The Export and Import (Exim) Bank of Korea has committed to providing financial assistance for development projects in Sri Lanka, according to a statement from the President’s Media Division (PMD). 

This agreement was made during a meeting at the Presidential Secretariat on Thursday (October 3) between Exim Bank officials and Secretary to the President Nandika Sanath Kumanayake.

Support from the Korean Exim Bank had previously been halted due to Sri Lanka’s economic crisis and sovereign debt default. However, during the meeting, Exim Bank representatives expressed their readiness to offer subsidized interest loans to restart these vital projects. 

They also reiterated their intention to back future economically viable initiatives led by the Sri Lankan government.

Participants in the meeting included Director of Exim Bank Won-suk Ha, Deputy Director Hanui Han, and Project Manager Nalin Jayathunga. In a bid to enhance economic collaboration between the two nations, the Republic of Korea has agreed to provide concessional loans through the Economic Development Cooperation Fund (EDCF) managed by the Korean Eximbank.

The Exim Bank has officially informed Sri Lanka’s Ministry of Finance, Economic Stabilization, and National Policies of its decision to recommence EDCF Official Development Assistance (ODA) projects. 

This decision follows the finalization of a Memorandum of Understanding (MOU) between the Official Creditor Committee (OCC) and Sri Lanka on June 26, 2024, as stated by the Korean Embassy in a media release.

The resumption of these financial flows includes signing loan agreements and advancing the bidding process for ongoing EDCF projects in Sri Lanka. This will facilitate the continuation of existing construction projects, such as the Ruwanwella Water Supply Project.

This development represents a crucial milestone in reinforcing the long-standing relationship between Korea and Sri Lanka. It is anticipated to aid in the recovery and stabilization of Sri Lanka’s economy while fostering sustainable growth.

The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to support the industrial development and economic stabilization of partner countries, thereby promoting economic cooperation with Korea. Since 1990, the EDCF has approved nearly USD 1 billion for 30 development projects in Sri Lanka.

October 05, Colombo (LNW): Upland farmers in the Nuwara Eliya region are expressing serious concerns over the economic impact caused by the cultivation of vegetables using imported hybrid seeds such as carrots, gourd, and beetroot. 

They point out that no assistance is being provided by the government to the upland vegetable farmers, stating, “We can never cultivate rice in Nuwara Eliya; only the vegetables like potatoes, carrots, gourds, and leeks can be grown here.”

Farmers from the Low country area, including Walimada, lament that they are unable to cultivate rice due to the lack of fertilizer support, and instead, they are resorting to growing unique vegetables, leading to instability in the pricing of their produce.

The main production problems faced by farmers are high input cost, lack of finance, water availability, quality seeds and poor extension. 

Additionally, farmers generally lack knowledge about proper pesticide management including safe pesticide handling and storage.

In the past, the people of Nuwara Eliya cultivated high-quality seeds that were exclusive to the region, but now the hybrid seeds are being planted everywhere. Due to the absence of a stable price for rice, farmers in Phaturata have begun to grow vegetables.

This situation is causing severe harm, as the prices of vegetables are rapidly plummeting. Simultaneously, the decline in rice production essential for consumption in Sri Lanka forces us to buy rice at higher prices from abroad. 

The current situation has reached a tragic state where purchasing a kilogram of rice requires selling four kilograms of carrots.

Farmers are suffering significantly due to this issue, as upland farmers are forced to cultivate their crops without any assistance, leading to a scenario where they have to sell their harvests at very low prices.

Farmers from Phaturata do not face such difficulties since they receive some fertilizer support, while we do not receive anything.

We are appealing to the current Minister of Agriculture, President Anura Kumara Dissanayake, to ensure the cultivation of rice in the Phaturata area and create an environment conducive for us to grow unique vegetables. If assistance is provided to both the Phaturata farmers and us, we will highly appreciate the initiative.

Even if it’s not possible to provide full assistance, if we can receive fertilizer support worth 50,000 rupees, it would be a significant help considering the current economic situation, they added.. .

October 05, Colombo (LNW): The Election Commission has granted approval to reinstate several benefits that were temporarily suspended during the presidential election period, including the fertilizer subsidy for the Maha season, the fuel subsidy for fishermen, and increased pension allowances.

