred speculation regarding potential shifts in the leadership of the country’s higher education governance.

With this sudden change in leadership, it remains to be seen how the government’s strategy will evolve in addressing the academic landscape and the ongoing demands for higher education reform.

SL braces for potential dengue outbreak amidst monsoon showers

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By: Isuru Parakrama

October 15, Colombo (LNW): Sri Lanka’s health authorities have raised concerns over a possible surge in dengue fever cases as the ongoing rainy season creates ideal conditions for mosquito breeding.

The monsoon weather, which has worsened waterlogging in many areas, is contributing to an increase in dengue-carrying mosquitoes, prompting officials to urge the public to take preventative measures.

Consultant Community Physician at the National Dengue Control Unit (NDCU), Dr Anoja Dheerasinghe, revealed that a total of 40,657 dengue cases have been recorded across the country in 2024, with 1,247 of those reported in October alone.

Alarmingly, the NDCU also confirmed 20 dengue-related fatalities this year.

The current weather patterns significantly elevate the risk of dengue mosquito breeding,” Dr Dheerasinghe remarked, emphasising that most cases have been reported from the Colombo, Gampaha, and Kalutara districts.

Other areas experiencing heightened infection rates include Kandy, Ratnapura, Matara, Galle, and Matale, reflecting the widespread nature of the threat.

Health officials are forecasting a further rise in cases if swift action is not taken to eliminate mosquito breeding grounds.

The public is being urged to ensure that potential breeding sites, particularly in waterlogged environments such as stagnant pools or discarded containers, are eradicated.

Failure to address these issues could exacerbate the dengue crisis, straining healthcare resources and endangering lives, particularly in high-risk districts.

In response to the growing concern, local authorities are ramping up awareness campaigns and community-level interventions to tackle mosquito breeding.

Residents are being encouraged to actively participate in cleanliness drives and maintain vigilance to prevent a potential dengue epidemic from taking hold.

SL to receive new passport shipment amid legal hurdles on e-passport system

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By: Isuru Parakrama

October 15, Colombo (LNW): Minister Vijitha Herath has announced that a new shipment of passports will arrive in Sri Lanka next Saturday, with distribution set to commence on Monday (21).

This update follows a press briefing held today (15), where key decisions from the latest Cabinet meeting were outlined.

The Minister also addressed the legal complications surrounding the country’s e-passport system.

An ongoing court injunction has halted any progress on the project, preventing tenders from being called for its implementation.

“Once the legal proceedings conclude, we will reassess the matter,” Minister Herath confirmed.

Despite the arrival of 750,000 new passports, Herath cautioned that the supply will likely run out in the near future.

To avoid another shortage, the government has initiated a procurement process to import additional regular passports through a formal tender procedure.

The Minister emphasised that proactive steps are being taken to ensure there are no further disruptions in passport issuance, aiming to meet the growing public demand promptly.

Showers, thundershowers to further prevail across SL (Oct 15)

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By: Isuru Parakrama

October 15, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa, North-western and Northern provinces and in Galle, Matara, Kandy, Nuwara-Eliya and Trincomalee districts, the Department of Meteorology said in its daily weather forecast today (15).

Fairly heavy showers about 75mm are likely at some places in Western, Sabaragamuwa, North-western and Northern provinces and in Galle, Matara and Trincomalee districts.

Showers or thundershowers will occur at several places elsewhere during the evening or night.

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:

Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas around the island.
Winds:
Winds will be south-westerly or variable in direction and speed will be (30-40) kmph. Wind speed can increase up to (60-65) kmph at times in the sea areas off the coasts extending from Galle to Hambantota via Matara. Wind speed can increase up to 50 kmph at times in the other sea areas around the island.
State of Sea:
The sea areas off the coasts extending from Galle to Hambantota via Matara can be very rough at times.  The other sea areas around the island can be rough at times. The wave height (about 2.5–3.0 m) (this is not for land area) may increase in the sea areas off the coast extending from Chilaw to Pottuvil via Colombo, Galle and Hambantota. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka Original Narrative Summary: 15/10

