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IMF Urges Sri Lanka to Safeguard Economic Gains amid Ongoing Reforms and upcoming elections

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By: Staff Writer

September 17, Colombo (LNW): The International Monetary Fund (IMF) has acknowledged Sri Lanka’s significant strides in economic recovery but warns that the nation remains fragile and must continue to safeguard its progress. According to the President’s Media Division, the IMF stressed that while achievements have been made, the country still faces challenges.

Julie Kozack, Director of the IMF Communications Department, highlighted the importance of ongoing reforms, particularly with the presidential elections approaching.

She affirmed that the future of Sri Lanka’s political leadership is in the hands of its citizens but emphasized that meeting the objectives of the IMF’s program is crucial for the country to fully recover from its severe economic crisis. “Progress has been made, but the country is not out of the woods yet,” Kozack noted.

Kozack pointed to several key achievements under the IMF’s Extended Fund Facility (EFF) program, which included the IMF’s approval of the 2024 Article IV Consultation and the Second Review of the EFF in June, unlocking $336 million in funding for the country.

Positive trends such as economic growth recovery, subsiding inflation, increasing international reserves, and improved revenue collection were also highlighted as outcomes of the program.

However, despite these advancements, Kozack expressed concerns about Sri Lanka’s vulnerability to economic risks, underscoring the importance of maintaining reform momentum.

On the topic of debt restructuring, Kozack addressed questions regarding private creditors’ proposals. She noted that Sri Lanka had made progress by restructuring domestic debt and securing agreements with the official creditor committee and the Export-Import (EXIM) Bank of China.

However, she clarified that the IMF does not directly negotiate between Sri Lanka and its creditors but provides an overall debt sustainability assessment.

The timing of the IMF’s Third Review of Sri Lanka’s program will depend on the results of the presidential elections. Kozack confirmed that discussions with the government would resume after the elections, once a new administration is in place.

Kozack further reiterated the IMF’s support for Sri Lanka’s reforms and emphasized the need to preserve the hard-earned achievements.

The next program review is scheduled for mid-October, but any further talks will only happen once the election results are determined.

She also addressed speculation about revisiting the Debt Sustainability Assessment (DSA), confirming that these discussions will occur after the elections.

She concluded by noting that while the IMF’s role remains advisory and financial, critical milestones such as domestic debt restructuring and agreements with key creditors mark significant steps in Sri Lanka’s recovery efforts.

Port City Colombo promotes Foreign Investments in Strategic Partnerships especially with Qatar

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By: Staff Writer

September 17, Colombo (LNW): Port City Colombo is making significant strides in attracting high-value investments, particularly focusing on the South Asian, APAC, and Middle Eastern regions, with a special emphasis on Qatar, as the project intensifies its efforts to secure land development and business set-up deals before the end of 2024.

The project has already made headway, with 41 companies registered as Authorised Persons (APs) under the Colombo Port City Economic Commission. Furthermore, over half (52%) of the Marina District, which includes South Asia’s first luxury yacht marina and a five-star hotel, has secured investments.

Some of the prominent international and local companies onboard include Asiri Port City Hospital, TIQRI, CODEGEN INNOVATIONS, 99x Technology, IVIVAPTE, Echelon Trade, and Port City BPO, all designated as Businesses of Strategic Importance.

In a bid to enhance investment ties with Qatar, a high-level delegation from Port City Colombo, led by General Manager Tian Zheng and Senior Manager Asiri Peramunegegama, visited Doha from September 3 to 5, 2024.

The visit, facilitated by the Embassy of Sri Lanka in Doha and the Qatar-Sri Lanka Business Council (QSBC), aimed to promote investment opportunities within Port City Colombo, positioning it as a hub for commerce, finance, and tourism.

The delegation held key discussions with leading real estate companies in Qatar, exploring potential partnerships and investments in diverse sectors. Ambassador Mohamed Mafaz Mohideen underscored the importance of strengthening economic ties between Sri Lanka and Qatar, while QSBC President John Prasad highlighted Port City’s competitive advantages.

Prasad emphasized that Port City offers businesses direct access to European, Asian, and global markets at competitive costs. QSBC invited real estate investors to explore opportunities in developing hotels, luxury villas, residential complexes, and high-rise commercial towers within Port City.

The discussions also provided a platform to exchange insights on the investment prospects in Port City Colombo, contributing to Sri Lanka’s goal of attracting global investors and building a future-ready business ecosystem.

