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IFC helps Sri Lanka private sector to reset the economy, protect the poor.

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By: Staff Writer

April 20, Colombo (LNW): The International Finance Corporation (IFC), the World Bank’s investment arm emphasized the importance of the private sector engagement in the recovery of the crisis-hit Sri Lanka’s economic growth.

Riccardo Puliti, the IFC’s Vice President for Asia and the Pacific said this when he met State Finance Minister Shehan Semasinghe and the island nation’s Central Bank Governor Nandalal Weerasinghe on the sideline of IMF/World Bank Spring Meeting in Washington.

“Private sector engagement is key to boost Sri Lanka’s growth & pave the way for a resilient future,” Riccardo said in his X platform citing that the discussion was a “good exchange”.

The IFC last year pledged to provide Sri Lanka a $400 million cross-currency swap facility to Sri Lanka to help fund essential imports through three private banks.

Semasinghe thanked Riccardo for his “insightful perspective on the importance of private sector engagement for Sri Lanka’s growth and resilience”.

“We truly appreciate IFC’s commitment to our country, especially during these challenging times. Your continued investment and support are invaluable as we navigate through the economic landscape,” Semasinghe said.

President Ranil Wickremesinghe’s government has already chosen IFC to assist the overhaul of state-owned firms in accordance with an IMF programme to rein in losses from government-owned enterprises

International Finance Corporation’s (IFC) Regional Vice President for Asia and the Pacific Riccardo Puliti says private sector engagement is key to pave the way for a resilient future.

State Minister Shehan Semasinghe said Sri Lanka’s economic outlook and the progress of restructuring SOEs, for which Sri Lanka is receiving IFC assistance were discussed during the meeting.

Posting on X the State Minister said the IFC is considering making more investments and supporting financial sector stability in the country.The International Finance Corporation (IFC) is the private sector arm of the World Bank group

As the largest global development institution focused on the private sector in developing countries, IFC has invested close to $1 billion in Sri Lanka since the onset of the COVID-19 pandemic, helping businesses and sustaining jobs.

Recently, IFC provided a cross-currency swap facility of US$400 million to three of the country’s leading national banks that deal with over 30 percent of Sri Lanka’s remittances and exports.

The facility intends to support the private sector with critical financing, contributing to the country’s urgent need to stabilize the economy.

IFC will continue its efforts to promote private sector-led growth by supporting innovation, product diversification, and growth-enabling sustainable infrastructure as well as in deepening social and financial inclusion.

SL hospitality gets new impetus via Japan BCC’s strategic alliance with Hunas Holdings.

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By: Staff Writer

April 20, Colombo (LNW): BCC Corporation Japan, a leading conglomerate renowned for its global investments, has marked a significant milestone with the acquisition of a strategic stake in Hunas Holdings PLC, solidifying its position as one of the Top 5 shareholders in the Lankan entity.

Hunas Holdings PLC, a prominent player in Sri Lanka’s corporate landscape, operates across a spectrum of industries including agriculture, renewable energy, leisure, real estate development, manufacturing etc.

With this strategic investment from BCC Corporation Japan, Hunas Holdings PLC said it is poised to leverage enhanced resources, expertise, and global networks to fuel its ambitious growth trajectory.

Together, they are introducing a ground-breaking advancement using Blockchain and Non-Fungible Token (NFT) technology, poised to transform the way hotel accommodations are booked and managed.

The collaboration introduces an innovative technology platform, enhancing flexibility and investment opportunities for travellers and stakeholders alike.

This partnership marks the inception of a new era in the hospitality industry, leveraging cutting-edge technology to address common challenges faced by travellers and hotel operators.

At the heart of this collaboration is the introduction of a pioneering platform that offers unprecedented flexibility and investment potential: Nafutel Platform.

Nafutel platform, developed jointly by Hunas Holdings and SBCC Pte Ltd., a subsidiary of BCC Corporation Japan, presents a multifaceted solution that caters to the diverse needs of travellers and investors.

At its core, the platform enables travellers to book hotel nights with the assurance that they won’t lose their money if their plans change.

In the event of unforeseen circumstances preventing them from utilising their booked dates, travellers have the option to sell their room reservations on the platform, effectively recouping their investment.

