April 10, Colombo (LNW): Presidential DG (Community Affairs) Rajith Keerthi Thennakoon has provided insights into the Sri Lankan government’s substantial relief efforts to mitigate the impact of the economic crisis, particularly on vulnerable populations. Speaking at a special media statement, Thennakoon outlined the significant expenditures and initiatives undertaken to address the hardships faced by the populace.

In 2023 alone, the government disbursed nearly Rs. 200 billion (approximately USD 1 billion) to provide relief to those affected by the economic downturn. This aid encompassed various forms of assistance, including aids, loans, and allowances under the Samurdhi program, targeting seniors, disabled individuals, patients with kidney disorders, and others in need.

The total expenditure on social welfare initiatives in 2023, including appeals and outstanding payments, amounted to approximately Rs. 189.6 billion. Notably, additional disbursements totaling Rs. 13.7 billion were earmarked following the review of appeals, further aiding impoverished individuals.

Since President Ranil Wickremesinghe assumed office in July 2022, the Samurdhi Development Department has disbursed Rs. 129.93 billion, with substantial allocations for subsidies benefiting the underprivileged. The government has also initiated nutritional schemes for schoolchildren, support initiatives for expectant mothers, and distributed free rice to impoverished families.

Thennakoon emphasized the government’s commitment to eradicating corruption, mismanagement, and bureaucracy in social welfare programs, aiming to establish a transparent and accountable social security framework. Plans are underway to introduce over 30 distinct social security initiatives nationwide, focusing on transparency and accountability.

In support of these relief efforts, the World Bank has extended a loan of USD 200 million, structured for repayment over 30 years, with a grace period of five years. As of March 31, 2024, the total number of beneficiaries under the relief program is projected to reach 1,854,308, highlighting the scope and impact of the government’s relief measures.

Overall, Thennakoon’s statement underscores the government’s concerted efforts to provide essential support to vulnerable populations and alleviate the socioeconomic challenges posed by the economic crisis.

April 10, Colombo (LNW): Prime Minister Dinesh Gunawardena recently announced increased support for elderly artistes in Sri Lanka, aiming to alleviate financial hardships and honor their contributions to culture and the arts. Speaking at a ceremony held at Temple Trees to enroll artistes in the retirement program for aged artists, organized by the Tower Hall Theatre Foundation, the Prime Minister emphasized the importance of recognizing and supporting the country’s veteran artists.

Currently, 102 elderly artistes receive a monthly retirement allowance of Rs. 7,500 under the retirement program. Following discussions led by Prime Minister Gunawardena, who also chairs the Tower Hall Theatre Foundation, the Board of Trustees has decided to raise this allowance to Rs. 10,000 per month. This increase reflects the Foundation’s commitment to improving the well-being of elderly artists amid the economic challenges faced by the country.

Expressing gratitude to the artistes for their invaluable contributions to Sri Lanka’s cultural heritage, Prime Minister Gunawardena assured them of ongoing support and efforts to enhance the retirement program. He acknowledged the sacrifices made by these artists and reaffirmed the government’s respect and appreciation for their dedication to various art forms.

In addition to the increased retirement allowance, the Tower Hall Theatre Foundation annually provides essential goods for New Year celebrations to elderly artistes, a gesture that underscores the Foundation’s commitment to the welfare of these individuals.

The ceremony was attended by Minister Vidura Wickramanayaka, Prime Minister’s Secretary Anura Dissanayake, Cultural Affairs Secretary Somaratne Vidanapathirana, members of the Tower Hall Theatre Foundation’s Board of Trustees, and a host of veteran artistes from across the country. This event not only symbolized the government’s recognition of elderly artistes but also demonstrated its commitment to preserving and promoting Sri Lanka’s rich cultural heritage.

April 10, Colombo (LNW): During a recent Cabinet meeting, consent was granted to President Ranil Wickremesinghe’s proposal to extend admission to local students for the medical degree programme at the General Sir John Kotelawala Defence University (KDU). This decision, announced by Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardhana at the weekly Cabinet media briefing, marks a significant expansion of educational opportunities in the medical field for Sri Lankan students.

Starting this year, local students will have the opportunity to pursue medical studies at KDU based on their ‘Z score’ obtained in the GCE Advanced Level Examination and other relevant qualifications. However, admission will be provided on a payment basis, reflecting the university’s existing model for enrolment.

The General Sir John Kotelawala Defence University, established through the General Sir John Kotelawala State Defence Training Institute (Amendment) Act No. 27 of 1988, has played a vital role in providing education and training to cadet officers for service in the armed forces and police. In 2011, the university expanded its offerings with the establishment of the Faculty of Medicine, primarily to train cadet officers as medical professionals and confer degrees in Medicine and Surgery (MBBS) in alignment with the service requirements of the Armed Services.