In an official media release, the Commission confirmed that the increased pension benefits will be paid in October, along with arrears from September. They also urged the public not to be misled by false claims suggesting that these allowances would not be disbursed.

Additionally, the Commission highlighted the need for approval before making any recruitment, promotions, transfers, or restrictions concerning officials and employees. This step is intended to prevent the misuse of state resources during the upcoming parliamentary elections.

October 05, Colombo (LNW): The Ministry of Defense has issued a directive requiring all civilians in possession of firearms and ammunition for personal protection to temporarily surrender them to the government for a review process. In an official statement released this evening, the Ministry clarified that the firearms will be returned following the review.

All licensed firearm holders are instructed to surrender their weapons and ammunition to the Sri Lanka Navy Base in Welisara by November 7. Upon surrender, a copy of the receipt must be submitted to the reception of the Civil Security Department near the main gate of the Ministry of Defense.

The Ministry has cautioned that failure to comply with the order by the November 7 deadline will result in legal action under the Firearms Ordinance.

The directive specifically exempts firearms issued by the Ministry for property protection, agricultural safeguarding, and sports purposes.

October 05, Colombo (LNW): Indian External Affairs Minister Dr. S. Jaishankar informed his Sri Lankan counterpart, Vijitha Herath, that India has offered a grant of US$ 61.5 million to modernize the Kankesanthurai port. Additionally, payments for seven completed Line of Credit projects, totaling over US$ 20 million, could be converted into grants. This announcement was made during Dr. Jaishankar’s meeting with Minister Herath at the Ministry yesterday.

The Indian High Commission in Colombo stated that Dr. Jaishankar reaffirmed India’s commitment to advancing bilateral cooperation under the ‘Neighbourhood First’ policy and the SAGAR outlook. The visiting Minister also extended an invitation to Sri Lankan President Anura Kumara Dissanayake from Indian Prime Minister Narendra Modi to visit India at a mutually convenient date.

Dr. Jaishankar assured continued Indian support for Sri Lanka’s development through various projects prioritizing Sri Lankan interests. Notably, the Indian government has decided to donate 22 diesel locomotives to the Sri Lankan Railways.

During his meeting with President Dissanayake, Dr. Jaishankar discussed ongoing initiatives in energy production, fuel and LNG supply, solar electrification of religious sites, digital infrastructure, and health and dairy development. He highlighted these efforts as essential to driving economic sustainability and creating new revenue streams for Sri Lanka. He also expressed India’s willingness to expedite the conclusion of its bilateral Memorandum of Understanding (MoU) with Sri Lanka.

President Dissanayake assured Dr. Jaishankar that Sri Lankan territory would never be used in a way that threatens India’s security interests. He emphasized that India’s economic assistance is crucial to achieving his vision of a prosperous Sri Lanka and fulfilling the aspirations of its people. The President also discussed the potential for exporting renewable energy to India, which could help reduce production costs in Sri Lanka and generate additional resources. He recognized the contribution of Indian tourists to the Sri Lankan economy and noted its potential for further growth.

On the subject of Sri Lanka’s debt restructuring, Dr. Jaishankar recalled that India had been a strong supporter of Sri Lanka’s economic stability from the outset. India was the first country to offer financing assurances, enabling the IMF to finalize its Extended Fund Facility for Sri Lanka. Dr. Jaishankar confirmed India’s continued support in the Official Creditors’ Committee regarding Sri Lanka’s agreement with International Sovereign Bond holders.

The meeting also addressed the concerns of Indian fishermen detained in Sri Lanka. Dr. Jaishankar appreciated the release of 50 Indian fishermen the previous day but urged for further releases, including of their boats, and reconsideration of the heavy fines imposed on them. He emphasized that a humanitarian approach, focusing on livelihood issues, would provide a durable solution to the ongoing fishermen-related disputes between the two nations.

October 04, Colombo (LNW): A large number of fisher families living near the Deduru Oya reservoir in Kurunegala district have raised concerns about the presence of poisonous giant fish species that are posing a threat to other aquatic life in the reservoir. These venomous fish species, identified as snake-headed stone fish, are reportedly harming local fish populations, severely impacting those engaged in the inland fishing industry.

