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Education Ministry Launches Free Sanitary Napkin Voucher Programme for Schoolgirls

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June 07, Colombo (LNW): The Education Ministry will provide vouchers for schoolgirls to buy sanitary napkins based on the allocation of one billion rupees.

The programme of supplying free vouchers for adult schoolgirls to purchase sanitary napkins will be implemented from this month. The inauguration of the gift voucher programme, funded with an investment of one billion rupees, took place at President’s Girls’ College in Nawala yesterday (6).

Accordingly, the Education Ministry has taken steps to provide free vouchers to purchase sanitary napkins for six months beginning from June. A gift voucher worth Rs. 1,200 each will be given to female students. These vouchers will be distributed through schools, ensuring all adult female students in seven national estate schools and all provincial schools receive them.

Sanitary napkins can be purchased using these gift vouchers from retail shops registered with the Education Ministry. It is the responsibility of the students to purchase quality sanitary napkins certified by the Sri Lanka Standards Institute (SLSI).

The gift voucher is divided into two parts, each worth Rs. 600. Part A is valid from June 10, 2024, to July 10, 2024, and Part B can be used from September 1, 2024, to September 30, 2024. Sanitary napkins must be purchased within these time frames.

This initiative aims to support children’s personality development and healthy well-being, which are crucial for the successful maintenance of the learning-teaching process in schools. It is expected to encourage school attendance among female students and address issues related to health and education disruptions during economic hardships.

Showers and Strong Winds Expected Across Multiple Provinces

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June 07, Colombo (LNW): Showers will occur at times in Western, Sabaragamuwa and Southern provinces and in Kandy and Nuwara Eliya districts.

Several spells of showers will occur in North-western, Northern and North-central provinces.

Showers or thundershowers may occur at a few places in Eastern and Uva provinces in the evening or night.

Strong winds of about (40-50) kmph can be expected at times over Northern, North-central, North-western provinces and in the Hambantota district.

General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

State Banking reforms gain momentum but may face delays in official bungling

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By: Staff Writer

June 06, Colombo (LNW): Sri Lanka two state-owned banks are set to achieve tangible progress in shifting towards more commercially-driven business models and capital adequacy strengthening governance, finance ministry announced.

But the state-owned banks will take some time to implement a business-model changing  from directed lending and to develop commercial operations.

These banks are still working on their business-model transformation, and remain significantly reliant on corporate lending, despite efforts to diversify.

Asset quality will remain key to intrinsic creditworthiness in the near term. State-owned banks are most vulnerable given their participation in higher-risk subsidised development lending

These local banks are needed Rs. 1.4 trillion capital injection after bad loans increased alarmingly alarming proportions in economic crisis and debt moratoriums as well as debt restructuring hit their balance sheets, it stated.

Bank of Ceylon, HDFC Bank, National Savings Bank, Pradeshiya Sanwardena Bank, Peoples Bank and Regional Development bank are included in the SOE restructuring unit’s list of 31 state owned enterprises (SOEs).

With the IMF technical support and new funding, the central bank and the government will be better placed to grant capital injections if required to stronger banks’

Under IMF guidelines, weaker banks are likely to be merged into the stronger banks while: restructure of struggling state-owned banks is also considered as a possible option.

In order to protect retail investors from potential losses, the Government will not seek to sell shares to retail investors in either of the banks (Bank of Ceylon/People’s Bank) until the bank has been profitable and in full compliance with all Central Bank prudential ratios for not less than two consecutive calendar years following the date of the cabinet decision, finance ministry emphasised.

 In any event, the Government would only consider selling a minority stake in selected State banks, whilst the Government retains the majority share ownership, as articulated in the 2024 budget speech (paragraph 70) the finance ministry confirmed. .

The Ministry of Finance will be establishing a specialised unit under the Public Enterprises Department entrusted with responsibility for managing the state’s shareholdings in SOBs and to monitor and report on their performance.

The Auditor General has been directed to appoint qualified external auditors for all SOBs, and will enter into a Memorandum of Understanding to establish this unit as standard practice going forward.

With the consent of the Auditor General, all SOBs shall select new external auditors for the year beginning 1 January 2025 from amongst the auditing firms with substantial international footprint.

