January 15, Colombo (LNW): A pivotal phase of discussions is set to begin as a six-member delegation from the International Monetary Fund (IMF) arrives to engage with key institutions and authorities regarding Sri Lanka’s economic program.
State Finance Minister Shehan Semasinghe confirmed the visit of the IMF delegation, emphasizing that the discussions would involve crucial stakeholders such as the Central Bank, the Electricity Board, and the Ministry of Finance itself.
Minister Semasinghe provided insight into the agenda, stating that the primary focus of the meetings would be to “further strengthen the IMF-supported program for Sri Lanka.”
The IMF mission is slated to conduct these discussions until January 19th, indicating the significance of these talks in shaping the economic direction of the country.
NPP Economic Expert Sunil Handunhetti says SL’s International Sovereign Bond investors have factored the risk when they invested in the SL Sovereign Bonds, and would therefore readily agree to substantial “hair-cuts” on their investments: also says a future NPP Govt will borrow from the IMF without any conditions, or not borrow at all.
SJB Economic Guru MP Harsha de Silva says whenever anyone including the Govt borrows money, it’s not possible to default and the debt must be paid: analysts however point out that Silva had been vociferously advocating for the Govt’s debt to be re-structured and had in fact specifically called upon the Govt to restructure it’s Debt and not settle it’s maturing ISBs from as far back as 23rd June 2021.
Govt increases Annual Excise Licence Fees by massive amounts: Distillery Licence fee excluding Palmyrah arrack – up from Rs.1mn to Rs.25mn: Palmyrah arrack – from Rs.250,000 to Rs.5mn: Toddy – from Rs.1mn to Rs.10mn: Vinegar – from Rs.500,000 to Rs.2.5mn: Tourist Board approved hotels: 200 rooms or more – Rs.1mn: 20 to 199 rooms – Rs.500,000: below 20 rooms – Rs. 250,000: Night Clubs reduced from Rs.500,000 to Rs.250,000.
Farmers Federation President Namal Karunaratne warns of a severe shortage of vegetables by April’24, as farmers struggle to continue their cultivation due to the high production cost triggered by the recently-increased VAT: says prices will further increase in the coming months due to a declining harvest.
Govt increases Casino Licence fees by massive amounts: Casinos with minimum investment of USD 250mn – Rs.10bn & Renewal Rs.10bn: Casinos with investment less than USD 500mn – Rs.5bn & Renewal Rs.10bn: existing Casino operators – Rs.2bn & Renewal Rs.10bn.
Milk Powder Importers’ Association says prices of imported milk powder will increase from next week due to the VAT hike: 400g packet up by Rs.30: 1kg packet up by Rs.75.
Air Force Commander Air Marshal Udeni Rajapaksa orders probe into the crash of the MI-17 helicopter in the Central African Republic on Thursday: sends a 3-member team to CAR to obtain a first-hand report.
CEB proposes reduction of the electricity tariff by 3.34% from 1st February’24: sends proposal to the Public Utilities Commission for approval.
The Chief Prelates of 3 Buddhist Sects urge the President to enact legislation to act against those who distort Buddhism: move prompted by the recent emergence of a self proclaimed “Awalokitheshwara” who is allegedly misleading the public with distorted interpretations of the Buddhist philosophy.
SL wins the 1st T20 Cricket International by 3 wickets in a last ball thriller: Zimbabwe 143/5 in 20 overs – Maheesh Theekshana 16/2, Wanindu Hasaranga 19/2: SL 144/7 in 20 overs – Angelo Mathews 46, Dasun Shanaka 26*.
Thai Pongal, a vibrant Hindu harvest festival celebrated by the Tamil Community worldwide, beckons us into a realm of joy and gratitude, signifying not only the bountiful harvest but also the promise of new beginnings. Embraced within the auspicious month of Thai (January) in the Tamil calendar, this celebration harmonizes with the Sun’s northward journey, marking the onset of the harvest season.
Originating around a thousand years ago during the Chola dynasty, this festival commemorates the first harvest of the year. Its purpose is to express gratitude to those who contributed to the harvest.
Beyond its agricultural essence, Thai Pongal heralds a fresh start, a time to relinquish the past and welcome new opportunities with unwavering optimism. Rooted in the belief of the pivotal role of agriculture in rejuvenating Sri Lanka’s economy through the government’s agricultural modernization program, the dawn of Thai symbolizes the inception of a promising journey filled with hope and prosperity.
Thai Pongal also serves as a reminder of the value of equality. I urge everyone to come together with determination, akin to the unity of siblings, to realize new hopes for the country’s future.
