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Sri Lanka Tourism Booms in 2024 with Record Arrivals, Global Recognition

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By: Staff Writer

August 19, Colombo (LNW): The Sri Lanka Tourism Promotion Bureau has been steadily advancing its efforts to promote the country as a prime destination through various campaigns and marketing strategies in 2024. A major focus has been on the new tourism brand identity, “Sri Lanka: You Will Come Back for More,” symbolizing a fresh start towards success.

According to the Central Bank of Sri Lanka, tourism earnings surged to over $1.5 billion in the first half of 2024, representing a 78% year-on-year increase. Tourist arrivals also saw a significant rise, reaching 1.01 million—a 62% jump compared to the same period in 2023.

As the country rebounds from its recent economic challenges, the “Seeing is Believing” campaign has been a cornerstone of promotional activities. Continued into 2024, this initiative brought nearly 58 foreign media professionals, including travel influencers and bloggers, to Sri Lanka, generating media publicity valued at over $550 million.

Up until August this year, Sri Lanka Tourism participated in 16 international travel shows, including major events like ITB-Germany, FITUR-Spain, ATM-Dubai, and IFTM-France. Additionally, 16 roadshows were organized across India, China, Australia, and Turkey, with a focus on B2B sessions in various cities.

Sri Lanka Tourism also played a pivotal role in supporting key national events such as the Duruthu Perahera, Gangarama Navam Perahera, Buddha Rashmi Vesak Festival, and Kandy Esala Perahera.

A significant achievement this year was the launch of PR and digital campaigns in India, China, the UK, Germany, and France. These campaigns, set to run for one year in India and China and six months in the European countries, aim to increase awareness about Sri Lanka, particularly during the winter season and into 2025.

In 2024, Sri Lanka Tourism received 15 international endorsements, including being named the fourth most popular solo travel destination by Forbes, ranking as the fifth-fastest-growing tourism destination, and topping the list of best places for solo female travel. Additionally, Sri Lanka Tourism was awarded the “Best International Tourism Board” at the Global Tourism Awards in New Delhi, India.

These extensive promotional efforts have contributed to the arrival of 1,289,693 tourists in Sri Lanka by August 14th, primarily from key markets such as India, the UK, Russia, Germany, France, and China. Countries like Australia, the USA, the Netherlands, and Poland also showed strong growth potential. 

With these successes, Sri Lanka Tourism is optimistic about achieving its target of 2.3 million tourists by the end of the year.