Sri Lanka Original Narrative Summary: 06/06

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  1. President Ranil Wickremesinghe announces Sri Lanka’s aim to achieve net zero carbon emissions by 2040, marking a pioneering step in Asian policy: highlights Sri Lanka’s integration of climate objectives into economic and foreign policy frameworks: unveils plans for a Climate Change Act and a Climate Change Centre to address environmental concerns comprehensively: also proposes legislation for an International University on Climate Change: he urges developed countries to support low-income nations while encouraging tropical countries to mobilise resources for climate change management.
  2. Opposition Leader Sajith Premadasa says a group of Sri Lankan citizens who were sent to Myanmar and Russia with the promise of being granted civil jobs are severely suffering: laments those who were sent to Russia for civil jobs even lost their lives due to being redirected to the Russian-Ukrainian war: urges that the government must intervene immediately.
  3. The new alliance formed by a faction of the SLFP is set to hold its inaugural rally in Hambantota on June 08 at 2 pm: Minister Mahinda Amaraweera is said to be organising this event: MP Nimal Lanza says with the formation of the ‘New Alliance’ they hope to go forward stronger, with other political parties, trade unions, civil organisations being expected to join in the future: The New Alliance is backed by MPs Nimal Siripala De Silva, Mahinda Amaraweera, Lasantha Alagiyawanna, Duminda Dissanayake, Susil Premjayantha, Nalin Fernando, Anura Priyadarshana Yapa, Nimal Lanza, and Priyankara Jayaratne.
  4. The Supreme Court nullifies ex President Sirisena’s pardon to murder convict Don Shamantha Jude Anthony Jayamaha, deeming it arbitrary and unlawful: The decision, following a Fundamental Rights petition by the Women & Media Collective, cited non-compliance with constitutional provisions and violation of the petitioner’s rights: The court directed lawful measures regarding Jayamaha’s sentence implementation, involving legal representation from various parties.
  5. The Finance Ministry announces state-owned banks are undergoing significant reforms to adopt more commercially-driven business models and strengthen capital adequacy and governance: Despite efforts, these banks are still reliant on corporate lending and are facing challenges in transforming their business models away from directed lending: Asset quality remains crucial, particularly due to their involvement in higher-risk subsidised development lending: require a substantial capital injection of Rs. 1.4 trillion to address bad loans accumulated during economic crises and debt restructuring: Under IMF guidelines, weaker banks may be merged into stronger ones, and restructuring struggling state-owned banks is also being considered: The GOSL plans to protect retail investors by not selling shares until banks are profitable for at least two consecutive years: The Finance Ministry will establish a specialised unit to manage the state’s shareholdings in state-owned banks, with external auditors appointed to ensure transparency and accountability.
  6. State Minister Kanaka Herath says the TRCSL granted preliminary approval to Starlink for satellite-based internet in Sri Lanka: Final approval awaits a public consultation process for transparency: PMD to release details soon: The move aims to ensure inclusive decision-making and improve connectivity, especially in remote areas. Starlink’s satellite technology promises high-speed internet nationwide.
  7. Today, Parliament debates the government’s Electricity Bill amid strong opposition: The bill aims to reform the sector but faces criticism for constitutional inconsistencies and rushed implementation: Critics highlight concerns about consumer protection, political interference, and national security: Trade unions threaten to defeat it, alleging no benefits for workers or consumers: Industry experts also raise apprehensions about its impact and lack of expertise in the proposed advisory council: Despite its objectives, the bill’s current form prompts calls for thorough review and amendments.
  8. Geologist Professor Athula Senaratne highlights challenges in forecasting recent adverse weather due to inadequate equipment: laments the absence of necessary instruments hindered timely warnings for heavy rains, stressing the importance of proper equipment for accurate forecasting: points out systemic gaps in rainfall measurement infrastructure, advocating for investment and modernisation to enhance Sri Lanka’s resilience against extreme weather.
  9. Power and Energy Minister Kanchana Wijesekara announces the CEB is set to propose revisions to electricity tariffs, with plans to submit its proposal to the Public Utility Commission (PUCSL) either tomorrow or on Monday: adds these revisions are anticipated to take effect from July 1: The proposed revisions include reductions in tariffs across various consumption categories, such as a reduction from Rs. 8 to Rs. 6 per unit for the 0-30 unit category, and from Rs. 20 to Rs. 9 for the 30-60 unit category: Additionally, reductions are suggested for the 60-90 unit category (from Rs. 30 to Rs. 18) and the 90-120 unit category (from Rs. 50 to Rs. 30): indicates the CEB’s readiness to consider further relief on tariffs if recommended by the PUCSL.
  10. Sri Lanka Athletics announce a crucial National Open Stage II athletics competition, now upgraded to a World Athletics Category ‘E’ event, to serve as a special trial for the Olympics: Key athletes like Yupun Abeykoon, Kalinga Kumarage, Aruna Dharshana, Tharushi Karunaratne, Gayanthika Abeyratne, and Nadeeka Dilhani Lekamge are gearing up for the challenge: Abeykoon’s injury might hinder his participation, affecting his Olympic chances: The Nationals and special trial offer a chance for athletes to improve timings and accumulate points before the June 30 qualification deadline set by the IOC and WA.

