January 14, Colombo (LNW): The government has announced a revision in the Annual Excise Licence fees, effective from January 12, 2024.
Specifically, the Distillery Licence fee, excluding Palmyra arrack, has been adjusted to Rs. 25 million, whereas for Palmyra arrack, it stands at Rs. 05 million.
Additionally, the Licence fee pertaining to the bottling of Toddy has been revised to Rs. 10 million.
These adjustments in the fee structure are part of the government’s ongoing efforts to streamline and regulate the excise framework in the country.
IMF urges urgent action on bank recapitalization, property tax & an Anti-corruption Commission; also calls for focus on a new public financial management law, potential conflicts with the public-private partnership law & electricity tariffs: further highlights the need for amendments to the Banking Act.
Minister Dr Bandula Gunawardena says remarks by CB Governor Nandalal Weerasinghe that present & future Govts are bound to carry out the IMF programme, is a “grave” statement: calls for 3-day Parliament debate on these remarks: Chief Opposition Whip & SJB MP Lakshman Kiriella says his Party does not trust the current CB Governor: previously, UNP Chairman & MP Wajira Abeywardana had accused the CB Governor of declaring the country bankrupt, without Parliamentary approval.
Acting IGP Deshabandu Tennakoon issues a list of names of 42,248 persons who are wanted for various criminal activities: orders these to be shared among OICs & Crimes OICs of all Police Stations with instructions to arrest such persons under the “Yukthiya” operation.
Minister of Labour Manusha Nanayakkara says proposals presented to increase the Motor Commissioner Dept income were delayed by more than 1 year by certain officials: calls for legal action against such officials: asserts the loss incurred by the Govt due to the delay should be recovered from those officials.
Dissident SLPP MP Gevindu Cumaratunga accuses President Ranil Wickremesinghe of abusing his ousted predecessor Gotabaya Rajapaksa’s mandate: questions the President’s recent statements in Jaffna regarding the 13th Amendment to the Constitution.
Treasury Secretary Mahinda Siriwardene orders all Ministry/Provincial Secretaries & Heads of all State institutions to cut costs & bear only essential expenses when paying overtime, travel & other allowances: says these measures are due to rising state expenditure & declining state revenue: previously, the Govt had said state revenues have risen to unprecedentedly high levels.
SJB MP S M Marikkar says his Party will “take to the streets” along with the public on 30th Jan’24 to oust the current Govt, despite the Govt’s attempts to suppress the people: asserts the SJB won’t be intimidated by these moves: also says it was the SJB that went to the then President’s office on 16 March’22 to oust him.
SJB Economic Guru Dr Harsha de Silva says the message conveyed by Japan’s Finance Minister Suzuki Shunichi when he met Opposition Leader Sajith Premadasa was that SL must (a) complete debt restructuring, (b) not jeopardise the IMF program, & (c) re-pay amounts due for cancelling the “Light Rail” project: previously, former President Gotabaya Rajapaksa had terminated the 21km Japan-funded LRT project costing USD 1.8bn (at USD 85mn per km), on the grounds that it was not “cost-effective”.
Govt re-hires Singapore-based consulting firm Surbana Jurong to provide one-stop consultancy solutions on urbanisation, industrialisation and infrastructure: the consultants to review 3 key development plans: Western Region Megapolis, Eastern Development, & Southern Development.
Sports Minister Harin Fernando says foreigners coaching & mentoring players in the SL team, out-number the locals: laments that 8 white men (“Suddho”) decide what has to be done with the team but the players don’t understand what they are saying.
January 14, Colombo (LNW): A few showers may occur in Central, Uva and Eastern provinces, and mainly fair weather will prevail in the other areas of the island, the Department of Meteorology said in its daily weather forecast today (14).
Fairly strong winds about (30-40) kmph can be expected at times in Uva, Central and North-Western provinces and in Ampara, Hambantota and Kegalle districts.
Misty conditions can be expected at some places in Sabaragamuwa and Central provinces and in Galle and Matara districts during the morning.
