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Pensioners to receive additional Rs. 6,000 in October payments

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August 12, Colombo (LNW): Pensioners in Sri Lanka will receive an additional Rs. 6,000 with their October payments, comprising a Rs. 3,000 interim allowance for October and Rs. 3,000 in arrears from September, announced Finance State Minister Ranjith Siyambalapitiya.

This follows a Cabinet-approved proposal presented by the President.

The Rs. 3,000 interim allowance will continue monthly until salary anomalies are addressed, adding to the Rs. 2,500 extra payment already provided in April.

The Finance Ministry has granted formal approval, and the Public Administration Ministry is expected to issue a circular to facilitate the disbursement.

However, the Election Commission objected to the allowance being distributed in September due to the election announcement.

President announces landmark land rights for line room residents in Nuwara Eliya

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August 12, Colombo (LNW): President Ranil Wickremesinghe has unveiled an unprecedented initiative granting residents of line rooms the right to live in villages, with the government reclaiming land from plantation companies by terminating lease agreements.

During a meeting with the Nuwara Eliya business community on August 10, the President announced plans to provide land rights, assist in housing development, and create public amenities such as playgrounds for these residents.

He was also briefed on the challenges facing local businesses and reviewed regional development proposals.

The Nuwara Eliya business community expressed strong support for President Wickremesinghe, backing his efforts to guide the nation out of its economic crisis and pledging their endorsement in the upcoming Presidential Election.

President Wickremesinghe also met with scholars and professionals from the district, who stressed the importance of continuing the country’s economic recovery and supported his re-election.

The President announced plans for a conference early next year to address social justice issues for Tamil communities in the hill country, with a forthcoming Social Justice Commission set to investigate these concerns.

Various issues and proposals were presented by school principals and professionals during the meeting, and MP Vadivel Suresh highlighted the President’s significant contributions to the plantation community.

The meeting was attended by prominent local figures, including former MP K.K. Piyadasa and Hindu Priest Committee Chairman Rev. Velu Suviswara Sharma.

CoPA scrutinises irregularities in Basnagoda Reservoir Project and payment procedures

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August 12, Colombo (LNW): The Committee on Public Accounts (CoPA) has raised concerns over a significant increase in the bid for the Basnagoda Reservoir construction project.

The contractor’s bid of Rs. 2,093 million was raised by Rs. 254 million, reaching Rs. 2,347 million, based on recommendations from the Technical Evaluation Committee.

CoPA questioned the Irrigation Department’s payment processes, which reportedly did not comply with government financial regulations.

The committee highlighted that previous recommendations to rectify these procedures had not been implemented, prompting further scrutiny.

Additionally, CoPA examined irregularities involving 1,177 cheques worth Rs. 352.4 million issued in 2022, including issues with a Divisional Assistant improperly cashing payments.

The officials present admitted to calculation errors and double entries, assuring that corrective measures had been taken.

The Committee also discussed the Ging Nilwala project, which received an advance of 4.35% of the estimated cost, despite the project not commencing as planned.

The meeting was chaired by State Minister Lasantha Alagiyawanna and attended by several Members of Parliament.

Dollar value against LKR at SL banks today (Aug 12)

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August 12, Colombo (LNW): The Sri Lankan Rupee has appreciated against the US Dollar at various commercial banks on 12 August, reflecting a positive shift compared to the previous week.

Peoples Bank reported a drop in the Dollar’s buying rate from Rs. 295.27 to Rs. 294.44, and the selling rate from Rs. 305.87 to Rs. 305.

Similarly, Commercial Bank noted a decline in buying and selling rates from Rs. 294.95 to Rs. 294.21 and from Rs. 304.75 to Rs. 304, respectively.

At Sampath Bank, rates also decreased, with the buying rate dropping from Rs. 296 to Rs. 295.50, and the selling rate from Rs. 305 to Rs. 304.50.

Grama Niladhari Officers begin week-long protest over constitutional dispute

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August 11, Colombo (LNW): Grama Niladhari Officers have initiated a week-long protest from 12 August to 19 August, expressing dissatisfaction with a recently issued Gazette notification concerning their constitutional framework.

The officers will abstain from duties on 12 and 13 August, and a silent protest is planned in front of the Ministry of Public Administration.

Nandana Ranasinghe, Co-President of the Grama Niladhari Officers’ Alliance, stated that the protest stems from the exclusion of their proposals in the final Gazette.

