June 18, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further depreciation against the US Dollar today (18) in comparison to last week, as per leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has increased to Rs. 298.56 from Rs. 298.36, and the selling price to Rs. 308.67 from Rs. 308.47.
At Commercial Bank, the buying price of the US Dollar has increased to Rs. 297.82 from Rs. 297.58, and the selling price to Rs. 308 from Rs. 307.47.
At Sampath Bank, the buying price of the US Dollar has increased to Rs. 299.50 from Rs. 299, and the selling price to Rs. 308.50 from Rs. 308.
June 18, Colombo (LNW): President Ranil Wickremesinghe assured Parliament today that the proposed Imputed Rental Income Tax should not cause concern, noting that it would impact only 10 per cent of homeowners and property owners.
Responding to queries raised by Opposition Leader Sajith Premadasa during today’s session, who voiced objections to the new tax, Wickremesinghe acknowledged the importance of broadening the tax base and enhancing tax administration efficiency.
The President affirmed the government’s commitment to these objectives, signalling openness to discussions on expanding the tax net and improving tax administration practices.
June 18, Colombo (LNW): In the wake of the upcoming tax adjustments that may amplify financial burdens for businesses and individuals in Sri Lanka, the International Monetary Fund (IMF) has underscored their necessity to bolster the country’s reserves.
Acknowledging these developments, the IMF Senior Mission Chief for Sri Lanka, Peter Breuer, highlighted the significant strides made in tax policy reforms throughout 2023 and 2024.
These reforms aim to boost government revenues towards achieving approximately 15 per cent of GDP by 2025.
Breuer described the policy adjustments as a modest recalibration. He contrasted Sri Lanka’s economic approach with that of other nations, noting that while some countries stimulate their economies during downturns, Sri Lanka’s crisis stems from a severe decline in fiscal revenue, leading to unsustainable debt levels and eventual default.
Addressing the press in an online briefing following the IMF’s approval of the second review, Breuer emphasised that from 2019 to 2022, Sri Lanka’s average general government revenues stood at approximately 9.3 per cent of GDP, significantly lower than the average of 26 percent observed in comparable economies.
He underscored the IMF’s stance on debt treatment comparability among Official Creditors, stating that while this is crucial for debt sustainability, the IMF’s primary concern remains whether the restructuring targets are being effectively met by all creditors.
Breuer concluded by affirming the importance of broad creditor participation in debt restructuring efforts to restore Sri Lanka’s debt sustainability, underlining the IMF’s indirect stake in ensuring these targets are achieved.
June 18, Colombo (LNW): The Justice, Prison Affairs and Constitutional Reforms Ministry has achieved substantial advancements in legal reforms, marking a period of prolific legislative activity over the past two years.
Secretary to the Ministry M.N. Ranasinghe highlighted the enactment of 59 legal reforms since 2022, with an additional 7 draft laws and 44 legal amendments pending approval in Parliament.
Speaking at the Presidential Media Centre on Monday (June 17), Ranasinghe underscored the ministry’s pivotal role in drafting laws across various sectors.
In detail, Parliament passed 29 reforms in 2022, followed by 17 in 2023 and 13 so far in 2024.
The Department of Legal Draftsman played a crucial role by preparing 273 draft laws in 2022 and 299 in 2023, encompassing all three official languages for other ministries.
Efforts towards modernising the judicial system were also highlighted, with significant strides made in digitisation to address delays in legal proceedings.
Notably, the number of Supreme Court judges was increased by 14 after 42 years, accompanied by recruitment of 76 judicial officers and promotion of 34 individuals to High Court Judges.
This expansion facilitated the establishment of new courts and increased capacity in existing ones, including the introduction of digitisation in the Supreme Court to enhance accessibility for citizens and legal professionals.
Furthermore, initiatives aimed at improving the Ease of Doing Business Index included the establishment of four Commercial High Courts in the Western Province to handle commercial disputes, with plans for additional courts underway.
The ministry is also advancing legal reforms to support the Port City project, including the creation of an investment court to expedite resolution of investor disputes.
Moreover, the introduction of Small Claims Courts in 2022 for speedy resolution of financial disputes up to Rs. 2 million has proven effective, with courts operational in Colombo, Kandy, and Matale, and plans for expansion to other regions underway.
In response to recommendations from the Judicial Zoning Committee, new courts have been established in various locations, including a tourism court in Morawewa, with further expansions planned.
