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Severe flooding devastates paddy fields and vegetable crops, over 330k acres destroyed!

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By: Isuru Parakrama

November 30, Colombo (LNW): The widespread flooding caused by the current adverse weather conditions has wreaked havoc on agricultural land across Sri Lanka, with Agrarian Development Commissioner General Rohana Rajapaksha disclosing the destruction of a staggering 338,446 acres of paddy fields.

This calamity has left 137,880 farmers grappling with the loss of their livelihoods.

The Northern and North Central Provinces have suffered the most significant damage, with reports indicating that entire regions, particularly in Jaffna, Ampara, Polonnaruwa, and Batticaloa districts, remain under water, making it impossible to assess the full extent of the destruction.

As the floodwaters continue to submerge vast areas of farmland, authorities are struggling to gather accurate data on the crop losses.

The Commissioner General explained that local agricultural officers have been unable to perform their duties due to the severe flooding in certain areas, which has hindered their access to Agrarian Development centres.

However, in regions where the floodwaters have started to recede, initial reports indicate that 101,035 acres of paddy fields, belonging to 46,674 farmers, have been completely destroyed.

Further, an additional 237,481 acres of paddy fields remain submerged, with another 91,206 farmers facing devastating crop damage.

Amongst the worst-hit regions are Vavuniya, where 23,930 acres of paddy fields have been destroyed, Mannar with 23,247 acres, and Trincomalee, where 20,865 acres of paddy land have been affected.

The vegetable cultivation sector has also borne the brunt of the extreme weather. Particularly in the upcountry regions, extensive damage has been reported, with crops such as potatoes and cabbage in Nuwara Eliya being completely wiped out.

This damage to both staple food crops and vegetables is expected to lead to further food shortages and rising prices in the coming months, further straining the already fragile economy.

Authorities are urgently calling for additional support and resources to aid affected farmers, with efforts focused on both immediate relief and longer-term recovery.

Japan to assess future projects in Sri Lanka based on economic stability

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November 30, Colombo (LNW): The Japanese Embassy has announced that Japan will carefully evaluate any potential new projects in Sri Lanka, prioritising an examination of requests from Sri Lankan authorities alongside the country’s economic situation.

The embassy clarified that its immediate focus remains on advancing 11 ongoing projects that were resumed following Sri Lanka’s debt restructuring.

Responding to queries about the possibility of new collaborations after the formation of the new Sri Lankan government, the embassy confirmed that no additional projects would be initiated until further assessments are made.

Instead, Japan’s priority is to ensure the smooth continuation of the existing initiatives, which include significant infrastructure and development efforts.

Amongst the key projects currently underway is the much-anticipated expansion of Bandaranaike International Airport, which is progressing as planned, alongside several other Japanese-funded ventures.

These include the Kalu Ganga Water Supply Expansion, the Anuradhapura North Water Supply Project, the Kandy City Wastewater Management initiative, and the formulation of a solid waste management master plan for Western Province.

Other ongoing efforts include capacity-building programmes for urban planning, water management, and the development of future leaders in these fields.

Additionally, Japan is supporting Sri Lanka’s fishing and agrarian communities through a dedicated programme aimed at improving livelihoods in the Northern Province.

Japan’s commitment to these projects follows its pivotal role in the restructuring of Sri Lanka’s bilateral debts. On July 22, 2024, following the successful signing of a Memorandum of Understanding by all members of the Official Creditor Committee, Japan resumed its disbursement of loans to 11 projects, with 12.5 billion Japanese yen (approximately US$ 87 million) allocated by the end of September.

Japan’s leadership in these negotiations has been critical to Sri Lanka’s economic recovery process, with the country having also played a central role in the restructuring of Sri Lanka’s International Sovereign Bonds.

In addition to these efforts, Japan has provided substantial humanitarian assistance in response to Sri Lanka’s ongoing economic challenges, including grants worth approximately US$ 100 million.

This marks the largest annual humanitarian aid package Japan has ever extended, underscoring the country’s ongoing support for Sri Lanka during its period of economic crisis.

Severe weather to further soar vegetable prices

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November 30, Colombo (LNW): Agricultural groups in the Central Province have issued a stark warning that the already rising cost of vegetables is set to climb even higher, following widespread damage caused by the ongoing heavy rains and floods.