Ali Sabry appointed as Minister of Justice, Prison Affairs, and Constitutional Reforms

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August 11, Colombo (LNW): Minister Ali Sabry has been appointed as the new Minister of Justice, Prison Affairs, and Constitutional Reforms, officially taking oaths before President Ranil Wickremesinghe.

This appointment adds to his current role as Foreign Minister. Sabry assumes these responsibilities following the resignation of Wijeyadasa Rajapakshe, who stepped down from his positions to participate in the forthcoming Presidential Election.

The reshuffle comes as part of a broader adjustment within the cabinet, ensuring continuity in key governmental functions.

Heightened security measures for Presidential Election nomination process

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August 12, Colombo (LNW): The National Election Commission has announced enhanced security protocols ahead of the upcoming Presidential Election nominations.

On 15 August, a special security detail will be deployed at the Commission’s office, involving 1,500 personnel from various law enforcement agencies, including the Police and the Special Task Force.

To manage the nomination process, the Police will introduce a specific vehicle permit system, categorised into A, B, and C, strictly for Presidential candidates and their two accompanying signatories.

Additionally, arrangements will be made to deploy police motorcycles to assist candidates facing traffic delays, ensuring they reach the Commission on time.

Separate areas near the Election Commission will be designated for the supporters of each candidate.

These measures were finalised after a meeting involving officials from the Election Commission, the Ministry of Public Security, the Police, and the Air Force.

Steady increase in SL remittances strengthens external sector

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August 12, Colombo (LNW): Sri Lanka’s remittances from overseas workers saw a continued rise in July, with inflows reaching $566.8 million, bolstering the country’s external sector.

The first seven months of 2024 recorded a total of $3.71 billion, reflecting a 10.3% increase compared to the previous year.

This upward trend, evident from the higher figures in July 2023 and June 2024, underscores the crucial role remittances play in stabilising Sri Lanka’s economy amid a global recovery.

The external sector, vital to the nation’s overall economic health, has shown remarkable improvement over the past two years, driven by recovering remittances, a resurgence in tourism, and the easing of energy and commodity prices post-Ukraine conflict.

The stabilisation is further supported by the country’s restored political and social order, allowing normal activities to resume after the economic crisis.

Additionally, the Central Bank of Sri Lanka’s decision to float the currency in March 2022, under the leadership of former Governor Ajith Nivard Cabraal, has attracted higher remittances, complemented by a growing number of Sri Lankans seeking employment abroad since 2021.

Tourism Sector faces severe setback amidst visa system challenges

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August 12, Colombo (LNW): Sri Lanka’s tourism industry, recently buoyed by the suspension of the VFS Global-led visa system, is now facing significant turmoil, reports claim.

The transition back to the Electronic Travel Authorisation (ETA) system has proven ineffective, leaving tourists and travel agents struggling to secure necessary entry approvals.

The Sri Lanka Association of Inbound Tour Operators (SLAITO) has reported a drastic decline in tourist arrivals and an increase in cancellations, as the only remaining option is visa issuance upon arrival.

Efforts to issue visas through foreign missions were halted on 6 August due to technical issues, and the online visa application system remains non-operational, threatening the winter tourism season.

Without a swift resolution, Sri Lanka risks losing winter bookings to regional competitors with more accessible visa processes.

The Ministry of Public Security has indicated that restoring the previous system will take months due to ongoing immigration system overhauls.

The situation is further complicated by the recent resignation of Harin Fernando as Minister of Tourism, following a Supreme Court ruling that upheld the suspension of his party membership.

SL Manufacturing Sector shows signs of revival amidst improved economic conditions

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August 12, Colombo (LNW): Sri Lanka’s manufacturing sector is showing signs of recovery after the severe foreign currency crisis of two years ago.

The June Index of Industrial Production (IIP) reached 93.0, a 3.3 per cent increase from the previous year, indicating a resurgence in industrial activity.

This revival is driven by a rise in both local and international demand, coupled with reduced production and funding costs.

The food manufacturing sector, in particular, saw a robust 17.9 per cent growth, reflecting increased domestic consumption and steady export demand.

Export earnings from food, beverages, and tobacco rose by 28.2 per cent in June, totalling $312.6 million for the first half of the year, marking a 25.6 per cent increase from the previous year.

However, the apparel sector remains under pressure, with a 10.6 per cent decline in June, primarily due to reduced demand from the US and Europe, although a recovery is anticipated as global economic conditions improve.

Other manufacturing segments, including chemical products and non-metallic minerals, also contributed positively, whilst some sectors like petroleum and beverage products saw declines.

*With inputs from Daily Mirror.