Until now, admission to the medical degree programme at KDU has been open to cadet officers and qualified foreign students on a payment basis. With the Cabinet’s recent decision, the university is poised to welcome local students into its medical programme, further enriching the educational landscape and contributing to the development of healthcare professionals in Sri Lanka.

April 10, Colombo (LNW): In a bid to bolster English language education across the nation, the Sri Lankan Cabinet has approved the recruitment of 2,500 English teachers under the ‘English for All’ programme. This decision comes as part of a broader initiative to enhance English language proficiency among students and meet the growing demand for English medium education in schools.

Announcing the Cabinet’s decision, Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardhana revealed that the government aims to address the shortage of English teachers by recruiting additional personnel. Currently, there is a requirement for 6,500 English teachers to teach GCE Ordinary Level (O/L) subjects in English, while only 4,441 teachers have been approved for this purpose.

To bridge this gap, the proposal jointly submitted by President Ranil Wickremesinghe and Education Minister Susil Premajayantha has been endorsed by the Cabinet. The plan entails increasing the number of approved English teachers to 6,500 by the year 2024, targeting the 765 schools where subjects are currently taught in the English medium. Additionally, the recruitment of 2,500 new English teachers will further support this initiative.

The ‘English for All’ programme underscores the government’s commitment to improving English language education nationwide, ensuring that students have access to quality language instruction and enhancing their opportunities for academic and professional success.

April 10, Colombo (LNW): Several spells of showers will occur in Eastern province and in Hambanthota district. Showers or thundershowers may occur at a few places in Western and Sabaragamuwa provinces and in Galle and Matara districts after 2.00 p.m.

Misty conditions can be expected at some places in Western, Central and Sabaragamuwa provinces and in Galle and Matara districts during the morning.

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

On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka during 05th to 15th of April in this year. The nearest areas of Sri Lanka over which the sun is overhead today (10^th) are Tambuttegama, Medirigiriya, Ihala Puliyankulama, Rajanganaya, Eppawala, Vakarai at about 12:11 noon.

By: Staff Writer

April 09, Colombo (LNW): The government announced that it has been successful in settling a total of US$1.9 billion (US$ 1909.7) million in foreign debt and interest payments within a time-frame of about 19 months although Sri Lanka has defaulted. US$ 6 billion starting from April 2022.

United Republican Front (URF) leader Patali Champika Ranawaka said Sri Lanka defaulted on a payment of $ 6 billion starting from April 2022 when the country announced bankruptcy.

He said this was the reality though the Central Bank data show the increase of foreign reserves to $ 5 billion.

“While CBSL data shows Sri Lanka’s foreign reserves reaching $5 billion, it is imperative to understand that from April 2022, the sum of defaulted debt is approximately $ 6 billion. The sum of loans obtained since the default from the World Bank, ADB, and IMF is $3 billion,” he posted on X.

From 21 July 2022, to February 2024, the government has disbursed US$ 1.34 bilion ($1338.8 million) in multilateral loans and interest, with no outstanding arrears in loan installments or interest payments, President’s Office Community Affairs Director General Rajith Keerthi Tennakone said.

Addressing a press conference, he shared that according to the Department of External Resources data, payments totaling US$ 760.1 million have been made to the Asian Development Bank (ADB) and US$ 7.0 million to the Asian Infrastructure Investment Bank.

Additionally, payments of US$ 22.3 million have been made to the European Investment Bank, US$ 17.9 million to the International Fund for Agricultural Development, and US$ 9.8 million to the EFF 23-26 programme of the International Monetary Fund (IMF).

Furthermore, US$ 1.7 million has been disbursed to the Nordic Development Fund, US$ 29.9 million to the OPEC Fund for International Development, and US$ 489.9 million to the World Bank (WB).

The government’s total payment for loans and interest amount to US$ 1,338.8 million. “It is noteworthy that the ADB, the International Monetary Fund (IMF), and the World Bank (WB) have extended further financial support to the government due to its commendable track record in debt repayment,” said Tennakone.

He pointed out that negotiations are underway with relevant states and institutions to finalise agreements on the repayment of bilateral loans and interest, which currently stand at US$ 571.0 million.

Additionally, preliminary agreements have been reached concerning debt and interest payments, involving members of the Paris Club, with outstanding interest to be settled by the end of February 2024 amounting to US$ 450.7 million.

By: Staff Writer

April 09, Colombo (LNW): The government will reconsider through a committee the criteria considered in the selection of beneficiaries for the Aswesuma Social Welfare Programme, Welfare Benefits Board sources said.

Selected families are provided with monthly allowances varying from Rs. 2,500 to Rs. 15,000 under the Aswesuma Programme, which was launched last year.

