1. CB Governor Nandalal Weerasinghe says it will be more difficult for SMEs to get loans from banks if the “Parate” execution laws are removed: asserts banks will be reluctant to give loans if there is no way of recovery when there is a default: refutes Justice Minister Wijedasa Rajapakshe’s claim that “parate” execution provisions are “archaic”, and says the term may be archaic but that other countries have stringent debt recovery laws as well.
   
2. UNP decides to field President Ranil Wickremesinghe as its Presidential candidate at the upcoming election tipped in Sept’24.
   
3. All Health personnel, spanning administrative officers, health management assistants, development officers, assistants and hospital health assistants to embark on a strike today: demand the “Disturbance, Availability & Transport” allowance of Rs.35,000.
   
4. US Ambassador to SL Julie Chung urges law enforcement operatives to adhere to the rule of law & due process while combating drug trafficking: echoes concerns raised by the Human Rights Commission regarding alleged human rights abuses during the recent “Yukthiya” Operation: meanwhile, many persons express concerns about the US Ambassador’s remarks and say those amount to an interference into the internal affairs of SL.
   
5. Nationwide programme to be initiated at school level to detect Leprosy in the light of an uptick in cases: 1,550 leprosy cases logged in 2023: 315 cases from Colombo District: 168 from Gampaha: 151 from Kalutara.
   
6. State Minister Ranjith Siyambalapitiya says applications have been received for 10 new casinos although approval is yet to be granted by the Govt.
   
7. CB Governor Nandalal Weerasinghe says exchange controls imposed in the recent past will be relaxed: also says the provisions of Foreign Exchange Management Act will be relaxed in line with the observed improvements in the liquidity position of the domestic forex market: previously, Justice Minister Wijedasa Rajapakshe has lamented that over USD 50bn had been retained outside the country by exporters due to the Foreign Exchange Management Act passed in 2017.
   
8. CB Governor Nandalal Weerasinghe says “good faith negotiations” are in progress with commercial creditors to reach an “in-principle” agreement soon: also says agreement is expected to be reached within the next 2 months: analysts point out that although the CB and IMF had expected Bi-lateral & Private Creditors to agree to “hair-cuts” of 60% of their loans, not a single creditor has so far agreed to even a single dollar “hair-cut”.
   
9. National Savings Bank announces that Shashi Kandambi has been appointed as it’s 1st ever Woman CEO/GM in its over 50 years existence: Kandambi previously served as the Senior Deputy General Manager of Int’l Banking at Sampath Bank.
   
10. SL Cricket announces “free entry” for the public to watch the 3rd Cricket ODI between SL & Zimbabwe today at certain stands of the Premadasa Stadium: aim is to boost crowd attendance which had dropped drastically in line with the severe economic contraction.

January 10, Colombo (LNW): The Federation of University Teachers’ Associations (FUTA) has affirmed its commitment to continue advocating against what it perceives as an inequitable tax policy.

This resolution was made during the association’s recent Executive Committee meeting.

For the past year, FUTA, in collaboration with the Government Medical Officers’ Association and 40 other professional organisations under the Professionals Trade Union Collective, has been spearheading a campaign to press for a reduction in personal income tax.

The campaign contends that the existing tax structure places an unjust burden on professionals.

The argument centres on the substantial increase in personal income tax, soaring from 6 per cent to 36 per cent for incomes exceeding Rs. 100,000. This drastic rise is contributing to a concerning trend of professional emigration, posing a threat to Sri Lanka’s skilled workforce, advocates asserted.

President Ranil Wickremesinghe, during a cabinet meeting, approved a 25 per cent increase in allowances for university professors, effective January. Notably, university lecturers actively participated in recent tax protests alongside medical professionals.

The government has implemented measures to grant special privileges to key groups within the Professionals Trade Union Collective. The Government Medical Officers’ Association and the Federation of University Teachers’ Associations welcomed the allowance increase as a positive step toward addressing their concerns.

While these developments indicate some responsiveness to professional concerns, FUTA’s decision to persist in its campaign underscores ongoing apprehensions about the broader tax policy and its implications for professionals in Sri Lanka.

January 10, Colombo (LNW): Justice Minister Wijeyadasa Rajapaksa today (10) unveiled a draft of the controversial anti-terrorism bill to Parliament, following months of talks on various scales against the hostile nature of it.

