August 31, Colombo (LNW): Paddy Marketing Board Chairman, Buddhika Iddamalgoda, announced plans to open 100 paddy storage facilities to support the purchasing of paddy during the Yala Season. Currently, 32 paddy warehouses have been opened in districts where harvesting has been completed. The Chairman also indicated that the Board anticipates increased sales of Samba and Keeri Samba varieties from farmers this season.
In June, Agriculture and Plantation Industries Minister Mahinda Amaraweera submitted a Cabinet paper requesting Rs. 2 billion for paddy purchasing during the Yala Season. As an initial phase, the Cabinet, chaired by the President, approved the release of Rs. 500 million on August 26. Consequently, the Paddy Marketing Board began its purchasing activities on August 27.
Chairman Iddamalgoda noted that while the current market price for Keeri Samba rice has fallen to approximately Rs. 105-110, the government is offering to purchase stocks at the maximum controlled price of Rs. 130. However, he also mentioned that Nadu rice is fetching a higher market price, with private sector buyers purchasing it at Rs. 120. Given this, he expressed doubts that farmers would opt to sell their stocks to the Paddy Marketing Board at the government-controlled price.
August 31, Colombo (LNW): Health and Industries Minister Dr. Ramesh Pathirana has assured the public that no substandard medicines are present within the state hospital system. Speaking at a media briefing at the Ministry of Health’s auditorium yesterday (30), he emphasized that the government does not permit the import of substandard drugs and that patients can use the medicines provided by state hospitals without fear.
The minister clarified that there are no emergency purchases of medicines by the Ministry of Health and no substandard drugs are acquired through the procurement process. He stated that only drugs registered in Sri Lanka are imported, addressing recent concerns that have emerged due to two primary reasons.
One reason is an agreement between the Sri Lankan and Indian governments, under which high-quality medicines are provided to the Indian public and neighboring countries through state-owned enterprises of India under the “Janaushadhi Drug Programme.” The Sri Lankan government, at the request of India, submitted a cabinet paper to allow the import of these medicines at a fair price, provided they are registered in Sri Lanka. Although this cabinet paper has been approved, no memorandum of understanding has yet been signed.
Minister Pathirana also highlighted that any medicines imported under this agreement would only be permitted after registration with the National Medicines Regulatory Authority (NMRA). He further noted a shortage of 37 essential medicines over the past year, with 21 of these having registered manufacturers who, at times, either do not participate in the supply process or demand extremely high prices. Sixteen other medicines remain unregistered in Sri Lanka.
To address the shortage, the Secretary of Health has been authorized to adopt a more regulated direct procurement process, which will require another cabinet paper. Despite some media reports suggesting otherwise, this cabinet paper has yet to be submitted or approved. The proposed process would allow for the direct purchase of medicines from the original manufacturers worldwide, particularly when registered suppliers are unavailable or charge exorbitant prices.
Minister Pathirana assured that any such imports would be fast-tracked for registration if they are already recognized in reputable countries and approved by the World Health Organization (WHO). He emphasized that under his leadership, there is no intention of engaging in illegal, irregular, or unorthodox activities.
August 31, Colombo (LNW): The Ceylon Chamber of Coconut Industries (CCCI) has been officially launched, signifying a significant development in Sri Lanka’s coconut industry.
The inaugural meeting took place on August 29, 2024, at the National Chamber of Commerce of Sri Lanka, bringing together key stakeholders to emphasize the importance of this new organization in driving sustainable growth, innovation, and global market expansion.
As the first of its kind in Sri Lanka, the CCCI is set to tap into the extensive potential of the coconut industry, which is a major contributor to the economy with annual export earnings surpassing USD 800 million.
The chamber aims to foster collaboration across all sectors within the industry, with an ambitious goal of increasing export revenues to USD 1.5 billion by enhancing the quality and global competitiveness of Sri Lankan coconut products.
The establishment of the CCCI was made possible through the support of the United Nations Industrial Development Organization (UNIDO) and Ernst & Young, under the European Union-funded BESPA-FOOD project. This partnership is expected to propel Sri Lanka’s coconut industry to unprecedented global success.
Ranil De Saram, Senior Partner at Ernst & Young and the first General Secretary of the CCCI, described the chamber’s formation as a new chapter for the coconut industry in Sri Lanka. He highlighted the chamber’s mission to unite the industry, promote innovation, and advocate for policies that support sustainable development.
The CCCI will serve as the collective voice for the industry, ensuring alignment among all stakeholders in their pursuit of excellence.
The coconut industry is a vital part of rural Sri Lanka, covering around 455,000 hectares and providing livelihoods to nearly one million people. The CCCI’s focus will be on improving the industry’s competitiveness through strategic planning, market expansion, and research-driven innovation.
