August 06, Colombo (LNW): The Parliament is scheduled to convene from the 6th to the 9th of this month. Today, a Private Members’ Bill aimed at amending the Provincial Councils (PC) Elections Act is expected to be presented.
Additionally, an Adjournment Debate on the failure of the levee barrier along the Nilwala River, initiated by the Opposition, will be taken up.
Furthermore, the Committee on Public Enterprises and the Committee on Public Finance are expected to convene later in the day.
August 06, Colombo (LNW): At a press briefing titled “Collective Path to a Stable Country” held yesterday at the Presidential Media Centre, State Minister Lasantha Alagiyawanna underscored the significant impact of the transportation sector on ecosystems, both globally and locally, with vehicle emissions being a major contributor. To combat this, the issuance of smoke certificates is a measure aimed at maintaining air quality and reducing lung-related diseases.
The Ministry of Transport, the National Building Research Organization (NBRO), and the Central Environment Authority (CEA) are collaborating to expand the number of air emission measurement centers to 100 within the next six months. The data collected from these centers will be accessible online, allowing citizens to monitor air quality in real-time from anywhere in the world.
In addition, vehicle insurance and licenses will soon be obtainable at the same locations where emission certificates are issued. This integrated service will be available island-wide within two months, streamlining the process for vehicle owners.
To enhance road safety, the government is finalizing tenders for new data systems and equipment for the police, with implementation expected shortly after selecting a suitable candidate next month.
Furthermore, starting September 1st, a WhatsApp messaging service will notify drivers of traffic infractions. This service will run for two months, after which new laws addressing these violations will be enforced.
August 06, Colombo (LNW): Leader of the Mahajana Eksath Peramuna (MEP) and Prime Minister, Dinesh Gunawardena, paid a visit to Ven. Dr. Ittapane Dhammalankara Thera, the Chancellor of the University of Sri Jayewardanepura and Chief Prelate of Kotte Sri Kalayani Samagri Dharma Maha Sangha Sabha, at Dharmavijayaloka Maha Viharaya in Kottawa Rukmale yesterday.
The Prime Minister was accompanied by Deputy Secretary of the MEP, MP Yadamini Gunawardena, Deputy Secretary Lalith Rohana Liyanage, and several Central Committee Members of the MEP, including Savithri Gunasekara and Premachandra Hettiarachchi.
August 06, Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.
Showers or thundershowers may occur at several places elsewhere of the island during the evening or night. Fairly heavy showers above 50 mm are likely at some places.
General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
By: Staff Writer
August 05, Colombo (LNW): Scybers Inc., a rapidly growing global cybersecurity firm, has announced a significant strategic investment from the Digital Innovation Fund, managed by BOV Capital and supported by Dialog Axiata PLC.
With cybersecurity becoming increasingly crucial due to the post-pandemic digital surge, a rise in ransomware attacks, stricter regulations, and a global shortage of cybersecurity professionals, this investment is timely.
The global cybersecurity market, valued at approximately $268.13 billion in 2024, is projected to grow to around $878.48 billion by 2034, with a Compound Annual Growth Rate (CAGR) of 12.6% during this period.
Scybers aims to help enterprises swiftly mitigate cyber risks, ensure compliance, and build resilience through its global delivery model, specialized cybersecurity expertise, and advanced AI-driven security platforms.
Madu Ratnayake, President of Scybers, highlighted the strategic advantage of the Digital Innovation Fund’s extensive network and relationships.
He noted that Dialog Axiata’s extensive experience in digital and communication services in the ASEAN and South Asian regions would significantly benefit Scybers as it expands its global reach. This partnership will be instrumental in scaling Scybers’ services.
Kugan Kulothungan, CEO of Scybers, expressed enthusiasm about the investment, particularly welcoming Supun Weerasinghe to the Scybers Board. Kulothungan praised Weerasinghe’s leadership and experience as the Group Chief Executive of Dialog Axiata PLC, which will be crucial for guiding Scybers through its next growth phase.