I wish the Tamil community worldwide a prosperous and joyous Thai Pongal celebration.
January 15, Colombo (LNW): The Chief Prelates representing all three Buddhist sects have addressed a letter to President Ranil Wickremesinghe, emphasizing the urgency of establishing legal provisions to combat the distortion of the Dhamma and actions that undermine the Buddha Sasana for personal gain.
In their communication, the Chief Prelates underscored the importance of enforcing the law against individuals who distort and jeopardize the fundamental tenets of Buddhist philosophy and culture by disseminating false ideologies about Buddhism.
The letter highlighted instances where certain individuals engaged in activities aimed at misleading the Buddhist public, leading to social unrest. This included acts such as distorting the character of the Buddha and making derogatory statements about sacred objects revered by Buddhists. The Chief Prelates revealed that organized groups and extremist organizations were operating behind such incidents, with some providing significant financial contributions to those involved.
The Chief Prelates expressed concern that the actions of individuals seeking to undermine Buddhism were no longer isolated incidents but part of an organized effort. Consequently, they urged a shift from attempting to address these events individually to the formulation of necessary legal provisions aimed at preventing such distortions of the Dhamma and the noble teachings of Buddhism.
The letter concluded with a call for collective efforts to safeguard the sanctity of Buddhism and prevent any organized attempts to defame its principles.
Her Royal Highness, The Princess Royal and her spouse Vice Admiral Timothy Laurence concluded a three-day official visit to Sri Lanka on Friday, 12 January 2024, the Ministry of Foreign Affairs said in a statement.
The visit marked a momentous occasion celebrating the 75th Anniversary of bilateral relations between Sri Lanka and the United Kingdom and was characterized by a series of engagements that reinforced the deep ties between the two countries.
Upon their arrival on 10th January, a vibrant ceremony with a multi-cultural performance welcomed them, with Foreign Minister Ali Sabry extending warm greetings.
Visiting at the invitation of the Government of Sri Lanka, the official engagement kicked off with a welcome dinner hosted by President Ranil Wickremesinghe, reflecting the warm and cordial relations shared by the two countries during which Princess Royal delivered a message from His Majesty the King to the President and the people of Sri Lanka.
Addressing a gathering at the concluding reception hosted by the British High Commissioner, The Princess Royal remarked on the warm and friendly bilateral relations between the two countries and was committed to fostering cultural, economic and social connections.
Foreign Minister Ali Sabry who delivered a short speech during this reception, remarked that the visit held profound significance and is a watershed moment in the 75 years of our bilateral relations with the United Kingdom.
He also drew attention to the significant transformation Sri Lanka has undergone since The Princess Royal’s last visit in 1995.
The Minister thanked the UK for its steadfast support for the pursuit of development and prosperity in Sri Lanka.
In Colombo, as the patron of the Save the Children Foundation, Her Royal Highness visited its office and unveiled a plaque commemorating the 50th Anniversary of ‘Save the Children’ working in Sri Lanka, and undertook a visit to the Lady Ridgeway Hospital for Children, showcasing the commitment to social causes.
Additionally, The Princess Royal toured the ‘MAS Holdings’ facility in Katunayake, a leading apparel tech company in South Asia as identified by the UK Fashion and Textile Association (UKFT), of which The Princess Royal is the President.
During the tour she witnessed the state of the art technology and capabilities of the Sri Lankan apparel sector, reinforcing its role in Sri Lanka – UK trade relations.
The itinerary extended to Hatch Works, Colombo, an ICT innovation hub supporting start-ups, further highlighting the collaborative efforts in technological advancements and the promotion of entrepreneurial culture through facilitating access to essential infrastructure, knowledge, and capital.
At the British Council, HRH was briefed on the ongoing work to build cultural and educational relationships between Sri Lanka and the UK and was privy to ‘The Arches of Awe exhibition’, featuring images of 21 arches built to welcome Queen Elizabeth II to Sri Lanka in 1954.
As the President of the ‘Commonwealth War Graves Commission’ Princess Royal also visited the Commonwealth War Graves at Liverament Cemetery and laid a wreath to commemorate the dead in the aftermath of both World Wars I and II, symbolizing shared history and values.
Moving to Kandy, the royal guests were welcomed by the Central Province Governor Lalith U Gamage, and were escorted to the sacred temple of the ‘Tooth Relic’, where she paid her respects.