Currently, over 20 additional prospective investors are in the pipeline to become registered as APs, signaling growing confidence in Port City Colombo’s potential as a leading regional investment destination.

Located within the Colombo Port City Special Economic Zone, the project offers a low-risk financial environment, ensuring ease of business operations for international investors while remaining shielded from Sri Lanka’s domestic macroeconomic challenges. Port City Colombo is an FDI hotspot, offering a liveable master-planned city with a thriving commercial ecosystem.

 The project allows transactions in 16 international currencies, with no capital or exchange controls, 100% foreign ownership, and fiscal incentives extending for more than 25 years.

Investors have two primary avenues for investment: land development, which includes residential and commercial property projects, and busin

ess set-up opportunities in sectors such as IT, financial services, hospitality, logistics, and more. To operate within the Colombo Port City Special Economic Zone, businesses must qualify as Authorised Persons, recognized by the Colombo Port City Economic Commission.Port City Colombo is poised to drive Sri Lanka’s transformation into a global investment hub, modeling its development after successful international economic zones like Dubai and Singapore.

Sri Lanka implements a five year Plan for Economic Growth and Social Welfare

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By: Staff Writer

September 17, Colombo (LNW): As Sri Lanka approaches its 2024 presidential election, scheduled in six days, the focus is on the nation’s future under the leadership of its next president. Political analysts expect significant shifts and defections among political parties ahead of the election. With just five days left before the election, a strategic five-year plan for Sri Lanka’s economic and social development has been revealed.

The plan aims to address critical national issues such as reducing the cost of living, stimulating job creation, cutting taxes, and fostering economic growth. Two key social welfare programs, Aswesuma and Urumaya, have been highlighted as integral to supporting financially vulnerable populations. The government seeks to ensure that these programs enable the country’s progress to benefit all Sri Lankans, with particular focus on the most disadvantaged groups.

Central to the plan is the goal of lowering the cost of living. This will be achieved by eliminating taxes on essential items and boosting local production to make basic goods more affordable for families. By focusing on self-reliance, the plan hopes to reduce dependence on imports, whose prices are susceptible to fluctuations in global markets. However, strategic imports will still be necessary to stabilize prices and prevent shortages.

Tax reforms form another key component of the strategy. Significant tax relief is proposed, particularly aimed at reducing indirect taxes, which often disproportionately affect ordinary citizens. This move is expected to increase disposable income and boost economic activity. A clear timeline for implementing these tax cuts has been established, with indirect tax reductions and tax-free incentives for professionals set to roll out over the next two years.

Job creation is also a major focus, with the government planning to attract new industries and businesses to Sri Lanka. Small businesses and startups, seen as key drivers of growth, will receive significant support. Skill development and training initiatives are planned to ensure that Sri Lankans are prepared for the new opportunities in the job market, enhancing their earning potential.

Alongside these economic measures, the plan emphasizes the importance of healthcare, education, and skill development. These sectors are seen as vital in creating a healthy and educated workforce, which will be crucial for the country’s long-term prosperity.

The expansion of welfare initiatives like Urumaya and Aswesuma aims to reduce poverty and inequality, contributing to a more equitable society. These programs are expected to broaden their reach, providing greater financial assistance to those most in need.

 In summary, Sri Lanka’s five-year plan lays out a vision for economic growth and social welfare, aiming to create a stable and inclusive future for the country. Through tax reforms, local production, job creation, and strategic social programs, the plan strives to uplift the nation while ensuring that progress benefits all citizens.

Private Sector minimum wage raised to Rs. 21,000 amid rising cost of living

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September 21, Colombo (LNW): The minimum basic salary for private sector employees in Sri Lanka has been raised to Rs. 21,000, starting this month.

This change follows the recent passage of an amendment in Parliament, signed into law by Speaker Mahinda Yapa Abeywardena.

The Labour and Foreign Employment Ministry issued a statement detailing the new wage structure and its implications for both employers and employees.

According to the Ministry, the updated minimum wage must now be factored into the calculation of key employee benefits, including the Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), and gratuity payments.

Private sector employers are now obligated to ensure that workers receive a minimum national monthly salary of Rs. 21,000.

This figure comprises a basic monthly wage of Rs. 17,500 and additional allowances totalling Rs. 3,500, as specified under the Budgetary Relief Allowances Acts of 2005 and 2016.

The journey to this wage adjustment reflects the evolving economic landscape in Sri Lanka. The National Minimum Wage Act No. 03 of 2016 initially set a national minimum wage of Rs. 10,000 per month for all private sector employees from January 1, 2016, with a daily wage of Rs. 400 for those on daily pay.