All necessary arrangements have been made to extend benefits to 2.4 million family units starting from June 2024, he disclosed. .

Sri Lanka’s existing Samurdhi programme is to continue its broader mandate of lifting people out of poverty while the new Aswesuma scheme will concern itself with direct cash transfers to deserving people without the involvement of a third party, State Minister of Finance Shehan Semasinghe said

Additionally, Minister Semasinghe noted that approximately 7,000 individuals who were found to have received benefits based on false information have been removed from the program due to appeals and objections.

The Minister of State for Finance provided further details, stating that initially, 3.4 million family units were certified for the program’s first phase. Out of this, 1.9 million families have been deemed eligible to receive benefits.

Following the assessment of appeals and objections received, the Welfare Benefit Board is prepared to commence payments to the selected beneficiaries from July 2024.

Sri Lanka’s poverty rates continued to rise for the fourth year in a row, with an estimated 25.9% or 5.68 million of Sri Lankans living below the poverty line in 2023 with households grappling with high cost of living. World Bank’s country update report observed.

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.

The World Bank report notes: “Households have been impoverished by a fall in their purchasing power due to high inflation, losses in wages, income and employment, and a drop in remittances.”

Approximately 60 percent of Sri Lankan households, it states, have decreased incomes, with many facing increased food insecurity, malnutrition and stunted growth. The persistence of this wide-scale social devastation and misery, however, is a direct result of the IMF’s brutal social attacks.

The report indicates that labour market trends in Sri Lanka have been affected by widespread closures of micro-, small- and medium-enterprises. In the third quarter of 2023, the labour force participation rate in the urban sector dropped to 45.2 percent, down from 52.3 percent in 2019.

Youth unemployment, especially young adults (aged from 25–29), rose to 17.7 percent between the second and third quarters of 2023.

By: Staff Writer

April 09, Colombo (LNW): Sri Lanka initiated the second review under the IMF’s Extended Fund Facility (EFF) framework, signifying a crucial step forward in ongoing efforts to foster economic growth – and the authorities remain optimistic about concluding the review successfully and securing a staff-level agreement, which would facilitate accessing the third tranche.

In December, the International Monetary Fund approved the disbursement of US$ 337 million following the initial review of the EFF with a pledge to implement debt restricting agreements with official creditors.

In parallel, President Ranil Wickremesinghe outlined the government’s expectation of securing a debt moratorium from 2023 to 2027 – and resume debt repayments between 2027 and 2042 – with further restructuring anticipated to reduce annual external debt payments to four percent of GDP.

It’s been nine months since the LMD-PEPPERCUBE Business Confidence Index (BCI) surpassed the 90 point mark. In March, the barometer recorded a healthy 12 basis point rise to 93, though it remains substantially below its all-time average of 123.

The March score mirrors that of July last year when the BCI stood at 93.PepperCube Consultants attributes the good news to the business community’s “acclimatisation to the prevailing economic climate post the value added tax (VAT) hike.”

It asserts that corporate optimism over the economy and anticipation of maintaining sales volumes over the next 12 months has fuelled the surge in business confidence, although “inflation and high interest rates – not to mention the business unfriendly tax regime – continue to be key challenges faced by the business community.

” PepperCube also notes the “interest in increasing the workforce in the corporate sector, which has recorded an improvement from January and February.”

The reality however, is that on both the internal and external fronts, sensitivities continue to abound.

Here at home, the cost of doing business continues to be high and the recent tax increases are having a telling effect on businesses.

On the global front, the twin wars in Ukraine and Gaza continue to raise the prospect of even higher import prices (for example, oil) and a hard rather than soft landing for the world economy could be on the cards in the medium term.

Contrary to the assertion in the February edition of LMD, suggesting that “the BCI is unlikely to gain any substantial ground at least until there’s clarity on the timing and conduct of one or more elections this year,” the pendulum has thankfully swung in the right direction.

And as PepperCube notes, “as election fever sweeps the nation, politics and the political culture continue to cause anxiety [in business circles] although they’re overshadowed by economic concerns…”

Accordingly, the trajectory of the index in the next six months or so remains uncertain, given the prospect of political turmoil ahead of elections – as we know, political instability in any shape or form will hurt the economy.

By: Staff Writer

April 09, Colombo (LNW): Sri Lanka’s foreign remittances have long been characterised as resilient flows of capital that provide financial relief to migrant households and their incomes during downturns, crises and other periods of hardship.

The stability of Sri Lanka’s remittance economy during the the COVID-19 pandemic and economic crisis seemingly confirmed the resilience narrative, but subsequent and persistent declines in migrant income transfers

Around 75,000 Sri Lankans have left their country for overseas jobs in the first three months of 2024, the Sri Lanka Bureau of Foreign Employment (SLBFE) said.