Marine Weather:
Condition of Rain:
Mainly fair weather will prevail in the sea areas around the island.
Winds:
Winds will be north-easterly and wind speed will be (30-40) kmph. Wind speed may increase up to (50-60) kmph at times in the sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Pottuvil to Matara via Hambantota.
State of Sea:
The sea areas off the coasts extending from Colombo to Kankasanthurai via Puttalam and Mannar and from Pottuvil to Matara via Hambantota can be rough at times.
An eminent Norwegian business person and philanthropist Kurt Mosvold was appointed as the Honorary Consul of Sri Lanka in Kristiansand, Norway.
The Commission of Appointment issued under the hand of Foreign Minister Ali Sabry and the Exequatur issued by the Ministry of Foreign Affairs of the Kingdom of Norway were presented to Mr. Mosvold by Sri Lanka’s Envoy to Norway Ambassador Dharshana M. Perera on 09 January 2024 in Stockholm.
Kurt Mosvold has a strong and long-standing presence in Sri Lanka’s tourism sector with several properties in southern Sri Lanka. He is engaged in several social upliftment initiatives in education, vocational training, etc through the Mosvold-Martinus Foundation (MME).
With his eminence in southern Norway, Mr. Mosvold’s role as Sri Lanka’s Honorary Consul is expected to further enhance Sri Lanka’s on-going engagement with Norway especially in tourism and economic initiatives, and facilitate the interests and needs of the Sri Lankan community in the region.
In preparation for his role as the Honorary Consul, Mr. Mosvold had discussions with the Ambassador of Sri Lanka and the Embassy team in consultative sessions which were followed by lunch with business persons in IT, representatives of tourism industry, diplomats, and others.
Sri Lanka Air Force (SLAF) initiates Investigations
The Ministry of Defence in Sri Lanka strongly refuted the allegations that a group of Sri Lankans was taken hostage by the Al-Shabaab militant group after a SLAF helicopter crash-landed in Somalia.
The SLAF MI 17 helicopter (SMH 4417) was on a routine cargo flight during a United Nations Peacekeeping mission in the Central African Republic on January 12 crash-landed at Sam-Oundja during the landing phase due to rotor brownout (RWB) resulting from extreme dusty and sand conditions.
At the time of the incident, five crew members and 1200 kg of cargo were on board. Two crew members sustained minor injuries.
The Ministry of Defence further emphasized that the above five-member crew and the helicopter are safe within the Sri Lankan Contingent in Central African Republic.
The SLAF has appointed a panel of investigators to probe the crash of the helicopter and determine the precise cause and extent of the damage.
The Ministry of Defence urges the public to not to be misled by false information. Furthermore, media personnel are informed to reach out to the Ministry for any clarification.
January 13, Colombo (LNW): Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardhana announced yesterday that due to the challenging economic situation in the country and in adherence to the agreement with the International Monetary Fund (IMF), there will be no recruitment in the public service for the next three years. The Minister clarified that provisions for new recruitments and salary payments for additional personnel are not feasible under the current agreement.
However, Minister Gunawardhana stated that Cabinet approval has been granted for the recruitment of a specific group of drivers and conductors, with a focus on ensuring mandatory accessibility to public transport. He made these remarks during a ceremony where appointments were presented to a group of new drivers and conductors at the Ministry.
Additionally, the Minister highlighted the Cabinet’s approval for the reinstatement of a selected group of employees who had lost their jobs at the Board for various reasons, including failure to report to work.
Addressing budget constraints, Minister Gunawardhana mentioned the need for Rs 20 billion to provide season tickets to schoolchildren nationwide but stated that only Rs 10 billion had been allocated. He expressed intentions to make a special request to Parliament to secure the remaining funds.
Minister Gunawardhana also outlined ongoing efforts to address issues within the Sri Lanka Transport Board (SLTB), emphasizing the appointment of a politically unaffiliated engineer with extensive experience as the Chairman. He stressed the commitment to combating theft, fraud, corruption, and malpractice within the Board, warning of job loss for those found guilty of financial fraud.
