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SL yet to ascertain nature of hazardous materials aboard Singapore cargo ship collided with Baltimore bridge

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April 02, Colombo (LNW): Sri Lanka is yet to ascertain the nature of hazardous materials aboard the Singapore cargo ship Dali, chartered by Maersk, which collided with the Baltimore bridge on March 26, revealed an official statement.

The available information suggests that among the cargo are 57 containers containing materials falling under the International Maritime Dangerous Goods Code, comprising mainly corrosives, flammables, miscellaneous hazardous substances, and Class-9 hazardous materials, including explosives and lithium-ion batteries, contained within 56 containers.

However, the US National Transportation Safety Board is still analysing the ship’s manifest to determine the contents of its other 4,644 containers.

Before reaching Baltimore, the Dali made stops at New York and Norfolk, Virginia, the location of the world’s largest naval base.

Its next scheduled destination was Colombo, following a route around South Africa’s Cape of Good Hope, with an estimated travel duration of 27 days, anticipated to arrive shortly after the Sri Lankan New Year.

In response to queries regarding this matter, Keith Bernard, Chairman of the Sri Lanka Ports Authority (SLPA), emphasised that ships are required to declare container contents 72 hours before arriving at the Colombo Port.

“The vessel is expected to arrive here on April 21, 2024. This implies that they should notify us by April 17 or thereabouts. Sufficient time is available.

Should hazardous items be declared within containers, we will implement protocols to isolate them accordingly.

As a major transshipment hub, we have established procedures for handling such containers. It is probable that these containers are intended for transshipment,” he explained.

When inquired about the protocol for containers intended for entry into the country, Bernard stated that clearance from the Defence Ministry and other relevant authorities would be sought.

However, Ajith Wijesundara, Deputy Director of the Central Environment Authority (CEA), indicated that it remains uncertain whether the ship carried containers containing hazardous waste or toxic substances.

He noted that, according to the Basel Convention, such wastes would not be permitted entry into the country.

The Basel Convention, concerning the Control of Transboundary Movements of Hazardous Wastes and their Disposal, was adopted on March 22, 1989, and entered into force on May 5, 1992.

Wijesundara emphasised that toxic substances imported as raw materials are subject to guidelines and regulations.

Export associations call for action amidst LKR appreciation

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April 02, Colombo (LNW): Five prominent export associations have jointly urged the authorities to address the significant challenges arising from the recent appreciation of the Sri Lankan rupee against the US dollar.

Highlighting key concerns, including restrictions on foreign currency movement among commercial banks and mandatory conversion of export earnings into local currency, the Exporters Association of Sri Lanka, Joint Apparel Association Forum of Sri Lanka, National Chamber of Exporters, Tea Exporters Association, and Sri Lanka Association of Manufacturers and Exporters of Rubber Products issued a collective statement to the media.

“The appreciation of the rupee has rendered our exports more expensive for international buyers, directly impacting our competitiveness in the global market.

This situation has escalated operational costs, necessitating adjustments in line with the country’s heightened inflation,” the associations emphasised.

Expressing concern over the rapid appreciation of the rupee, which has fallen below Rs. 300 per US dollar since March 19, the associations underscored the threat to business sustainability and employee livelihoods.

Despite the rupee’s appreciation, the associations noted that the high cost of living persists, putting continued pressure on worker wages.

Furthermore, they pointed out that the timing of the rupee’s strengthening coincides with weak global demand for merchandise exports and stiff competition from other countries.

The associations raised objections to the Central Bank of Sri Lanka’s policy, enacted through Gazette No.2251/42 on October 28, 2021, mandating the conversion of foreign exchange receipts into rupees within a specified timeframe.

They argued that this policy restricts exporters’ flexibility in planning currency conversions, often resulting in conversion at an overvalued exchange rate and placing additional strain on export operations.

In light of the evolving economic landscape and positive foreign exchange reserves, the associations deemed the continued enforcement of the mandatory conversion policy counterproductive.

They stressed the urgent need for the Central Bank to reconsider and revoke the aforementioned gazette to create an environment conducive to the growth and competitiveness of Sri Lanka’s exports.

“Addressing these policy concerns is essential to laying the foundation for sustainable economic development, ensuring employment security for citizens, and fostering the continued prosperity of our nation,” the associations concluded.

LAUGFS announces significant price reduction for domestic LPG

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April 02, Colombo (LNW): Laugfs Gas PLC announced a substantial reduction in the prices of its Laugfs-branded domestic liquefied petroleum gas (LPG) effective midnight yesterday.

Effective immediately, the price of a 12.5kg domestic cylinder, under the Laugfs brand, will be reduced by Rs. 625, bringing the MRP to Rs. 4,115 within the Colombo district.