By promoting sustainable practices and supporting product diversification, the chamber aims to position Sri Lanka as a global leader in coconut production.
Dr. Jairo Villamil Diaz, Senior International Technical Specialist at UNIDO, emphasized the importance of the CCCI in unlocking the full potential of Sri Lanka’s coconut industry. He noted that the CCCI, supported by the BESPA-FOOD project, is poised to transform the industry into a future-focused sector that will enhance the lives and incomes of all stakeholders within the coconut value chain.
The CCCI has garnered support from eight founding member associations, all dedicated to advancing Sri Lanka’s coconut industry. These associations, along with key state sector partners like the Ministry of Agriculture and Plantation Industries and the Coconut Development Authority, are committed to advocating for coherent policies and ensuring the long-term sustainability of coconut farming in Sri Lanka.
August 31, Colombo (LNW): Dialog Axiata PLC (Dialog) has successfully completed the amalgamation with Bharti Airtel Lanka (Private) Limited (Airtel Lanka), marking a significant milestone in Sri Lanka’s telecommunications landscape.
The merger, effective as of August 30, 2024, concludes with Dialog emerging as the surviving entity, fully integrating Airtel Lanka’s operations into its financial and operational framework. This strategic consolidation effectively ends Airtel Lanka’s status as a separate corporate entity.
The merger is a testament to the combined strength of the Axiata Group Berhad and Bharti Airtel Limited, showcasing their commitment to enhancing Sri Lanka’s digital infrastructure. By merging their resources, expertise, and innovative capabilities,
Dialog is now better positioned to spearhead the country’s digital transformation. The move not only bolsters Dialog’s market position but also significantly expands its subscriber base, which has now surpassed 20 million, reaffirming its status as Sri Lanka’s leading telecommunications provider.
As the merger progresses, customers can expect improved services that extend beyond basic connectivity. Dialog aims to deliver substantial advancements in customer experience, innovation, and digital services, building on the strengths of both the Dialog and Airtel brands.
The continued presence of the Airtel brand within the new structure ensures that customers will continue to benefit from the value and trust associated with Airtel while gaining access to Dialog’s extensive offerings.
The completion of the share sale transaction between Dialog, Axiata, and Bharti Airtel was a key component of this merger. Dialog acquired 100 percent of Airtel Lanka’s issued shares through a share swap, resulting in Axiata holding a 73.75 percent stake in Dialog, while Bharti Airtel owns 10.355 percent, and the remaining 15.895 percent is held by the public.
This consolidation, first announced in May 2023, is now fully realized, with both brands continuing to serve their respective customer bases while beginning the integration of their networks.
Supun Weerasinghe, Chief Executive of Dialog Axiata PLC, expressed his enthusiasm for the successful merger, welcoming the Airtel team and its 3 million subscribers to the Dialog family. He emphasized that the merger positions
Dialog to drive significant growth in customer experience and innovation, contributing to the digital economy of Sri Lanka. Dialog’s focus will be on leveraging the combined strengths of both entities to set new benchmarks in connectivity and empower businesses and individuals to thrive in an increasingly digital world.
This merger underscores Dialog’s unwavering commitment to advancing Sri Lanka’s digital growth and economic development, setting a new standard in the telecommunications industry.
August 31, Colombo (LNW): The merchandise trade deficit increased significantly to USD 604 million in July 2024 from USD 367 million in July 2023, largely due to higher import costs. The cumulative trade deficit from January to July 2024 expanded to USD 3,144 million, compared to USD 2,657 million during the same period in 2023, Central Bank announced. .
Merchandise export earnings rose by 10.8% year-over-year to USD 1,130 million in July 2024, driven primarily by industrial exports. The growth in industrial exports was mainly attributed to increased exports of petroleum products, including bunkering and aviation fuel.
There were also notable improvements in exports of textiles, garments, and transport equipment. Agricultural export earnings improved due to higher exports of spices (mainly pepper), tea (driven by higher prices), and coconut-related products, despite a decline in minor agricultural exports. Mineral exports also saw an increase in July 2024.
On the other hand, merchandise import expenditure grew by 25% year-over-year to USD 1,734 million in July 2024. This increase was broad-based, with significant rises in the import of intermediate goods and investment goods.
Consumer goods imports also rose, particularly in food and beverages, as well as non-food items like clothing, home appliances, and telecommunication devices. Intermediate goods imports surged due to higher imports of textiles, base metals, and chemical products, although fuel import costs declined due to reduced crude oil imports. Investment goods imports saw a widespread increase, particularly in machinery and equipment.
The services sector (excluding tourism) recorded inflows of USD 337 million in July 2024, up from USD 311 million in July 2023, mainly driven by computer & IT/BPO services and sea transport. However, services outflows also rose sharply to USD 290 million in July 2024 from USD 161 million in July 2023, with significant contributions from overseas travel, sea transport, and air transport.