Australia’s United Petroleum expands to Sri Lanka’s fuel market

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By: Staff Writer

June 06, Colombo (LNW): United Petroleum, an independent, 100% Australian-owned fuel and Convenience Company, has made arrangements to Begin operations by July or August this year after successfully completing  the application to acquire a license to venture into Sri Lanka’s retail petroleum products market.

United Petroleum is the final foreign entity among three to fulfill the government’s formalities for market entry.

This follows the Sri Lankan government’s decision to diversify its retail petroleum sector by granting licenses to international firms including China’s Sinopec, United Petroleum, and U.S.-based RM Parks in partnership with Shell PLC.

United Petroleum Australia, , will start their operations by the end of July or beginning of August this year, taking over 150 existing fuel stations and building over 50 new stations, Director of United Petroleum Lanka Private Limited in Sri Lanka Dr. Prabhat Samarasinghe said.

He said that United Petroleum Lanka Pvt Ltd made a deal with Sri Lanka’s Board of Investments (BoI). This deal is part of an agreement with the Power and Energy Ministry to supply petroleum products in Sri Lanka.

United Petroleum Australia has created a company in Sri Lanka called United Petroleum Lanka Private Limited.

This company will take over 150 existing gas stations and has permission to build 50 new ones under United’s name.

The total investment for this project will be around 300 million USD. To start, they will invest 12 million USD, with plans to invest the rest within a year.

While operating in Sri Lanka, the company does not plan to engage in a price war but will offer various benefits to consumers.

The quality of the petroleum products will match that in Australia, with a strong focus on maintaining high standards.

United Petroleum Australia Pvt Ltd is a top petroleum trading company in Australia, with over 500 gas stations across the country.

United Group also has other businesses in Australia and Singapore, and this is their first time expanding their retail petroleum business outside Australia.

United Petroleum  Lanka Pvt Ltd has entered into a contract on June 4th 2024 with Board of Investment of Sri Lanka (BOI) with an Investment of U$ 27.5 Million, as part of the agreement signed between Ministry of Power & Energy to supply Petroleum products in Sri Lankan Market. This event came into live after selecting the company based on RFP issued by Sri Lankan government to further liberalizing the country’s retail petroleum sector early last year.

Sri Lanka nears in Debt Restructuring deal with bilateral creditors

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By: Staff Writer

June 06, Colombo (LNW): Sri Lanka and an ad hoc group of creditors are in progressive talks over a debt restructuring deal with bilateral lenders official source said.

Sri Lanka may still face external debt exceeding 70% of its GDP unless it implements debt management laws.

The government underscores the critical importance of reforms for resuming growth in Sri Lanka. Key reforms such as the enactment of the Public Financial Management Act and a debt management law, expected in 2024, aim to strengthen fiscal discipline and mitigate medium-term refinancing risks.

The government and members of the official creditor committee, which includes India, Hungary and the Paris Club, are exchanging draft versions of the accord, or memorandum of understanding, several top officials who wished to remain anonymous said.