In addition to offering flexibility to travellers, the Nafutel platform introduces an innovative investment opportunity for individuals and organisations.

By purchasing hotel room nights ahead of time, investors can capitalise on the fluctuating demand in the hospitality industry, strategically upselling their reservations during peak seasons for maximum returns.

“At Hunas Holdings, we feel the time is apropos to join forces with BCC Corporation Japan to introduce this game-changing technology to the hospitality industry,” said Hunas Holdings Chairman Ohanuka Samarasinghe.

BCC Corporation Japan President Nagata Tetsuji said: “We are confident that Hunas Holdings PLC will drive this pioneering transformative technology in the market.

The Nafutel platform represents the convergence of innovation and opportunity, providing a seamless solution for travellers and investors alike. Together, we aim to set new standards of excellence in the hospitality industry.”

The strategic partnership between Hunas Holdings PLC and BCC Corporation Japan underscores their shared commitment to innovation, customer satisfaction, and sustainable growth.

By harnessing the power of technology and collaboration, they are poised to reshape the landscape of the hospitality industry, offering unparalleled value to all stakeholders involved.

CEB Brain drain with engineers shortage to hit power generation drastically.

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By: Staff Writer

April 20, Colombo (LNW): Consequent to the restructure of Sri Lanka’s state-run Ceylon Electricity Board by unbundling it to several separate private sector entities, the state owned electricity provider is losing qualified engineers at an alarming rate, union officials said.

The exodus of CEB engineers has been increased after a currency collapse and new progressive taxes slapped on the debased salary, and they are not coming back, they disclosed.

Ceylon Electricity Board has a cadre of around 1,000 engineers but 159 of them left the country for greener pastures since January 2022 up to now after obtaining levae or resigning from service

105 engineers have resigned from the CEB and 54 other engineers have obtained leave from service. 13 of them have submitted their resignation letters during the first few days of this month.

The total number of engineers leaving the country for foreign countries is expected to increase up to 200 in the coming months leading to serious gaps in some branches with engineering staff down to about 750, Dhanushka Parakramasinghe, President of the CEB Engineers Union revealed.

“Engineers are not coming back,” Parakramasinghe said. “Some are coming back to resign. Some who left on leave having got PR, have sent resignation letters from abroad.”

Engineers are leaving for Ireland, Australia and New Zealand, to work in utilities and also the mining sector.

Sri Lanka’s coal power complex needs 96 staff and they are now down to 70, he said. CEBruns in shifts, round the clock.

Coal plant staff can easily get jobs in the mining sector in many countries including South Africa, where heavy machinery is in operation, he said.

“But our people usually like to go to Australia or Western European countries,” Parakramasinghe said.

Those who are leaving are offered jobs from 4,000 to 8,000 dollars based on experience and type of jobs, he added.

Engineers working in operations and maintenance (O & M) in transmission and generators are also in high demand abroad, he said.

An entry level engineer gets around 150,000 to 170,000 rupees, at the CEB. It works out to around 5 dollars a day. At the central bank, which debases money, office assistants were paid 186,000 according to disclosures made in parliament.

Sri Lanka’s progressive taxes under an International Monetary Fund program, apply from around 3 dollars a day (100,000 rupees) through pay-as-you-earn taxes.

On one side senior staff are retiring and the CEB is seeing a drain of middle level staff who have about 10 years of experience, who are next in line, the Union said.

CEB will have problems maintaining service if the staff go abroad at this level, Buddhika Wijayawardhana, joint secretary of the CEBEU said

Ministry of Defence Clarifies General Amnesty for AWOL Tri-Forces Personnel

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April 20, Colombo (LNW): The Ministry of Defence has clarified that the general amnesty period announced from April 20 to May 20 for members of the tri-forces marked as Absent Without Official Leave (AWOL) does not extend to Commissioned Officers.

In a press release issued on the 19th, the ministry specified that the amnesty applies solely to Other Ranks personnel who have not reported for duty without leave on or before December 31, 2023. Those who voluntarily report during this period will be legally discharged from their respective services.

However, certain categories have been excluded from the amnesty due to expenses incurred for their specialized training and the challenges in maintaining operations in their sectors. The excluded categories vary across the Army, Navy, and Air Force and include healthcare professionals, technicians, and specialized personnel.