Prices in other areas and pack sizes will be adjusted accordingly.

In a statement, Laugfs Gas attributed this significant price revision to several positive developments and factors contributing to the favourable economic climate.

The company acknowledged supportive government policies, including the appreciating value of the Sri Lankan rupee against the US dollar, reduction in interest rates, and availability of ample foreign exchange facilitating the opening of letters of credit.

Since the expiration of the trade monopoly held by multinational Shell Gas in 2000, Laugfs Gas PLC has emerged as the sole private sector player in Sri Lanka’s dynamic LPG industry.

Operating one of the largest LPG import and export terminals in the Indian Ocean region at the Hambantota Port, capable of handling 30,000 m/tonne shipments, Laugfs Gas leverages this strategic advantage to optimise LPG costs, facilitating the substantial price reduction.

Additionally, Laugfs Gas PLC maintains a fleet of LPG vessels, solidifying its position as the only Sri Lankan LPG ship-owning company.

Leveraging its robust infrastructure and logistic capabilities, the company has emerged as a leading LPG trader in the Asian region.

Looking ahead, Laugfs Gas PLC reaffirmed its commitment to passing on these advantages to Sri Lankan LPG consumers.

State Minister orders transfer of Excise Dept officers after cannabis haul arrests

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April 02, Colombo (LNW): Finance State Minister Ranjith Siyambalapitiya has issued directives to transfer all officers of the Excise Department’s Narcotics Prevention Unit following the arrest of four excise officers in possession of a significant quantity of cannabis.

In a statement released by the State Minister’s media unit, it was confirmed that the four officers from the Excise Department, apprehended while transporting Kerala cannabis, have been suspended from duty pending further investigation.

Additionally, a thorough probe into the incident has been initiated.

Furthermore, Siyambalapitiya has ordered the immediate transfer of all officers associated with the Narcotics Prevention Unit within the Excise Department.

The State Minister emphasised a strict adherence to the law, asserting that all individuals implicated in illicit activities will face legal consequences regardless of their positions within the department.

Earlier reports indicated that the Police Narcotics Bureau (PNB) had detained eight individuals, including four Excise Department officers, in Negombo and Chilaw areas.

Alongside the arrests, authorities seized 45 kilograms of Kerala cannabis.

Additionally, a van belonging to the Excise Department, used by the apprehended officers, has been impounded by the police.

SL Tamil political parties mull over presidential candidate from minority community

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April 02, Colombo (LNW): Sri Lanka’s Tamil political parties are strategising to nominate a candidate from the minority community for the upcoming presidential election, aiming to present a credible and acceptable political solution, said a senior community leader.

Scheduled for the last quarter of 2024, Sri Lanka anticipates the presidential election, with the new president elected by mid-November at the latest.

During a press briefing at his residence in Trincomalee’s eastern district on Sunday, R. Sampanthan, a prominent Tamil leader, emphasised the importance of supporting a candidate committed to resolving all issues concerning the Tamil minority through an agreeable political solution.

Sampanthan highlighted that the Tamil National Alliance (TNA) member parties have proposed fielding a Tamil candidate.

However, he acknowledged the potential limitations in garnering widespread support for such a candidate, urging the parties to strategise accordingly.

Emphasising the significance of a candidate advocating for a credible political solution, Sampanthan emphassed the importance of addressing issues such as the merger of the north and east provinces.

Responding to inquiries about potential support for incumbent Ranil Wickremesinghe if he were to contest, Sampanthan indicated that such decisions would be contingent upon discussions following the submission of Wickremesinghe’s nomination papers.

Throughout Sri Lanka’s presidential election history since 1982, Tamil candidates have participated in the elections, often aligning with opposition front-runners against the incumbent in most instances.

Finance State Minister commends President’s economic leadership, plans follow-up survey on relief benefits

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April 02, Colombo (LNW): Finance State Minister Shehan Semasinghe underscored President Ranil Wickremesinghe’s leadership in managing the country’s economic crisis effectively during a press briefing at the Presidential Media Centre.

He emphasised the necessity of continued leadership under President Wickremesinghe, highlighting his unique expertise for the task.

The State Minister announces plans to conduct a follow-up survey following the distribution of relief benefits to 2.4 million “Aswesuma” recipients.

Semasinghe elaborated on the plans for the second phase of “Aswesuma,” anticipating around 400,000 submissions.

The State Minister further emphasised the importance of revaluation surveys for previous applicants and comprehensive surveys for new submissions to ensure appropriate beneficiary selection.

The State Minister outlined plans for a post-selection survey on the utilisation and impact of “Aswesuma” funds.

He acknowledged the positive economic turnaround, attributing it to collaborative efforts between President Wickremesinghe’s administration and financial institutions like the International Monetary Fund (IMF).