Sri Lanka Original Narrative Summary: 19/08

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  1. President Ranil Wickremesinghe callas for greater regional cooperation and economic integration from Japan to India, with a special focus on strengthening ties with India: emphasises Sri Lanka’s strategic role in expanding Asian partnerships, particularly through BIMSTEC: highlights the diminishing global influence of the West and stresses the importance of regional collaboration: acknowledges India’s critical support during Sri Lanka’s recent economic crisis, expressing optimism for deeper bilateral integration and regional stability.
  2. Opposition Leader and presidential candidate Sajith Premadasa reiterates his commitment to unveiling the truth behind the 2019 Easter Sunday terror attacks, addressing the Catholic community’s longstanding concerns: During a visit to Cardinal Malcolm Ranjith in Colombo, Premadasa sought blessings and pledged justice: emphasises his strategy, already presented in Parliament, to ensure transparent investigations and accountability: assures religious leaders that he remains determined to deliver justice, pledging comprehensive action against those responsible if elected: This stance aligns with his broader campaign to gain support from key religious and community figures.
  3. NPP leader Anura Kumara Dissanayake vows to prioritise the extradition of former Central Bank Governor Arjuna Mahendran from Singapore if his party assumes power: outlines the NPP’s plans to combat fraud and corruption, aiming to recover Rs. 1,100 billion in defaulted taxes: proposes legal reforms to expedite tax collection and pledges to raise the Pay As You Earn (PAYE) tax threshold to Rs. 200,000: plans to provide low-income families with a Rs. 10,000 monthly allowance and limit the Cabinet to 25 members without appointing State Ministers.
  4. A joint delegation from the European Union (EU) and the Commonwealth arrives in Sri Lanka to monitor the upcoming presidential election on 21 September: Invited by the Election Commission, the mission highlights global backing for transparent elections during Sri Lanka’s recovery: This is the EU’s seventh monitoring effort in the country, with a team comprising experts and observers stationed nationwide: The election is seen as a critical step in stabilising Sri Lanka’s democracy post-2022 crisis.
  5. Cabinet Spokesperson Bandula Gunawardhana addresses concerns regarding the proposed public sector salary increase, clarifying during a media briefing on 18 August that all public employees will receive an additional Rs. 25,000 monthly allowance for three years, along with significant base salary adjustments: explains these increments, mandated by the IMF, are fixed and will apply regardless of future governments: From January 2025, public sector employees will receive a minimum monthly income of Rs. 55,000: emphasises adhering to the IMF’s Extended Fund Facility agreement is crucial for budgetary support until 2027: Non-compliance could delay salary and pension payments: highlights the new fiscal laws—Central Bank Act, Public Debt Management Act, and others—intended to stabilise the economy and prevent past financial failures: urges cross-party cooperation to ensure long-term economic stability and prosperity.
  6. Commissioner of Elections Saman Sri Ratnayake urges political parties and the public to avoid using the national flag in election activities, stating that it disrespects a national symbol: warns legal actions could follow against those misusing the flag: also criticises the inappropriate display of the national flag at events like cricket matches, where it’s often wrapped around bodies or held by individuals consuming alcohol: Rohana Hettiarachchi of PAFFREL also emphasises the need to respect the national and Buddhist flags during elections, urging political groups to adhere to ethical standards and legal frameworks.
  7. The Indian and Sri Lankan armies incorporate specially trained dogs into their ongoing Mitra Shakti exercise at the Army Training School in Maduru Oya, Sri Lanka: Running from August 12 to 25, this 10th edition of the joint drill focuses on enhancing counter-insurgency operations and military cooperation: India deploys Zac, a Belgian Malinois skilled in urban combat and jungle reconnaissance, while Sri Lanka fields two trained dogs: The exercise also involves joint drills in semi-urban environments, aiming to boost interoperability and readiness under UN peacekeeping mandates.
  8. Sri Lanka’s retail sector shows signs of recovery as private credit is expected to rise in late 2024 if businesses begin expanding: Although private credit remains slow, firms are focusing on deleveraging to strengthen financial positions, especially in the SME sector: Retail growth, a key driver for economic expansion, is vital as it contributes over 30% of GDP: With inflation stabilising, consumer spending and investment are likely to boost the sector, although election uncertainties in late 2024 may impact confidence: Economists forecast 3.5% growth for 2024.
  9. The grand Randoli Maha Perahera of the Kandy Esala Perahera festival is set to take place today (19), marking the peak of this revered cultural event: The festivities conclude with the traditional water-cutting ceremony at Getambe the following morning and a final noon procession on 20 August: Afterwards, the Diyawadana Nilame will present the Perahera Sandeshaya to the President, formally closing the festival: This year’s Esala Perahera began on 5 August with the ‘Kap Situweema’ ceremony and featured a series of processions showcasing Sri Lanka’s rich cultural heritage, drawing large crowds locally and internationally.
  10. The Dialog Presidents Gold Cup Volleyball tournament concluded at the Air Force Indoor Stadium in Colombo, with Golden Birds Sports Club and MAS Sports Club claiming titles in the Men’s and Women’s categories, respectively: Golden Birds SC secured a straight-set victory over Rajasinghe SC, led by MVP Dulanjan Sandeepa: In the Women’s final, MAS SC overcame Hirdaramani SC in a 3-1 contest, with Sulakshana Pasinduni named MVP: The tournament, organised by the Sri Lanka Volleyball Federation, showcased outstanding individual performances across various positions.

Sri Lanka Pursues Economic Cooperation Agreements from Japan to India

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By: Staff Writer

August 19, Colombo (LNW): President Ranil Wickremesinghe of Sri Lanka has underscored the necessity of enhancing economic cooperation and regional integration across Asia, particularly from Japan to India, with a focus on strengthening ties with India.

His remarks were made during the Head of State Session at the 3rd Voice of Global South Summit, which was themed “An Empowered Global South for a Sustainable Future.”

During his virtual address from the President’s House in Anuradhapura, Wickremesinghe highlighted Sri Lanka’s strategic intent to expand its economic partnerships throughout Asia, with special attention on the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

He pointed out that as the Bay of Bengal region is becoming an economic growth hub, BIMSTEC’s importance is also increasing. 

Sri Lanka, being a member of this regional organization, is seeking to deepen its economic integration with India and is exploring potential economic cooperation agreements spanning from Japan to India.

The summit, led by Indian Prime Minister Narendra Modi, saw participation from various heads of state. Wickremesinghe praised India’s leadership in strengthening the Global South, acknowledging that Western dominance in global leadership is declining. 