The ministry also outlined criteria for absentees currently abroad to obtain discharge without returning to their regiments, provided they meet specific conditions and have no pending disciplinary actions besides being AWOL.

Additionally, Other Rank personnel abroad seeking discharge during the amnesty period can appoint a representative with a Power of Attorney, duly attested, to facilitate the process either at the Embassy of Sri Lanka or through a qualified legal professional in the respective foreign country.

The clarification aims to ensure a smooth implementation of the general amnesty while addressing the unique circumstances of AWOL personnel and streamlining the discharge process for those seeking to return to civilian life.

Coca-Cola Appoints Kaushali Kusumapala as Country Director for Sri Lanka and Maldives

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April 20, Colombo (LNW): Coca-Cola has appointed Kaushali Kusumapala as the new Country Director for Sri Lanka and Maldives, marking a significant milestone as the first woman from Sri Lanka to assume this role.

Effective April 1st, 2024, Kusumapala succeeds Pankaj Sinha, who previously led the region in 2019.

In her new capacity, Kusumapala aims to cultivate close partnerships with various stakeholders across Sri Lanka and Maldives, including bottling partners, customers, industry peers, consumers, and external collaborators.

With a career spanning back to 2009, Kusumapala brings a wealth of experience to her new role, having amassed diverse expertise through her tenure with esteemed organizations such as Leo Burnett, Fonterra Dairy, and Domino’s Pizza.

Expressing her excitement for the appointment, Kusumapala underscores her commitment to collaborating with Coca-Cola’s bottling partners, Coca-Cola Beverages Sri Lanka, and Male’ Aerated Water Company, along with other key stakeholders.

Kusumapala holds a Bachelor of Commerce degree from the University of Melbourne, reflecting her strong academic background.

Coca-Cola boasts a longstanding presence in Sri Lanka, dating back to 1961. The company directly employs over 400 individuals and maintains an extensive network comprising over 80,000 shops in the region.

Highly anticipated super-luxury ITC Ratnadipa opens in Colombo next week

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April 20, Colombo (LNW): Highly anticipated super-luxury ITC Ratnadipa Colombo hotel is poised to open its doors on next Thursday (25 April) under the patronage of President Ranil Wickremesinghe.The landmark hotel is their first project outside India for ITC.

The ITC Ratnadeepa Hotel project is a noteworthy venture as it signifies the maiden development in Sri Lanka by WelcomHotels Lanka Ltd., a wholly owned subsidiary of the prestigious ITC Ltd. 

The introduction of this super-luxury hotel promises a new level of opulence and service excellence in Colombo, catering to discerning travellers seeking an indulgent and world-class experience.

 ITC Hotels was first launched in 1975, and has since grown to become one of India’s premier luxury hospitality chains with more than 115 properties in over 80 locations across the country. 

The company is also championing the cause of sustainable luxury in the industry, and according to ITC Ratnadipa general manager Sujeet Kumar, this makes ITC the greenest and largest luxury hospitality chain in the world.

ITC Ratnadipa is the first ITC hotel to be established outside of India. Located in the heart of the business district of Colombo, Sri Lanka, with an unobstructed view of the Indian Ocean beyond the Galle Face Green promenade, Ratnadipa dominates the city’s skyline.

 Kumar explained that this property will bring about transformational change and a more sustainable future for hospitality. In addition to creating many job opportunities in the country, the establishment of ITC Ratnadipa is envisioned to strengthen the positive ties between the two countries as well. The property will be under the Marriott Luxury Collection portfolio.

The hotel comprises 352 rooms with large private balconies in all of them. According to Kumar, this property will have the largest room size amongst Colombo’s city hotels. Ahasa – Ratnadipa’s key architecture differentiator, is the bridge suspended between Sapphire Residences and the hotel tower, 100 meters (330 ft) above the ground and 15 meters (50 ft) in length, with two sky pools above, and the bar below. 

This will be a novelty in Colombo. The banqueting venue – Sangam, is a 15,000 sq.ft. Pillarless ballroom with floor to ceiling windows, allowing in loads of natural light and spectacular views of the surroundings.