Semasinghe highlighted a decrease in inflation and stabilisation of prices, indicating progress towards economic balance.

While praising President Wickremesinghe’s leadership amidst economic discussions and criticisms, Semasinghe refuted the notion that anyone could effectively govern the nation.

He added the importance of staying the course with current economic strategies to achieve a projected 2 per cent economic growth rate in 2024.

Semasinghe addressed public concerns about reduced prices not reflecting in retail prices due to unregulated black market prices.

He also announced plans for a weekly notification system for wholesale prices to enhance transparency and aid public understanding of retail prices.

Moreover, he noted progress in the debt restructuring programme, with the second review with the IMF approved at the staff-level. However, Semasinghe acknowledged challenges in obtaining the third instalment.

Showers, thundershowers may occur across multiple provinces, Heat Index to rise in several regions: Met Dept

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By: Isuru Parakrama

April 02, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, North-western, Southern, North-central and Uva provinces after 2.00 p.m., with fairly heavy showers above 75 mm being expected at some places in Western, Sabaragamuwa, North-western and Southern provinces and in Anuradhapura and Monaragala districts, the Department of Meteorology said in its daily weather forecast today (02).

Misty conditions can be expected at some places in Western, Central, Sabaragamuwa and Uva provinces and in Galle and Matara districts during the morning, the statement added.

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 off the coast extending from Puttalam to Hambantota via Colombo and Galle during the afternoon or night.
Winds:
Winds will be variable and wind speed will be (15-25)kmph.
State of Sea:
Sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

Meanwhile, heat index, the temperature felt on human body is expected to increase up to ‘Caution level’ at some places in Northern, North-Central, Eastern, Western, Sabaragamuwa, North-western and Southern, provinces and Monaragala district.

The public is urged to stay hydrated and take breaks in the shade as often as possible, check up on the elderly and the sick, never leave children unattended, limit strenuous outdoor activities, find shade and stay hydrated, and wear lightweight and white or light-colored clothing.

Sri Lankan ports experience surge in bunker demand

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By: Staff Writer

April 01, Colombo (LNW): Sri Lankan ports are witnessing a remarkable surge in bunker demand, driven by ongoing global navigation challenges, particularly in the Red Sea region.

This uptick in demand comes as ships reroute their voyages to avoid affected areas, with Sri Lanka emerging as a key refuelling and restocking destination amidst the uncertainties.

Recent data from Bunkerworld reveals a significant 33 percent increase in bunker sales volume at Colombo, one of Sri Lanka’s major ports, reaching an impressive 40,000 metric tons per month.

This surge underscores the growing importance of Sri Lankan ports in supporting international maritime operations amid evolving geopolitical tensions and navigation disruptions.

As shipowners and charters continue to take longer voyages to avoid Red Sea, bunker demand across ports on India’s west coast has risen and VLSFO supplies at the ports of Kochi and Mumbai remain disrupted.

Despite the increased demand, price movements were mixed as of March 28. Platts, part of S&P Global Commodity Insights, assessed 0.5 percent marine fuel oil delivered to Kochi at US $ 700/mt CFR, up US $ 20/mt on the week, while in Mumbai, prices fell to US $ 698/mt, down US $ 8/mt.

In Sri Lanka, prices at Colombo were assessed at US $ 700/mt, down US $ 7/mt on the week, according to S&P Global data.

“Demand has substantially increased, almost by 30 percent across Mumbai, Kochi and Gujrat ports. Long haul vessels are calling more often now. The volumes that were being lifted at King Abdullah port, Yanbu, Djibouti and Suez Canal have now shifted to Indian and Sri Lankan ports,” a Gujarat-based trader told S&P Global.

“Longer voyages coupled with a shortage of VLSFO at some Indian ports has increased demand at Kandla and Mundra,” said a Kandla-based supplier.

The unavailability of product at the Indian port of Kochi has raised demand at Sri Lankan ports of Colombo and Hambantota.

Supply shortages at Indian ports have also prompted India-based traders to divert their queries to Sri Lanka.

“Demand has almost doubled since January. Tightness across Indian markets during the first few weeks also helped us to capture the demand. Interestingly, we’re seeing a considerable number of inquiries for HSFO. There are three active high sulfur fuel oil suppliers in the market now,” a Colombo-based trader told S&P Global.

Sri Lanka trade account deficit widened in normalising economy

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By: Staff Writer

April 01, Colombo (LNW): Sri Lanka has widened a deficit in the trade account of the Balance of Payment (BoP)  in February this year Central Bank data showed, maintaining a trend seen since the fourth quarter of 2022, after monetary stability was restored.

The deficit in the trade account of the Balance of Payment (BoP) widened in February from a year ago on higher imports as the economy normalises. But it narrowed from a month earlier levels significantly due to less spending on fuel imports as the demand had been lower than expected.

