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FBI launches probe into Baltimore Bridge collapse involving Sri Lanka-bound cargo ship

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April 16, Colombo (LNW): The US’ Federal Bureau of Investigation (FBI) has initiated a criminal probe into the tragic collapse of a Baltimore bridge last month, which occurred when a vessel collided with one of its supports, the bureau announced yesterday (15).

FBI agents boarded the cargo ship Dali to conduct court-authorised law enforcement activities related to the crash, according to a spokesperson cited by Reuters.

However, no further details were disclosed, and the FBI declined to provide additional comments.

The incident, which transpired in the early hours of March 26, involved a substantial container ship en route to Sri Lanka losing power and striking a support pylon, resulting in the Francis Scott Key Bridge collapsing into the Patapsco River.

Tragically, six individuals lost their lives while working on the bridge during the collision.

The investigation into the bridge collapse will scrutinise various factors, including whether the crew of the cargo vessel Dali departed the port despite knowing about significant issues with its systems, according to Washington Post.

Safety investigators have retrieved the ship’s “black box” recorder, which contains critical data on its navigation, communications, and alarms, among other parameters.

Additionally, the US National Transportation Safety Board has conducted interviews with essential personnel from the cargo ship as part of its inquiry.

Efforts to clear the wreckage and restore traffic in the port’s shipping channel are ongoing. While replacing the bridge is expected to be a multi-year endeavour, authorities have established temporary channels to accommodate shallow-draft vessels navigating around the obstructed container vessel.

The US Army Corps of Engineers aims to open a new channel to the Port of Baltimore by the end of April.

It is noteworthy that at the time of the collision, the Dali was departing Baltimore bound for Colombo, Sri Lanka, with a crew of 21 members and two pilots to assist in navigating out of the port.

The vessel, registered under the Singapore flag, has been associated with previous incidents, including a collision in the port of Antwerp, Belgium, in 2016.

An inspection conducted in San Antonio, Chile, in June 2023, identified deficiencies in the vessel’s propulsion and auxiliary machinery, according to data from the Equasis website.

Singapore’s Maritime and Port Authority reported that the vessel passed inspections at foreign ports in June and September of the previous year.

Grace Ocean Pte Ltd is listed as the registered owner of the ship, which is managed by the Synergy Marine Group, with Maersk chartering the vessel.

Four Sri Lankan companies to produce Single Super Phosphate (SSP) fertilizer

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By: Staff Writer

April 16, Colombo (LNW): Four Sri Lankan companies have planned to produce a Single Super Phosphate (SSP) fertilizer needed for the country.

Sustainable use of phosphate reserve will ensure providing raw material to produce soluble phosphate fertiliser fort least 200 years, several geological scientists.

It will use Eppawala Rock Phosphate from the North Central Province, which is suitable for paddy and other crops and can be used as a substitute for the Triple Super Phosphate Fertilizer or TSP, which is currently imported from foreign countries.

The annual cost of importing TSP fertilizer to Sri Lanka is about 3 billion rupees ($36 million), while most of these fertilizers were imported from Russia and neighboring countries.

Four local companies have taken the necessary steps to produce the fertilizer locally. The representatives of those companies recently met and discussed their plans with the country’s Minister of Agriculture, Mr Mahinda Amaraweera.

Sri Lanka requires about 15,000 metric tons of TSP fertilizer manually, which can be covered by local fertilizer manufacturing companies. Reportedly, the current stock of Single Super Phosphate fertilizer is nearly 4,000 metric tons, while producers can add up to the necessary number.

Minister Mahinda Amaraweera noted that fertilizer will be produced under the full supervision of the Department of Agriculture, and state-owned Lanka Fertilizer Company, while commercial companies will be responsible for distribution.

The government is venturing into public private partnership with suitable foreign investors for the manufacture of phosphate fertilisers making use of Eppawala rock phosphate deposit in the North Central Province, Agriculture Minister Mahinda Amaraweera.

Arrangements are being made to establish chemical fertiliser company jointly with the Lanka Phosphate Company operating under the Ministry of Agriculture.

Sufficient safeguards will be made against environmental damage and compenestion will be paid to people who are to be evacuated from surrounding areas due to the implementation of the new public private venture.

Lanka Phosphate Limited (LPL) is currently mining and processing to fulfill the local phosphate fertiliser requirement in the country, a high official of the company revealed.

LPL produces around 50,000 mt of Eppawala Rock Phosphate (ERP) annually, for local requirement and it supplies to the farmers through private and public fertiliser companies.

Currently it produces two types of rock phosphate fertilizers namely Eppawala Rock Phosphate (ERP) and High-Grade Eppawala Rock Phosphate (HERP) which are used as phosphate fertilizer for perennial crops in the country.

