1. President Anura Kumara Dissanayake directs officials to provide immediate relief to those affected by recent floods and landslides across Sri Lanka: instructs the Defence Ministry to prioritise safety in impacted areas and allocated Rs. 50 million for relief efforts: Currently, 24,492 people from 6,018 families are affected, with 2,200 individuals sheltered in 23 centres: Relief operations are currently ongoing.
   
2. Former MP Ajith Mannapperuma resigns from the Samagi Jana Balawegaya (SJB) and withdraws his nomination for the upcoming general election after being removed as the party’s chief organiser for Gampaha without notice: expresses frustration with party leader Sajith Premadasa, feeling betrayed by the decision: The SJB has not yet responded, and Premadasa has not commented on the situation: A similar situation befell actress Damitha Abeyratne, who expressed her disappointment over her name being removed from the nominations list, in what she described as a ‘double-crossing’ act by SJB former MP Hesha Withanage.
   
3. A total of 8,821 candidates will contest Sri Lanka’s parliamentary election on 14 November, competing for 196 seats, with 29 additional seats allocated via the national list, totalling 225 members: Of these candidates, 5,464 represent registered political parties, while the rest are independents: Colombo has the highest number of candidates, followed by Gampaha.
   
4. The Navy deploys six flood relief teams to assist communities in Gampaha and Colombo districts affected by heavy rains: The teams, following orders from Navy Commander Vice Admiral Priyantha Perera, focused on flooded areas like Kaduwela and Biyagama: Additionally, 44 more teams are on standby across Western, Southern, and Northwestern Naval Commands for further assistance.
   
5. The Ministry of Public Security instructs the Acting IGP to expedite investigations into seven high-profile cases, including the 2019 Easter Sunday bombings and the 2015 Treasury Bond scandal: Other cases include the deaths of businessman Dinesh Schaffter, a police officer in Weligama, and journalist Taraki Shivaram, along with the disappearances of Eastern University Vice Chancellor Raveendranath and activists in Jaffna.
   
6. Transport Minister Vijitha Herath directs the Sri Lanka Transport Board (SLTB) to allow students with season tickets to travel on SLTB buses during weekends and public holidays: This decision follows complaints from students about difficulties using their tickets on non-school days: The measure ensures seamless travel for students throughout the month, regardless of holidays.
   
7. Sri Lanka aims to restore 10,000 hectares of mangroves by 2030 through a partnership between Ministry of Crab and the UNDP, under the GEF-funded Small Grants Programme: The project will empower local communities in mangrove restoration, focusing on sustainability, climate resilience, and community development: Mangroves play a vital role in coastal protection and carbon absorption, contributing to Sri Lanka’s environmental and economic sustainability.
   
8. A group of 120 Chinese nationals was arrested in Kundasale for alleged involvement in online financial scams: Police seized 15 desktop computers and 300 mobile phones from 47 rooms in a luxury bungalow: The operation was confirmed by the police spokesman, highlighting the group’s suspected participation in what the spokesperson described as “fraudulent online” activities.
   
9. Tragedy befalls three people, including a three-year old child, as they died in a train accident at Katukurunda railway station: The victims were struck by a train travelling from Matara to Colombo: The two adults were pronounced dead at the scene, whilst the child, who was seriously injured, succumbed to his injuries upon being admitted to Kalutara Teaching Hospital: A Police investigation into the incident is currently underway.
   
10. Sri Lanka will face West Indies in a three-match T20 series starting today (October 13) at the Rangiri Dambulla International Cricket Stadium: The second and third T20s are on October 15 and 17, followed by a three-match ODI series in Pallekele on October 20, 23, and 26: West Indies’ squad sees several key players absent, whilst Sri Lanka has recalled Bhanuka Rajapaksa and Jeffrey Vandersay.