HRH The Princess Royal and Vice Admiral Timothy’s visit to Jaffna marked a historic occasion, as the first-ever visit by members of the British Royal Family, where they were received by Northern Governor P. S. M. Charles. In Jaffna, the focus shifted to important aspects of post-conflict recovery visiting the Muhamalai Demining site and meeting communities resettled in mine–cleared areas in Muhamalai, signifying and reiterating the valuable contribution of donor partners, including the UK in creating a mine – free Sri Lanka.
The Royals were also taken on a tour of the Jaffna Public Library recognized as a center for knowledge and cultural preservation, and met members of the local community.
During their visit, the Royal Guests also toured the Vajira Pillayar Kovil, and took part in a special pooja blessing conducted by the chief priest. Princes Royal visited the ‘Mission to Seafarers’ as the President of this movement and had an engaging conversation with its Colombo staff reiterating the importance of seafaring to Sri Lanka as a maritime nation.
The Princess Royal first visited Sri Lanka in 1995 and this year marked her second to the Island. Sri Lanka has received members of the Royal family on seven previous occasions since 1948, including , Her Late Majesty Queen Elizabeth II who visited the island just five months after her Coronation, and that of His Majesty the King, as the Prince of Wales on three occasions.
The Ministry of Foreign Affairs worked in close coordination with the British High Commission in Colombo, which played a pivotol role in the execution of the programme assisted by the Sri Lanka High Commission in London and all other local government agencies. This historic visit by HRH The Princess Royal led to a comprehensive exploration of the diverse facets of the relationship between Sri Lanka and the United Kingdom.
January 14, Colombo (LNW): The Central Bank is to introduce a digital currency for Sri Lanka by the end of this year, its official told a top committee in Parliament yesterday.
“The exercise of introducing ‘Lanka Pay’ and ‘Central Bank Digital Currencies’ has already begun.
The two systems will be launched by the end of this year,” Central Bank officials informed the Ways and Means Committee in Parliament.
Central Bank officials were called before the committee to discuss issues pertaining to online payments in Sri Lanka.
Accordingly, the Chairman of Ways and Means Committee Patali Champika Ranawaka inquired about the regulation of online payment systems in Sri Lanka, Parliamentary Media Unit (PMU) said.
It was revealed that the absence of a financial registry in Sri Lanka results in 45 per cent of financial transactions going without being regulated.
MP Ranawaka proposed that QR code system which is used in fuel sales should be extended to financial services as well.
Also, he proposed that the Inland Revenue Department, Excise Department and Customs should adopt online payment systems. The focus was made on using blockchain systems for the purpose.
Ways and Means Committee requested the Central Bank officials to carry out a study on the online payment systems that are being implemented in countries such as India and Bangladesh and submit a report within two weeks.
In terms of strengthening the retail payment infrastructure, LankaPay (Pvt) Ltd (LPPL), under the guidance of the Central Bank, is developing the Government Digital Payment Platform (GDPP) via the LankaPay Online Payment Platform (LPOPP), to enable government institutions to receive payments digitally from the public.
With the aim of facilitating recurring payments digitally, the Central Bank also expects to mandate Licensed Banks to implement the direct debit facility, which enables an approved third-party organisation to automatically collect a payment up to a specified amount from the customer’s bank account on a scheduled date.
To promote digital transactions and remittances via e-money services, the value limits of enhanced e-money accounts and basic e-money accounts were increased with effect from 01January 2024.
Further, LANKAQR would be extended to enable the use through foreign payment apps so that both local customers and foreigners may utilise LANKAQR for payments in Sri Lanka.
One of the key challenges identified by the Central Bank to promote digital transactions among the public is the lack of awareness regarding the availability, methods, and benefits of digital transactions.
January 14, Colombo (LNW): The Central Bank will review the remaining restrictions on the outflows from the capital account and gradually start lifting them by taking into account the domestic market foreign exchange liquidity condition improvement.
“With the observed improvements in the liquidity position of the domestic foreign exchange market, the Central Bank would review the existing restrictions on certain capital foreign exchange outflows on a priority basis, with a view to gradually unwinding these restrictions,” Central Bank Governor Dr. Nandalal Weerasinghe said while delivering Annual Policy Statement 2024, this week.
The Exports Proceeds Monitoring System implemented in 2022 would be further optimised, ensuring improved efficiency and effectiveness of the monitoring mechanisms of export proceeds repatriation.
There were concerns that the exporters weren’t repatriating their earnings and instead parking them at the foreign countries, expecting the rupee to further fall in value, exacerbating the foreign currency shortage in the country.
At the height of the foreign exchange crisis in 2022, the Central Bank imposed broad-based limitations on outflows of foreign currency while the government suspended the restrictions on imports of thousands of items, unless they were essential or urgent.