Measures are being taken to manufacture Single Super Phosphate (SSP), locally as the next immediate requirement in the industry, he disclosed.

After a lapse of nearly 25 years Lanka Phosphate has finally received necessary legal and statutory approvals to export Rock Phosphate, he added.

Iranian President’s visit to SL to inaugurate Uma Oya Project, signals diplomatic milestone

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April 16, Colombo (LNW): Iranian President Ebrahim Raisi’s upcoming visit to Sri Lanka in May is poised to mark a significant milestone, as he is set to inaugurate the Uma Oya Multipurpose project, foreign media reports claimed.

The Uma Oya project encompasses the construction of two dams, Dyraaba and Puhulpola, along with a 25-kilometre water transmission tunnel and two hydroelectric power plants, each boasting a capacity of 60 megawatts.

Considered a monumental engineering feat, the Uma Oya multipurpose project represents a pinnacle achievement for Iranian companies operating in Sri Lanka.

The project’s objectives are multifaceted, aiming to enhance irrigation across 5,000 acres of agricultural land, facilitate the transfer of 145 million cubic metres of water annually, and generate 290 GW/h of power.

It is noteworthy that the project’s intricate and diversified components underscores its complexity and scale.

Furthermore, it stands as one of the largest endeavours undertaken by Iranian contractors on foreign soil.

This forthcoming event follows a significant diplomatic exchange between Sri Lanka and Iran in August 2023, during which Sri Lanka’s Foreign Minister Ali Sabry visited Tehran and engaged in discussions with his Iranian counterpart, Hossein Amir Abdollahian.

Abdollahian characterised the visit as a “turning point” in Iran-Sri Lanka relations during a joint press conference, highlighting the significance of bilateral ties between the two nations.

Dept of Agriculture to recommend cultivation of MD 2 Pineapple Variety in SL

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April 16, Colombo (LNW): The Agriculture Department is poised to issue crucial recommendations for the cultivation of the MD 2 pineapple variety, renowned globally for its exceptional sweetness, in Sri Lanka.

Sri Lanka has potential to produce some of the world’s most delicious pineapples, making it possible to generate a substantial demand for locally grown pineapples in the global market, Agriculture Minister Mahinda Amraraweera disclosed.

Despite the high demand for the MD 2 pineapple variety worldwide, efforts to cultivate it within Sri Lanka have been lacking.

Successful research endeavours aiming to cultivate this pineapple variety, characterised by its sweet taste and low acidity, have been conducted in the country, he noted.

In light of these advancements, Amaraweera instructed the Agriculture Department to expedite the process of recommending the MD 2 pineapple variety for cultivation in Sri Lanka, following the directives of the Crop Release Committee.

Furthermore, the Agriculture Minister underscored the success of research initiatives conducted under the government’s Agriculture Sector Modernisation Programme, affirming farmers’ keen interest in cultivating the MD 2 pineapple variety in Sri Lanka.

Debt Restructuring stalls with private bondholders, advances smoothly with bilateral creditors

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April 16, Colombo (LNW): Sri Lanka’s debt restructuring process encounters hurdles in negotiations with private bondholders, while progressing smoothly with bilateral creditors, a senior official revealed yesterday (15).

Speaking to reporters, Chief of Staff of the President Sagala Ratnayake disclosed that discussions between the government and private bondholders have faced challenges due to differing proposals from both sides.

Despite two rounds of talks this year, disagreements persist on key aspects, narrowing down to two unresolved issues.

Ratnayake highlighted the International Monetary Fund’s (IMF) acknowledgment of the government’s proposals as compliant, contrasting with bondholders’ proposals deemed non-compliant.

However, he refrained from divulging specific details, citing confidentiality agreements.

Emphasising that negotiations with private bondholders form only one facet of the debt restructuring programme, Ratnayake underscored successful discussions with the Official Creditor Committee (OCC) and individual bilateral creditors like China.

The next step involves determining whether to pursue a single agreement with the OCC or negotiate individual agreements with member states.

Addressing sentiments expressed by the IMF, Ratnayake noted international donors’ satisfaction with Sri Lanka’s recent economic progress.

However, he clarified that the IMF remains committed to its programme guidelines despite positive evaluations.

Sri Lanka Railways cancels 11 commuter trains due to staff shortage

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April 16, Colombo (LNW): Sri Lanka Railways announced the cancellation of at least 11 commuter trains on the morning of the 16th, citing the absence of locomotive operators and train guards who failed to report to work.

This disruption in train services affected routes departing from Colombo Fort to various destinations including Moratuwa, Panadura, Wadduwa, Negombo, Ambepussa, Padukka, and Ragama.

Commuters relying on these train services faced inconvenience due to the cancellations, highlighting the importance of adequate staffing and operational readiness within the railway system to ensure seamless transportation services for the public.