The legislation has faced allegations of attempting to curtail people’s rights to information and expression under the pretext of combating terrorism.

Defending the draft, Minister Rajapakshe told Parliament that multiple areas facing criticism have undergone amendments. However, concerns persist regarding the potential infringement on citizens’ rights.

The existing Prevention of Terrorism Act (PTA), enacted in 1979, has recently faced renewed scrutiny. The United Nations Human Rights Council (UNHRC) and human rights groups have raised objections to certain provisions, citing potential abuses and inconsistencies with international legal frameworks.

In response to these concerns, the Sri Lankan government published a new Anti-Terrorism Bill (ATB) in March 2023, presenting it as a solution. Rather than addressing terrorism, the draft bill appears to infringe on citizens’ rights, particularly freedom of information and expression, critics argued.

The bill’s broad definition of “terrorism” raises worries about its potential use against individuals participating in peaceful protests.

Additionally, it grants police the authority to detain suspects under Detention Orders before court appearances.

Of particular concern is the draft bill’s provisions that could allow terrorism charges to be levied against the media.

Faced with public outcry, the Sri Lankan government conceded to revise the bill, issuing a new gazette on September 15th, 2023.

Despite the revisions, the presented bill continues to be contentious, highlighting persistent apprehensions regarding potential violations of fundamental rights.

The dialogue on the controversial ATA bill surfaces, when the Minister from another quarter is being cornered by Sri Lankan LGBTQIA+ activists due to his lack of support for the Supreme Court-approved “Penal Code (Amendment) Bill” tabled by Ruling Party MP Premnath Dolawatta proposing amendments to the centuries old clauses criminalising consensual same-sex sexual activities between adults.

January 10, Colombo (LNW): In a recent Cabinet session chaired by President Ranil Wickremesinghe, the proposal to undertake excavation and conservation efforts at the Mahavihara received approval. Dr. Bandula Gunawardhana, the Cabinet Spokesman and Minister of Mass Media, disclosed this decision during the weekly Cabinet media briefing held at the Government Information Department.

Recognizing the profound religious and historical significance of the Anuradhapura Maha Viharaya in Sri Lanka, the initiative to conduct exploration and conservation work under the direct oversight of the Department of Archaeology and the Central Cultural Fund has been emphasized.

To facilitate this, Professor Robin Cunningham, an esteemed foreign expert in archaeology with a wealth of international experience, submitted a detailed project report. This report, commissioned by the President, outlines a comprehensive plan for the exploration, excavation, and conservation of the Mahavihara.

The proposed project aims to execute these endeavors within a structured timeline, spanning six years from 2024 to 2029.

January 10, Colombo (LNW): Senarath Dissanayake, the newly appointed High Commissioner-designate of Sri Lanka to the Republic of Singapore, officially commenced his duties at the Sri Lanka High Commission in Singapore on January 8, 2024. His initiation was marked by a simple yet significant ceremony that commenced with religious observances and the chanting of Seth Pirith by the Maha Sangha.

During his address to the staff, High Commissioner-designate Dissanayake articulated his primary objectives, focusing on reinforcing the enduring and multifaceted bilateral relations between Sri Lanka and Singapore. He underscored the importance of enhancing economic cooperation, specifically emphasizing the amplification of trade, investments, and tourism ties, alongside delivering efficient consular services to Sri Lankans residing in Singapore.

With an extensive career spanning 23 years within the Sri Lanka Foreign Service, Dissanayake has held various significant roles, including Acting High Commissioner of Sri Lanka to Australia and diverse diplomatic assignments in Sri Lanka Missions across Geneva, Brussels, The Hague, Mumbai, and New Delhi.

Before assuming his current position, he served as the Chief of Protocol at the Ministry of Foreign Affairs since January 2022. Dissanayake is an alumnus of the University of Colombo, Sri Lanka, bringing a wealth of experience and expertise to his role as the High Commissioner of Sri Lanka to Singapore.

January 10, Colombo (LNW): Under the Presidential initiative to distribute deeds for 2 million land plots in the Eastern Province, 28 individuals in the Manmunai Pattu Arayampathy Secretarial Division received their deeds in a ceremony led by State Minister of Rural Road Development, Sivanesathurai Chandrakanthan, on Monday (08).

