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Key Market Lending Rate reaches two-year low, reflecting ongoing descent

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April 22, Colombo (LNW): The market’s pivotal lending rate, closely monitored for its influence on a spectrum of loans from small businesses to mortgages, has reached a two-year low, sustaining its downward trajectory, a report by Daily Mirror disclosed.

Last week, the average prime lending rate, indicating the rate at which banks lend to their most creditworthy clients for short terms, experienced a decline of 22 basis points, settling at 10.41 per cent.

This marks a significant decrease from its level of 9.85 per cent observed on April 1, 2022, just before the Central Bank of Sri Lanka (CBSL) implemented a substantial interest rate hike of 700 basis points to curb inflation.

Both government securities yields and market lending rates have been on a downward trend over the past ten months, following the Central Bank’s decision to initiate rate cuts for the first time in June of the previous year.

The prime rate had reached its peak at 29.67 per cent in November 2022 amidst notably tight monetary policy measures.

Furthermore, Treasury bill yields also saw a decrease last week across all three maturities, hovering slightly above 10.0 per cent, closely aligning with prevailing policy rates.

In late March, the Central Bank reduced its key policy rates by 50 basis points to 8.50 per cent and 9.50 per cent levels, citing subdued inflation.

However, concerns arose regarding the influx of funds into the real economy.

Despite a pickup in private sector credit, the pace of growth fell short of expectations, prompting calls for banks to swiftly and adequately adjust their lending rates to reflect the easing monetary policy.

The current lending rates are anticipated to provide support for the economy, fostering an acceleration in recovery as individuals and businesses seek financing for consumption, growth, and investment.

Sri Lanka stands at the brink of a new credit cycle, with banks poised to disburse a potentially record-breaking amount of credit in the coming months.

This influx could bolster individual incomes, partially restoring the purchasing power eroded during the heightened inflationary period of 2022 and most of 2023.

President announces progress in land rights programme for plantation communities

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April 22, Colombo (LNW): President Ranil Wickremesinghe has provided an update on the ongoing initiative to grant free land rights to 2 million individuals, alongside efforts to allocate ownership of 50,000 flats in Colombo to plantation communities.

Emphasising the government’s commitment to improving the living conditions of plantation residents, the Sri Lankan President highlighted the significance of providing land rights to these communities.

He underscored the need for unity across political lines to ensure the success of such endeavours, thereby suggesting that political divisions could impede national progress.

In his address, Wickremesinghe urged stakeholders to set aside partisan interests and collaborate towards shared goals.

Additionally, the President expressed plans to introduce comprehensive development programs for the Uva region, further reassuring the government’s commitment to regional growth and prosperity.

Verité Research report highlights persistent fiscal challenges facing SL

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April 22, Colombo (LNW): Sri Lanka grapples with enduring fiscal hurdles, “State of the Budget Report 2024”, a recent report issued by local economic think tank Verité Research disclosed.

This annual analysis provides a comprehensive examination of the nation’s fiscal landscape, offering valuable insights for informed decision-making in budgetary matters.

Verité Research’s findings reveal a recurring pattern of shortfall in tax revenue, with the government consistently falling short of revenue targets for the past 33 years.

Despite an optimistic projection of Rs. 4,164 billion for 2024 – reflecting a substantial increase from the previous year – the report projects a more conservative estimate of Rs. 3,570 billion, highlighting a projected 14 per cent deficit.

A significant portion of this shortfall, particularly in Value Added Tax (VAT) revenue, underscores the need for more accurate fiscal planning methodologies.

The report identifies overestimations in various revenue streams, including corporate and personal income taxes, Social Security Contribution Levy (SSCL), and Customs import duty.

Compounding these challenges is Sri Lanka’s soaring interest-cost-to-revenue ratio, ranked as the highest globally.

Despite government efforts to reduce this ratio to 64 per cent, projections suggest it may exceed 70 per cent, posing obstacles to economic recovery and debt sustainability.

Such discrepancies not only hinder progress but also raise concerns about Sri Lanka’s adherence to its IMF-backed economic recovery plan.

In light of the Verité findings, the “State of the Budget Report 2024” serves as a vital resource for policymakers, economists, and stakeholders, offering a candid assessment of Sri Lanka’s fiscal predicament.

Addressing these challenges demands concerted efforts to enhance revenue collection mechanisms, improve forecasting accuracy, and pursue prudent fiscal policies to foster sustainable economic growth and stability.