In 2021, amidst the economic downturn, the minimum wage was revised to Rs. 12,500 per month and Rs. 500 per day, effective from August of that year.

However, rising inflation and the cost of living have since put pressure on wages, leaving private sector salaries unchanged since the 2021 amendment.

This stagnation prompted extensive discussions at the National Labour Advisory Council, where the need for an increase became a focal point.

Following these deliberations, a proposal was put forward to raise the national minimum wage by Rs. 5,000—from Rs. 12,500 to Rs. 17,500—and to increase the daily wage by Rs. 200, bringing it from Rs. 500 to Rs. 700.

Subsequently, an amendment to the National Minimum Wage Act was drafted and presented to Parliament, gaining approval on September 3, 2024. With the Speaker’s signature, this legislative change has now come into force.

ITAK Leader officially endorses SJB Presidential Candidate amid dual engagements in support meetings

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September 17, Colombo (LNW): Mavai Senathirajah, the leader of the Ilankai Tamil Arasu Kachchi (ITAK), has officially endorsed Sajith Premadasa of the Samagi Jana Balavegaya in the forthcoming presidential election.

This announcement comes as a surprise turn of events given the ITAK leader’s earlier stance on the matter and was made public earlier yesterday (16), signalling ITAK’s position in the political landscape ahead of the vote.

Interestingly, within hours of this declaration, Senathirajah also made an appearance at a public meeting in Kilinochchi, an event organised to show support for the Tamil Common Candidate, P. Arianethran.

This dual engagement underscores the complex dynamics within the Tamil political community, which continues to navigate its alliances amid the election season.

The ITAK’s six-member committee, responsible for scrutinising the election manifestos of various candidates, had convened in Vavuniya the previous day. The meeting, chaired by Senathirajah, included several prominent members of the party, such as Parliamentarians S. Sreedharan, President’s Counsel MA Sumanthiran, Party General Secretary P. Sathyalingam, Senior Deputy Leader CVK Sivagnanam, and former Batticaloa Mayor, Thyagaraja Saravanabavan.

During this session, Senathirajah reiterated the party’s central committee decision to support Premadasa, urging the electorate to unite behind him in the election slated for September 21.

He emphasised the importance of solidarity amongst voters to tackle the critical challenges facing the Tamil community, highlighting this endorsement as a strategic move to address these pressing issues.

Despite his clear support for Premadasa, Senathirajah’s presence at the Kilinochchi gathering suggested a nuanced stance. He articulated his commitment to the broader ideals of unity and self-determination.

“Regardless of the decisions we have made, risking our lives for our freedom, I felt it was essential to attend this public meeting and work collaboratively for the freedom I spoke of,” Senathirajah remarked, reflecting his enduring dedication to Tamil unity.

Postal Dept completes 97% distribution of Polling Cards for Election

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September 17, Colombo (LNW): The Postal Department has announced that approximately 97 per cent of official polling cards for the upcoming 2024 presidential election have been successfully distributed.

Deputy Postmaster General Rajitha Ranasinghe confirmed that the distribution process, which began on September 03, concluded on September 14, ensuring that most eligible voters have received their cards well in advance of the election date.

However, for those who have yet to receive their polling cards, the department has made provisions to address this issue. Voters who haven’t received their cards are advised to visit their local post office starting September 18.

By presenting their National Identity Card (NIC), they can verify their identity and obtain their polling card in person.

This arrangement is designed to accommodate any remaining voters and ensure no one is left without the necessary documentation to cast their vote.

Election Commission sets up hotline for reporting Election Law violations

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September 17, Colombo (LNW): In a bid to ensure transparency and fairness in the upcoming presidential election, the Election Commission’s Dispute Resolution Unit has introduced a series of dedicated telephone numbers for the public to report any violations of election laws or related disputes.

These hotlines are part of an effort to maintain the integrity of the electoral process and ensure that the polling on Saturday (21) is conducted without any illegal interference.

The Election Commission is encouraging citizens to use these lines to report any suspicious or unlawful activities they may witness during the voting process.

Whether it’s instances of voter intimidation, improper campaigning, or any other breach of election regulations, the public can now directly inform the authorities.

By providing these hotlines, the Commission seeks to empower voters and uphold democratic values, fostering a secure and transparent environment for the election.

The specialised unit has been established at the General Election Secretariat in Rajagiriya, and its staff are prepared to respond to calls from the public promptly.