These extreme weather conditions have wreaked havoc on crops, leaving farmers in distress as they struggle to salvage their produce.

Vegetable growers in the region have raised concerns about their inability to harvest crops in a timely manner, as well as the challenges they face in applying fertiliser to their fields.

The devastation caused by the flooding has led to significant crop losses, with tomatoes, beans, brinjals, and green chillies being particularly hard hit.

Y.M.S. Bandara, a spokesperson for the Ambana Farmers’ Organisation, expressed frustration over the situation, highlighting that the transportation network has been severely disrupted due to the floods.

As a result, wholesale traders from outside the area have been unable to reach the Economic Centres, where farmers typically sell their produce, further compounding the difficulties faced by vegetable cultivators.

In addition to the immediate loss of crops, the ongoing transport issues have meant that even the vegetables that have survived the floods are not able to be sold at market prices, leaving many farmers with no means of generating income.

This supply shortage is expected to drive up prices in the coming weeks, making it even more difficult for consumers to afford essential produce.

The agricultural community has called for urgent assistance from the government to address the damage caused by the floods and to help ensure that the region’s farmers can recover.

AG’s Office says it will no longer represent ex IGP and Defence Secretary in Shani Abeysekara’s FR case

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By: Isuru Parakrama

November 30, Colombo (LNW): The Attorney General’s Department notified the Supreme Court that it would no longer represent former Inspector General of Police (IGP) C.D. Wickramaratne and former Defence Secretary Major General (Retired) Kamal Gunaratne, both named as respondents in a crucial fundamental rights petition.

The petition was filed by former Criminal Investigation Department (CID) Director Shani Abeysekera and challenges his suspension and subsequent reassignment within the police service following the 2019 Presidential Election.

The case was heard before a three-judge bench comprising Justices S. Thurairaja, A.H.M.D. Nawaz, and Priyantha Fernando.

During the proceedings, Additional Solicitor General Viveka Siriwardena, representing the Attorney General’s Department, informed the court that the Department would be stepping back from its role in defending the two former officials.

As a result, the court advised both Wickramaratne and Gunaratne to seek alternative legal representation from private counsel.

The petition revolves around Shani Abeysekera’s claims that his fundamental rights were infringed upon when, shortly after the 2019 elections, he was abruptly removed from his high-ranking position as the Director of the CID.

Abeysekera was instead reassigned to a less prominent post as Personal Assistant to the Deputy Inspector General (DIG) of Galle, a move he argues was politically motivated.

Furthermore, he contends that his suspension from duties, following these events, was an unlawful action that violated his constitutional rights.

The Supreme Court has adjourned further deliberations on the case until February 3, 2024, providing both sides with time to prepare for the next stage of legal proceedings.

ASF outbreak under control, but farm owners demand urgent support

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By: Isuru Parakrama

November 30, Colombo (LNW): The State Veterinary Surgeons’ Association (SVSA) has confirmed that the recent outbreak of African swine fever (ASF) in the country is currently under control, although authorities remain vigilant.

Dr. Sisira Piyasiri, President of the SVSA, assured the public that stringent measures are being put in place to safeguard the pork supply.

He stated that pork from unaffected farms will be processed for human consumption under enhanced safety protocols to prevent any risk to public health.

Despite the progress in managing the disease, the outbreak has caused significant devastation to the farming community. Numerous pig farms across affected regions have been wiped out, leaving farmers facing financial ruin.

In light of the extensive losses, many farm owners have raised urgent calls for government intervention.

They are requesting immediate compensation to help them recover from the disaster and rebuild their livelihoods.

The ASF outbreak has not only disrupted the agricultural industry but has also raised concerns about long-term food security and the stability of the pork supply.

Experts warn that it could take months, if not years, for affected farms to fully recover, highlighting the importance of prompt and effective government support to mitigate further damage.

Impact of cyclonic storm “FENGAL” on island’s weather gradually dropping (Nov 30)

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By: Isuru Parakrama

November 30, Colombo (LNW): The Cyclonic Storm “FENGAL” over the Southwest Bay of Bengal was located about 360 km north of Trincomalee and 280km Northeast of Kankasanthurai at 11.30 p.m. yesterdday (29), and it, therefore, is likely to move west-northwestwards and cross north Tamil Nadu-Puducherry coasts as a cyclonic storm around this afternoon (30), the Department of Meteorology said in its daily weather forecast today.