The event, overseen by Manmunai Pattu Arayampathy Assistant Divisional Secretary Rojini Vivekanantharaja, emphasized the government’s commitment to improving living standards, especially for those below the poverty line, despite economic challenges.

The State Minister highlighted that individuals who had responsibly maintained State lands were now granted legal rights to these plots, aiming to enhance the well-being of the recipients.

Former Divisional Secretary Sathiyananthy Namasivayam, Former EP Councillor P. Prasanthan, Land Officers, and beneficiaries were among the attendees, marking the significance of this deed handing-over ceremony.

January 10, Colombo (LNW): Yesterday morning, Major General K.A.N Rasika Kumara NDC PSC took charge as the new Director General of the Directorate of Media and Psychological Operations and Army Spokesman at the Army Headquarters. This formal transition, marked by a brief ceremony, saw him succeed Major General I.H.M.R.K Herath, who now assumes the mantle of Chief Signal Officer and Colonel Commandant of Sri Lanka Signal Corps.

Amidst blessings, Major General K.A.N Rasika Kumara symbolically affirmed his acceptance of the new office by placing his signature on an official document. Following tradition, he engaged with Officers and Other Ranks, outlining his vision for the Directorate’s future endeavors.

Hailing from Theldeniya and a graduate of Ruwanwella Rajasinghe Central College, he commenced his journey in the Sri Lanka Army in 1990, obtaining his commission as a Second Lieutenant in 1991 from the Pakistan Military Academy (PMA).

His extensive training repertoire includes a spectrum of courses such as the Platoon Commander’s Course, Officers’ Par Excellence Course, Unit Intelligence Officer Course, and numerous others spanning across various countries like India and China.

Major General K.A.N Rasika Kumara’s illustrious career boasts a diverse array of roles, including Troops Commander, Intelligence Officer, Brigade Major, Director of Human Rights and International Humanitarian Law, among others. His wealth of experience positions him well for the responsibilities of his new role.

The assumption ceremony drew the attendance of Senior Officers, Officers, and Other Ranks from the Directorate of Media and Psychological Operations, underscoring the significance of this transition within the Army hierarchy.

By: Staff Writer

January 10, Colombo (LNW): In what appears to be a distinctive development in the financial sector, the spending via credit cards has continued to narrow and so has the consumer base holding a credit card, as the numbers have continued to shrink.

There could be two reasons. The first one is people do not have the purchasing power due to lower disposable income. So, they might be cancelling their credit cards,” a financial analyst, said.

“The second one is a sudden increase in migration with many professionals who have been using credit cards are leaving the country and they might have cancelled their cards.

According to the data available through October, the total outstanding credit card balance has continued to shrink by another Rs.309.0 million from a month earlier, after falling by Rs.169.0 million in September.

The persistent monthly decline has put the total outstanding credit card balance at Rs.143,992 million by the end of the first 10 months of last year, only slightly changed from Rs.143,098 million at the start of 2023.

It becomes idiosyncratic, as private sector credit has continued to expand at a modestly healthy clip for five consecutive months through October, since the interest rates started easing.

And specially on credit cards, the Central Bank capped the maximum rate at 28.0 percent, cutting the rate by seven percentage points, effective from September, as part of its targeted monetary policy measures to speed up the policy pass through.

However, 28.0 percent remains still very much elevated and doesn’t really encourage the card holders to spend from their card.

As the rates have further declined from the September levels at a faster pace, it is expected that the Central Bank could further slash the ceiling rate in cards and select other products, at an upcoming policy meeting.

Meanwhile, as inflation has cooled to mid-single digit levels, there are expectations for the consumer spending to pick up gradually, although the recent increase in the Value Added Tax could dampen the effects for a certain degree.

Cards are a distant proxy for consumer spending in Sri Lanka, as still a large section of the population transacts in cash and operates with no credit cards or access to a card.

For instance, Sri Lanka had a total of 1,913,858 active cards by the end of October, which had also shrunk from both September levels and at the start of the year.

At the beginning of the year, there were 1,952,991 active cards but the base came gradually down, as the banks tightened the eligibility criteria as part of their broader credit tightening policy and many people on average to high-paying jobs, who were using cards, migrated en masse.

The last two years alone saw Sri Lanka losing about 650,000 people from both blue and white collar types for countries that can offer them better income and living conditions.