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Official exchange rates in SL today (Oct 01)

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By: Isuru Parakrama

October 01, Colombo (LNW): The Sri Lankan Rupee (LKR) has appreciated further against the US Dollar today (01) in comparison to yesterday (30), as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).

Accordingly, the buying price of the US Dollar has dropped to to Rs. 292 from Rs. 293.50, and the selling price to Rs. 301.05 from Rs. 302.56.

The Sri Lankan Rupee also appreciated against other foreign currencies, including Gulf currencies.

SL’s August exports show strong growth, led by key sectors

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By: Isuru Parakrama

October 01, Colombo (LNW): Sri Lanka’s export performance in August 2024 saw notable growth, with merchandise exports rising by 4.18 per cent year-on-year, reaching $1,165.4 million, according to provisional data from Sri Lanka Customs.

This increase was driven by key sectors such as apparel, textiles, tea, rubber-based products, coconut products, and spices. The strong performance was complemented by a 3.1 per cent rise compared to July 2024, showcasing consistent upward momentum.

In addition to merchandise, the services sector performed strongly, with estimated export earnings for August reaching $318.77 million, a 6.49 per cent increase from the same period in 2023.

Overall, combined merchandise and services exports for August 2024 totalled $1,483.13 million, reflecting a 4.67 per cent growth from the previous year.

Tea exports played a crucial role, contributing 12 per cent of merchandise exports. Earnings from tea increased by 9.11 per cent year-on-year to $130.54 million, bolstered by strong sales of bulk tea and tea packets, with notable market growth in Iraq and Iran, where exports surged by 13.35 per cent and 114.41 per cent, respectively.

Rubber and rubber-finished products saw significant growth, with a 29.48 per cent year-on-year increase, bringing in $103.79 million in August.

Coconut-based products also showed remarkable performance, with export earnings rising by 38.3 per cent.

Additionally, activated carbon, derived from coconut shells, saw an impressive 27.93 per cent increase, generating $13.74 million.

Spices and concentrates continued their steady climb, growing by 8.55 per cent in August, with pepper exports experiencing a substantial 31.56 per cent surge.

The country’s ICT sector also saw a considerable boost, with export earnings estimated to have risen by 35.76% to $146.26 million.

For the first eight months of 2024, cumulative merchandise exports increased by 5.37 per cent to $8,440.02 million. Services exports for the same period are expected to have grown by 7.58 per cent to $2,246.77 million, bringing the total combined exports to $10,686.79 million, a 5.82 per cent rise compared to 2023.

The growth in key export sectors has been consistent throughout 2024. Apparel exports rose by 1.28 per cent, tea by 8.26 per cent, rubber products by 11.52 per cent, coconut products by 20.85 per cent, and spices by 3.56 per cent in the first eight months of the year.

Meanwhile, ICT exports are expected to have grown by 17.04 per cent during this period.

However, not all sectors witnessed positive trends. Earnings from electrical and electronic components (EEC) decreased by 16.42 per cent to $282.37 million, reflecting challenges within this sector.

Sri Lanka’s major export markets, including the US, UK, India, Germany, and China, showed positive growth. Exports to India rose by 4.57 per cent in August, driven by higher shipments of pepper and animal feed.

Exports to India and Pakistan collectively accounted for 8.4 per cent of total merchandise exports during this period, highlighting the region’s growing importance to Sri Lanka’s trade landscape.

‘Yukthiya’ only a media show? Police HQ says Operation failed to meet key objectives

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October 01, Colombo (LNW): An internal investigation conducted by the Police Headquarters has revealed that the ‘Yukthiya’ operation, aimed at curbing drug-related activities, has fallen short of its intended goals.

The operation, which was widely publicised, failed to produce a noticeable increase in drug-related arrests compared to previous years, according to senior officers.

Senior police officials have reported to the Acting Inspector General of Police that the operation largely appeared to be a media spectacle rather than a successful law enforcement initiative.

They pointed out that instead of targeting high-level drug dealers, many of the individuals arrested during the operation were people with past involvement in drug trafficking, but who had since moved away from the illegal trade.

This has raised concerns about the validity and fairness of the arrests, with claims that many of those detained were simply drug users rather than key figures in the drug trade.