Additionally, measures to strengthen alternative dispute resolution mechanisms have bolstered Sri Lanka’s dispute settlement rate, which stands at nearly 70%, earning international acclaim.
Legislatively, the introduction of Bills such as the Anti-Corruption Bill and amendments to drug possession penalties reflect ongoing efforts to enhance legal frameworks and governance.
The Ministry remains committed to advancing these reforms to foster a more efficient and accessible justice system, vital for supporting economic growth and investment in Sri Lanka.
June 18, Colombo (LNW): Election Commission Chairman R.L.A.M. Rathnayake warned all political parties not to produce premature announcements on the holding of the elections, asserting that the decision rests solely with his office under constitutional authority.
Recently, NPP Leader Anura Kumara Dissanayake suggested potential polling dates of either September 28 or October 5, urging overseas Sri Lankans to consider travel arrangements for voting.
Additionally, Tourism Minister Harin Fernando indicated October 5 as a likely polling day.
Responding to such claims, Rathnayake clarified that the Commission is empowered by the Constitution to determine the election date, with action slated to commence after July 17.
The polling period is set between September 17 and October 17, inclusive of weekdays and weekends, affording flexibility for the Commission’s decision-making, he noted.
Previously, Rathnayake confirmed that the Commission will adhere strictly to constitutional and statutory provisions when calling for nominations for the presidential election.
Political parties are actively preparing for the election, with alliances anticipated to bolster candidate support.
To date, Anura Kumara Dissanayake and Opposition Leader Sajith Premadasa have declared their candidacy for the upcoming elections.
June 18, Colombo (LNW): The Ministry of Finance, Economic Stabilisation and National Policies of Sri Lanka has clarified details regarding the implementation of a proposed property tax, described as an imputed rental income tax within the context of the International Monetary Fund (IMF) supported Extended Fund Facility (EFF) programme documents.
In response to misconceptions, the Ministry emphasised that Sri Lanka faces a profound economic crisis primarily due to a significant decline in government tax revenue, leading to substantial budget deficits and unsustainable levels of public debt.
To address these challenges, rigorous fiscal consolidation efforts have been undertaken aimed at increasing government revenue from a low of 8.3% of GDP in 2022 to 15% of GDP by the end of 2025.
Regarding specific fiscal measures, the Ministry outlined that progressive reforms in corporate and personal income taxes were implemented in 2023, followed by Value Added Tax (VAT) reforms in 2024.
These reforms are on track to meet the revenue target of 13.5% of GDP by the end of 2024, with further gains expected to achieve the 15% target by 2025. A key component of these measures includes the introduction of a wealth tax focused on property.
The Ministry underscored that details of the envisaged property tax, aimed predominantly at high-wealth individuals rather than average income earners, are still under design and will be subject to legislative amendments.
Initial estimates suggest the tax could contribute 0.2% of GDP by 2025 and 0.4% in subsequent years. The tax structure will include mechanisms to prevent double taxation and minimise economic distortions.
Furthermore, the Ministry highlighted that property taxes are common globally, including in developing countries like India, and are considered efficient, progressive, and non-distortive revenue sources for funding public services.
The proposed tax is anticipated to be enacted by April 2025, pending legislative processes and improvements in valuation mechanisms and databases.
It was clarified that similar imputed income calculations have been included in Sri Lanka’s existing tax framework, such as the “Net Annual Value” under the Inland Revenue Act No. 10 of 2006.
Moreover, the Ministry noted that property in Sri Lanka is already subject to local authority rates and stamp duty, establishing a precedent for the proposed property tax.
The Ministry concluded by asserting that enhancing government revenue and reducing budget deficits have been instrumental in stabilising the economy, contributing to lower interest rates and currency appreciation, which benefit all citizens.
Failure to achieve the necessary revenue levels, however, could risk a resurgence of economic crises with severe implications for the country.
June 18, Colombo (LNW): The Speaker of Parliament has disclosed the Supreme Court’s verdict on the proposed ‘Sri Lanka Telecommunications (Amendment) Bill’.
The Supreme Court has found several clauses of the Bill to be in conflict with the Constitution.
Consequently, these clauses will necessitate a special majority in Parliament for approval.
However, the Court indicated that if the contentious clauses are amended, they could pass with a simple majority.
June 18, Colombo (LNW): The prevailing rainy condition in the south-western part of the island is expected to be somewhat enhanced in the next few days from tomorrow (19th),the Department of Meteorology said in its weather forecast today (18).
Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya 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.