October 12, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) announced a significant demand at the government’s first treasury bond auction, held yesterday (11), aimed at raising Rs. 95,000 million for the new administration. The auction saw bids totaling Rs. 277,896 million, far exceeding the initial target.

Treasury bonds worth Rs. 70,000 million, maturing in 3 years and 5 months (from 15.10.2024 to 15.03.2028), saw an overwhelming demand, with bids amounting to Rs. 215,738 million. Additionally, there was a demand of Rs. 62,158 million for bonds worth Rs. 25,000 million that will mature in 8 years (from 15.10.2024 to 01.10.2032).

Despite the high demand, the CBSL’s Public Credit Department confirmed that only Rs. 95,000 million worth of bonds would be accepted from the auction. The bonds with a 3-year maturity will pay an annual interest rate of 10.75%, while those maturing in 8 years will have an interest rate of 9%.

October 12, Colombo (LNW): Prime Minister Dr. Harini Amarasuriya expressed her confidence yesterday that the people will secure a victory for the National People’s Power (NPP) in the upcoming parliamentary elections, allowing President Anura Kumara Dissanayake to continue advancing his program of work.

Speaking to the media after submitting nominations to the Colombo District Returning Officer, Dr. Amarasuriya highlighted the strong public support for the NPP and stated that voters would uphold the mandate they gave in previous elections. She also commended the notable representation of women in the NPP’s candidate lineup, with five female candidates contesting from the Colombo district.

“We have made sure to include women representatives in every district, and we are optimistic about setting a new precedent by increasing opportunities for women’s representation in parliament,” Dr. Amarasuriya remarked.

October 12, Colombo (LNW): President Anura Kumara Dissanayake has instructed Finance Ministry officials to take prompt action to provide a monthly interim allowance of Rs. 3,000 to all pensioners starting next week. This directive comes after the delay in including the allowance in the October pensions, as noted during a meeting held on Thursday (10) at the Presidential Secretariat.

Although a circular (No. 02/2024) issued on August 24, 2024, authorized the payment of the Rs. 3,000 monthly allowance to pensioners, funds had not been allocated for this purpose. After reviewing the situation, President Dissanayake ordered that the necessary funds be released to resolve the issue and provide immediate relief to pensioners.

Acknowledging the financial difficulties faced by the government, the President emphasized the need to address the hardship pensioners have experienced due to the delay in payment. Since the October pensions have already been credited without the allowance, the President directed that the Rs. 3,000 be deposited into pensioners’ accounts by next week. From November onward, the allowance will be automatically added to their monthly pension payments.

Present at the meeting were Secretary to the President Dr. Nandika Sanath Kumanayake, Finance Ministry Secretary Mahinda Siriwardena, and several senior officials from the Finance Ministry.

October 12, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has announced that the country’s financial system has stabilized in the first quarter of 2024, despite challenges from various factors. Key contributors to this stabilization include efforts to reduce high loan interest rates, expand credit facilities for the private sector, and reduce public sector borrowing.

The CBSL, in accordance with the new Central Bank Act No.16 of 2023, issued its first annual financial system stability report, covering data up to June 2024. The report highlights the risks and vulnerabilities in Sri Lanka’s financial system while showcasing the positive outcomes of policy measures implemented by both the Central Bank and other regulatory bodies.

A notable development is the reduction in loan interest rates, which has led to increased borrowing by the private sector and a reduction in non-performing loan (NPL) ratios. Additionally, deposit interest rates have risen, contributing to a more favorable financial environment.

The report also indicates that the Sri Lankan Rupee appreciated against the US Dollar during the first eight months of 2024, buoyed by an increase in foreign remittances, tourism revenue, and export earnings. The CBSL expects this trend to persist.

Furthermore, the government’s absorption of credit facilities obtained by public enterprises has eased pressure on market interest rates and NPL ratios. The domestic debt restructuring process and enhanced risk management in the banking sector have further strengthened the resilience of the financial system.