Further concerns were raised over the inclusion of drugs seized by the Navy during off-shore raids, which were presented as part of the ‘Yukthiya’ operation.

This, according to sources, contributed to a misleading narrative about the success of the initiative.

Additionally, the investigation has highlighted the disruption caused to routine police duties, as officers were redirected to focus on ‘Yukthiya’.

The operation, believed by some to have been politically motivated, diverted significant resources from regular police work, affecting law enforcement activities at local police stations.

In response to the growing concerns, the Acting Inspector General has since returned officers involved in the operation to their standard duties.

Despite the reported shortcomings of ‘Yukthiya’, the Police Headquarters has affirmed that efforts to combat drug trafficking and organised crime remain ongoing in a structured and organised manner.

Meanwhile, both the National Police Commission and the Sri Lanka Human Rights Commission (HRCSL) have received numerous complaints from individuals claiming they were wrongfully arrested during the operation.

These complaints add to the growing scrutiny of the initiative and its impact on citizens.

The ‘Yukthiya’ operation, initially launched with the promise of tackling the underworld drug trade, now faces questions over its execution and effectiveness, casting doubt on the overall strategy employed to address one of Sri Lanka’s most pressing issues.

DFCC Bank pioneers green bonds on CSE, driving sustainable investment

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October 01, Colombo (LNW): In a significant milestone for Sri Lanka’s financial sector, DFCC Bank launched its first Green Bonds on the Colombo Stock Exchange (CSE), marking a major step towards addressing environmental challenges through sustainable finance.

This move allows investors to contribute to the fight against climate change while seeking financial returns, creating a mutually beneficial scenario for both the environment and the market.

Takafumi Kadono, Country Director for Sri Lanka at the Asian Development Bank (ADB), stressed the importance of green financing, highlighting its potential to save significant costs associated with post-disaster recovery.

He pointed out that natural disasters, such as floods, inflict heavy losses on the agricultural sector and other industries, with Sri Lanka spending approximately USD 313 million annually on climate-related disaster mitigation.

Kadono underscored the necessity for businesses to invest in projects that can prevent such climate-induced damage, opening new avenues for corporate investment.

Chairman of the CSE, Dilshan Wijesekera, lauded DFCC Bank for its leadership in entering the green finance space, describing it as a bold move that signals the nation’s commitment to environmental sustainability. He remarked,

“Today, we are not just ringing the bell for a new financial product, we are taking a decisive step towards a greener nation.”

DFCC’s green bond issuance was met with overwhelming investor interest, being oversubscribed, reflecting a strong demand for sustainable and environmentally friendly investment options.

Wijesekera added that the CSE offers numerous fundraising avenues and expressed his optimism that more companies will follow DFCC’s example in exploring green finance initiatives.

On a global scale, sustainable bond issuance surpassed a trillion dollars in 2023, driven by record green bond sales. Sri Lanka’s entry into this growing market aligns it with international efforts to combat climate change and promote environmental responsibility.

The move represents an invaluable opportunity to attract responsible investments that not only enhance the resilience of the capital market but also encourage businesses to innovate and adopt eco-friendly practices.

DFCC Chairman, Jegan Durairatnam, noted that the bank has a long history of introducing pioneering financial solutions, with green bonds being the latest in its line of innovative offerings.

He stressed that the bank’s efforts to promote this product included one-on-one meetings with potential issuers, organising forums and technical workshops, and collaborating with international agencies such as the ADB, IFC, UNDP, and the French Embassy.

Applications for Postal Voting open ahead of General Election

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By: Isuru Parakrama

October 01, Colombo (LNW): Applications for postal voting in Sri Lanka’s upcoming General Election, scheduled for November 14, are now being accepted.

The Election Commission announced that postal voting applications will be open until October 8, offering a week-long window for eligible voters to submit their requests.

This year’s election will use the 2024 certified voter list, which has now been made accessible across all electoral divisions.

To ensure convenience for postal voters, the Commission has arranged for these lists to be displayed at various public locations, including District and Divisional Secretariats, Grama Niladhari offices, and other selected venues.

In addition to being available at these physical locations, postal voting applications can be obtained free of charge from District Election Offices or downloaded from the Election Commission’s official website.

