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Government Announces Major Salary Hike and Reforms for Public Servants Starting January 2025

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August 23, Colombo (LNW): The government has announced significant reforms aimed at making the public service more attractive and efficient. Starting from January 2025, the basic salary of all government employees will be increased by an average of 24 to 50 percent. This move, aimed at forming an effective and productive public service, was approved by the Cabinet on August 12.

Udaya Seneviratne, Chairman of the Committee appointed to address salary-related issues for state servants, shared these details during a media briefing at the President Media Division yesterday. He stated that, with the committee’s proposals, government employees will benefit from attractive salaries and enhanced benefits beginning next year. The salary increases will be based on factors such as educational qualifications, experience, responsibilities, and the roles performed by public servants. The basic salary will be increased by at least 24 percent for the lowest grades, with overall increases ranging from 24 to 50 percent for all public servants. The adjustments will be phased in starting January 2025, with an average target of a 50 percent increase.

In addition to the salary hike, the government will maintain the cost of living allowance at Rs. 25,000 per month for up to three years starting in January 2025, considering inflation and other economic factors. This means the basic salary of the lowest state employee will be Rs. 30,000, bringing the total monthly salary, including the cost of living allowance, to Rs. 55,000.

Pensioners will also benefit from these reforms. From January 2025, they will receive a cost of living allowance of Rs. 12,500 each, and unpaid salary increments for those who retired before 2020 will be granted, with corresponding revisions to their pensions.

“The public service plays a crucial role in Sri Lanka’s development and is the driving force behind it,” Seneviratne emphasized. He added that a comprehensive recruitment scheme for state employees has been proposed to prioritize the necessary reconstructions to overcome challenges in the public service, create a productive work environment, provide excellent service to the public, and play a leading role in economic development.

In 2025, a scientific work study will be conducted in the public service to assess the number of employees required and to implement a scientific program for restructuring the public service. This will include introducing Key Performance Indicators (KPIs) for government employees for the first time. Salary increments will be based on performance, and incentives and non-financial benefits will be introduced.

Seneviratne noted that the government’s capital investment program for E-Governance will prioritize the digitization and automation of the public service, especially over the next three years starting in 2025. This initiative will begin with the Grama Niladhari’s office and will focus on institutions that generate government revenue and provide public services.

To reduce the livelihood burden on government employees, the “Agrahara Medical Insurance Scheme” will be restructured, maximizing benefits through a contribution of Rs. 1,000 per month from every government employee, including pensioners. The National Insurance Trust Fund, which implements the Agrahara scheme, will also work to modernize the national hospital system, providing special amenities for government employees in selected hospitals.

Amidst the current trend of Sri Lankans migrating for employment opportunities and higher education, Seneviratne highlighted the need to secure free higher education, provide legal and administrative independence to universities, and create opportunities for international students to study in Sri Lanka. This could turn Sri Lanka into a Centre for Knowledge, contributing to the country’s foreign exchange earnings.

zMessenger Teams Up with Meiro CDP to Deliver Tailored Customer Experiences Across Multiple Channels

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August 23, Colombo (LNW): zMessenger (Pvt) Ltd, a pioneering MarTech company in Sri Lanka with over two decades of industry experience, has solidified its position as a leader in the Sri Lankan market by partnering with Meiro Customer Data Platform (CDP).

 As a trailblazer in the MarTech landscape, zMessenger has been at the forefront of mobile marketing in Sri Lanka. Known for its innovative mobile and digital marketing solutions, zMessenger has consistently pushed the boundaries of customer engagement and brand presence across various platforms. This new partnership with Meiro is set to revolutionize how zMessenger delivers data-driven marketing solutions to its clients.

The integration of Meiro’s CDP into zMessenger’s service portfolio marks a significant milestone in their journey. By unifying customer data across multiple channels, Meiro enables zMessenger to deliver more precise targeting, enhanced personalization, and improved customer engagement for their clients. 

Speaking on the partnership Jayomi Lokuliyana, the CEO of zMessenger highlighted the significance of this collaboration:

“Before partnering with Meiro, our clients faced challenges in consolidating and analyzing complex marketing data from both online and offline sources. This made it difficult to craft effective marketing strategies that resonated with their target audiences. We chose Meiro CDP because it met our clients’ needs with its ability to handle hybrid implementations (both cloud and on-premise) and its user-friendly interface, which allows business users to navigate and utilize the platform without extensive technical expertise.”