To tackle financial irregularities, the Minister revealed the establishment of an investigation unit under the leadership of a former Deputy Inspector General of the Police Special Task Force. Additionally, plans were disclosed to introduce a digital payment method, including a QR method for issuing tickets, within the next two months to curb the daily loss of nearly Rs 10 million from the income of all SLTB depots due to financial irregularities.
January 13, Colombo (LNW): The Inland Revenue Department (IRD) has achieved a historic milestone by surpassing its tax revenue target for 2023, recording an impressive Rs. 1,550.6 billion, exceeding the set target of Rs. 1,492 billion by 104 percent. Deputy Commissioner General of the Inland Revenue Department, Saman Shantha, emphasized the success of the department’s initiatives during a briefing to the Daily News on January 12.
Shantha clarified that individuals over 18 need not fear obtaining the Taxpayer Identification Number (TIN) certificate, as it doesn’t entail tax payment obligations unless their annual income exceeds Rs. 1.2 million. Since the commencement of issuing TIN certificates for those over 18 on January 1, over 50,000 certificates have already been issued within a short span until January 12.
Expressing the overwhelming response, Shantha mentioned a high number of requests and applications received for TIN certificates in the first half of January, indicating the program’s success. Due to the increased demand, more officers will be assigned to expedite the processing of TIN certificates from the following week.
Shantha estimated that it will take about two months to identify and categorize the groups that have registered for TIN certificates. Looking ahead, he outlined the ambitious target of Rs. 2,024 billion for tax revenue in 2024.
The Inland Revenue Department’s achievements in 2023 are commendable, with a total revenue collection of Rs. 1,550.6 billion compared to Rs. 861.233 billion in 2022. The department has witnessed remarkable growth, with a revenue collection increase of 80 percent for 2023. Specifically, Corporate and Non-Corporate Income Tax recorded a growth of 25 percent, Value Added Tax (VAT) grew by 59 percent, Advance Personal Income Tax surged by 473 percent, and Advance Income Tax saw an impressive growth of 684 percent compared to the previous year.
January 13, Colombo (LNW): In a high-profile meeting on Thursday (11), President Ranil Wickremesinghe and Sri Lankan authorities engaged with the International Monetary Fund (IMF), where congratulations were extended to the nation for successfully completing the first review under the IMF program.
The IMF acknowledged the positive initiation of the program, praising Sri Lanka for undertaking challenging reforms that have had a significant impact on the domestic population. Directors at the executive board meeting specifically lauded Sri Lanka’s courage in pioneering the publication of a governance diagnostic—an unprecedented effort in Asia.
Peter Breuer, the Senior Mission Chief for Sri Lanka, shared encouraging observations regarding the program’s effects on stabilizing the economy, particularly in policy-oriented variables and fiscal areas. A recent meeting highlighted promising revenue collection, demonstrating the effectiveness of implemented policies since the staff level agreement in the second half of 2022. The IMF underscored the positive surprise in these developments, fostering confidence with the international community, official creditors, and private creditors.
Breuer conveyed to President Wickremesinghe, “With respect to revenue collection, in fact, we had a meeting that showed very encouraging numbers that basically highlight that the policies you implemented beginning from after we reached the staff level agreement in the second half of 2022 are working, that they have the intended effect, that you’re collecting the revenue that’s needed to address the cause of the crisis. So, that really is very good news.”
The board meeting acknowledged Sri Lanka’s success in significantly reducing inflation, attributing it to government efforts in monetary policy and the reduction of monetary financing. Positive outcomes, including an increase in reserves, were noted. Ongoing governance reforms were seen as positive indicators contributing to tentative economic growth in the third quarter, particularly in capital formation and machinery.
As the IMF prepares for its upcoming formal review and Article 4 consultation, key areas of focus include the new public financial management law, potential conflicts with the public-private partnership law, electricity tariffs, and urgent preparations for property taxation. The IMF stressed the importance of persisting with ongoing reforms, addressing fiscal issues, and advancing governance agendas.