The Commission emphasised the importance of submitting applications on time, noting that all forms must be handed over to the relevant District Returning Officer by the October 8 deadline.

SJB calls for RW’s resignation from UNP leadership as condition for alliance ahead of General Election

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October 01, Colombo (LNW): The Samagi Jana Balawegaya (SJB) has called for the resignation of United National Party (UNP) leader Ranil Wickremesinghe as a key condition for forming an electoral alliance ahead of the upcoming General Election.

Former MP Harshana Rajakaruna stated that the SJB is open to integrating UNP members into its ranks, but only if Wickremesinghe steps down.

Rajakaruna made it clear that UNP members should consider aligning with the SJB rather than staying with the UNP under its current leadership.

“Those still supporting Mr Wickremesinghe can remain in Sirikotha, but we invite the majority of UNPers to join the SJB. We have repeatedly asked Mr Wickremesinghe to resign, but he has yet to do so,” Rajakaruna explained during a briefing.

He also expressed doubts about whether the UNP leadership would be handed over to the SJB even if Wickremesinghe were to step aside.

At the same time, a grassroots movement within the UNP is reportedly gathering momentum, with resolutions in favour of Wickremesinghe continuing as party leader being passed in several districts, including Galle.

UNP Chairman Vajira Abeywardena offered a different perspective, advocating for the formation of a common opposition alliance as the most viable strategy for the General Election.

“Given the current political landscape, uniting opposition parties would be the best course of action. This approach would strengthen our position and provide a unified front for the General Election,” Abeywardena said.

He added that, in light of the main opposition’s prolonged inability to secure power in the last seven decades, a common alliance could offer a new pathway forward.

The UNP is currently exploring the possibility of reaching consensus with other opposition parties to contest as a collective force, and further details are expected to be shared in the coming weeks.

President pledges to restore joyful childhoods, tackle key challenges on World Children’s Day

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By: Isuru Parakrama

October 01, Colombo (LNW): Marking World Children’s Day, President Anura Kumara Dissanayake reaffirmed his government’s commitment to nurturing the well-being of children by addressing the barriers that stifle their growth and happiness.

In a heartfelt message, he expressed the government’s vision to reclaim the carefree and joyful childhood that every child deserves, while also ensuring that harmful social prejudices and the pressures of exam-centric education are tackled head-on.

The President highlighted a range of critical issues affecting children today, including poverty, malnutrition, inadequate healthcare, environmental degradation, and the widening gap in educational opportunities.

He also pointed to the dangers posed by substance abuse and the misuse of technology, both of which can have lasting negative effects on children’s development.

Dissanayake underscored the need to free children from the burdens that hinder their psychosocial development, with a renewed focus on fostering a supportive and enriching environment.

“By nurturing a generation of children who are healthy in both mind and spirit, we will raise compassionate, independent, and imaginative individuals who will contribute to a brighter and more harmonious future,” he said.

The President further outlined the government’s priorities, which include promoting economic stability to uplift families out of poverty, fostering a culture of mutual trust and respect within communities, and protecting the nation’s environmental heritage.

He emphasised the importance of holistic support for children’s development, where kindness, acceptance, and personal freedom are key to shaping well-rounded individuals. In addition, he called for political transformation to ensure these goals are met.

In this new “renaissance era,” as President Dissanayake termed it, the government is committed to not only addressing children’s immediate needs but also cultivating a society that encourages curiosity, creativity, and empathy in the next generation.

Full Statement:

World Children’s Day 2024

The future belongs to our children.

Let’s dedicate ourselves to creating a better world for them.

We have identified several significant challenges facing today’s children, including poverty, malnutrition, inadequate health and sanitation, environmental degradation, educational disparities, social inequalities, and the risks associated with substance abuse and technology misuse.

Our mission in this renaissance era is to free children from harmful prejudices and social effects, and the pressures of exam-focused education, which hinder their psychosocial development. We aim to reclaim the joyful, carefree childhood that every child deserves.

By nurturing a generation of children who are healthy both in mind and spirit, we can foster compassionate, independent, and imaginative individuals who will shape a better future.

To achieve this, we are committed to promoting economic freedom, fostering human kindness, building mutual trust, and encouraging respect and acceptance within society. Additionally, we prioritize the protection of our rich environmental heritage and advocate for necessary political transformation.