Sri Lanka engages in productive discussions at IMF-World Bank Spring Meetings 2024

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April 16, Colombo (LNW): During the IMF-World Bank Group (WBG) Spring Meetings 2024 in Washington, D.C., Sri Lanka’s Finance State Minister Shehan Semasinghe met with Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF).

Okamura commended Sri Lankan authorities for their robust programme implementation and remarkable progress in reforms.

Semasinghe led the Sri Lankan delegation, accompanied by Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe and Treasury Secretary Mahinda Siriwardana.

They discussed recent socio-economic developments and reaffirmed Sri Lanka’s commitment to maintaining the gains achieved under the IMF programme while ensuring strong ownership and policy consistency.

In a productive exchange, Okamura emphasised the importance of preserving these achievements and maintaining momentum in reforms.

Semasinghe shared insights into Sri Lanka’s macroeconomic landscape and investment opportunities during a roundtable with the Business Council for International Understanding (BCIU).

Discussions focused on sectors like education, tourism, renewable energy, agriculture, and technology, highlighting their potential for sustainable economic growth.

Furthermore, Semasinghe engaged in discussions with Dr. Krishnamurthy Subramanian, IMF Executive Director for India and Sri Lanka, and Parameswaran Iyer, World Bank Executive Director for India and Sri Lanka.

Iyer assured Sri Lanka of his full support, updating Semasinghe on internal restructurings within the World Bank and their potential benefits for the country.

Sri Lanka economic crimes perpetrated by PEPs comes into public domain

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By: Staff Writer

April 15, Colombo (LNW): Sri Lanka, economic crimes perpetrated by politically exposed persons (PEPs) have received critical attention at present, where there have been discussions on plausible interventions to address the culture of impunity and the human rights implications of economic crimes.

This report compiled by the Centre for Policy Alternatives (CPA), highlited  key issues concerning addressing economic crimes in Sri Lanka, mapping out several interconnections between economic crimes perpetrated by PEPs in Sri Lanka and the human rights implications of such crimes.

The CPA study reveals Sri Lanka’s weak Institutional structures linked to political elites with ’ vested interests.

Politically connected persons who declare commitments to address various types of economic crimes, often during election cycles, have vested interests in institutions that investigate and prosecute economic crimes, a recent study by the Centre for Policy Alternatives (CPA) has found.

“Therefore, once these political elites are in office, they are often reluctant to invest in building capacities as any form of institutional strengthening could lead to their private gains being investigated as well.”

The study, Understanding Connections between Human Rights and Economic Crimes, combines the findings of key informant interviews (KIIs), and analysis of the challenges to the country’s efforts to combat corruption and ensure accountability within its governance framework.

“The key impediment to setting up a powerful, independent investigative and prosecutorial arm to address economic crimes is a direct result of the lack of commitment to capacitate and invest in existing institutional structures,” the study said.

The study further broke down the reasons for the continuous deliberate attempts to dismantle structures of accountability to address economic crimes in Sri Lanka as; vested interests in institutions, concerns regarding independence and integrity, and deliberate attempts to dismantle systems of accountability.

On institutional structures’ integrity and independence, the study found that combating economic crimes presents a challenge to the independence and integrity of institutional structures.

“Fundamental concerns regarding the impartiality and transparency of investigations exist, particularly as to what extent these inquiries are conducted without external interference.

This also relates to a range of other issues such as securing the resourcing for any establishment/s to carry out independent investigations and prosecutions as well as investing in obtaining specialist knowledge,” the study found.

The skills, specialisation, and technical proficiency gaps between investigators and prosecutors are substantial, as this investigation found, particularly when it comes to handling intricate matters like economic crimes.

Even though there have been attempts to enhance the capacities of investigators in the past, such efforts have also been “deliberately undermined”.

“For example, the immediate transfer of the 60 officers, who were trained to investigate financial crimes under the former Financial Crimes Investigative Division (FCID), to other unrelated tasks evinces the deliberate obstruction of the efficiency and effectiveness of investigations.” 

NSB continues resiliency amidst challenges recording Profit of Rs. 7.2 billion

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By: Staff Writer

April 15, Colombo (LNW): The National Savings Bank (NSB) said it demonstrated its mettle amidst challenges by recording a Profit after Tax (PAT) of Rs. 7.2 billion for the fiscal year ended December 31, 2023.

NSB said the performance in FY23 was a testament to its adept management and highly skilled workforce in a year which saw the aftermath of pandemic followed by largest economic crisis in post-independence history, and socio-political uncertainties and monetary tightening.

The Banks’ achievement of Rs. 7.2Bn PAT mainly surged by 31% increment of Interest Income. The Bank strategically allocated more than 60% of its customer deposits investing in Government Debt Securities capitalizing on the higher interest rates prevalent in 2022.