This initiative also aims to reassure voters that their right to participate in a fair electoral process is being actively protected.

By establishing a direct communication channel, the Election Commission provides a means for citizens to engage in safeguarding the democratic process.

Six teachers, including principal, seized over alleged leak of Grade 5 Scholarship Exam Paper

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September 17, Colombo (LNW): Six teachers, including a school principal, have been detained by the Department of Examinations in Sri Lanka following allegations of leaking the Grade 5 Scholarship Examination paper.

This incident has sparked concerns over the integrity of the examination process, which is a crucial academic milestone for young students.

One of the teachers, who was assigned to examination duty, allegedly took photographs of the first question paper just ten minutes before the exam commenced on Sunday, 15th September, a report by Lankadeepa newspaper disclosed.

These images were then reportedly forwarded to several other teachers, indicating a potential breach of the examination’s security protocols.

The implicated teachers, who are employed at schools in the Anuradhapura and Nochchiyagama regions, have been taken into custody by the Examinations Department.

Authorities have also seized their mobile devices as part of the ongoing investigation.

In addition to questioning the detained individuals, officials are conducting a broader inquiry to ascertain whether the exam paper was circulated on social media before the examination began.

This aspect of the investigation aims to determine the extent of the leak and whether it had a wider impact on the fairness of the test.

If the paper was indeed distributed online, it could imply a larger network of individuals involved in the malpractice, raising serious concerns about the safeguards currently in place to protect examination integrity.

Former SL Rugby President highlights unity and sportsmanship amid rivalry in School Rugby Final

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September 17, Colombo (LNW): We thought of extracting the note that Rizly illyas, a former president of Sri Lanka Rugby, left with the photo here, because of the facts of human love in it.

Beautiful knots without splits

He recent rugby knockout final between two prestigious schools ended not only with a thrilling match but also a powerful display of sportsmanship. One team emerged victorious, while the other experienced defeat. Yet, what stood out was the attitude of two boys from opposing sides who, after the intense competition, showcased the essence of being humble in victory and gracious in defeat. Their actions on the field were a refreshing reminder of how sports can unite, even amid rivalry.

Having had the privilege of attending both schools, and growing up within the cultural frameworks of Buddhism, Christianity, and Islam, I witnessed how these environments shaped me. However, I’ve seen anger, animosity, and divisive sentiments in alumni group chats, particularly in the rugby circles. While it’s easy to assume this hostility is bred at home, it’s clear that the broader political and social culture of division has infiltrated even the sports world.

The attached photo of the two boys tells a different story, a story of hope. It prompts us to step back, reflect, and reassess the way we engage with each other. Sports should foster respect and unity, not fuel division. As alumni (OBA), it’s our responsibility to bring back that respectability, not just to rugby, but to all aspects of life.

With over 34 years in the sport, I’ve seen both the good and the bad. But moments like these remind me that the beauty of the game lies not just in winning or losing, but in how we treat each other, both on and off the field. Let’s remember that, in rugby and in life, humility and grace go a long way.

Police warn against misleading circulation of outdated video footage on Social Media

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September 17, Colombo (LNW): The Sri Lanka Police have issued a stern warning about the re-circulation of old video footage on social media, cautioning that these outdated clips are being falsely portrayed as recent events.

Authorities are concerned that this misleading content has the potential to create public unrest and compromise national security.

According to the police, certain videos—such as those depicting vehicle inspections near Katunayake Airport and scenes captured during past curfew periods—are being reshared on social platforms, giving the impression that these incidents are currently unfolding.

By presenting historical events as new occurrences, these videos risk causing unnecessary alarm and confusion among the public.

The police emphasise that the dissemination of such misleading information can have serious consequences, including the disruption of peace and public order.

In light of the upcoming electoral period, where tensions can already be heightened, the spread of false information poses an even greater risk to national stability.

Authorities are therefore urging citizens to exercise caution and verify the authenticity of content before sharing it online.

In their statement, the police highlighted the need for responsible use of social media. They reminded the public that the reckless sharing of outdated or manipulated footage not only spreads misinformation but also fosters an environment of fear and uncertainty.

This behaviour could lead to misunderstandings, unnecessary panic, and could potentially incite unrest in various communities.

To counter these issues, the Sri Lanka Police have warned that they will take legal action against individuals who are found to be deliberately spreading such misleading content.

This measure is aimed at curbing the spread of false information and ensuring that social media does not become a tool for creating discord.