While the CBSL remains optimistic about continued economic growth and improvements in asset quality and risk management, the report stresses that the success of these outcomes depends on the consistent and effective implementation of policy measures and reforms across all institutions.

October 12, Colombo (LNW): Sri Lanka’s poverty rates continued to rise for the fourth year in a row, with an estimated 25.9% of Sri Lankans living below the poverty line in 2023. Labor force participation has also seen a decline, particularly among women and in urban areas, exacerbated by the closure of micro, small, and medium-sized enterprises (MSMEs). 

Households are grappling with multiple pressures from high prices, income losses, and under employment. This has led to households taking on debt to meet food requirements and maintain spending on health and education.

“Sri Lanka’s economy is on the road to recovery, but sustained efforts to mitigate the impact of the economic crisis on the poor and vulnerable are critical, alongside a continuation of the path of robust and credible structural reforms,” emphasized Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka. 

“This involves a two-pronged strategy: first, to maintain reforms that contribute to macroeconomic stability and second, to accelerate reforms to stimulate private investment and capital inflows, which are crucial for economic growth and poverty reduction.”

Lower-income households in Sri Lanka spend 10% of their income on value-added tax (VAT), while the wealthiest contribute 95% of pay-as-you-earn (PAYE) and personal income tax (PIT), according to the Institute of Policy Studies (IPS). 

At the launch of the state of the economy report 2024, IPS Research Economist Priyanka Jayawardena highlighted ongoing issues with tax evasion, noting that only 48 billion rupees of the expected 131 billion PIT revenue for 2023 was collected.

Jayawardena pointed out that recent VAT hikes and exemption removals have disproportionately affected the poorest households, with the bottom 10% paying about 10% of their income on VAT compared to 6% for the wealthier. Macroeconomic policies have further hit the poor through inflation and currency depreciation.

In contrast, excise taxes on alcohol and tobacco are more progressive, with the wealthiest paying nearly half of these taxes. The poorest households consume less legal alcohol due to high excise duties.

Reforms were suggested to balance VAT with increased excise taxes to create a fairer tax system. The discussion also noted that public service pensions favor wealthier households, with a proposal to shift towards a contributory pension scheme.

October 12, Colombo (LNW): Cinnamon Air, Sri Lanka’s leading domestic airline, announces the launch of two new daily flights connecting Kandy and Sigiriya to South Coast destinations, Koggala and Hambantota. 

Starting from November 1, 2024, to April 30, 2025, these flights are designed to cater to the rising number of foreign travelers visiting Sri Lanka during the winter season, offering enhanced convenience and reduced travel times.

These new routes aim to meet the growing demand for quick, luxurious travel across Sri Lanka. Passengers can now reach the South Coast from the Cultural Triangle (via Sigiriya) or Central Hill Country (via Kandy) in just 40 to 50 minutes, compared to the lengthy 6 to 7-hour road journey, providing more time to enjoy the coastal beauty and attractions.

The new routes provide quick access to key destinations like Hambantota, a gateway to Yala National Park, and Koggala, ideal for exploring coastal towns such as Galle, Weligama, Mirissa, Dickwella, and Tangalle. These direct connections enhance the overall travel experience for tourists exploring Sri Lanka.

Cinnamon Air will operate these flights using its fleet of Cessna 208 aircraft, including an amphibian variation on the Kandy route. This setup promises a unique travel experience with the thrill of water takeoffs and expansive views of Sri Lanka’s stunning landscapes.

Sean Dwight, CEO of Cinnamon Air, emphasized that these new routes enhance access to popular destinations and align with changing tourist preferences for more focused travel within Sri Lanka. He reaffirmed the airline’s commitment to making Sri Lanka’s beauty accessible while providing memorable journeys for its passengers.

Cinnamon Air, operated by Saffron Aviation (Pvt) Limited, is a joint venture between John Keells Holdings PLC, MMBL Leisure Holdings, and Phoenix Ventures. Besides scheduled flights, the airline offers charter services across all airports and water aerodromes in Sri Lanka.