This prudent investment strategy yielded a substantial interest income of Rs. 137.7Bn which was an upswing of 36%. Interest received through Loans and Advances also grew by 36.3%, an increment of Rs. 23.4 Bn.

Net Gain from trading rose up to Rs. 3.7Bn at the group level which was a 206% increase from last year where they recorded a loss from trading. However, NSB was able to turn around the situation with professional due care and commitment, underscoring NSB’s adeptness in capitalising on market opportunities.

The Bank however, encountered challenges in net fee and commission income, witnessing a 34% decline due to subdued demand for loans and advances amid higher interest rates then prevailed. Fee and Commission Income was mostly contributed from Retail Loans and Corporate Banking. Both lines of business were clogged due to unwholesome micro financial conditions.

Exceeding the growth rate of Interest Income, the Interest Expense of the Bank also increased by 41% year-over-year (YoY). This rise in the cost of funds, particularly from Fixed Deposits which represent the largest portion (81%) of NSB’s deposit base, contributed to a congestion in the positive growth of Net Interest Income due to the lag effect of liability repricing.

Impairment charges of the Bank decreased by 12% in 2023 compared to the same period last year. The Bank closely monitors and considers the impact of the economy to business operations and performance.

In terms of Asset Quality, with all the obstacles, NSB has one of the lowest Impaired Loans (Stage 3) Ratio 2.41% (net of stage 3 impairment) compared to the industry rate of 7% at the end of fiscal year 2023. Further, the Bank maintains above industry impairment coverage ratio of 53.3%.

Personnel and other expenses were increased by 17% and 16% respectively being in consistent with inflationary situations globally. The Bank recorded a PBT of Rs. 4.3 billion which was a 5% decrease from 2022.

‘Kurundi’ in Mullaitivu district possesses potential to attract tourist and FDIs

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By: Staff Writer

April 15, Colombo (LNW): Kurundi (Kurundumale, Kurundavashoka: Tamil: Kurundumalei) in Mullaitivu district has the potential to develop it as tourist destination and an area of attracting foreign direct investments , tourism ministry sources said. 

The ruins at the Kurundi (in Mullaitivu district is such a place currently being fought by the politicians stating that this is a site of a Hindu Kovil and not a Buddhist site.

But these ruins have been documented in an archaeological report of 1905.  An inscription that was recorded at this site has now disappeared. In August 2013, this site was declared as a protected archaeological site by a gazette notification.

The ‘Kurundi’ monastery constructed in the 1st century BC is considered sacred as the Buddha had visited the site during his 2nd visit, Prof. Samitha Hettige said.

In the 6th century AD, King Akbo has constructed the ‘Kurundi’ lake probably for cultivation & drinking water etc.

Kalinga Maga whom Paranawithana believed came from Malaysia (City of Holin as per Chinese chronicles/ present Klung valley, Malaysia) has had a base at ‘Kurundi’ (Ref. Mahavansa).

The British backed by H.C.P. Bell gazetted approx 78 acres of the ‘Kurundi’ temple lands as an “archaeological site” in 1933 & left it to the Sinhalese & Tamils in 1948.

After 3 decades they started killing each other for petty reasons for over 30 years. The ground reality in ‘Kurundi’ has changed with the rest of the society by now. Why should Sri Lankans unite to use ‘Kurundi’ to develop the district & the country? How can they do it? From whom can they learn?

Approx 98% of Cambodians are ‘Theravada’ Buddhists.  ‘Ankor Wat’ in ‘Siem Reap’ is their showpiece Buddhist base. Some Cambodians believe that Emperor Jayawarman VII was a reincarnation of King Dutugamunu, he disclosed.

King Dutugamunu gave glory to ‘Siem Riep’ & Cambodia by expanding ‘Ankor Wat’(Ref Cambodian History). During the Vietnam War US forces bombed the magic roads in the jungles of Cambodia bordering Vietnam to kill the Vietnamese who humiliated the mighty US forces with basic tactics.

During the offensives thousands of Cambodians died. Hence, average Cambodians were anti US then. Some believe that it lead to the rise of ‘Polpot’ (Politically Potential man) of the ‘Khmer Rough’ (Red Cambodians).

Within few years Cambodians realized the gravity of giving governing power to the wrong. During the past few decades Cambodians proved they are practicing ‘Theravada’ Buddhists.

 With positive attitudes, they managed to attract FDIs from its former aggressor USA & many including China’s Belt & Road Initiative (BRI – China’s 21st century international trade net).

They even went to the extent of opening a ‘Hard Rock’ café (iconic American brand) in Angkor Siem Reap & it has established as one of the most popular tourist attractions in the city. Similarly Sri Lankans can use ‘Kurundi’ to attract the world with its archaeological sites, mixed cultural flavours & the lake etc. They may add more attractions as in ‘Slender West Lake’ in China he added.