The SLBFE noted that 74,499 Sri Lankan workers have left the South Asian country to seek jobs abroad, with 46 percent of them being women.

This is a slight drop from the figure recorded for the first quarter in 2023, at 76,025 people, said the bureau.

The SLBFE said that in recent months, the Sri Lankan workers mostly tried to find jobs in countries like South Korea, Israel and Japan.

Labor and Foreign Employment Minister Manusha Nanayakkara revealed a significant surge in remittances sent by foreign workers to Sri Lanka during the first quarter of this year.

The total amount reached approximately 1.53 billion dollars, marking an 8.7 percent increase compared to the previous year.

In March alone, Sri Lankan expatriates contributed 572.4 million dollars to the country’s economy.

Since assuming office in May 2022, Minister Nanayakkara has overseen a substantial influx of remittances, totaling 10,263.8 million US dollars.

The Ministry of Labor and Foreign Employment has actively facilitated legal channels for expatriate workers to remit funds to Sri Lanka through the banking system.

Several initiatives have been implemented for the benefit of expatriate workers, including house maids working in the Middle East:

These are Electric Vehicle Import Licenses. Manusavi Pension Scheme. Multi-purpose Loan Scheme, Hope Gate: A dedicated portal at the airport for expatriate workers.

These measures collectively aim to enhance the inflow of foreign remittances and contribute to Sri Lanka’s economic growth.

Sri Lanka’s worker remittances through official channels grew 0.72 percent to 572.4 million US dollars, from 468.3 million US dollars a year ago, data from the central bank show. Remittances were up from 476.2 million in February 2024.

Related Sri Lankans migrating for foreign employment drops 4.2-pct in 2023 Sri Lanka’s remittances dropped to around 275 million US dollars in 2022 as money was printed to mis-target rates creating forex shortages driving foreign exchange into unofficial channels.

Monetary stability was restored in the last quarter of 2022, improving the credibility of the exchange rate. Monthly remittances have been above 475 million US dollars from May 2023

Remittances generally rise in March ahead of traditional New Year holidays and also in December.

By: Staff Writer

April 08, Colombo (LNW): Chamber of Marine Industries is planning a new course in the nation’s maritime journey, uniting industry leaders, experts, and visionaries

This objective of the chamber was transpired at its Annual General Meeting (AGM) in which Indhra Kaushal Rajapaksa, a seasoned industry stalwart, assumed the mantle of Chairman for the term 2024-2025.

In the New Year, the Chamber aims to propel the Recreational Boating industry forward by promoting boating as a lifestyle.

This shift in perspective will invigorate the sector and engage enthusiasts. Improvement and sharing facilities of Fisheries Harbours for Tourism: Collaborating with the Ceylon Fishery Harbour Corporation, the Chamber plans to improve and share facilities of Fisheries Harbors for Tourism.

This improvement not only enhances tourism but also contributes significantly to the country’s USD income. Uplifting Communities: Water-based activities lie at the heart of the Chamber’s vision.

Initiatives like the Mirissa Mini Marina and the Port City mini marina (operated by Solar Impulse Ltd). Efforts continue to enhance fishery harbors for tourism until full-fledged marinas emerge, uplifting coastal communities. Sri Lanka:

A Premier Marine Tourism Destination: Facilitating easy entry and exit for tourists, the Chamber positions Sri Lanka as a premier marine tourism hub.

The island’s pristine waters and vibrant culture beckon travelers seeking nautical adventures. 700+ Yachts/Boats by 2034:

Ambitious plans are underway to manufacture and utilise over 700 yachts and boats within the next decade. Local boat manufacturers play a pivotal role in this endeavor, as Sri Lanka aims to become a hub for marine craftsmanship and innovation.

Promoting Offshore and Marine services: Sri Lanka with its strategic location is a natural attraction to the Marine & Offshore services market.

Blessed with the world’s 2nd largest natural deepwater port, ‘Trincomalee’ and man-built deepwater port ‘Hambantota International Port’ in the southern tip of Sri Lanka, this segment is targeted for development. Initiatives to be taken to protect and mitigate Ocean pollution.

With clear focus and coordinated efforts, the Chamber will implement initiatives contributing significantly to safeguard Sri Lanka’s oceans and marine ecosystems.

Brand Building and Value Creation – a range of activities are planned ranging from organizing boat shows and industry-specific conferences to showcase Sri Lanka’s boat-building capabilities and leveraging Sri Lanka’s strategic location, natural harbors, and cost advantages.

The prime focus will be to position Sri Lanka as a preferred destination for boat manufacturing and related services and promote the country’s boat-building heritage with its potential for growth in the leisure and commercial sectors.