A recent survey confirmed that these snake-headed fish species are dangerous, with experts warning that they threaten other fish and aquatic creatures. The species, commonly known as Gonmaha stone fish, are typically found in shallow waters, sandy areas, lagoons, and lakes, according to Senior Lecturer Dr. Janaka Ruben from the Faculty of Medicine at Ruhuna University. The fish are known to be venomous and can even pose risks to humans.

Ranjith Sumanasiri, a representative of the Daduru Oya Fishermen Association (DFA), told the that the venomous fish have been spotted in the Deduru Oya lake and are causing a significant reduction in fish populations. He reported that approximately 70% of the reservoir’s fish are rapidly disappearing due to the invasion of these dangerous species, creating a serious threat to the livelihoods of the local fishermen.

Sumanasiri urged authorities to address the issue urgently, calling for immediate measures to control the spread of these snake-headed fish and protect both the ecosystem of Deduru Oya and the fishing community that depends on it.

October 04, Colombo (LNW): Korean Ambassador to Sri Lanka, Miyon Lee, reaffirmed Korea’s commitment to Sri Lanka, even during challenging times, by engaging in business activities and development projects. Speaking at a reception held at the Shangri-La Hotel in Colombo to mark Korea’s National Foundation Day on Wednesday (2), the Ambassador highlighted Korea’s active role in resuming support for Sri Lanka, especially through the reimbursement for pending projects following the signing of the MoU with the Official Credit Committee in July.

Ambassador Lee praised the efforts of the Korean Embassy and agencies like KOICA, KOTRA, the Korean EXIM Bank, and others, which have contributed to various economic and development projects in Sri Lanka. These projects span diverse areas, including education, governance, agriculture, and healthcare, while Korea’s loan programs focus on transportation, energy, and water supplies. She emphasized Korea’s interest in promoting trade, investment, rural development, and women’s empowerment, sharing the country’s experiences and advanced technologies.

Ambassador Lee also noted the crucial role of Korean communities and companies in fostering trade and investment between the two nations, particularly in manufacturing, where they continue to transfer skills and technologies.

Western Province Governor Hanif Yusuf, the Guest of Honour, remarked on the dynamic new phase in the Sri Lanka-Korea relationship, underscored by increased high-level visits and stronger people-to-people ties. He noted that the number of Sri Lankans migrating to Korea for employment has grown by 44% over the last year, with over 30,000 Sri Lankan workers contributing significantly to both economies.

Governor Yusuf further highlighted the success of Sri Lankan migrant workers in Korea, mentioning the recent recognition of a Sri Lankan worker as the “Best Shipbuilding and Offshore Worker” by the Korean Ministry of Trade, Industry, and Energy.

The event was attended by former ministers, parliamentarians, diplomats, and key military officials, including Defence Secretary Air Vice Marshal Sampath Thuyacontha, Chief of Defence Staff General Shavendra Silva, and the commanders of the Sri Lankan Army, Navy, and Air Force.

October 04, Colombo (LNW): Prime Minister and Minister of Trade, Commerce, Food Security, Cooperative Development, Industry, and Entrepreneurship Development, Dr. Harini Amarasuriya, emphasized that the current period is an excellent opportunity to launch the country’s economic development plan. Speaking at a special discussion held yesterday (03) with Ministry officials, the Prime Minister highlighted the new government’s intention to work according to a streamlined and coordinated plan.

During the meeting at the Industry and Entrepreneurship Development Division’s auditorium, officials from the Ministry and its affiliated institutions briefed the Prime Minister on the current functioning and challenges within their respective institutions. The discussion covered key issues such as international trade development, food security, price transparency of essential goods, quality standards of imported and exported goods, entrepreneurial loan support, raw material supply for industries, and the restructuring of public enterprises.

Prime Minister Dr. Amarasuriya urged officials to address these problems promptly and discussed the need for a dedicated authority to oversee food security in Sri Lanka, along with laws ensuring food safety. She emphasized the importance of collective action and effective coordination between institutions to seize the opportunity for economic progress.

Several high-ranking officials, including Prime Minister’s Secretary Pradeep Saputhanthri, Secretary to the Ministry of Industry M.M. Nayeemudeen, and other prominent figures, participated in the discussion.