As the foreign exchange liquidity started gradually improving in the banking system, restrictions were lifted, mostly in the imports, except for a remaining few, including the personal vehicles. The latter will see the restrictions lifted in the coming months.
Most of the outflows from the capital account restrictions stayed, due to the severity and outsize nature, which could cause pressure on the balance of payment, given the still fragile nature of the external sector last year.
However, as the Central Bank rebuilt its gross official reserves to US $ 4.4 billion by end-2023, with the largest ever annual net purchases of foreign currency from the market in a single year, it is revisiting the controls imposed at the thick of the crisis.
Furthermore, the Central Bank said it expects the required amendments to be finalised to the current Foreign Exchange Act No. 12 of 2017 and brought in place during early this year.
The changes to the Foreign Exchange Act is expected to provide the necessary framework to regulate the functioning of the formal foreign exchange market more efficiently, while empowering the regulatory authorities to take prompt actions against violations of and/or non-compliance with foreign exchange transactions.
January 14, Colombo (LNW): In the wake of the Government’s plans to issue licences for ten casinos, the previously-abandoned casino project by James Packer’s Crown Group, now a hotel development project under a new Japanese company is still a non entity, Urban Development Authority (UDA) sources divulged.
UDA top official said that there had been no progress on the abandoned casino project of James Packer’s Crown Group, although it had not been cancelled.
Australian billionaire Casino mogul James Packer’s Sri Lankan integrated resort Crown Colombo Casino has suffered a setback with the government’s firm stance of not allowing new casinos in the island, informed sources said.
The government is very unlikely to give consent for new casinos to operate at present in the eve of an election amidst growing protests both from constituent parties and the opposition, a top government official disclosed.
Even it will not allow an existing casino operator to shift his business to Packer’s Sri Lankan integrated resort as the matter has become a highly sensitive political issue with criticism emerging from some prominent government ministers as well, he added.
The Australian billionaire has agreed in 2014 to invest US$350 million to build a 36-story skyscraper which will be known as ‘Crown Colombo’ to set up an integrated resort which includes a 400-room hotel with gaming facilities in a land on D.R. Wijewardena Mawatha, Colombo.
But the then ruling party passed the order of the gazette notification in parliament recently granting tax concessions under the strategic investment project act to Packer’s project replacing the word ‘gaming’ with ‘associated ’ facilities.
However James Packer or his Sri Lankan partner Ravi Wijeratne, Chairman of Rank Holdings Private Limited has not made any public statement about their decision on the project.
“The ownership of the project has changed hands to a Japanese company. Their proposal was for a hotel development project.
The development on this project isn’t progressing, likely because the country’s economy is still unstable. However, the investment has not been cancelled.”
A Japanese firm will be taking over a prime block of land at D.R. Wijeyawardene Mawatha in Fort for their Lake House mixed development project previously ear marked for Australian gaming tycoon James Packer’s US$ 400 Crown Colombo project, officials said.
Sri Lanka ’s Asia Capital joined hands with Japanese firm Belluna to invest around US$350-450 million to launch a mixed development project at the 500 perch land opposite Lake House Colombo several years ago.
Recently, State Minister of Finance Ranjith Siyambalapitiya said that Sri Lanka had received 10 applications to set up casinos under new regulations issued, which were at various stages of evaluation.
According to the official, D.R. Wijewardena Mawatha has been earmarked for hotel-based projects within the city.
January 14, Colombo (LNW): The Public Health Inspectors’ Union has accused the Sri Lankan government of seeking to amend the permissible limit of ‘Aflatoxin’ in food supplements intended for small children.
Such a decision, if implemented, poses a significant threat to the health of children in Sri Lanka, Union Treasurer Roshan Kumara asserted addressing a briefing recently held in Colombo.
In a related development, on November 21, 2023, the Cabinet of Ministers made a decision to adjust the permissible Aflatoxin levels for local food supplement programmes to align with globally recognised standards for food supplements.
This adjustment in the permissible levels of Aflatoxin primarily pertained to the Thriposha programme, which is part of the Maternal and Child Health Programme administered by the Ministry.
The proposal arose from the challenges faced by the Ministry of Health in sourcing maize for Thriposha production, attributed to the stringent Aflatoxin limits specified in the existing regulations under the Food Act No. 26 of 1980.
To address this issue, it was suggested that the Aflatoxin limits imposed on internationally accredited food supplements (5ppb for type B1 and 10ppb for total Aflatoxin) be applied to local food supplement programmes.