In statement, the Department added that the influence of this system on the island’s weather is gradually reducing, and skies will be cloudy and showers or thundershowers will occur at times in Northern province and in Trincomalee district.

Fairly heavy showers above 75 mm are likely at some places in Northern province, the statement read.

Showers will occur at times in Sabaragamuwa provinces and in Kandy, Nuwara-eliya, Galle and Matara districts. Several spells of showers will occur in Western, North-western and North-central provinces.

Showers or thundershowers may occur at a few places elsewhere of the island in the evening or night.

Strong winds of (50-55) kmph can be expected at times over Northern, North-central, North-western, Eastern, Central and Southern provinces.

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

Marine Weather:

Naval and fishing communities are warned not to venture to the deep and shallow seaareas extending from Puttalam to Trincomalee via Kankasanthurai until further notice and be vigilant on this regard in the other sea areas around the island.
Condition of Rain:
Showers or thundershowers will occur at times in the sea areas around the island. Heavy showers are likely in the sea areas extending from Kankasanthurai to Trincomalee.
Winds:
Winds will be North-westerly to South-westerly in to the sea areas around the island. Wind speed will be (40-50) kmphin the sea areas around the island. Wind speed can increase up to (60-70) kmph at times in the sea areas extending from Puttalam to Trincomalee via Kankasanthurai.
State of Sea:
The sea areas extending from Puttalam to Trincomalee via Kankasanthurai will be rough to very rough at times. The other sea areas around the island will be fairly rough at times. The swell waves (about 2.5–3.0 m) height (this is not for land area) may increase in the sea areas off the coast extending from Trincomalee to Kankasanthurai. There is a possibility that near shore sea areas off the coast extending from Trincomalee to Kankasanthurai via may experience surges due to swell waves. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Sri Lanka Original Narrative Summary: 30/11

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  1. A group of unemployed graduates gathered at the Presidential Secretariat yesterday (29), hoping to meet President Anura Kumara Dissanayake: Unable to meet him, they plan to submit a letter outlining their concerns: The Presidential Secretariat assured them of an upcoming appointment: The graduates expressed frustration, noting promises made by the president before his election remain unfulfilled.
  2. Colombo High Court Judge Sujeewa Nissanka acquitted former Health Minister Rajitha Senaratne and State Pharmaceutical Corporation Chairman Mohammad Tasim Mohammad Rumi of charges related to inciting false statements during a 2019 press conference: The allegations, involving claims of abductions and killings linked to Gotabaya Rajapaksa, were deemed unproven, as the prosecution failed to present sufficient evidence.
  3. Minister of Foreign Affairs Vijitha Herath addressed the High-Level Segment of the IOM Council, emphasising the importance of safe, orderly, and rights-based migration: He highlighted Sri Lanka’s commitment to promoting regular migration pathways and protecting migrant rights through national, regional, and international efforts: Sri Lanka also expressed interest in becoming a Global Compact for Migration Champion Country.
  4. Applications are now being accepted to fill vacancies for members in the Office on Missing Persons (OMP), as per the provisions of the Office on Missing Persons Act, No. 14 of 2016: Interested candidates should submit their applications, following the guidelines on the Parliament website, to the Secretary-General of the Constitutional Council by December 9, 2024, via registered post or email.
  5. Agriculture Minister K.D. Lal Kantha announced that farmers affected by adverse weather will receive assistance to revive their crops and restore damaged irrigation facilities: Deputy Minister Namal Karunaratne stated that compensation, up to Rs. 40,000 per acre, will be provided for crops like paddy, maize, and onions: Additionally, free seed paddy for damaged seedlings and relief for vegetable and fruit farmers will be considered.
  6. Secretary-General of Parliament Kushani Rohanadeera clarified the process for granting official residences to MPs, stating those living more than 40 km from Parliament can request housing at the Madiwela Housing Complex: Currently, 35 MPs have applied, with 25-30 houses undergoing renovations: The complex has 108 residences, divided between ruling party and opposition MPs: Rohanadeera confirmed no significant changes to MPs’ privileges.
  7. The Attorney General’s Department informed the Supreme Court that it will no longer represent former IGP C.D. Wickramaratne and former Defence Secretary Kamal Gunaratne in a fundamental rights petition filed by former CID Director Shani Abeysekera: Abeysekera challenges his suspension following his transfer after the 2019 Presidential Election: The court adjourned the case to February 3, advising the respondents to seek private legal counsel.
  8. The Department of Meteorology announced that the impact of the deep depression over the southwest Bay of Bengal on Sri Lanka’s weather is expected to lessen starting November 29: The adverse weather has claimed 15 lives and affected 463,569 people: Landslide warnings remain, but the “Red evacuation” warnings have been lifted: The depression may intensify into a cyclonic storm heading toward Tamil Nadu, India.
  9. Sri Lanka is experiencing unhealthy air quality levels, with regions such as Jaffna, Colombo, Kandy, and Galle facing significant pollution: People, especially those with respiratory issues, are advised to take precautions like wearing masks and staying indoors: Some areas, including Batticaloa and Moneragala, show moderate pollution, posing minimal risk: Nuwara Eliya and Diyathalawa have acceptable air quality.
  10. Wiaan Mulder will miss the remainder of South Africa’s two-match Test series against Sri Lanka due to a fractured right middle finger sustained while batting: Matthew Breetzke, who made his Test debut last month, replaces Mulder for the second Test, scheduled for 5-9 December: South Africa leads the first Test after Sri Lanka was dismissed for just 42.