What truly sets Meiro apart is their commitment to working closely with us and our clients. They’ve provided exceptional guidance and consultation on maximizing the use of their CDP for targeted marketing efforts. Since implementing Meiro CDP, we’ve seen remarkable improvements across the board. For instance, one of our banking clients was able to reduce their cost per click from three digits to two digits, showcasing the power of a well-executed data strategy,” added the CEO.

With Meiro CDP now a part of their toolkit, zMessenger is poised to deliver even greater value to their clients. The ability to optimize marketing outcomes through data-driven insights not only strengthens zMessenger’s overall service offering but also reinforces their position as a vital partner for businesses looking to navigate the complexities of modern marketing.

The partnership with Meiro reflects zMessenger’s ongoing commitment to innovation and excellence in the MarTech space. As they continue to lead the charge in Sri Lanka’s digital marketing industry, zMessenger’s collaboration with Meiro will undoubtedly set new standards for customer engagement and data-driven marketing in the region.

US Acting Assistant Secretary meets State Minister Tennakoon

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August 23, Colombo (LNW): The United States Acting Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs, Jennifer R. Littlejohn met the State Minister of Defence Hon. Premitha Bandara Tennakoon at his office in Colombo on Tuesday (Aug 20).

Following a warm reception by State Minister Tennakoon, diplomatic talks began with the US delegation. The discussions were centred on exploring opportunities for connecting Sri Lankans with US experts and to get the necessary support for the development of hydrography service in Sri Lanka.

The discussion concluded with the sharing of souvenirs to mark the occasion. Chief Hydrographer of Sri Lanka Navy Hydrographic Service Rear Admiral Kosala Warnakulasooriya, also joined the discussion.

PAFFREL Raises Concerns Over Pre-Election Subsidies by Government

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August 23, Colombo (LNW): The People’s Action for Free and Fair Elections (PAFFREL) has raised concerns regarding the government’s decision to provide subsidies to the general public following the announcement of the presidential election. Executive Director of PAFFREL, Rohana Hettiarachchi, criticized these actions as “unacceptable” during the pre-election period and confirmed that the Election Commission has been formally notified of the issue.

In response to these concerns, Minister of State for Finance, Ranjith Siambalapitiya, clarified that the subsidies were not introduced to influence voters but to address the economic challenges faced by the public. Despite this explanation, Hettiarachchi argued that such measures, if necessary, should be postponed until after the election to ensure the fairness of the electoral process.

India’s Ather Energy to enter Sri Lanka expanding e-scooter footprint 

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August 23, Colombo (LNW): Ather Energy, one of India’s leading electric two-wheeler (e2W) manufacturers, is set to expand its international footprint by entering the Sri Lankan market. 

The company plans to open its first experience centre in Sri Lanka in the next quarter, marking its second international market entry following Nepal in November 2023.

The expansion will be facilitated through a partnership with Evolution Auto, a joint venture between Sensei Capital Partners, Atman Group, and Sino Lanka, the company said on Thursday.

Evolution Auto will serve as the national distributor for Ather in Sri Lanka, overseeing sales and service operations. Ather also plans to establish a network of fast-charging infrastructure across the country, aiming to support the adoption of electric vehicles (EVs).

Ravneet Singh Phokela, chief business officer at Ather, expressed enthusiasm about the company’s entry into Sri Lanka, emphasising the growing preference for EVs in the market due to rising petrol costs and environmental benefits.

“Ather’s e-scooters are known for their performance, design, and reliability, through which we aim to appeal to new-age Sri Lankan customers who appreciate quality modern products,” Phokela said.

Zahran Ziyawudeen, CEO of Evolution Auto, also highlighted the company’s mission to lead sustainable transportation in Sri Lanka and expressed excitement about the collaboration with Ather to bring world-class electric scooters to the market.

Ather Energy, an electric vehicle manufacturer based in India, on Thursday said that it plans to expand into Sri Lanka in the coming quarter, days after it secured funding from NIIF at a unicorn valuation. 

The expansion will be the company’s second international launch after it entered Nepal last year. 