Workers’ remittances amounted to USD 567 million in July 2024, compared to USD 541 million in July 2023, marking the fifth consecutive month of remittances exceeding USD 500 million.
In the financial markets, there was a net outflow of USD 23 million in foreign investments in government securities in July 2024, leading to a cumulative net outflow of USD 221 million from January to July 2024.
Conversely, foreign investments in the Colombo Stock Exchange (CSE) recorded a net inflow of USD 12 million in July 2024, with a cumulative net inflow of USD 32 million during the first seven months of 2024.Gross Official Reserves (GOR) stood at USD 5.7 billion at the end of July 2024, up from USD 4.4 billion in December 2023, including a swap facility from the People’s Bank of China, which has conditional usability. The Central Bank’s net foreign exchange purchases amounted to USD 121 million in July 2024, with GOR providing 3.8 months of import coverage
August 31, Colombo (LNW): In a shocking revelation, Presidential candidate and former Public Utilities Commission of Sri Lanka (PUCSL) Chairman, Janaka Ratnayake, has exposed a major financial scandal involving the Ceylon Petroleum Corporation (CEYPETCO).
He claims this is the largest case of fraud and corruption ever reported by the Auditor General.Speaking at a media briefing, Ratnayake disclosed a massive Rs. 36 billion fraud related to the importation of fuel oils by CEYPETCO, revealed during a Committee on Public Enterprises (COPE) meeting.
He alleged that the mismanagement and corruption have led to inflated fuel prices, suggesting that the public could see a reduction of Rs. 200 per litre if proper practices were followed.
Following his allegations, the COPE instructed the Auditor General to conduct a comprehensive investigation.
The findings have reportedly uncovered severe mismanagement and financial irregularities involving high-ranking government officials and politicians.
Those implicated include Power and Energy Minister Kanchana Wijesekera, former State Minister of Power and Energy D.V. Chanaka, and CEYPETCO Chairman Mohomad Uvais, among others.
The Auditor General’s report highlighted several key issues:
Fuel Oil Procurement Missteps: CEYPETCO’s errors in fuel oil procurement, including incorrect pricing and failure to secure long-term contracts, resulted in a Rs. 36.5 billion loss. The urgency in procuring fuel oil was also questioned, with delayed vessel arrivals adding an extra Rs. 355 million to costs.
Emergency Procurement and Demurrage Costs: CEYPETCO’s failure to assess financial viability during emergency procurement led to Rs. 336 million in additional demurrage costs, highlighting poor strategic planning and oversight.
Bid Management and Tender Irregularities: The report pointed out significant lapses in bidding procedures, with bids rejected for non-compliance later recalled and awarded at a higher price, indicating tender irregularities.
Diesel Procurement Mismanagement: CEYPETCO canceled a favorable term contract for Diesel and instead procured from the same supplier at an inflated price, causing a Rs. 3.5 billion loss. Additional purchases from other suppliers further increased losses by Rs. 3.4 billion.
Misapplication of Pricing Models: The use of incorrect pricing models, including the misapplication of the PLATTS pricing index, led to substantial losses. A high price index was wrongly applied for crude oil procurement, resulting in a Rs. 17.9 billion loss.
Skyrocketing Demurrage Costs: Demurrage costs increased dramatically to Rs. 5.5 billion, a ninefold rise from the previous year, due to inefficiencies in logistics and supply chain management.
Inequitable Fuel Distribution: The report revealed severe inequalities in fuel distribution, with a small number of dealers receiving disproportionately large allocations during the crisis, leading to public unrest and long queues at fuel stations.
Ratnayake emphasized the urgent need for reforms within CEYPETCO to prevent further financial losses and restore public trust.
He stressed the importance of transparency, proper procurement procedures, and improved oversight to ensure efficient operations.
As the nation grapples with the consequences of these revelations, there is increasing pressure on CEYPETCO and the authorities to act swiftly, hold those responsible accountable, and prevent future failures.
August 31, Colombo (LNW): The overall inflation rate in Sri Lanka, as measured by the Colombo Consumers Price Index (CCPI) on a year-on-year (Y-on-Y) basis, has decreased significantly to 0.5% in August 2024, down from 2.4% in July 2024, according to the latest data from the Department of Census and Statistics.
The CCPI for all items in August 2024 stood at 191.1, marking a decrease of 3.6 index points (or 1.85%) compared to 194.7 in July 2024. This decline represents a reduction in the expenditure value by Rs. 3,304.55 in the “Market Basket.”
The month-on-month change in the CCPI from July to August 2024 reflects a decrease of 0.64% in food items and 1.21% in non-food items.
The inflation rate for the Food Group on a Y-on-Y basis decreased to 0.8% in August 2024 from 1.5% in July 2024, while the inflation rate for the Non-Food Group dropped to 0.4% in August 2024 from 2.8% in July 2024. For August 2024, the contribution to inflation from food commodities was 0.25%.