The cross-country flights are designed to enhance convenience and reduce travel time while ensuring an unparalleled experience for those who wish to explore Sri Lanka’s South Coast after visiting the Cultural Triangle or the Central Hill Country.

With these flights, passengers can easily journey from any part of the Cultural Triangle (through Sigiriya) or the Central Hill Country (through Kandy) to the serene South Coast in 40 to 50 minutes, compared to 6 to 7 hours on the road.

October 12, Colombo (LNW): Sri Lanka’s scenic beauty has long attracted visitors from India, with tourists flocking to its picturesque landscapes. Recently, an Indian film crew has taken over a section of Sri Lanka’s railway tracks to shoot a movie, temporarily halting train services on this iconic route. The filming is taking place on the rail track near the Nine Arch Bridge, situated between Ella and Demodara.

Currently, the train journey from Colombo Fort to Badulla has been interrupted, with trains only running up to the Ella Railway Station. The Sri Lanka Railways has announced that the track section from Ella to Badulla will remain closed from October 9 to 15. 

This closure has been implemented to facilitate the filming of a joint Indo-Sri Lankan cinema project, produced by NE Commercial Group of Companies (Pvt) Ltd., a leading film production company in Sri Lanka.

The production company has paid Rs. 23 million to the Sri Lanka Railway Department for the use of the railway track, according to Railways Deputy General Manager (DGM) N.J. Indipolage. 

The project has received approval from Sri Lanka’s Transport Ministry, with the intention of boosting tourism to the island once the film is released.

Sri Lanka’s geographical allure has always been a point of attraction for India, and this film project is seen as another step in strengthening the tourism bond between the two nations. 

However, the diplomatic relationship between India and Sri Lanka has often been marked by complexities, including disputes over fishing rights, proposals for infrastructure projects like the Adam’s Bridge, and the controversial Seethusamudram Shipping Canal Project. These issues have occasionally strained the ties between the two countries.

Despite the promising objective of promoting Sri Lanka’s tourism through this film, questions arise about India’s motivations. The project may undoubtedly spotlight Sri Lanka’s breathtaking landscapes, but it’s essential to scrutinize whether India stands to gain something more substantial in return.

 The project’s true impact on tourism remains to be seen, and many in Sri Lanka are cautiously observing how the film’s narrative will depict the island.

The film in question features the Odyssey Train, which typically offers travelers a seven-hour, 20-minute scenic journey from Colombo to Badulla. 

The storyline and theme of the film have yet to be disclosed. Comparisons have been made to Hollywood films like “Rambo,” which have historically reshaped narratives for various ends. In a similar vein, it remains uncertain how this movie will present Sri Lanka’s culture and landscape.

For the time being, train passengers between Colombo and Badulla must adjust their travel plans. During the filming period, train services will be restricted to the Ella station, and a bus service will be provided for passengers traveling between Ella and Bandarawela. These adjustments will remain in effect from 7:30 a.m. to 5:30 p.m. daily until October 15.

 While the collaboration between India and Sri Lanka on this cinema project has stirred curiosity, it has also highlighted the challenges of balancing development initiatives with the convenience of local communities.

The final judgment on this project’s value to Sri Lanka will depend on the film’s success in attracting tourists and how it portrays the island nation on the global stage. Until then, Sri Lankans and tourists alike will have to make do with temporary changes to one of the country’s most scenic train routes.

October 12, Colombo (LNW): Sri Lanka’s workers’ remittances amounted to USD 555.6 million in September 2024, reflecting a slight decrease compared to the USD 577.5 million recorded in August 2024. Despite the monthly decline, this figure marks a significant improvement from September 2023, when remittances stood at USD 482.4 million, showcasing year-on-year growth. The continued inflow of remittances remains crucial for the country’s foreign exchange reserves and economic stability.