Evolution Auto will serve as the company’s national distributor and will manage Ather Energy’s sales and service operations in Sri Lanka.

Additionally, Ather will also focus on establishing a network of fast-charging infrastructure across the country to facilitate EV adoption.

“We are thrilled to enter the Sri Lankan market. Sri Lanka has been a part of our global expansion plans after Nepal, where we established our presence last year,” said Ravneet Singh Phokela, Chief Business Officer, Ather Energy.

“With the increasing cost of ownership of petrol vehicles and the economic and environmental benefits of electric vehicles, the Sri Lankan market has shown an increasing preference for EVs. 

Ather’s electric scooters are known for their performance, design and reliability, through which we aim to appeal to new-age Sri Lankan customers, who appreciate quality modern products,” he added.

Ather Energy competes with newly-listed Ola Electric and reportedly plans to list on the Indian stock exchanges next year, according to reports.

New Legislation to Boost Construction Sector amid Economic Recovery Efforts

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August 23, Colombo (LNW): President Ranil Wickremesinghe warned against renegotiating the country’s agreements with the International Monetary Fund (IMF), stating that doing so could reverse Sri Lanka’s recent economic gains and potentially lead to another economic collapse. 

His comments came during a meeting with professionals from the development and construction sectors at the Water’s Edge Hotel in Battaramulla, themed “Constructing the Nation’s tomorrow.”

Wickremesinghe emphasized the need for a stable economy to drive national progress, noting that the government had already secured favorable terms from international financial institutions like the IMF, Asian Development Bank, World Bank, and Exim Bank of China, among others. He argued that further government intervention was unnecessary.

The President highlighted the critical role of the construction and development sector in the country’s economic recovery. The sector, which had been severely affected by the suspension of foreign-funded projects during the economic crisis, has seen some relief through government measures like bank concessions and payment settlements to contractors.

Looking to the future, Wickremesinghe announced large-scale hotel development projects in Galle, Kandy, Colombo, and Trincomalee, as well as new investment zones in Bingiriya, Jaffna, and Hambantota.

 He also updated the attendees on the Megapolis Development Plan, aimed at transforming Colombo, Galle, and Kandy into major urban centers.

In his address, Wickremesinghe stressed the interconnectedness of the challenges faced by the country, citing the compounded effects of pre-COVID fiscal measures and the global economic downturn triggered by the pandemic. 

He reaffirmed his administration’s commitment to economic stabilization, citing the passage of the Economic Transformation Act, the Central Bank Act, and the Public Debt Management Act as foundational steps. The President expressed optimism about achieving a 5% annual growth rate by 2027.

State Minister for Technology Kanaka Herath also addressed the gathering, emphasizing the construction industry’s importance as a key driver of economic growth, contributing 7% to GDP and providing livelihoods for around 5 million people.

 Despite the sector’s challenges, Herath credited the government’s bold decisions and steady leadership for the current economic stability.

During a panel discussion, President Wickremesinghe responded to questions from professionals in the construction industry, particularly regarding the potential repercussions of renegotiating with the IMF. 

He warned that such actions could jeopardize the delicate agreements reached with international creditors, emphasizing the difficulty and complexity of renegotiating the established framework.

The event underscored the government’s commitment to supporting the construction sector as a vital component of Sri Lanka’s economic recovery and future growth.

Government  to establish Trincomalee as Key Logistics and Industrial Hub 

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August 23, Colombo (LNW): Sri Lanka is advancing plans to create a major logistics hub focused on heavy industries, with the goal of attracting investments up to $1.5 billion, according to State Minister of Investment Promotion, Dilum Amunugama. 

The 600-acre industrial zone in Kappalthurai, Trincomalee, is set to become a key site connecting sea, air, and rail transport, making it the second such hub in Sri Lanka after the Hambantota investment zone.

Amunugama emphasized that the Trincomalee hub will be particularly attractive for heavy industries due to its strategic location and multi-modal transport connectivity. Discussions between Sri Lanka’s President Ranil Wickremesinghe and Indian Prime Minister Narendra Modi last year also focused on developing Trincomalee as an energy hub, a long-standing interest of India dating back to the late 1970s.