The documents are needed to finalize an agreement reached in November between the South Asian nation and the official creditor committee and hash out the few remaining issues before a deal is settled, one of the people said.

Sri Lanka needs to reach deals with bilateral lenders and bondholders to keep receiving disbursements under its $3 billion bailout from the International Monetary Fund. The IMF will evaluate the deals to ensure they provide enough relief to the island nation that it can meet its debt sustainability parameters.

The country owes $10.6 billion to bilateral creditors, according to government data, with China representing over 40% of that debt. It also needs to restructure $12 billion in debt with overseas private creditors.

Because it has middle-income status, the country is not part of the so-called Group of 20 Common Framework debt initiative, so talks with Chinese official creditors are conducted separately. The people declined to provide any updates on the negotiations between Sri Lanka and China, citing the fact that those talks are separate.

Sri Lanka’s central bank governor and the secretary of the treasury didn’t respond to queries from Bloomberg. Cabinet approval was sought for a debt restructuring matter, Cabinet spokesman Bandula Gunawardana said Tuesday, without elaborating when questioned about whether bilateral creditor debt agreements were discussed.

Ministry to offer overseas job opportunities to retired military personnel and war hero families

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June 06, Colombo (LNW): The Ministry of Defence has disclosed that the Ministry of Labour and Foreign Employment is poised to allocate a portion of foreign job opportunities to retired military personnel and families of war heroes.

The decision, aimed at providing avenues for employment to these esteemed individuals, reflects a concerted effort to honour their service and sacrifice.

The revelation emerged during a high-level meeting convened to enlighten tri-forces personnel on the programme facilitating foreign employment for retired tri-forces personnel and members of war hero families.

Defence State Minister Premitha Bandara Tennakoon presided over the gathering, which saw the participation of senior tri-forces officers and representatives from the Ministry of Labour and Foreign Employment.

The initiative materialised following deliberations between State Minister Tennakoon and Labour and Foreign Employment Minister Manusha Nanayakkara, signifying a collaborative approach between defence and labour authorities to address the employment needs of retired military personnel and their families.

Initially, opportunities in the construction sector in Israel will be made available to eligible candidates.

To support expatriates in their endeavours, the Ministry has outlined plans to facilitate access to loan facilities at concessional rates through state banks.

Notably, 67 personnel from the Army have been earmarked for deployment in these roles, with further invitations extended to Navy and Air Force personnel to nominate suitable candidates.

Furthermore, retired armed forces members under the age of 44 will undergo rigorous training and examination conducted by the Ministry of Labour and Foreign Employment to equip them with the necessary skills and qualifications for overseas employment opportunities.

This comprehensive approach underscores the commitment of both ministries to ensuring the smooth transition of military personnel into civilian roles abroad while upholding standards of excellence and professionalism.

Air India back in operation in Sri Lanka with Hayleys as new General Sales Agent

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By: Staff Writer

June 06, Colombo (LNW): Air India resumed operation in Sri Lanka with Hayleys as new General Sales Agent following Sky Aviation Ltd’s failure in multiple attempts to legally restrain it from transferring local agentship of Indu Sky.

Indu Sky made an application in the District Court of Colombo, seeking an enjoining order against Air India days prior to the expiration of the GSA Contract, to prevent the latter from appointing a new GSA and this enjoining order was refused recently.

Air India, India’s leading global airline, has selected Hayleys, Sri Lanka’s leading blue-chip multinational conglomerate, as its General Sales Agent for passenger sales in Sri Lanka.

The keen interest of Air India to carry out frequent flights to Sri Lanka is evident by the continued operations as well as the increase in the number of flights operated to the country.

Leveraging the expertise, scale, and reliability of the Hayleys Group, the partnership will further enhance Air India’s presence in Sri Lanka to support the airline’s ongoing transformation and global expansion.

“Hayleys is honoured to represent Air India in Sri Lanka. Together, we share a commitment to corporate responsibility and uphold similar values, allowing us to offer unparalleled credibility, strength, stability, and value to our customers Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

The improved connectivity resulting from this collaboration will add greater momentum to Sri Lanka’s resurgent tourism industry, creating value for our nation and supporting the growth aspirations of Air India,”

Air India operates 17 weekly flights between India and Sri Lanka, contributing to the growing trade and tourism between the two countries. With its vast global network spread across five continents,

Air India offers convenient connections via Delhi or Chennai to passengers travelling between Sri Lanka and the rest of the world, particularly North America, Europe, and Australia.