Junior athletes head to Dubai to conquer Asia

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April 22, Colombo (LNW): The 21st Asian Junior Athletics Championships will be held in Dubai from April 24 to 27.

The qualified Sri Lankan athletics team posed for a group photo before leaving Sri Lanka.

Back row left to right: Tharushi Abhiseka, Maheema Pravindi, Jithma wijethunga, Charuni pramudhika, Hasindu Nethsara, Takahima Nuhansa
Middle row left to right: Dineth weerarathna, Malith K. Thamel, Shashintha Silva, Ayomal Akalanka, Tharusha Mendis, R.I. Vidhushan, Dineth Anuhas, Jathya Kirulu, Avishka Rajapaksha
Front row left to right: Merone Wijesinghe (Team Captain – Men), K.G Bhadra Gunawardana (Head Coach), Saman Kumara Gunawardana – Secretary General of Sri Lanka Athletics, Major Gen. Palitha Fernando – President, Sri Lanka Athletics, Indika Prasanna – Team Manager, Nipuna Nirmal (Coach), Nadeepa Thilakarathna (Lady Chaperon), Madhushani Herath (Team Captain -Women)

US and SL Naval Forces to conduct CARAT 2024 Exercise in Trincomalee

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April 22, Colombo (LNW): The United States Navy, U.S. Marine Corps, and Sri Lanka Navy are set to collaborate in the Cooperation Afloat Readiness and Training (CARAT) Sri Lanka 2024 exercise, scheduled to take place from April 22-26 in Trincomalee.

According to the U.S. Embassy in Colombo, CARAT Sri Lanka will witness the participation of the U.S. Fleet Anti-Terrorism Security Team (FAST) alongside their Sri Lanka Navy Marine counterparts.

This exercise aims to enhance naval capabilities through joint training sessions covering various aspects of maritime security and anti-terrorism operations.

A key highlight of CARAT Sri Lanka 2024 is the Women, Peace, and Security Symposium scheduled for April 24, emphasising the crucial role of women in peacekeeping efforts and conflict resolution.

Approximately 70 U.S. personnel will collaborate with their Sri Lankan military counterparts during this bilateral maritime exercise, showcasing the strong partnership between the United States and Sri Lanka in maintaining a free and open Indo-Pacific.

U.S. Ambassador to Sri Lanka Julie Chung emphasised the significance of CARAT, describing it as the most substantial bilateral military engagement between the two nations since Sri Lanka’s participation began in 2017.

She highlighted the exercise’s role in nurturing partnerships, promoting cooperation, and enhancing maritime capabilities to address security challenges in the Indo-Pacific region.

Vice Admiral Priyantha Perera, Commander of the Sri Lanka Navy, expressed the value of participating in exercises like CARAT, citing the opportunity for operational training and collaboration with a well-equipped navy like the U.S. Navy.

He emphasised the importance of such joint exercises in fostering freedom of navigation and upholding maritime order.

Anthony Nelson, Senior Defense Official at the U.S. Embassy, praised the collaborative spirit underlying CARAT, emphasising its role in building lasting friendships and mutual understanding between the U.S. and Sri Lanka.

CARAT, initiated in 1995, celebrates its 30th anniversary and aims to enhance operational collaboration between the United States and partner navies in addressing maritime security challenges in the Indo-Pacific region.

Beyond military cooperation, CARAT fosters relationships through sports, cultural exchanges, and information sharing.

President affirms government’s inclusive economic agenda

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April 22, Colombo (LNW): President Ranil Wickremesinghe underscored the government’s unwavering commitment to fostering inclusivity in bolstering the nation’s economy, emphasising the dual priorities of economic growth and citizen welfare.

Acknowledging the pervasive impact of recent economic adversities, he stressed the imperative of equitably distributing economic benefits across all segments of society.

Speaking at the inauguration ceremony of the National Rice Distribution for low-income families held at Ambagasdowa Stadium, Uva Paranagama, President Wickremesinghe announced a comprehensive initiative aimed at providing sustenance to 2.74 million low-income families.

Under this programme, eligible families will receive a monthly allocation of 10 kilograms of rice for two months, with 191,548 families identified within the Badulla district.

Symbolically distributing rice bags to 25 beneficiaries, the President marked the commencement of the rice allocation, which is being supervised by Divisional Secretaries nationwide.

President Wickremesinghe underscored the importance of fostering equitable economic development and fostering collaboration among political factions, emphasising the diverse composition of the current government and its steadfast commitment to national interests.