He commended the Voice of the Global South Summit as a critical platform for achieving consensus on the challenges faced by developing nations.

President Wickremesinghe also expressed his deep appreciation to Prime Minister Modi and the Indian people for their support during Sri Lanka’s recent economic crisis.

He credited India’s assistance as crucial in helping Sri Lanka navigate the challenges of the past two years and recover from bankruptcy.

In his address, Wickremesinghe mentioned that Sri Lanka has reached agreements with various international financial institutions and creditor countries to overcome its economic difficulties.

He specifically acknowledged the role of India’s support in enabling Sri Lanka to survive the challenging period of bankruptcy, which had imposed significant hardships on its population.

The President reiterated that the Vision Statement agreed upon by Sri Lanka and India would facilitate closer relations, emphasizing their long history of cooperation.

He also highlighted ongoing initiatives, such as the finalization of the Comprehensive Economic and Technological

Agreement, and projects like the development of Trincomalee Harbour, which would help Sri Lanka advance towards a digital economy. Additionally, 

Wickremesinghe noted that Sri Lanka, as a member of BIMSTEC, aims to establish economic cooperation agreements extending from Japan to India, recognizing the Bay of Bengal as a critical area for economic development.

Finally, he reflected on the shifting global order, noting that the dominance of the Western system, which began after the collapse of the Soviet Union, is coming to an end. 

He expressed hope that summits like this, along with the expansion of groups such as BRICS and the G20, would pave the way for a new global order led by the Global South.

Sri Lanka’s Retail Sector Poised for Recovery amid Economic Stabilization

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By: Staff Writer

August 19, Colombo (LNW): Sri Lanka’s retail sales are showing signs of improvement, and private credit is anticipated to follow suit in the latter half of the year 2024  if businesses begin to invest in expansion, according to the Central Bank.

Although private credit is growing, it remains sluggish, with most borrowing currently focused on working capital. Businesses are in a phase of de-leveraging after a currency crisis, seeking to improve their financial positions by renegotiating old loans at lower interest rates, particularly in the SME sector.

De-leveraging is a natural part of the credit cycle that strengthens business balance sheets, positioning them for future growth. For expansion to occur, retail sales must increase, which would prompt capital investments as existing capacity becomes fully utilized, and confidence in future prospects grows.

By 2023, many of the earlier restrictions were lifted, but Sri Lanka continued to face significant challenges due to strict fiscal policies from the Central Bank and external factors like Russia’s war with Ukraine, which disrupted global supply chains.

Peppercube, a Sri Lankan market research firm, reported that in 2021, there were around 270,000 retail stores across the island. Informal retailing, especially for fresh produce, cooked food, and clothing, remains robust.

Local markets, known as “Pola,” are prevalent in both urban and rural areas, often serving as the primary source for essentials like vegetables, fruit, meat, and fish.

In 2022, the Sri Lanka Retailers’ Association (SLRA) expressed concerns about the retail sector’s health, warning that a collapse would have far-reaching consequences for the economy, including unprecedented financial and social repercussions and significant job losses.

The retail sector accounts for over 30% of the national GDP and provides 14% of direct employment. Over 10% of Sri Lankan households depend on retail sector jobs, which are crucial for maintaining the country’s economy and ensuring widespread income distribution.

Sri Lanka’s economy began to recover in the third quarter of 2023, with economists forecasting 3.5% growth in 2024. Inflation, which returned to single digits in 2023, is expected to stabilize further, easing economic pressures and boosting the retail sector.

The economic recovery is likely to be driven by increased consumer spending, a revival in tourism, and investment spending. Although household incomes were severely impacted by the sharp devaluation of the Sri Lankan rupee, inflation has eased, allowing households to rebuild purchasing power and stimulate consumption.

Inflation is projected to average 6.6% in 2024 and decrease to 5.0% in 2025. However, the retail sector remains cautious ahead of the Presidential election in the second half of the year, with potential changes in economic policy depending on the election outcome. Despite this, the business community views the macroeconomic stability of 2023 positively.

Government clarifies controversial Public Sector pay hike amidst growing criticism

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August 19, Colombo (LNW): Cabinet Spokesperson and Minister Dr. Bandula Gunawardhana addressed concerns over the proposed public sector salary increase, clarifying key points during a special media briefing on 18 August.

He emphasised that all public employees will receive an additional Rs. 25,000 monthly allowance for three years, alongside significant base salary adjustments.

Dr. Gunawardhana explained that the salary increments are part of an International Monetary Fund (IMF) mandate and will remain consistent, regardless of which Government is in power.