Supun Weerasinghe, Group Chief Executive of Dialog Axiata PLC, emphasized the role of investing in new technology as a key factor in advancing Sri Lanka’s digital economy. He underscored that the investment in Scybers aligns with Dialog Axiata’s vision of fostering innovation and enhancing global cybersecurity measures.
The Digital Innovation Fund reflects their commitment to supporting tech startups with the potential for significant local and international impact.
Prajeeth Balasubramaniam, Co-Founder and Managing Partner of BOV Capital, noted that since its inception in 2015, BOV Capital has been dedicated to supporting visionary founders in building exceptional businesses.
With $15 million in Assets Under Management (AUM) and a focus on scalable regional and global solutions, BOV Capital’s second fund, DIF, established in collaboration with Dialog Axiata PLC in 2017, found investing in Scybers a natural fit due to the critical importance of cybersecurity in the modern digital landscape.
By: Staff Writer
August 05, Colombo (LNW): Prime Minister Dinesh Gunawardena has urged South Asian entrepreneurs to focus on innovative new products and services to enhance regional economic cooperation.
Addressing the first South Asian Trade Fair 2024 at Excel World Colombo Convention Centre, he said the stronger connectivity with neighbouring regional markets such as India, Pakistan, Bangladesh and other South Asian countries would boost trading and investment cooperation.
The Prime Minister pointed out that the largest tea producer and exporter is South Asia and the regional countries should cooperate to obtain maximum benefits in the tea industry. He said there are many such common products where innovative methods could enhance the ability to compete in international markets.
“We have taken steps to ensure climate friendly businesses and technology based businesses. The Trade Fair and Business Forum has a larger purpose that goes beyond any individual business or organisation’s interest. This is a forum to achieve objectives of promoting socio economic cooperation and strengthening trade relations among South Asian countries,” he said.
He added that this forum gives an immense opportunity for trade and businesses in South Asia to showcase their products and services to grow beyond their usual parameters as it creates a platform for expanding their international trade at the export markets in South Asia and beyond.
Referring to Sri Lanka’s recovery, he said some countries and international fiscal institutions had stopped dealing with Sri Lanka in 2022, but they have started to open their doors again. The latest example is Japan, which has agreed last week to resume all the projects in Sri Lanka and also to explore new ventures.
“It is a pleasure for me to welcome all these investors and trading partners from our South Asian neighbours belonging to SAARC – India, Pakistan, Bangladesh, Maldives, Bhutan, Afghanistan and Nepal – as well as some observers such as China,” he said.
The Prime Minister thanked Indian Prime Minister Narendra Modi for extending support to Sri Lanka to enhance use of renewable energy through setting up solar and wind power projects.
By: Staff Writer
August 05, Colombo (LNW): The Finance Ministry yesterday said Sri Lanka has received an initial assessment from its Official Creditor Committee (OCC) regarding the Comparability of Treatment (COT) under the Joint Working Framework (JWF) agreed upon between Sri Lankan authorities and the Ad-Hoc Group of bondholders.
It said further details are being sought to advance the engagement with bondholders and finalise the external debt restructuring process.
Immediately following the finalisation of a memorandum of understanding (MOU) with the Official Creditor Committee (OCC) and restructuring agreements with Exim Bank of China on 26th June 2024, the AHG and Sri Lanka resumed restricted negotiations on the 27th – 28th of June in Paris.
The AHG had submitted a new proposal which made further adjustments to address Sri Lanka’s concerns on the four outstanding points. During the negotiations in Paris, further adjustments were agreed in a Joint Working Framework
The Joint Working Framework negotiated with the AHG provides a fair balance of risk sharing and sufficiently addresses the concerns of Sri Lanka and the requirements of bondholders.
The MLB structure, following the adjustments made through the evolution of the proposed instrument, enables the appropriate sharing of upside between creditors and the debtor, whilst also ensuring that in this process, the debt sustainability of the debtor sovereign is not compromised.
These terms require formal confirmation by the Secretariat of the Official Creditor Committee and the IMF staff in order to confirm conformity with comparability of treatment requirements and compliance with Sri Lanka’s IMF program debt sustainability targets.
