By: Staff Writer

January 19, Colombo (LNW): Greenpeace South Asia has praised Sri Lanka’s Cabinet of Ministers for approving the proposal by the Minister of Foreign Affairs, Foreign Employment, and Tourism to sign the Agreement on Biodiversity in Areas beyond National Jurisdiction (BBNJ).

This decision marks a significant advancement in efforts to combat the mounting threats to oceans from unregulated human activities in international waters.

Anita Perera, a campaigner at Greenpeace South Asia, lauded Sri Lanka’s leadership in prioritizing ocean health, especially as the Chair of the Indian Ocean Rim Association (IORA). She highlighted that this move underscores Sri Lanka’s commitment to international collaboration for marine biodiversity conservation.

By ratifying the BBNJ, also known as the Global Oceans Treaty, Sri Lanka will support the creation of vast marine protected areas, encourage sustainable fisheries management, and promote marine scientific research. This is particularly crucial in light of the growing concerns surrounding overfishing, habitat loss, and biodiversity decline in international waters.

The treaty allows for the establishment of large protected zones on the High Seas, areas that lie beyond 200 nautical miles (370 km) from coastlines. These zones offer a chance for marine ecosystems to recover from overfishing and pollution, helping to restore vital ocean life.

 A healthy ocean is critical not only for climate stability but also for supporting the livelihoods of millions, including Sri Lanka’s coastal communities, fishers, and seafarers.While acknowledging the challenges faced by developing nations like Sri Lanka in implementing this agreement,

Greenpeace South Asia emphasized the importance of capacity-building, resource-sharing, and international cooperation to ensure its successful execution.Sri Lanka, along with the South Asian region, has been severely impacted by climate change, experiencing heatwaves, floods, mudslides, and coastal erosion.

These disasters have caused significant casualties and economic setbacks. Given the interconnectedness of climate, forests, and oceans, it is essential for leaders to understand and prioritize the protection of ecosystems that help mitigate climate change and extreme weather events.

In February 2024, Greenpeace’s Rainbow Warrior ship visited Sri Lanka, coinciding with the opening of the Greenpeace South Asia office in the country. This event was a key moment in raising awareness about ocean conservation and the importance of the BBNJ Agreement, particularly for island nations like Sri Lanka.

 A series of awareness campaigns, social media outreach, and workshops for Civil Society Organizations were organized throughout 2024 to empower local groups with advocacy tools.

Greenpeace also facilitated letters to presidential candidates, urging them to prioritize the signing and ratification of the BBNJ Agreement. This legal framework is designed to establish Marine Protected Areas, set Environment Impact Assessment (EIA) standards, ensure fair sharing of benefits from Marine Genetic Resources (MGRs), and promote sustainable funding for marine conservation.

These efforts underscore Sri Lanka’s potential to benefit from improved marine governance under the BBNJ framework.The approval of the Global Oceans Treaty presents a vital opportunity to establish large-scale marine sanctuaries on the High Seas.

This decision signals a commitment to safeguarding marine ecosystems for both current and future generations. Greenpeace South Asia is eager to collaborate with Sri Lanka and other regional stakeholders to ensure the successful implementation of the BBNJ Agreement.

By: Staff Writer

January 19, Colombo (LNW): Recently, Sri Lanka’s healthcare system has faced increasing pressure due to a shortage of essential medicines.

A key factor behind these shortages is the delay in the procurement process, which has hindered the timely arrival of medical supplies.

Although medicine shortages have been a persistent issue since the economic crisis, the extended approval timelines and lack of coordination within the healthcare system are particularly concerning. Swastha, the Ministry of Health’s (MOH) medical supplies information system, reports that there is currently a shortage of 300 essential medicines needed for treating critical health conditions.

 These ongoing procurement challenges must be addressed to prevent further exacerbation of shortages, which ultimately threatens the lives of Sri Lankan citizens.

The shortage of specific medicines can also be traced back to the quality of drugs being imported, which underscores the importance of competitive bidding in procurement. When authorities evaluate tenders, they have cancelled those offering subpar medicines, but they have failed to reissue tenders or invite bids for these vital supplies.