Media reports have focused narrowly on the allowance increase, overlooking the broader salary adjustment, he noted. Public sector employees will see a minimum monthly income of Rs. 55,000 or more from January 2025.

The Minister underscored that the IMF’s Extended Fund Facility agreement is binding on future administrations and essential for budgetary support until 2027.

Failure to comply with these financial provisions could result in delayed payments of salaries, pensions, and other entitlements. He urged the importance of adhering to the new fiscal management laws to prevent repeating past economic failures.

The Minister highlighted the crucial laws now shaping Sri Lanka’s economic future, including the Central Bank Act, Public Debt Management Act, Fiscal Responsibility Act, Economic Transformation Act, and Anti-Corruption Act.

These laws are designed to stabilise the economy by restricting money printing, regulating debt, and enforcing responsible fiscal management.

Dr. Gunawardhana called on all political leaders to engage in discussions about the economic framework that will guide the nation’s future.

He emphasised that cooperation across political divides is vital to achieving long-term prosperity and avoiding past economic pitfalls.

Indian and Sri Lankan armies deploy elite canines in joint exercise Mitra Shakti

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August 19, Colombo (LNW): The Indian and Sri Lankan armies have incorporated highly trained canines into their ongoing Mitra Shakti bilateral exercise, currently taking place at the Army Training School in Maduru Oya, Sri Lanka.

The 10th edition of this joint military drill, running from August 12 to 25, aims to bolster counter-insurgency capabilities and foster deeper military cooperation between the two nations.

India has fielded Zac, a two-and-a-half-year-old Belgian Malinois known for his advanced tactical skills, while Sri Lanka has deployed two specially trained dogs.

Zac is proficient in operations such as cordon-and-search, search-and-destroy missions, urban combat, and jungle reconnaissance.

Additionally, his specialised training includes laser-guided assaults and weapon retrieval, making him a critical asset during tactical operations.

Zac was trained at the Remount Veterinary Corps (RVC) Centre and College in Meerut, where he developed into an “assault K9” capable of handling high-risk scenarios.

According to Major Rishi Sharma, the K9 Detachment Commander, Zac plays a pivotal role as both a force multiplier and first responder.

During the exercise, Zac will be engaged in a variety of tasks, ranging from house interventions to jungle searches, demonstrating his capability in counter-insurgency operations.

Notably, in a recent scenario, Zac successfully apprehended an assailant attempting to flee a roadblock.

Modern military dogs like Zac are routinely utilised in urban operations for vehicle inspections, explosive detection, and search-and-assault missions.

Equipped with head-mounted tactical cameras, these dogs can provide real-time surveillance and execute stealth attacks, enhancing the effectiveness of the operations.

The Indian contingent, comprising 106 personnel from the Rajputana Rifles and other units, joins forces with the Sri Lankan Gajaba Regiment in this exercise.

According to the Indian Army, the joint training focuses on semi-urban environments and covers drills such as counter-terrorism responses, intelligence gathering, and securing key locations like helipads.

The broader aim of Exercise Mitra Shakti is to enhance inter-operability and strengthen joint operational readiness.

Both sides view this collaboration as an opportunity to exchange best practices and foster camaraderie, with a focus on improving tactics and techniques under United Nations Chapter VII mandates for peacekeeping.

Election Chief warns against misuse of national symbols in political campaigns

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August 19, Colombo (LNW): Commissioner of Elections Saman Sri Ratnayake has strongly urged political parties and the public to refrain from using the national flag for election-related activities, warning that such actions constitute disrespect towards a national symbol.

Speaking at a forum in Colombo, Ratnayake highlighted the growing trend of misusing the flag in political campaigns and warned that legal measures would be taken against offenders.

He expressed concern that the national flag, along with the national anthem, risks becoming tools of political propaganda, compromising their symbolic value.

Ratnayake also pointed out the inappropriate display of the national flag during events like cricket matches, where it is often wrapped around bodies or held by individuals consuming alcohol, actions he described as disrespectful.

In a related remark, Executive Director of the People’s Action for Free and Fair Election (PAFFREL), Rohana Hettiarachchi, stressed the need for a respectful approach towards both the national flag and the Buddhist flag during elections.

He reminded political entities that national ethics, the Constitution, and election laws must be upheld, urging an end to the misuse of these symbols in political propaganda.

Ceylon Workers Congress declares support for RW ahead of Election

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August 19, Colombo (LNW): The Ceylon Workers Congress (CWC) has formally announced its backing for President Ranil Wickremesinghe in the upcoming presidential election, citing his achievements over the past two years and his commitment to improving the lives of the upcountry community.