The Ministry also said during the visit of the IMF Staff Mission, discussions centred on the ongoing debt restructuring process. This included an assessment of the JWF and evaluation focused on ensuring compliance with program parameters and debt sustainability considerations.
In a statement, the Finance Ministry said the IMF Staff mission led by Senior Mission Chief Peter Breuer cautioned against any policy slippage that could jeopardise the hard-won economic gains achieved thus far, whilst acknowledging the positive developments in the economic landscape and underscoring the critical importance of sustaining the momentum of reforms.
The team concluded a visit to Sri Lanka spanning from 25 July to 2 August where the primary objective was to assess the progress of Sri Lanka’s macroeconomic reforms and economic performance.
The Finance Ministry noted that the IMF acknowledged the progress made in terms of recovery of economic growth, improved fiscal outcomes through revenue enhancement, supported by tax reforms, effective control of inflation, and enhancement of foreign exchange reserves.
The staff visit also discussed the recent reform efforts, such as the passage of the Public Financial Management Act and the Public Debt Management Act, noting the potential of these measures to support fiscal discipline and improve debt management.
By: Staff Writer
August 05, Colombo (LNW): India and Sri Lanka are progressing towards finalizing the Economic and Technology Cooperation Agreement (ETCA) after a five-year hiatus in negotiations.
The Indian Commerce Department has sought input from industry sectors on key areas such as product-specific rules for tariff concessions.
Initial inputs were submitted last year, but further views are needed as negotiations advance, particularly on rules of origin.
The decision to resume ETCA talks came after Sri Lankan President Ranil Wickremesinghe’s visit to India in July last year. Negotiations restarted in Colombo on October 30, 2023. Sri Lanka hopes the agreement will help mitigate its economic crisis, worsened by the COVID-19 pandemic.
ETCA aims to expand on the bilateral Free Trade Agreement (FTA) signed in 2000, which increased Sri Lankan exports to India in key commodities.
The agreement includes chapters on trade in goods and services, technical barriers, sanitary measures, rules of origin, customs procedures, trade remedies, economic and technological cooperation, and dispute settlement. It seeks to eliminate non-tariff barriers and improve trade facilitation.
India anticipates that ETCA will provide greater market access for automobiles, auto parts, pharmaceuticals, certain textiles, chemicals, and various services.
Industry research indicates Sri Lanka could become a significant part of the Indian supply chain, with Indian manufacturers potentially establishing factories there to export products to countries with existing or planned FTAs with Sri Lanka.
India is negotiating for customs duty concessions on goods such as cars, commercial vehicles, and machinery and seeks easier visa norms for professionals.
The 14th round of talks recently concluded in Colombo, covering rules of origin, goods, services, and technical barriers to trade.
Sri Lanka is requesting the removal of a quota on apparel exports to India and duty concessions on tea and certain agricultural commodities. The next round of negotiations will take place after Sri Lanka’s elections.
Both countries have already implemented an FTA in goods and are working to expand it to include more goods and services.
The India-Sri Lanka Free Trade Agreement (ISFTA), effective since March 2000, has improved economic relations by reducing tariffs on various goods.
Both countries have been negotiating to expand ISFTA into a Comprehensive Economic Partnership Agreement (CEPA) to include services, investment, and other economic cooperation areas.
Under the current FTA, India allows limited imports of garments and tea from Sri Lanka at reduced tariffs.
Sri Lanka seeks the removal of the garment import quota, citing India’s duty-free garment imports from Bangladesh under the South Asia Free Trade Agreement (SAFTA) for Least Developed Countries (LDCs).
Sri Lanka has restricted imports of automobiles and electrical goods. Since ISFTA’s implementation, trade between the two countries has grown significantly.
India’s exports to Sri Lanka increased from USD 499.3 million in FY 2000 to USD 4.17 billion in FY 2023-24, while imports grew from USD 44.3 million to USD 1.4 billion over the same period.