Trincomalee is known for its rich mineral resources, including ilmenite and rutile, among others, which has heightened its strategic importance. Despite past geopolitical concerns over Chinese-funded projects in Sri Lanka, Amunugama assured that the government intends to treat all investors fairly, avoiding geopolitical conflicts in this new investment zone.

The Sri Lanka Ports Authority (SLPA) Chairman, Keith D. Bernard, noted strong investor interest in the industrial zone, which will be developed in collaboration with the Board of Investment (BOI). 

Companies involved in fertilizer production, solar products, and other industrial sectors have already expressed interest. There are also plans to redevelop Trincomalee Port into an industrial port, with a master plan in place to guide this transformation.

Additionally, the Ceylon-Italy Blue Economy Association (CIBEA) is working on a project to introduce green hydrogen and e-fuel bunkering in the Indian Ocean, positioning Trincomalee as a global leader in sustainable maritime fuel transportation. This initiative involves collaboration with the Sri Lanka Ports Authority and universities in both Italy and Sri Lanka.

The Sri Lankan government has also approved Singapore’s Surbana Jurong to develop a tourism corridor from Verugal Aru to Arugam Bay, further solidifying Trincomalee’s role as a dynamic economic hub.

State Minister for Investment Promotion, Dilum Amunugama, announced that Sri Lanka has secured an export income of USD 9 billion in the first six months of this year.

He also highlighted that investment agreements totaling approximately USD 800 million have been signed during the same period.

The state minister further elaborated, that the Board of Investment of Sri Lanka currently facilitates 15 investment zones, with 1,575 companies operating within them, providing employment to over 500,000 people. 

Under the government’s new investment program, seven additional investment zones are planned for areas including Mankulam, Paranthan, Kankasanthurai, Trincomalee, Iranawila, Hambantota, and Bingiriya.

Sri Lanka’s July 2024 Exports Surge, boosted mainly by Apparel and Tea

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August 23, Colombo (LNW): According to provisional data from Sri Lanka Customs, Sri Lanka’s merchandise exports in July 2024 reached US$ 1,087.6 million, marking a 6.58% increase compared to July 2023.

 This growth was primarily driven by higher earnings from Apparel & Textiles, Tea, Coconut-based products, Spices & Concentrates, and Seafood. On a month-to-month basis, export performance also saw a slight rise of 0.98% compared to June 2024.

The estimated value of services exports for July 2024 was US$ 293.26 million, reflecting a 16.44% increase compared to the same month in 2023. Consequently, total exports for July 2024, combining both merchandise and services, amounted to US$ 1,380.84 million, an 8.53% increase year-on-year.

In July 2024, Apparel & Textile exports rose by 3.8% year-on-year to US$ 443.74 million, with exports to the USA up by 5.37%. Tea exports, constituting 12% of merchandise exports, increased by 8.25% to US$ 124.7 million, bolstered by strong demand in markets like the UAE, Saudi Arabia, and Iran.

Coconut-based products saw a significant increase of 18.41% in export earnings, with all major categories such as Coconut kernel products, Coconut fiber products, and Coconut shell products showing substantial growth.

 Spices and Concentrates export earnings surged by 63.07% to US$ 61.2 million, largely due to a 127% increase in Pepper exports to India.

Seafood exports grew by 27.71% to US$ 22.03 million, driven by increases in frozen and fresh fish exports. Meanwhile, earnings from Ornamental fish exports also rose by 7.78% to US$ 1.94 million.

However, some sectors experienced declines. Export earnings from Rubber and Rubber products fell by 3.16%, while Electrical & Electronics Components saw a 5.83% drop in July 2024 compared to July 2023. Exports of Other Export crops and Flowers & Foliage also decreased significantly.

For the first seven months of 2024, cumulative merchandise exports increased by 4.94% to US$ 7,231.94 million compared to the same period in 2023. Services exports during this period are estimated to have grown by 9.52% to US$ 1,907.56 million. 

As a result, total exports for the January-July period of 2024 reached US$ 9,139.5 million, up by 5.86% from the previous year.

Among key products, Tea, Rubber products, Coconut products, and Food & Beverages all recorded growth in export earnings. Notably, ICT exports are expected to rise by 11.95% for the first seven months of 2024.

Conversely, Apparel & Textile exports declined by 1.17%, and Electrical and Electronic Components exports fell by 17.9% during the same period. 