The meeting also emphasized the urgency of addressing fiscal matters, including passing amendments to the Banking Act and recapitalizing the banking sector. On the governance front, discussions revolved around operationalizing the Anti-Corruption Commission, publishing action plans, and meeting with the Constitutional Council for insights into commissioner selection processes.
January 13, Colombo (LNW): Water Supply and Drainage Minister Jeevan Thondaman has affirmed that if the Ceylon Electricity Board (CEB) follows through with its plan to lower electricity charges next month, he will reciprocate by reducing water charges accordingly.
Thondaman disclosed this commitment during a media briefing held in Kandy, citing an assurance from Power Minister Kanchana Wijesekera regarding the impending reduction in electricity charges. He asserted that the reduction in water charges would be proportional to the percentage decrease in electricity charges.
Emphasizing the operational formula used to calculate expenses associated with producing and distributing drinking water, Minister Thondaman clarified that water charges are determined based on this established system. He underscored the substantial financial burden on the Water Supply Board for electricity costs.
Highlighting the historical context, Thondaman noted that the Water Board had faced additional costs whenever electricity charges were increased, such as the 66% surge in January 2019. He iterated that the proposed reduction in electricity charges provides an opportunity to lower water charges for consumers, aligning with the established formula.
Three submissions in total were received for the Request for Qualification (RfQ) on the divestment of shares in Sri Lanka Telecom PLC, the Finance Ministry disclosed yesterday.
Accordingly, Jio Platforms Ltd. in Gujrat, India, Fortune International Investment Holding Ltd., c/o Capital Alliance Ltd. and Pettigo Comercio International LDA., c/o NDB Investment Bank Ltd. submitted their offers.
On 10 November 2023, the Government, acting through the Ministry of Finance, Economic Stabilisation, and National Policies, released an RfQ via international and local media. The RfQ sought interested parties for the divestiture of the Government’s shares in Sri Lanka Telecom PLC. The submission deadline for proposals concluded yesterday.
The evaluation of the RfQs will adhere to the Special Guidelines on Divestiture of State-Owned Enterprises, a framework approved by the Cabinet of Ministers in July 2023.
The International Finance Corporation (IFC) acts as the Transaction Advisor for the divestiture of shares held by the Government in Sri Lanka Telecom PLC.
The Ministry of Finance has called for requests for qualifications (RfQs) from potential investors for the divestiture of its shares in Sri Lanka Telecom PLC (SLT).
According to the State Owned Enterprises Restructuring Unit, the deadline for the submission of proposals ended at 02:00 p.m.yesterday (12 Jan.)
A 50.23 -percent majority stake in Sri Lanka Telecom is offered to investors according to a pre-qualification call by the island’s State Enterprise Restructuring Unit.
Prospective investors must apply by December 18. Successful candidates will be selected by January 05 and given tender documents.
Sri Lanka’s ruling Sri Lanka Podujana Peramuna has hinted that it does not agree with President Ranil Wickremesinghe on the matter of privatizing Sri Lanka Telecom, the national telecommunications services provider in the island nation of just over 22 million people.
In March 2023, the Cabinet of Ministers granted their approval in principle for the divestment of major shareholding in Sri Lanka Telecom PLC.
Sri Lanka Telecom PLC in a letter to the Colombo Stock Exchange noted that the Treasury Secretary has informed the Board of Directors of SLT that the Cabinet of Minister granted its approval in principle for the divestment of the state held by the Secretary to the Treasury in SLT.
It added that the divestment will be implemented by the State-Owned Enterprise Restructuring Unit established under the Ministry of Finance.
However, two months later in May 2023, the Sectoral Oversight Committee on National Security said it will NOT recommend privatizing Sri Lanka Telecom, as matters sensitive to national security could be exposed.
Later the same day (9th May 2023), The President’s Media Division issued a statement noting that the Government has focussed its attention to the Sectoral Oversight Committee report, emphasizing the concerns surrounding the potential risk to national security resulting from the privatization of Sri Lanka Telecom.