Marine Weather:
Condition of Rain:
Showers may occur at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to 60 kmph at times in the sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil. Wind speed can increase up to 50 kmph at times in the sea areas off the coasts extending from Puttalam to Hambantota via Colombo and Galle and from Trincomalee to Kankasanthurai via Mullaitivu.
State of Sea:
The sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil can be rough at times. The sea areas off the coasts extending from Puttalam to Hambantota via Colombo and Galle and from Trincomalee to Kankasanthurai via Mullaitivu can be fairly rough at times. Naval and fishing communities are requested to be attentive in this regard.
Fashion Bug, Sri Lanka’s leading fashion retailer with 14 flagship stores island-wide, was recently bestowed with the recognition of being ranked among the Top 10 Most-Loved Brands in the Retail Lifestyle category by LMD readers, in the prestigious LMD Brands Annual Ranking 2024.
This recognition reflects Fashion Bug’s unwavering commitment to providing exceptional customer experiences and delivering the latest fashion trends to a wide range of Sri Lankans.
Commenting on the recognition, Shabier Subain, Director of Fashion Bug (Pvt.) Ltd, remarked: “This honor is a testament to our dedicated team and our unwavering commitment to offering high-quality, affordable fashion that meets the diverse needs of our customers. We are passionate about making fashion accessible to everyone and will continue to innovate and curate exciting collections that resonate with the Sri Lankan style.”
Fashion Bug prides itself on its inclusivity, offering a variety of styles to suit every taste and budget. Staying at the forefront of fashion trends, they ensure customers have access to the most stylish and contemporary looks. Through their curated range of exclusive label brands, Fashion Bug caters to the unique preferences of their diverse clientele.
The recognition by LMD readers further cements Fashion Bug’s position as a leading force in Sri Lanka’s fashion industry. The company is committed to continuing its tradition of exceeding customer expectations and providing an unparalleled shopping experience.
Fashion Bug (Pvt.) Ltd is one of Sri Lanka’s leading and largest fashion retailers with an ever-growing workforce of over 1,000 employees. The company is committed to its vision of being the most preferred fashion retailer in Sri Lanka, and with consistent growth, truly lives up to its official slogan: ‘Changing Lifestyles’.
June 17, Colombo (LNW): The eagerly anticipated 11th annual CFA Society Sri Lanka Capital Market Awards is scheduled to be held on Tuesday, 18 June 2024, at the Oak Room, Cinnamon Grand, and Colombo.
The CFA Society Sri Lanka Capital Market Awards has been a flagship event in the CFA Society Sri Lanka calendar since its inception in 2012 and is among the most sought-after accolades recognising and rewarding excellence in the local capital markets.
This year’s event will be held under the theme of “The Power of Public-Private Partnerships”, focusing on the current status of public-private partnerships (PPPs) in Sri Lanka and their future potential.
It is also set to include a panel discussion in the form of a knowledge-sharing session on how PPPs can help Sri Lanka as the country emerges from an economic crisis, while raising awareness on how CFA Charterholders’ skills are crucial to executing PPPs successfully.
The discussion will focus on key topics including the rationale for PPPs and the context in which they are beneficial to an economy, and the importance of project identification and preparation in ensuring the success of a PPP.
Furthermore, it will encompass where Sri Lanka stands at the moment in terms of regulations and legislature to facilitate PPP projects and the improvements that are needed, as well as the key success factors in executing PPPs in Sri Lanka, and how project structuring has been critical in attracting the private sector.
Sri Lanka’s initial PPP framework was formulated during the early 1990s, however, PPPs were not fully utilised to fund the projects as expected.
To support the development of robust and sustainable PPPs, and meet the International Monetary Fund (IMF) requirements of improved governance and transparency, the national budget presented to the Parliament in August 2022 proposed the re-establishment of the National Agency for Public Private Partnership (NAPPP) to identify and facilitate PPP investments, alongside the establishment of the State-Owned Enterprise Restructuring Unit (SERU) to facilitate the restructuring of Government-owned business entities.
The knowledge-sharing session at this year’s CFA Society Sri Lanka Capital Market Awards is set to feature a panel of leading industry figures – namely, President’s Counsel and Nithya Partners Partner Chanaka de Silva, Deloitte India Partner Kushal Kumar Singh and TWCorp [TWC] Chairman/CEO Thilan Wijesinghe with USAID Sri Lanka Energy Program Transaction Advisor and Competitive Procurement Specialist CFA Dhinali Peiris acting as the moderator.