India’s rising economic strength is leading to exponential growth in travel. More than 23 million inbound tourists and 10 million outbound tourists were recorded in 2023, making it one of the single most dynamic emerging hubs for aviation in Asia, with over 300,000 annual arrivals from India.

The strategic partnership supports Air India’s ongoing transformation and modernisation programme that is poised to offer Sri Lankan passengers a world-class flying experience with Indian hospitality at the core of it.

With its orders for 470 new aircraft, the airline is expanding and modernising its fleet, leading to the arrival of one new aircraft every six days through this year and into the next. Coupled with the other transformational changes designed to elevate the travel experience for customers.

Starlink receives initial approval for satellite internet services in Sri Lanka

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June 06, Colombo (LNW): The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) has taken a significant step forward in the realm of connectivity by granting preliminary approval to ‘Starlink’ for the provision of satellite-based internet services in Sri Lanka.

This announcement was made by the State Minister of Technology, Kanaka Herath.

Herath asserted that while the preliminary approval has been granted, the final endorsement will be contingent upon the completion of a formal public consultation process.

This process is crucial for gathering input from stakeholders and the general public to ensure transparency and inclusivity in decision-making regarding telecommunications services.

In response to the development, the President’s Media Division (PMD) has indicated that comprehensive details regarding the upcoming public consultation will be released imminently.

The initiative is an indication that the government is committed to fostering an open and participatory environment wherein the concerns and perspectives of all stakeholders, including citizens and industry experts, are duly considered.

The introduction of satellite-based internet services by Starlink holds immense promise for enhancing connectivity across Sri Lanka, particularly in remote and underserved regions where traditional infrastructure may be lacking.

By leveraging advanced satellite technology, Starlink aims to provide high-speed and reliable internet access to users nationwide.

International leaders extend congratulations to Indian Premier Modi: SL President invited to swearing-in ceremony

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June 06, Colombo (LNW): U.S. President Joseph Biden and Russian President Vladimir Putin, along with over 50 world leaders, have congratulated Indian Prime Minister Narendra Modi and the National Democratic Alliance (NDA) on their electoral success.

Additionally, Prime Minister Modi has extended an invitation to Sri Lankan President Ranil Wickremesinghe to attend his upcoming swearing-in ceremony, an invitation that President Wickremesinghe has accepted.

Traditionally, Prime Minister Modi has invited leaders from neighbouring countries to his swearing-in ceremonies. Sri Lanka, being a member of both SAARC and BIMSTEC, received invitations in previous years.

The government is now considering extending invitations to leaders from other regional countries, including those from the Gulf and Central Asia, pending their availability to travel to India at short notice.

Several international leaders, including those from Israel, Singapore, the UK, France, and China, have conveyed their congratulations to Prime Minister Modi on his victory.

Notably, President Biden praised the strong relationship between India and the United States, highlighting its “unlimited potential.”

The congratulatory messages also extend to journalists, civil society workers, and others who contributed to India’s democratic processes.

The U.S. State Department commended Indian voters and stakeholders for their commitment to democracy.

President Putin was among the first international leaders to congratulate Prime Minister Modi on his electoral success.

Similarly, leaders from the UAE and China expressed their interest in strengthening bilateral relations with India.

Prime Minister Modi is expected to participate in the G-7 outreach in Italy and the SCO summit in Kazakhstan, where he will engage with world leaders, including President Putin and Chinese President Xi Jinping. Additionally, South Asian leaders, including those from Bangladesh, Bhutan, and possibly Sri Lanka, are anticipated to visit India in the coming weeks.

As the international community recognises India’s growing role in global affairs, leaders like Ukrainian President Zelenskyy have called for India’s participation in international peace summits.

Whilst Modi has not confirmed attendance at such conferences, he reaffirmed India’s commitment to regional peace and prosperity.

The congratulatory messages pour in as India prepares for Prime Minister Modi’s third consecutive term, signifying the importance of India’s leadership on the global stage.