ITC Hotels is one of the most popular brands in India. Given that India is one of the leading source markets for Sri Lanka, the management is confident of hosting destination weddings and several MICE conventions, through which ITC Ratnadipa can be established as the leading hotel for both MICE and exclusive weddings in addition to serving high-end luxury business travelers.

Port City officials express concern over delays in opening duty-free shopping complex

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April 20, Colombo (LNW): Port City Colombo officials expressed concern over delays in opening Sri Lanka’s first-ever downtown duty-free shopping complex’s  set to be opened in April this year  due to some legal issues..

Originally scheduled to commence operations in April, the facility now faces an uncertain timeline for opening to the public, primarily due to unexpected legislative hurdles.

While concerns have been raised regarding the potential impact of the duty-free mall on local businesses and Sri Lanka’s taxation framework, CHEC Port City Colombo Deputy Managing Director Thulchi Aluwihare has asserted that the facility will not have the negative effects perceived by some in the political and business communities.

“The aim is not to cannibalise but to expand the market and promote economic growth. The broader objective of Port City is to increase footfall and benefit the entire Colombo ecosystem,” Aluwihare said .

 He stressed that adequate measures are in place, serving as effective guardrails to protect against cannibalisation of the local market and ensure there is no leakage of goods into the local market.

“The goal is to attract tourists and create a shopping destination in Sri Lanka, capitalising on the average tourist’s stay of seven to 10 days, with an average spending day in Colombo being just one day,” added Aluwihare.

Pointing out that the delays are sending a negative message to investors, existing and potential, he stressed it is imperative for authorities to understand the importance of having investor-friendly processes.

“As a country facing a balance of payment crisis, we are actively seeking foreign direct investment and capital. Therefore, it is essential to ensure that the experience for investors in Sri Lanka is positive and encourages further investment,” added Aluwihare

The partnership was underscored with the formalisation of two critical agreements: an Authorised Person Agreement between ODF and the Commission and a lease agreement between ODF and CHEC Port City Colombo Ltd (CPCC).

However the Department of Fiscal Policy (DoFP) has to evaluate and guide the design of all tax incentives, including those based on the Strategic Development Project Act and the Port City Act, finance ministry sources said. 

Preparing the necessary structures, including data sharing protocols and legal documents that assign authority to the DoFP will take time, it claimed. .

There was to be a 5,000 US dollar allowance for returning Sri Lankans and any amount for foreigners, according to concessions gazetted on May 29 2023. .

The Colombo Port City Economic Commission Act No 11 of 2021 was given the authority to grant tax incentives within the Chinese-built Colombo Port City.

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Sri Lanka Original Narrative Summary: 20/04

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  1. President Ranil Wickremesinghe has highlighted that the tourism hotel project with India’s Taj Samudra Hotel in Nuwara Eliya had been lost due to protests. Clarifying the government’s decision, the President explained that plans were only made to set up hotels in the lands surrounding the Post Office building to improve tourism in the area.
  2. Sri Lanka has participated in the Global Sovereign Debt Roundtable (GSDR) in Washington DC, which brings together debtor countries and creditors, in a bid to build a greater common understanding among key stakeholders on debt sustainability, debt restructuring challenges and ways to address them.
  3. Samagi Jana Balawegaya (SJB) says that if the United National Party (UNP) supports Opposition Leader Sajith Premadasa in the upcoming presidential election, consideration may be given to offering a position to current President Ranil Wickremesinghe.
  4. State Minister of Finance Shehan Semasinghe says that the government is confident of reaching resolution with commercial creditors and the private bondholders which will enable Sri Lanka to be a debt sustainable country, as the engagements with them are underway.
  5. The Transparency International Sri Lanka (TISL) has filed a fundamental rights (FR) petition before the Supreme Court seeking an order that the fundamental rights have been violated through the purchase of certain types of drugs including Human Immunoglobulin vials, without following the proper procurement process.
  6. Coca-Cola has named Kaushali Kusumapala as the new Country Director for Sri Lanka and Maldives, marking a historic moment as the first woman from Sri Lanka to hold this position.
  7. The distribution of fortified rice, supplied by the World Food Program (WFP) on behalf of the program initiated under the instructions of President Ranil Wickremesinghe, to provide a nutritious meal for schoolchildren, commenced at the Veyangoda warehouse complex.
  8. Three suspects involved in transferring fraudulent funds through EZ Cash have been apprehended by the Police.
  9. Livestock Development State Minister D. B. Herath said that the country has reached a point of self sufficiency in egg and poultry meat production. As a result, they are now contemplating the possibility of exporting eggs in the coming years.
  10. Sri Lanka’s women’s cricket team skipper, Chamari Athapaththu has hinted at her possible retirement from the sport of cricket. Speaking to the media in South Africa, Athapaththu revealed she believes her retirement is ‘very soon’.