The CCPI is an economic indicator used to measure inflation, defined as the percentage change in the index over a year. Two measures of inflation are typically used: Year-on-Year (Point to Point) Inflation, which calculates the percentage change in the CPI over the past 12 months, and Moving Average Inflation, which measures the percentage difference between the average price index of the last 12 months and that of the previous 12 months.
August 31, Colombo (LNW): President Ranil Wickremesinghe has introduced the “Gen Z Dialogue” initiative to incorporate the perspectives of the younger generation into Sri Lanka’s governance process. Speaking at the “Puluwan Sri Lanka” National Youth Conference held at the Maharagama Youth Service Council on August 30, the President announced that the National Youth Service Council would be responsible for establishing youth centers at the national, provincial, district, and regional levels to facilitate these dialogues.
He emphasized that the nation’s future lies with the youth and pledged to provide them with the digital skills needed to excel in a rapidly advancing technological world. The initiative will focus on training in digital marketing, freelancing, and offering free services to clients to create new income opportunities. Plans also include training programs in commercial activities.
The President highlighted that a strong economy could help develop a modern agricultural culture and promote eco-friendly tourism, creating job opportunities and encouraging youth entrepreneurship. He further committed to fostering youth participation in politics by establishing a Youth Parliamentary Advisory Office to enhance political knowledge.
Expressing his vision to develop Generation Z into a group ready to assume leadership roles in the country, President Wickremesinghe stated that the hopes of the youth, which were lost in 2015 and 2020, have been revitalized through the “Puluwan Sri Lanka” program.
“My goal is to empower Generation Z to become a capable group ready to take on the leadership of this country. If there is a need for someone to lead, there should be no hesitation,” he said, emphasizing his aim to cultivate a confident generation ready to lead the nation without fear.
President Ranil Wickremesinghe announced that the “Gen Z Dialogue” initiative will bring the perspectives of the younger generation into the governance process. To support this effort, the National Youth Service Council will be tasked with establishing youth centers at the national, provincial, district, and regional levels and organizing these dialogues, he said.
Samagi Jana Balavegaya presidential candidate Sajith Premadasa has pledged to usher in a golden age for Sri Lanka’s gems and jewellery industry under his leadership. Speaking at an event, Premadasa emphasized the formulation of new policies to achieve this vision. Premadasa criticized the involvement of multinational companies in the industry through crony relationships and vowed to prevent such practices. He stressed the importance of adopting modern technology and assured that his team would not be influenced by money or privileges.
India’s National Security Advisor Ajit Doval, has met with National People’s Power (NPP) leader and presidential candidate Anura Kumara Dissanayake. During his visit, Mr. Doval is scheduled to review deliberations of the Colombo Security Conclave, a regional initiative that began as a trilateral effort among India, Sri Lanka, and the Maldives. It has since expanded to include Mauritius and Bangladesh as members, and the Seychelles as an observer.
Indian National Security Adviser Ajit Doval participated in the signing of the Founding Documents of the Colombo Security Conclave (CSC), during his visit to Sri Lanka from 29-30 August 2024. According to the Indian High Commission in Sri Lanka, the Charter and Memorandum of Understanding (MoU) for the establishment of the CSC Secretariat were signed in Colombo today by India, Maldives, Mauritius and Sri Lanka.
The Colombo Chief Magistrate has allowed the Criminal Investigation Department (CID) to detain and interrogate the custodian in charge of the evidence room of the Colombo Chief Magistrate’s Court, who was arrested in connection with the disappearance of a large quantity of the heroin from the evidence room.
The overall rate of inflation as measured by the Colombo Consumers Price Index (CCPI) on a Y-on-Y basis has decreased to 0.5% in August 2024 compared to the 2.4% calculated for the month of July 2024, according to the latest data released by Sri Lanka’s Department of Census and Statistics.
The European Union Election Observation Mission (EU EOM) to Sri Lanka’s presidential election has deployed 26 long-term observers (LTOs) to all nine provinces of Sri Lanka on Thursday.
The Election Commission has announced the locations reserved for marking postal votes in the upcoming presidential election. According to the Election Commission, postal votes can be marked on September 4 at District Secretariats and the offices of the Election Commission.
The Land Valuation Indicator (LVI) for the Colombo District increased by 6.9 per cent on a year-on-year basis during the first half of 2024, the Central Bank of Sri Lanka (CBSL) reported.
Sri Lanka Cricket (SLC) has announced that the Sri Lanka U-19 Women’s team will tour Australia from September–October 2024. According to the SLC, the Sri Lanka U-19 Women’s team will engage in a tri-series, which will see the team playing both T20 and 50-over games against Australia and New Zealand.