Despite these declines, the USA remained Sri Lanka’s largest export market, with a 5.21% increase in exports in July 2024 compared to July 2023, and a 1.12% rise over the first seven months of 2024. Exports to the UK also showed growth during this period.

Sri Lanka Original Narrative Summary: 23/08

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  1. President Ranil Wickremesinghe today acknowledged that postponing the Local Government elections is a violation of citizens’ basic rights. However, he stated that he does not regret this decision, as the time was dedicated to ensuring the people’s right to live and maintaining their safety. Emphasizing his respect for both the right to vote and the right to live, the President also noted that every hour was crucial in the effort to stabilize the country’s economy.
  2. The Presidential Candidate of Sri Lanka Podujana Peramuna (SLPP) Namal Rajapaksa asserts that police and land powers will not be devolved to the Provincial Councils under his governance. Addressing his maiden rally in Anuradhapura, Rajapaksa stated that he believes their government was toppled by a conspiracy and that however, they did not let the state collapse.
  3. The Chairman of the expert committee on public service salary disparities, Mr. Udaya Seneviratna, announced that the Cabinet has approved a basic salary increase for all public servants from January 2025. He stated that the salary increase ranges from 24% for lower grades and 24% to 50%+ for higher positions, based on qualifications, experience, and current roles
  4. In the latest update from the National Election Commission, 771 complaints have been lodged concerning the ongoing presidential election. Within the past 24 hours alone, 54 complaints have been reported.
  5. The merchandise export performance in July 2024 has amounted to USD 1,087.6 million, recording an increase of 6.58% compared to July 2023, according to the latest report from the Export Development Board (EDB).
  6. Anura Kumara Dissanayake, the presidential candidate from the National People’s Power (NPP), issued a call for systemic change in Sri Lanka’s governance. Addressing the public, Dissanayake highlighted the long-standing issues that have plagued the country, emphasizing the need for a government that serves the people rather than the rulers.
  7. The presidential candidate of the ‘Sarvajana Balaya’ alliance, entrepreneur Dilith Jayaweera has voiced his strong disapproval to the government’s plan to sell shares of Sri Lanka Telecom (SLT), calling it a ‘significant mistake’.
  8. Cabinet approval has been granted to issue free tourist visas to visitors from 35 countries in an effort to boost the country’s tourism industry. Accordingly, tourists will be given 30-day visas under a six-month pilot programme that will start from October 1, Cabinet Spokesman and Transport, Highways and Mass Media Minister Dr. Bandula Gunawardhana said.
  9. The Cabinet of Ministers has granted approval to initiate a pilot programme as an initiative to launch “Artificial Intelligence related Student Societies” in 100 schools.
  10. Bangladesh Cricket Board (BCB) newly appointed president Faruque Ahmed reiterated his stance that Chandika Hathurusingha should not continue as head coach. Faruque Ahmed stated that he will make the final decision on Chandika Hathurusingha’s future after discussing it with his colleagues in the BCB.

Health Ministry Strengthens Airport Screening to Prevent Mpox Outbreak

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August 23, Colombo (LNW): The Ministry of Health has intensified screening procedures at airports to detect any potential cases of Mpox, formerly known as monkeypox, that may enter the country. Health Ministry Secretary Dr. Palitha Mahipala confirmed that the nation’s healthcare system is fully prepared to handle any incidents, with isolation and treatment facilities already established at the Institute of Infectious Diseases in Angoda.

Dr. Mahipala emphasized that the Colombo Medical Research Institute is equipped with laboratory facilities capable of detecting Mpox. During an expert committee meeting at the Health Ministry on Tuesday (20), comprehensive guidelines were issued to ensure better preparedness and response to prevent the spread of the disease. These instructions have been circulated to all healthcare institutions.

The World Health Organisation (WHO) has declared Mpox a public health emergency of international concern following an outbreak in the Democratic Republic of Congo (DRC), which has now spread to at least 13 other African countries, with possible cases reported in Europe and Asia.

Mpox is a self-limiting viral infection caused by the Mpox virus. Common symptoms include fever, headache, muscle aches, back pain, fatigue, and swollen lymph nodes, followed by pox-like rashes that typically last two to three weeks. While the disease is generally self-limiting, it can be fatal, particularly in children and individuals with weakened immune systems