This is a shared responsibility for all of us!

Sri Lankans urged to avoid travel to Lebanon and Syria amid regional instability

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By: Isuru Parakrama

October 01, Colombo (LNW): The Ministry of Foreign Affairs has issued an urgent advisory, instructing Sri Lankan citizens to refrain from travelling to Lebanon and Syria due to the escalating conflict in the region.

The directive comes in response to growing volatility, with heightened security risks across both countries.

Sri Lankan nationals currently residing in Lebanon and Syria are being strongly advised to exercise extreme caution, limiting their movements outside and staying in close contact with the Sri Lankan diplomatic missions.

The Foreign Ministry emphasised that individuals should maintain regular communication with the Sri Lankan Embassy in Beirut or the Honorary Consul in Damascus to ensure their safety.

To facilitate emergency assistance, the ministry provided key contact points. In Lebanon, Sri Lankans can reach out to Mr. Sanath Balasuriya and Ms. Priyangi Dissanayake via emergency hotlines, while Dr. Al Droubi, the Honorary Consul in Syria, remains available for immediate assistance.

Email ID:
[email protected]

Hotlines:
0094 771102510 – Mr. Sanath Balasuriya 
0094 718381581 – Ms. Priyangi Dissanayake
00961 81485809 – Mr. Fahd Hawwa 

Honorary Consul of Sri Lanka in Damascus, Dr. Al Droubi: 
Email ID: [email protected] 
Phone: 00963 944499666, 00963 933858803

This travel advisory coincides with an ongoing conflict that has intensified over the past year, following a series of violent clashes between Israel and Hamas militants. What began in Gaza has expanded to other parts of the region, with Israel recently launching significant airstrikes against Hezbollah targets in Lebanon—the largest such strikes in nearly two decades.

The conflict has raised concerns about broader regional instability, affecting nations such as Syria and Lebanon.

Further updates will be provided as the situation develops.

IMF delegation to hold key discussions with SL’s new leadership

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By: Isuru Parakrama

October 01, Colombo (LNW): A high-ranking delegation from the International Monetary Fund (IMF), headed by Krishna Srinivasan, Director of the Asia Pacific Department, is set to visit Colombo from October 02 to 04 this year.

The visit aims to engage with President Anura Kumara Dissanayake and the newly appointed economic team as part of efforts to assess and support Sri Lanka’s ongoing economic reforms.

The IMF delegation will review the country’s economic progress, focusing on the latest developments and the implementation of reforms under the current IMF-backed economic programme.

This programme, designed to address Sri Lanka’s fiscal challenges, emphasises economic stability, restructuring state-owned enterprises, and strengthening anti-corruption measures.

An IMF spokesperson confirmed the visit, stating that the discussions will be pivotal in guiding Sri Lanka’s path to recovery.

The visit is also expected to offer insights into how the country can further stabilise its economy in the aftermath of a significant financial crisis that has impacted its industries, employment, and public services.

The meetings with President Dissanayake and his economic advisors are seen as crucial in ensuring that the economic reform plan remains on track.

It will also allow Sri Lanka’s new leadership to outline their vision for sustainable growth, particularly in light of the global economic downturn and domestic fiscal constraints.

The IMF team is expected to issue a statement at the conclusion of their visit, providing an overview of the outcomes and the next steps for Sri Lanka as it seeks to navigate its way through a fragile economic recovery.

Showers, thundershowers expected to continue across island (Oct 01)

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By: Isuru Parakrama

October 01, Colombo (LNW): Showers or thundershowers will occur over most parts of the Island during the afternoon or night, with fairly heavy showers above 50 mm being expected to occur at some places in Central, Sabaragamuwa, North-western and North-central provinces, the Department of Meteorology said in its daily weather forecast today (01).

Showers may occur in Southern province during the morning too.

The general public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.

Marine Weather:

Condition of Rain:
Showers or thundershowers may occur at several places in the sea areas around the island during the afternoon or night. Showers may occur at several places in the sea areas off the coast extending from Galle to  Pottuvil via Hambantota.
Winds:
Winds will be Southerly or variable in direction in the sea areas around the island and wind speed will be (25-35) kmph.
State of Sea:
The sea areas around the island can be slight to moderate. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.