Despite economic challenges such as currency depreciation and job losses, the government has significantly augmented support programmes, including tripling benefits under the Aswasuma programme and initiating rice distribution for low-income individuals.

The President emphasised the importance of inclusive economic development, including sourcing rice from small-scale mill owners to bolster their financial stability.

Initiatives to enhance living standards include land grants to plantation communities and the allocation of flats in Colombo.

President Wickremesinghe further stressed the necessity of unity and urged concerted efforts for national progress, particularly highlighting significant development programmes for the Uva province.

Minister Nimal Siripala de Silva commended the President’s focus on empowering individuals economically, noting tangible progress as a result.

State Minister Chamara Samapath Danayake expressed satisfaction in providing rice benefits to those in need, underscoring the President’s pivotal role in the nation’s economic recovery.

MP Vadivel Suresh lauded the President’s endeavours in steering the country through economic crises and praised his foreign relations strategy.

He highlighted initiatives such as Aswasuma benefits and wage increases for public service employees, expressing confidence in the President’s leadership.

The event witnessed the participation of various political representatives and officials, demonstrating collective support for the government’s initiatives aimed at fostering inclusive economic growth.

Showers expected across several provinces, cautionary Heat Index further advised (April 22)

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By: Isuru Parakrama

April 22, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central and North-western provinces and in Galle, Matara and Anuradhapura districts after 2.00 p.m., with showers or thundershowers being expected to occur at a few places in Uva and Northern provinces and in Polonnaruwa district during the afternoon or night, the Department of Meteorology said in its daily weather forecast today (22).

Showers or thundershowers will occur in the western coastal areas during the morning too, the statement added.

Misty conditions can be expected at some places in Sabaragamuwa, Central and Uva provinces and in Ampara district during the morning.

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 will occur at several places in the sea areas off the coast extending from Mannar to Matara via Colombo and Galle.
Winds:
Winds will be westerly or variable and wind speed will be (20-30) kmph.
State of Sea:
Sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Meanwhile, heat index, the temperature felt on human body is expected to increase up to ‘Caution level’ at some places in Northern, North-central, Western, Sabaragamuwa, Eastern, Southern and North-Western provinces and Monaragala district.

The public is urged to stay hydrated and take breaks in the shade as often as possible, check up on the elderly and the sick, never leave children unattended, limit strenuous outdoor activities, find shade and stay hydrated, and wear lightweight and white or light-coloured clothing.

Tragic accident mars Fox Hill Super Cross 2024 Racing Event in Diyatalawa: Seven lives lost!

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April 21, Colombo (LNW): The Fox Hill Super Cross 2024 racing event, held in Diyatalawa on April 21, was marred by tragedy when a race car veered off the track, resulting in the loss of seven lives, including that of an eight-year-old child, and leaving over 20 others hospitalised with injuries.

The accident occurred following a collision between two race cars that lost control and struck a group of spectators, according to Police Media Spokesman DIG Nihal Thalduwa.

The deceased individuals hailed from Avissawella, Matara, Akuressa, and Seeduwa, while those injured were promptly transported to the Diyatalawa Base Hospital for urgent medical attention.

Among the injured, three individuals with critical injuries were transferred to the Badulla Hospital for specialised care.

In response to the tragic incident, the organisers have canceled the remaining races scheduled for the event.

The 28th edition of the Fox Hill Super Cross, organised by the Sri Lanka Military Academy Diyatalawa in collaboration with Sri Lanka Automobile Sports (SLAS), commenced in Diyatalawa on Sunday, April 21st.