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  1. UNDP Assistant Secretary General Kanni Wignaraja meets with President Anura Kumara Dissanayake to discuss governance, constitutional reforms, and Sri Lanka’s electoral system: focuses on women’s economic participation, challenges in rural financial literacy, and improving agricultural productivity: pledges support for anti-corruption efforts, reforms, and women’s empowerment, and the President highlights plans to strengthen farmers’ associations and the microfinance sector.
  2. Former MP Dayasiri Jayasekara, who is contesting the upcoming Parliamentary Election from Kurunegala District under the Samagi Jana Sandhanaya says Sri Lanka so far witnessed a Parliament under the jurisdiction of the President, and in this Election, therefore, a strong Parliament not subjugated to the Head of State must be created: emphasises that a Parliament not under a President’s shadow is a timely accurate requirement for the nation.
  3. Sri Lanka together with 39 other nations vehemently condemns the recent attacks against UN peacekeepers in Lebanon by Israeli forces: Foreign Minister Vijitha Herath expresses deep regret over the attacks on two Sri Lankan peacekeepers in Lebanon: emphasises Sri Lanka’s concern about the Middle East crisis, calling for a Gaza ceasefire and a two-state solution: also highlights progress in Sri Lanka’s debt restructuring and economic recovery efforts, supported by the IMF and World Bank.
  4. Fathima Nada, a 14-year-old from Kattankudy, cycles to Colombo and hands a memorandum to Prime Minister Harini Amarasuriya: Her appeal calls for urgent action to address the rising drug crisis affecting children and youth, as well as to prevent child abuse: The meeting took place at the Prime Minister’s Office.
  5. The Western Province Education Director announces all schools in the Colombo Education Zone will continue to remain closed today (15) due to adverse weather: Schools in the Gampaha, Kelaniya, Kolonnawa, and Kaduwela zones will also stay closed, following the decision made on Sunday (13): These zones were closed yesterday as well due to the ongoing inclement weather.
  6. The Colombo Magistrate Court hands down a six-month prison sentence to Director of W.M. Mendis Distilleries Arjun Aloysius along with two other executives for their failure to settle Rs. 3.5 billion in unpaid Value Added Tax (VAT): The Inland Revenue Department filed the case against the company for defaulting on tax payments owed to the government from 2016 to 2019: An appeal filed by Aloysius and Anthony Randev Dinendra John demanding the nullification of the prison sentence was rejected.
  7. The Attorney General’s Department informs the Supreme Court that the Sri Lankan government will review the Mannar Wind Power Project involving India’s Adani Group: The review follows concerns raised by petitioners about environmental and community impacts: The Attorney General pledges to maintain the project’s status quo until a final decision is made after the general election: The Supreme Court orders any observations from the government’s end be informed before January 31, 2025.
  8. China seeks to deepen anti-fraud law enforcement cooperation with Sri Lanka following the arrest of several foreign online fraud suspects, including Chinese nationals: The Chinese Embassy supports Sri Lankan authorities in combating telecom and online fraud, which has impacted China’s image and relations: China is committed to joint efforts with Sri Lanka to curb fraud activities targeting citizens of both nations.
  9. SriLankan Airlines is investigating an incident on flight UL 607 from Sydney to Colombo on 21 September 2024, where the captain allegedly locked the female first officer out of the cockpit during a disagreement over a toilet break which led passengers anxious: The captain has been grounded pending the investigation: The airline is fully cooperating with authorities and emphasised its commitment to safety and regulatory compliance.
  10. Sri Lanka’s Kamindu Mendis and England’s Tammy Beaumont have been named the ICC Players of the Month for September 2024: Mendis, awarded for his stellar Test performances, scored 451 runs in four matches, whilst Beaumont excelled in England’s short-format success: This marks Mendis’ second win, following his March 2024 accolade, and Beaumont’s second since February 2021.

Government to Unlock Untapped Export Potential amidst Challenges and Opportunities

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By: Staff Writer

October 14, Colombo (LNW): Sri Lanka’s new government is keen on exploring its substantial untapped export potential, which has been hindered by a variety of challenges.

These include production-related barriers, unforeseen climate changes, labor shortages, high production costs, and low productivity, according to the Export Development Board (EDB).

Following the directives from a recent World Bank report, the government aims to address these issues to boost export growth.

Current Export Landscape

As of August 2024, Sri Lanka’s export revenue reached $10.69 billion, marking a 5.82% increase compared to the same period in 2023. However, the country’s full export potential remains largely unrealized. Factors such as the lack of awareness among exporters, difficulty in meeting product-specific market requirements, and trade barriers have contributed to this situation. Previous policymakers’ lack of focus on these ground realities has also played a role in hindering export growth.

Untapped Sectors: Agriculture and Food Products

Agricultural products like tea and spices are among Sri Lanka’s highest potential exports. Despite a reported export value of $1,213.75 million for tea in 2021, a significant gap exists between actual and potential exports. For example, black tea exports to regions like South Asia and OECD countries have unrealized potentials of 91% and 82%, respectively. Similarly, spices like cinnamon, pepper, and cloves show a combined unrealized export value of $453 million.

Countries like the USA, UK, and India offer significant opportunities for Sri Lankan tea and spice exports. The untapped tea export potential to the USA and UK alone stands at $103.5 million and $87.8 million, respectively, indicating that there is a massive opportunity for growth in these markets.

World Bank Insights: A $10 Billion Opportunity

According to the World Bank’s bi-annual Sri Lanka Development Update, the country has an estimated $10 billion in untapped export potential annually

By leveraging this potential, Sri Lanka could generate about 142,500 new jobs and significantly boost its economy. This marks an increase from the $7.4 billion estimated in 2020 by the World Trade Organization.

Despite the potential, Sri Lanka lags behind its East and South Asian counterparts in several manufacturing sectors, except for clothing and rubber products. The World Bank has identified these missed opportunities as “missing” exports, urging the country to address its export-related challenges to capitalize on sectors like tourism and agriculture.

Strategic Reforms and Recommendations

To overcome these obstacles, Sri Lanka must implement strategic reforms to eliminate its “anti-export bias.” The World Bank recommends several key measures, including:National Single Window (NSW): Streamlining international trade processes through the implementation of an NSW to simplify and expedite export procedures.

Economic Transformation Act (ETA): Revamping the Foreign Direct Investment (FDI) regime through the ETA to attract more investments.

Diversified Trade Agreements: Signing comprehensive trade agreements to broaden market access and improve export conditions. Sectoral Reforms: Investing in value-added sectors like tourism and promoting product diversification, especially in high-growth areas like machinery.