Sri Lanka imported goods worth US$ 1,378 million and exported goods valued US$ 1,059 million to record a negative trade balance of US$ 319 million for February, nearly ten times the level of US$ 39 million a year ago as the economy was under pressure due to limited foreign exchange at the time. 

However, on a month-on-month basis, the deficit was much lower than the US$ 541 million recorded in January as exports strengthened while imports fell due to aforementioned reasons.

On a year-on-year basis, merchandise imports rose by 35.0 percent while exports increased by 7.9 percent, reflecting largely normalising economic conditions with widely relaxed import restrictions and loose monetary policy.

The export strength came from all three major categories of industrial, agriculture and mineral wherein the former had been driven largely by  petroleum products due to the increase in the volumes of bunkering and aviation fuel exports, the statement from the Central Bank said.

The agricultural sector exports were led by strong tea earnings from both higher volumes and prices.

Meanwhile in a sign of better times for the garments and textiles industry, their earnings have risen in February from January levels.

The merchandise imports have also been driven by all three categories of consumer, intermediate and investment goods.

Consumer goods, which first began to rise in a normalising economy, saw spending on both food and beverage imports and non-food consumer goods increasing.

Fuel imports were sharply down in the month to US$ 290.5 million from US$ 417.5 million in January.

The investment goods imports were driven by machinery and equipment – mainly the cranes and building materials such as iron and steel.

The type of the equipment brought down in February depicts the revival seen in the construction sector activity which the construction PMI showed through two back-to-back months of expansion through February.

On a cumulative basis, Sri Lanka has imported goods worth US$ 2,890 million and exported goods valued at US$ 2,030 million in the first two months, resulting in a negative trade balance of US$ 860 million, up sharply from the US$ 484 million in the corresponding period in 2023.

SL Katchatheevu Island turns to a political issue in Indian elections 

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By: Staff Writer

April 01, Colombo (LNW): Katchatheevu island ownership of Sri Lanka is set to turn to a political issue on the eve of Indian elections as it could be leveraged for securing fishing rights and canvas vote of Tamil Nadu fishermen.

Despite India’s first Prime Minister Jawaharlal Nehru’s, dismissing the island issue as “inconsequential” on May 10, 1961 now Katchatheevu ownership  has become a significant issue during upcoming Tamil Nadu’s Lok Sabha campaigns..

Handing over Katchatheevu to Sri Lanka in 1968 has impacted Indian fishermen, mostly from Tamil Nadu, who often get detained by the Sri Lankan Navy.

In this citcusmtance Indian Prime Minister Narendra Modi on Sunday lashed out at the Congress party over a controversial island, Katchatheevu that was given to Sri Lanka by former Indian Prime Minister Indira Gandhi in 1968.

The Katchatheevu island debate has taken centre stage in Tamil Nadu politics as the Lok Sabha election nears.

PM Modi on Sunday cited a report in Times of India that said, ‘RTI reply shows how Indira Gandhi ceded the island to Sri Lanka’. The PM on the X platfrom wrote, “Eye-opening and startling! New facts reveal how Congress callously gave away Katchatheevu”.

PM Narendra Modi added, “Weakening India’s unity, integrity, and interests has been Congress’ way of working for 75 years and counting”.

According to the document obtained by Tamil Nadu’s Bharatiya Janata Party (BJP) chief K Annamalai via an RTI application, the Indira Gandhi government in 1974 handed over the Katchatheevu Island, located in Palk Strait to Sri Lanka.

The report also cited the statement of India’s first Prime Minister Jawaharlal Nehru on the issue.PM Modi to kickstart BJP’s LS election campaign in UP from Meerut today.

Sri Lanka, then Ceylon, pressed its claim on the island after independence. The island country said that the Indian Navy (then Royal Indian Navy) could not conduct exercises on Katchatheevu without its permission.

On 10 May 1961, Nehru said he would not hesitate to give up claims to Katchatheevu. “I attach no importance to all to this little island and I would have no hesitation in giving up our claims to it, ” Nehru wrote as quoted by Times of India.

‘Modi govt want to strangulate opposition financially’, Congress attacks BJP Commonwealth Secretary YD Gundevia quoted Nehru’s minutes. However, until 1974 the final decision on Katchatheevu island was not finalised.

Then-Attorney General MC Setalvad in 1960 also stated that India had a stronger claim on the island formed due to volcanic eruptions in a reference to the Zamindari Rights given by the East Indian Company to Raja of Ramnad over the islet and fishery resources around it.

The Raja enjoyed rights in Katchatheevu Island from 875 to 1948 which later got vested in the State of Madras after the abolition of the Zamindari system.