Cargills Bank and Sampath IT Forge Partnership to Enhance Banking Services 

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Cargills Bank, a relatively new but dynamic player in Sri Lanka’s banking industry since its inception in 2014, continues to prioritize innovation and customer service excellence. 

In a strategic move to strengthen its technological infrastructure, the bank has entered into a partnership with Sampath IT Solutions Ltd. (SITS) to optimize the management of its Point-of-Sale (POS) systems across the country.

This collaboration marks a significant leap for Cargills Bank, allowing it to focus on improving customer experiences, while SITS takes charge of the technical management and operational maintenance of the POS systems. 

With SITS’ expertise in financial technology, Cargills Bank can now deliver faster, more reliable services to customers throughout Sri Lanka, significantly enhancing its nationwide reach.

Kaushi Fernando, the Head of Card Services at Cargills Bank, expressed enthusiasm about the partnership, stating, “Partnering with SITS enables us to evolve our technology infrastructure while continuing to offer superior service to our clients across the country. We’re excited about the potential innovations that this collaboration will bring to the fintech landscape.”

A key feature of this partnership is the integration of advanced technological solutions. SITS will implement robust security measures, including data encryption and real-time monitoring, along with automated maintenance for the POS systems. 

This ensures that customers can securely conduct transactions, whether making payments or checking balances, with peace of mind.

Additionally, this collaboration aims to significantly improve the overall customer experience. The integration of faster transaction times and seamless mobile payment capabilities will reduce waiting times for consumers, making the banking experience more efficient, particularly in retail settings.

For Cargills Bank, this partnership is instrumental in extending its services to more remote areas of Sri Lanka, where access to banking has traditionally been limited. 

This will further strengthen the bank’s commitment to providing round-the-clock services across the island. For SITS, it underscores their growing influence in managing large-scale banking operations and solidifies their position as a fintech leader in the region.

Looking forward, both companies have expressed a shared vision of continuing to innovate to meet the demands of modern banking. 

Future initiatives may include AI-powered customer support solutions and enhanced operational efficiency, all designed to set new benchmarks for financial services in Sri Lanka.

“We are privileged to collaborate with Cargills Bank, a forward-thinking company that shares our commitment to innovation and ethical practices,” said Sameera Priyadarshana, Assistant Vice President at SITS. “This partnership will empower us to deliver secure, tech-forward solutions that elevate the banking experience for Sri Lankans.”

 This collaboration marks a significant step forward for both organizations in advancing the future of banking technology in Sri Lanka, with an emphasis on security, accessibility, and efficiency.

Govt Extends Freeze on Parate Action to Support MSMEs, Exploring Debt Restructuring 

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The Government announced that the ongoing freeze on parate action for Micro, Small, and Medium Enterprises (MSMEs) will be extended beyond the original deadline of 15 December. 

This extension was confirmed in a meeting led by Deputy Minister of Finance and Planning, Dr. Harshana Suriyapperuma, with representatives from MSMEs. The Government is set to introduce a Parliamentary Act to prolong the suspension for an additional six months.