Sri Lanka Original Narrative Summary: 21/04

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  1. Today (April 21), Sri Lanka marks five years after the Easter Sunday genocide, but justice remains elusive for victims’ families: Investigations plagued by hurdles and political disputes: Concerns raised over security measures and accountability: Denial persists over allegations of political conspiracy, despite international scrutiny: Sri Lanka urged to redouble efforts for justice and reconciliation.
  2. Justice Minister Wijeyadasa Rajapakshe appointed Acting Chairman of Sri Lanka Freedom Party (SLFP): Appointment made by faction led by Maithripala Sirisena due to court order barring Sirisena from functioning as chairman: Rajapakshe’s appointment follows Nimal Siripala de Silva’s role as Acting Chairman: Sirisena previously sparked controversy over Easter Sunday attacks remarks: Rajapakshe considering requests to run for president, including from SLFP’s Central Committee and religious leaders: Decision expected soon.
  3. Minister Prasanna Ranatunga claims people already selected Ranil Wickremesinghe for presidency due to his ‘ability’ to resolve the economic crisis: makes this sentiment after distributing rice to low-income families, denying any political motive behind the distribution: emphasises that regardless of political affiliations, people benefit from such programmes: asserts people won’t vote merely out of gratitude for distributed goods.
  4. Sri Lanka plans to import onions from India via Lanka Sathosa following India’s lift of export ban: India agrees to supply 10,000 metric tonnes: Logistics discussed at Trade Ministry, opting for state procurement: Initial consignment: 2,000 metric tonnes; monthly need: 20,000 metric tonnes.
  5. Finance State Minister Ranjith Siyambalapitiya hints at easing import restrictions on vehicles due to expected improvements in dollar reserves and the rupee: A committee is assigned to analyse and lift constraints systematically, focusing on essential vehicles: assures careful consideration of various factors, including vehicle types and impact on transportation infrastructure: also addresses concerns about debt restructuring, ensuring repayments align with economic capacity.
  6. Ceylon Teachers’ Union Secretary Joseph Stalin raises concerns about a severe shortage of 40,000 teachers nationwide: The Western Province faces the most significant deficit, with nearly 7,000 vacancies, followed by other provinces: criticises the government’s delay in teacher appointments, warning of adverse effects on schools: stresses the need for a systematic approach to address staffing shortages in the education sector.
  7. Sri Lanka faces economic uncertainty as talks with international bondholders stall, hindering progress on its IMF review: Economist Talal Rafi warns of default consequences on credit ratings and investment: The IMF bailout aims to stabilise Sri Lanka’s economy, with debt restructuring crucial for approval, but concerns mount over delays in negotiations and potential adverse terms: Despite efforts to engage stakeholders, analysts warn that challenges persist in building trust and transparency for a resolution.
  8. Upcountry plantation workers stage a strike demanding a daily wage increase to Rs. 1,700: display black flags and receive support from trade associations and unions, including the Ceylon Workers’ Congress and the Tamil Progressive Alliance: allege that despite company profits, their wages remain unchanged.
  9. Study by researchers from five institutions reveals genetic history of ‘Vedda,’ the indigenous population in Sri Lanka: Despite linguistic differences, Veddas share genetic link with Indian ethnic populations: sheds light on initial peopling of Sri Lanka and Vedda’s genetic ties with Asia: Findings challenge conventional isolation-by-distance model and highlight Vedda’s unique genetic makeup: Insights contribute to understanding genetic diversity in South Asia and Vedda’s cultural heritage.  
  10. The Sri Lanka Baseball community expresses deep condolences for the loss of Ashraf Awad Murad, a key figure in Palestinian baseball: Sri Lanka Baseball representatives meet with the Palestinian Ambassador to convey their sympathies and solidarity: Murad’s tragic death, targeted by the Israeli Army, shocked the global baseball community: Palestinian Ambassador to Sri Lanka Dr. Suheir MH Darsheid presents a framed photograph of Murad to Chief Executive of Sri Lanka Baseball Theekshana Gammanpila, and President of the Baseball Select Committee Subash Gunasinghe.

Ceylon Teachers’ Union reports severe shortage of 40,000 teachers nationwide

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April 21, Colombo (LNW): A concerning shortage of 40,000 teachers across schools throughout the country has been brought to light by Joseph Stalin, Secretary of the Ceylon Teachers’ Union.

In a recent briefing, Stalin highlighted the critical deficiency in teaching staff spanning various provinces, including the Western, Eastern, North-Central, Southern, and Uva Provinces.

The Western Province faces the most acute shortage, with nearly 7,000 teaching positions unfilled, according to the union’s findings.

Similarly, the Eastern Province reports approximately 3,800 vacancies, while the North-Central Province records 3,698 vacancies.

The Southern Province contends with 3,100 vacancies, and the Central Province reports nearly 6,200 vacancies.

Stalin voiced concern over what he believed as deliberate delays by the government in appointing teachers, ostensibly to mitigate government expenditures.

He warned of the imminent consequences for schools in these regions if the existing vacancies remain unaddressed.

Despite the government’s recruitment drives, including the hiring of 2,500 teachers on two occasions for the Western Province, the Union Secretary criticised the efficacy of these efforts.

He lamented the lack of proper recruitment procedures, noting the potential repercussions as schools prepare to commence the new academic term without adequate teaching staff.

In light of these challenges, Stalin underscored the urgent need for a systematic approach to assigning teachers to existing vacancies, thereby emphasising the importance of prioritising the education sector’s staffing requirements.