The decision was made public during a press conference held at the party headquarters in Hatton yesterday (18).

CWC General Secretary and Minister of Water Supply and Estate Infrastructure Development, Jeevan Thondaman, praised President Wickremesinghe’s leadership in guiding the nation out of bankruptcy and implementing crucial initiatives focused on the livelihood, education, and healthcare of the upcountry people.

Thondaman highlighted that the President’s attention to the ongoing wage issues within the plantation sector has been particularly appreciated by the community.

The CWC President, Senthil Thondaman, further elaborated that a democratic discussion within the party had led to the majority’s decision to support President Wickremesinghe.

The party’s leadership emphasised that this choice is not just an endorsement but part of a broader collaboration, with a Memorandum of Understanding (MoU) set to be signed to formalise their partnership.

The MoU is expected to outline key demands from the upcountry community, focusing on long-term benefits.

Parliamentarian M. Rameshwaran echoed these sentiments, acknowledging the President’s efforts in addressing plantation workers’ wage disputes and expressing optimism about future development projects in the hill regions under Wickremesinghe’s governance.

The CWC’s alignment with the President is seen as a strategic move, potentially consolidating a significant voter base in the highlands, where the party holds considerable influence.

The CWC’s decision underscores the evolving political landscape as various factions weigh their options in the lead-up to the presidential election.

Kandy’s Esala Perahera to conclude with grand Randoli Maha Perahera and Water-Cutting ritual

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August 19, Colombo (LNW): The final Randoli Maha Perahera of the Esala Perahera festival in Kandy is set to take place today (19), marking the climax of one of Sri Lanka’s most revered cultural and religious events.

The following morning, the traditional water-cutting ceremony will be held at Getambe, symbolically bringing the festivities to a close.

The Esala Perahera will formally conclude with the noon parade on August 20.

Following the grand procession, the Diyawadana Nilame, accompanied by the Nilames of the Sathara Maha Devalayas and other rural devalayas, will lead a ceremonial procession to the President’s House.

There, they will present the Perahera Sandeshaya, a formal letter announcing the successful completion of the annual event, to the President.

The 2024 Esala Perahera began with the ‘Kap Situweema’ ceremony on August 5, marking the start of this centuries-old tradition at the Sacred Temple of the Tooth Relic in Kandy.

The festival proceeded with five internal peraheras at the Devalayas before the first Kumbal Perahera took to the streets on August 10.

The Randoli Perahera, the most elaborate segment of the procession, commenced on August 15, drawing large crowds and international attention.

The Esala Perahera’s rich blend of spirituality, tradition, and pageantry remains a key cultural highlight in Sri Lanka, attracting thousands of devotees and tourists each year.

The concluding rituals and ceremonial presentations reaffirm the event’s deep cultural significance, preserving a legacy that spans generations.

President stresses regional cooperation, calls for deeper India ties at Global Summit

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August 19, Colombo (LNW): President Ranil Wickremesinghe underscored the need for enhanced regional cooperation and economic integration spanning from Japan to India, with particular emphasis on strengthening ties with India.

Addressing the Head of State Session at the Third Voice of Global South Summit, themed “An Empowered Global South for a Sustainable Future,” he highlighted Sri Lanka’s strategic focus on expanding partnerships within Asia.

Speaking virtually from the President’s House in Anuradhapura, Wickremesinghe drew attention to the growing importance of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) as the region emerges as an economic powerhouse.

He noted that Sri Lanka, as a key member, is committed to closer economic engagement with India and is actively pursuing regional cooperation agreements that extend across Asia.

The summit, chaired by Indian Prime Minister Narendra Modi, brought together global leaders to discuss challenges and opportunities for the Global South.

President Wickremesinghe commended India’s leadership in empowering developing nations, highlighting the diminishing influence of the West in global leadership and the importance of platforms like the Voice of the Global South Summit for shaping collective responses to pressing issues.

Reflecting on Indo-Sri Lankan relations, the President pointed to the shared vision statement between the two countries, which builds on their historical ties and sets the stage for future collaboration.

He expressed optimism that this strengthened partnership will drive greater integration between Sri Lanka and India in various sectors.

Wickremesinghe also conveyed his gratitude to Prime Minister Modi and the Indian people for their decisive support during Sri Lanka’s recent economic crisis.

He acknowledged that India’s timely assistance was instrumental in helping Sri Lanka overcome its economic challenges and chart a path towards recovery.