This initiative forms part of an ongoing effort to unite various MSME advocacy groups, including the Ceylon Federation of MSMEs and the National Trade Protection Council. 

The Ceylon Federation of MSMEs welcomed the move, stating that it would provide much-needed relief to MSMEs. 

The Central Bank will gather the necessary information, and further talks are planned for early next week.

Deputy Minister Suriyapperuma expressed optimism that the extension would benefit a wider range of MSMEs. Mahendra Perera, President of the Ceylon Federation of MSMEs, added that the discussion also covered the potential for debt restructuring, including the possibility of lowering interest rates to help businesses manage their loans more effectively.

The meeting also addressed the challenges faced by businesses that have fallen into non-performing loan (NPL) status, particularly due to the impacts of the COVID-19 pandemic and the Easter Sunday attacks. Solutions to these issues were actively discussed.

One suggestion made was to return properties and businesses seized by banks in auctions between 2019 and 2024 to their original owners. 

It was proposed that a debt restructuring process be put in place to allow for the repayment of loans, with collaboration between the Central Bank and the Ministry of Finance.

The meeting further focused on creating a conducive environment for sustainable entrepreneurial growth in Sri Lanka. A proposal was made for establishing a data system to better capture and address the challenges faced by both entrepreneurs and MSMEs.

To protect domestic MSMEs, it was recommended that registered trade unions from each sector, along with representatives from the Central Bank, the Ministry of Industry, and relevant banks, form a committee to tackle MSME challenges. The attendees supported this idea and agreed to move forward.

Additionally, officials and MSME representatives discussed tax issues, including tax arrears, and proposed removing penalties while providing opportunities for MSMEs to pay off arrears, including contributions to the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF).

Adani Group’s Troubles: Implications for Sri Lanka’s Infrastructure Projects 

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Once trumpeted as the epitome of corporate success in India, Adani Group, owned by billionaire Gautam Adani, has now been embroiled in controversy. 

With bribery charges in the United States to deal with, the financial and reputational damage is critical, raising serious questions over its biggest projects abroad, including those in Sri Lanka.

A US case against Gautam Adani and other executives accuses him of orchestrating a $250 million bribery scheme, in exchange for contracts, which would eventually yield $2 billion in profits over 20 years for the renewable power firm Adani Green Energy.

Since the allegations, Adani Group has lost more than $55 billion in market value, with Adani Green Energy alone losing $9.7 billion. The legal troubles add to earlier accusations by Hindenburg Research in 2023, which had pointed to stock manipulation and accounting fraud.

Sri Lanka, where Adani is involved in the Colombo Port terminal and the Mannar wind power project, is now caught in the crossfire.

The Colombo Port project, initially financed by the U.S. International Development Finance Corporation (DFC), is under review due to the bribery allegations.

Meanwhile, Adani’s $442 million investment in the Mannar wind power project has faced persistent criticism.

Opposition parties say that the project was given without open tenders and accuse Indian Prime Minister Narendra Modi of undue influence on then-Sri Lankan President Gotabaya Rajapaksa. 

The resignation of a high-ranking official at the Ceylon Electricity Board, after making the same accusation, further fanned public scepticism.

But despite these controversies, the Wickremesinghe administration pushed ahead, confident in the project’s government-to-government nature. Former Foreign Minister Ali Sabry defended the partnership as transparent, citing feasibility studies and support from India.

But corruption watchdogs and critics question the wisdom of collaborating with a company facing serious allegations, warning it could harm Sri Lanka’s international reputation and deter other investors.

With the new administration led by President Anura Kumara Dissanayake, there is greater political pressure to review some large contracts.

Dissanayake’s administration has promised to root out corruption and ensure transparency. Minister Nalinda Jayatissa last week said the government needed to assess the impact of the U.S. indictment on Adani projects in Sri Lanka – a message of caution without any firm commitments to act.

Public discontent over the lack of transparency in these deals is growing, with activists and experts urging a thorough review of Adani’s investments. Nishan De Mel of Verité Research has called for Sri Lanka to avoid repeating past mistakes and ensure that foreign investments align with national interests and integrity.

As the Adani Group navigates its legal and financial challenges, Sri Lanka is at a very important juncture: to go ahead with these projects or to keep away from a tainted partner. 

The government has to balance economic opportunities with the risks of association, ensuring transparency and accountability for the welfare of its people in safeguarding the future of the country.