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.
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.
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.
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.
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.
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.
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.
August 12, Colombo (LNW): Atmospheric conditions are favourable for development of evening thundershowers in the island during the next few days, and showers or thundershowers, therefore, will occur at most places in the island during the evening or night, the Department of Meteorology warned in its daily weather forecast today (12).
A few Showers may occur in Kaluthara, Galle, Matara and Rathnapura districts during the morning too.
Heavy showers above 100 mm are likely at some places in Western, Sabaragamuwa, Central, Southern, Northern and North-central provinces.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers may occur at several places in the sea areas around the island during the afternoon or night. Showers will occur at several places in the sea areas off the coast extending from Puttalam to Pottuvil via Colombo, Galle and Hambantota.
Winds:
Winds will be westerly to south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to 50 kmph at times in the sea areas off the coasts extending from Galle to Batticaloa via Matara, Hambantota and Pottuvil.
State of Sea:
The sea areas off the coasts extending from Galle to Batticaloa via Matara, Hambantota and Pottuvil may be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
August 12, Colombo (LNW): The Government is spending a record Rs.206 billion on social welfare to assist the poor and vulnerable who are truly in need of assistance amidst the increasing poverty line.
The government implements a new welfare programme with defined costs, timelines and number of recipients under the provisions of Welfare Benefits Board Act.
This would be the largest expenditure on social welfare in post-independence Sri Lanka,” Cabinet Spokesman Minister Bandula Gunawardana said.
Sri Lanka’s official poverty line has witnessed a sharp threefold rise within the span of just over a decade, a recent report by the Department of Census and Statistics revealed.
The relevant report revealed that the poverty line has risen from Rs 5,223 in 2012 and 2013 to a whopping Rs 17,014 by January this year.
In 2016 the Poverty Line increased to Rs 6,117 from the Rs 5,223 recorded in 2013. Later, the poverty line increased to Rs 6,966 in 2019.
However, with the economic crisis in 2022 wreaking economic and social havoc, inflation skyrocketed pushing the poverty line to a twofold increase, reaching Rs 15,970, as per the report.
According to the report, Colombo reported the highest poverty line, ranking with Rs 17608 in May, dropping from Rs 18350 in January.
The Colombo district claimed the top spot in the district-wise comparison of the poverty lines, with a poverty line of Rs 17,608 being recorded in May this year down from a staggering Rs 18,350 recorded earlier in January.
The Gampaha district, neighbouring Colombo came in second with a poverty line of Rs 17,517, followed by Nuwara Eliya with Rs 17,169.
Other districts such as Monaragala, Kilinochchi and Hambantota have ranked lower with poverty lines of Rs 15,610, Rs 15773 and Rs 15,862 respectively.
The Official poverty line represents the minimum income required for an individual or household to cover essential living expenses such as food, shelter, and healthcare.
Unlike current welfare programmes, the proposed welfare programme is equipped with a mechanism to better target the most vulnerable groups in the society.
Around 3.1 million low-income families are expected to receive welfare benefits under this programme.
Multilateral agencies such as the World Bank and the Asian Development Bank have come on board to provide funding for this programme.
The government last year started establishing a new information system of welfare applicants in order to identify those who truly deserve benefits.
August 12, Colombo (LNW): The Excise Department will introduce a new safety sticker for liquor bottles starting October 1. Commissioner General of Excise, M. J. Gunasiri, announced this update, citing the need to address the limitations of the current system.
This change comes as the department aims to meet its highest-ever annual revenue target of Rs. 232 billion for 2024, a significant increase of Rs. 60 billion from the previous year’s income of Rs. 172 billion.
n 2022, the department generated Rs. 165 billion, with the production of absolute alcohol reaching 432 million liters. However, production dropped to 351 million liters in 2023 due to rising alcohol prices and decreasing demand.
Gunasiri highlighted that the decrease in alcohol consumption is primarily due to several factors, including a 14% increase in excise duty on alcohol, an 18% VAT, and a 2.5% hike in the social security contribution levy.
Additionally, higher raw material costs, fuel shortages, lockdowns, economic hardships, inflation, and alcohol price hikes since early 2022 have contributed to the drop in liquor demand.
In January 2024, liquor manufacturers responded to the economic challenges by raising the prices of all liquor products.
The price increases for Distilleries Company of Sri Lanka (DCSL) brands include Rs. 90 for 750ml bottles, Rs. 50 for 375ml, and Rs. 20 for 180ml. Sri Lanka’s annual liquor production is estimated to be between 540 and 600 million bottles, with over 5,000 liquor permit holders and 23 registered distilleries.
The hike in liquor prices has led to a 300% increase in the consumption of illicit liquor and other dangerous drugs like ice, cocaine, and marijuana. Gunasiri noted that not paying taxes genuinely to the state is akin to participating in illicit liquor manufacturing.
Gunasiri also addressed the recent revision of annual excise license fees, which took effect on January 12. Following objections from liquor distillers and associations, the department made another revision, effective February 1, to mitigate the impact on the already struggling industry.
The annual excise license fees, including those for taverns and liquor retail outlets, were revised. For example, the annual tavern license fee was reduced from Rs. 2.5 million to Rs. 2 million, and the license fee for bottling coconut toddy was decreased from Rs. 10 million to Rs. 1.5 million.
Similarly, the fee for bottling palmyra toddy was reduced from Rs. 10 million to Rs. 500,000, and the license fee for manufacturing vinegar was cut from Rs. 2.5 million to Rs. 500,000.
Retail license fees for liquor in municipal areas were also reduced from Rs. 15 million to Rs. 1 million, while those in urban council areas were lowered from Rs. 12.5 million to Rs. 800,000.
In other regions, the license fee was reduced from Rs. 10 million to Rs. 600,000. These adjustments were made in response to industry appeals and aim to balance government revenue needs with the challenges faced by liquor manufacturers.