 Competitive bidding, when applied properly, ensures that clear quality standards are set, encouraging suppliers to meet those standards. It can also help eliminate monopolies formed through preferential drug registration practices, creating a fairer competitive environment and reducing the risk of a few suppliers controlling the procurement process.

Medical experts have stressed the urgent need for a structured and systematic approach to resolve the national medicine supply crisis. This involves streamlining procurement processes, enhancing transparency, and fostering better coordination among stakeholders to prevent supply disruptions.

Although the recently published procurement guidelines align with best practices, the necessary legal frameworks to enforce these processes in public sector procurement have yet to be established.

Implementing a procurement law would provide a legal foundation to enforce standards and principles in public procurement. This would allow authorities to hold violators accountable, as non-compliance could result in legal consequences or international sanctions.

The Advocata Institute has called on the government to establish a comprehensive procurement law to improve accountability, efficiency, quality, and competitiveness in public procurement.

Such a law would also ensure that state-owned enterprises (SOEs) function effectively across various sectors of the economy, optimize large-scale infrastructure projects, and guarantee that public resources deliver maximum benefit to society.

For Sri Lanka’s healthcare system, an efficient and transparent procurement process is essential to ensuring equitable, cost-effective, and high-quality services for millions of citizens who rely on the public healthcare system.

A procurement law that codifies these practices would establish clear processes, reduce corruption, increase competition, and ensure accountability, ultimately optimizing public funds and strengthening the entire healthcare infrastructure.

By: Staff Writer

January 19, Colombo (LNW): The Public Utilities Commission of Sri Lanka (PUCSL) has approved Lanka Electricity Company Ltd. (LECO) to launch a prepaid electricity tariff scheme for retail consumers. 

Expected to roll out by March or April 2025, this initiative empowers users from Negombo to Galle with greater control over energy usage.

According to PUCSL Director of Communications Jayanath Herath, the system features a flexible top-up mechanism that promotes energy efficiency.

Under the scheme, households consuming up to 90 kWh per month will pay Rs. 15 per kWh, while higher usage incurs Rs. 23 per kWh. Fixed monthly charges range from Rs. 100 to Rs. 1,000 based on consumption.

 Herath emphasized the scheme’s potential to help users better manage expenses amidst rising costs, encouraging responsible energy use.

 Sometime back in 2021  the Public Utilities Commission of Sri Lanka (PUCSL), together with Lanka Electricity Company Pvt. Ltd. (LECO), has launched an interest pay scheme for the security deposits of electricity for LECO consumers.

Former PUCSL Chairman Janaka Ratnayake, said, “steps gave been  taken  to protect the rights of electricity consumers since the inception of the Commission in accordance with the powers vested in it.

It has published the Declaration of the Rights and Obligations of Electricity Consumers and many regulatory decisions to protect the rights contained therein and to protect consumers. 

In particular, more than 20 different regulations, rules and guidelines have been enacted to protect consumers.

Speaking further he said the payment of interest on electricity consumer deposits is a benefit provided to the consumer under Section 28 of the Sri Lanka Electricity Act. 

“Accordingly, electricity utility service providers have to pay interest to electricity consumers for the electricity deposit.”

The PUCSL has the authority to decide the interest rate that to be paid to the consumers and the PUCSL declared that the interest rate for this year would be 8.68 per cent, he said adding that the interest rate changes annually.

Accordingly, LECO has commenced paying interest to its customers from yesterday onwards where the interest will be deposited to the electricity bill account of the consumer, the PUCSL chairman said. “LECO alone will pay Rs. 42 million annually to its customers as a benefit through this scheme.”

“We hope that in the future other licensees will implement this interest payment program. When other electricity distribution licensees also implement this interest benefit scheme in the future, around Rs. 1,200 million will flow into the hands of electricity consumers annually.” Rathnayake added.