Russian Embassy in Colombo Denies Sri Lankan Involvement in Ukrainian Conflict

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April 20, Colombo (LNW): The Russian Embassy in Colombo issued a statement refuting claims of Sri Lankan nationals participating in the Ukrainian conflict on the Russian side, dismissing any knowledge of their involvement or the numbers potentially involved.

Responding to a lead story published in the Daily News on Friday (19) regarding the alleged recruitment of Sri Lankan mercenaries for the Russian Army, the Embassy clarified that they lack information on such participation. They emphasized that the safeguarding of Sri Lankan citizens’ interests and rights in Russia falls under the jurisdiction of the Sri Lankan Embassy in Moscow.

The statement reiterated that visas are issued to Sri Lankans based on valid travel documents, unrelated to military activities. The Embassy emphasized their lack of knowledge regarding Sri Lankan involvement in the Ukrainian conflict or any local recruitment agencies facilitating such actions.

Additionally, the Embassy denied any association with the return of a corporal purportedly fleeing from the combat zone, as mentioned in the Daily News article titled “Popular tele actresses found recruiting mercenaries” by Gayan Kumara Weerasinghe.

While emphasizing that the Russian Embassy in Colombo oversees the protection of Russian citizens in Sri Lanka, they noted that matters concerning foreigners in Russia are the responsibility of relevant diplomatic representations in Moscow.

However, the Embassy underscored their efforts to prevent individuals with military intentions from entering Russia, conducting additional interviews to assess travelers’ intentions. They acknowledged the possibility of travelers altering their plans once in Russia but reiterated their commitment to upholding visa regulations.

In conclusion, the Embassy reiterated its focus on protecting Russian citizens in Sri Lanka while emphasizing the distinct responsibilities of diplomatic representations in Moscow regarding foreign nationals in Russia.

Fortified Rice Distribution for School Meal Programme Launched

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April 20, Colombo (LNW): The distribution of fortified rice, part of a school meal initiative spearheaded by President Ranil Wickremesinghe, kicked off at the Veyangoda warehouse complex under the auspices of the World Food Programme (WFP).

To combat iron deficiency among school children, fortified rice is being provided as a nutritious component of school meals. Oversight for this distribution falls under the purview of M.H.A.M. Riflan, Director General of the Partnership Secretariat for World Food Programme Co-operation (PSWFPC), operating within the Presidential Secretariat.

In its initial phase, 735 metric tons of rice are earmarked for distribution to provincial-level schools, beginning on the 19th and continuing on the 20th. This process is being closely monitored by officials from Provincial Departments of Education and Public Health Inspectors (PHIs).

Director General Riflan disclosed plans for further distributions, including 378.835 metric tons of dhal, 412.08 metric tons of sunflower cooking oil, and 300 metric tons of dates, to commence with the start of the new school term on May 19.

The Education Ministry has devised a comprehensive strategy to ensure all students in grades 1-5 receive a nutritious main meal at school. Students are provided breakfast between 7.30 and 8.30 a.m. daily, following recommendations from nutritionists.

Under the banner of ‘Healthy Active Generation,’ the 2024 school meal programme aims to address nutritional concerns, enhance school attendance, promote healthy eating habits, elevate educational achievements, and celebrate local food culture.

This year, the school feeding programme benefits 1.6 million students, encompassing primary students from 9,134 government schools, as well as smaller schools with fewer than 100 students. The government has allocated Rs.16.6 billion to provincial councils for this purpose, supplemented by support from entities such as the World Food Programme (WFP) and the United States Department of Agriculture (USDA).