By: Staff Writer

January 19, Colombo (LNW): The Planters’ Association of Ceylon (PA) has praised the Government’s decision to delay the abolition of the Simplified Value Added Tax (SVAT) system to 1 April 2025.

Initially planned for removal on 1 January 2024, this postponement came in response to strong opposition from exporters and business chambers.

While the delay provides temporary relief, the PA urged the Government to retain SVAT until a viable, stakeholder-endorsed alternative is implemented.

The SVAT system, introduced in 2011, has been crucial for Regional Plantation Companies (RPCs) and smallholder tea farmers. Eliminating SVAT without a robust replacement could disrupt Sri Lanka’s tea value chain, causing income losses for exporters, particularly tea and rubber smallholders, who form the backbone of the industry.

Historically, Sri Lanka’s tea industry thrived until 2014, with exports exceeding 300 million kg and generating $1.5 billion annually. However, adverse policy decisions, such as the 2015 Glyphosate ban and the 2021 fertiliser ban, severely reduced tea yields.

By 2023, production had dropped to 223 million kg, and export earnings fell to $1.3 billion, affecting the livelihoods of around 480,000 smallholders who rely on tea for sustenance.

Smallholders, who earn about Rs. 23,000 monthly on average, are particularly vulnerable. They receive 68% of auction prices for their green leaf, but the removal of SVAT could cost them Rs. 24 billion annually, representing an 18% income loss directly borne by smallholder families.

 Over 90% of Sri Lanka’s tea is exported, and SVAT has mitigated cash flow issues by simplifying VAT refunds, which are often delayed for six to seven years. The recent imposition of an 18% VAT on exports exacerbates these issues, tying up vital capital and increasing operational costs for RPCs and smallholders alike.

For instance, with 1 kg of tea priced at Rs. 1,200, the 18% VAT adds Rs. 216, increasing the upfront cost to Rs. 1,416. Exporters must pay this VAT upfront, straining their cash flow and limiting reinvestment in production. These inefficiencies resulted in an alarming Rs. 60 billion in financial losses for the tea industry in 2023 alone.

The PA highlighted the urgency of a strategic Government intervention to support the sector. Key recommendations include ensuring access to affordable fertilisers and agrochemicals to lower production costs and increase productivity. Streamlining VAT refund processes is also critical to alleviate financial pressures on exporters and improve cash flow.

Competitor nations like Kenya exemplify what Sri Lanka could achieve with the right policies. In 2014, Kenya’s tea production stood at 415 million kg and rose to 550 million kg by 2023, showcasing remarkable growth. Meanwhile, Sri Lanka’s production has stagnated or declined, raising concerns about the industry’s future.

The PA stressed that retaining SVAT and implementing strategic reforms are essential to stabilising Sri Lanka’s tea industry, boosting its competitiveness, and restoring it to a trajectory of sustainable growth.

January 19, Colombo (LNW): In a move aimed at bringing down prices and alleviating the burden on consumers, Trade and Commerce Minister Wasantha Samarasinghe has revealed plans to expand the Sathosa retail network to 1,000 outlets across the country.

The announcement came during the reopening of the renovated Sathosa outlet in Anuradhapura, where the Minister spoke about the government’s efforts to make essential goods more affordable.

Samarasinghe explained that the government has already made significant strides in reducing the cost of living, with prices of many everyday items dropping by 17 per cent over the last three months.

The Minister further revealed that, as part of the government’s ongoing efforts to control prices, plans are in place to establish over 150 new Sathosa outlets in 2025 alone, with a long-term target of reaching 1,000 outlets within the next three years.

“We are determined to ensure that every citizen has access to affordable goods. Over the past three months, we have managed to reduce the prices of 40 essential items by 8 per cent. With the planned expansion of the Sathosa network, we aim to create more touchpoints where the public can buy necessities at reasonable prices,” Samarasinghe stated.

The government’s strategy of expanding the Sathosa network is part of a broader effort to tackle inflation and improve access to essential goods across the country, particularly in rural and underserved areas.

With the new outlets, the government hopes to strengthen its presence in local markets and provide consumers with more options to purchase products at controlled prices.