October 26, Colombo (LNW): Sri Lanka is making substantial strides in implementing critical economic reforms, a key move that could facilitate a swift progression toward the third review of its Extended Fund Facility (EFF) program, a senior International Monetary Fund (IMF) official disclosed on Thursday. 

Speaking in Washington, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, acknowledged the country’s recent reforms and collaborative efforts with the IMF, which he believes have moved Sri Lanka closer to financial stability.

Upon the election of Sri Lanka’s new government, Srinivasan led an IMF delegation to Colombo to engage with the country’s leadership and discuss economic strategies.

 These discussions have been both productive and ongoing, with follow-up meetings scheduled during the IMF-World Bank Annual Meetings. 

According to Srinivasan, Sri Lanka, which faced severe economic instability in 2022, has shown remarkable progress in implementing reforms. Recent data shows the country experiencing positive economic growth over the past four quarters, coupled with decreasing inflation—a clear indicator of recovery.

Srinivasan emphasized that under the EFF, Sri Lanka’s program framework aligns with some of the new government’s priorities, particularly in areas such as social protection. The program discussions will continue in Washington, with the IMF hopeful for rapid progress toward the upcoming third review of the program.

Regarding debt restructuring, Srinivasan noted that Sri Lanka has reached an agreement with its official creditors and secured a preliminary arrangement with private creditors. The next step is finalizing a comprehensive agreement across all creditor groups, a vital phase in Sri Lanka’s path toward a sustainable financial recovery.

 He acknowledged that much remains to be done, particularly in continuing the necessary reforms to strengthen the country’s economy.

When asked about macro-linked bonds, a type of debt instrument, Srinivasan clarified that while the IMF does not directly negotiate the terms, it is focused on ensuring that debt restructuring agreements align with the IMF program’s debt objectives and maintain consistent treatment across creditors. 

While macro-linked bonds are increasingly popular in debt restructuring, Srinivasan noted that different approaches suit different countries, and conventional bond exchanges may still be viable.

The Group of 24 (G-24), an international coalition of developing nations, has also acknowledged Sri Lanka’s reform achievements.

 During a press conference at the Annual Meetings in Washington, the G-24 commended Sri Lanka’s economic resilience while advocating for more inclusive debt restructuring frameworks. 

Iyabo Masha of the G-24 Secretariat highlighted that Sri Lanka’s economy has shown clear signs of recovery, with economic growth accelerating, fiscal reserves increasing, and rising import duties as evidence of fiscal stabilization. Nevertheless, Masha stressed that challenges related to debt sustainability persist.

October 26, Colombo (LNW): The Colombo Port City Special Economic Zone (SEZ) is rapidly gaining attention, with over 100 companies considering operations within its boundaries, as reported by its promoters. 

The Colombo Port City Economic Commission (CPCEC) has established a public registry listing Authorised Persons (APs), which includes both primary and secondary investors. 

These APs feature renowned global companies from countries such as India, the UAE, Singapore, the UK, Norway, and the US, highlighting the SEZ’s international allure and its potential as a regional service hub.

Colombo Port City is positioning itself as a leading business center in South Asia, providing a contemporary legal framework and a conducive environment for investors.

 This SEZ is emerging as a competitive alternative to established financial centers like Dubai and Singapore, invigorating Sri Lanka’s economic landscape.

 Its strategic location and modern infrastructure offer significant growth opportunities, enabling Sri Lanka to enhance its regional presence.

Historically, international and Sri Lankan IT and BPO firms have preferred locations like Dubai and Singapore due to their favorable conditions, including the ability to pay employees in USD, tax incentives, political stability, and strong economies.

 Recognizing these advantages, Colombo Port City has created a regulatory framework with strategic incentives that parallel these benefits. It presents a compelling option for global businesses aiming to expand in South Asia, while also serving as a viable solution for local enterprises seeking to extend their reach.

Recently implemented banking regulations within Colombo Port City further bolster investor confidence by protecting capital movements, creating a secure business environment. These measures are designed to attract foreign direct investments (FDI), benefiting the local economy and opening up new growth pathways.

Unlike other zones in Sri Lanka under the Board of Investment (BOI), the policies of the Colombo Port City SEZ are uniquely crafted to connect benefits directly to foreign earnings, export services, and new business initiatives. 

This ensures that only companies committed to genuine investments can access the SEZ’s advantages, as opposed to merely relocating for tax incentives. 

The competitive tax incentives and modern regulatory framework are designed to attract high-value FDI, encourage innovation, and support sustainable economic growth. By emphasizing authentic investments, Colombo Port City aligns its development with Sri Lanka’s broader objectives of innovation, entrepreneurship, and job creation.

 To uphold this focus on genuine investment, the CPCEC has established clear criteria within the SEZ’s legal framework. Secondary investors must meet specific standards, such as generating over $50 million in global revenue or creating at least 100 jobs within five years of operation.

They must also demonstrate how their business will positively impact Sri Lanka’s economic and social development through innovation, research, or establishing an international financial center.

Investors are required to submit comprehensive business plans to qualify for incentives, with annual compliance reviews conducted by the CPCEC. If these standards are not met, the CPCEC reserves the right to deny licenses or renewals. 

This structured approach ensures that the development of Colombo Port City remains aligned with Sri Lanka’s economic goals, fostering a vibrant business ecosystem.

October 26, Colombo (LNW): According to the Sri Lanka Opinion Tracker Survey (SLOTS) for September 2024, compiled by the Institute for Health Policy (IHP), perceptions of the country’s direction improved significantly following the presidential election.

 Prior to the election, a net 43% of the public felt the country was on the wrong track. However, this sentiment flipped after the election, with a net 5% believing the country was moving in the right direction—the highest level since SLOTS began in April 2022.

This dramatic turnaround in opinion occurred immediately after the election on 21 September. SLOTS did not conduct interviews during 22-23 September, but the change in sentiment was clear and detectable immediately from 24 September when the survey resumed.

Throughout September, an average of 21% of adults viewed the country positively, compared to 54% who did not. Before the elections on September 21, only 16% thought things were going well, a figure that rose to 41% post-election. Conversely, the percentage believing the country was headed in the wrong direction fell from 59% to 36%.

The shift in opinion was immediate and broad, with notable increases among the poorest adults (+77%), younger adults (18-29 years +74%, 30-44 years +77%), and various ethnic groups, including Sinhala (+75%) and Muslim (+74%). The only demographic that did not show positive sentiment was the wealthiest third, where 6% still felt the country was headed in the wrong direction.

This dramatic change moved Sri Lankans from one of the most pessimistic nations to one of the most optimistic following the elections.

Before September 2024, over 90% of Sri Lankans believed the country was on the wrong path. In a global IPSOS poll, an average of 61% across 29 countries felt similarly.

 Post-election, the percentage of Sri Lankans who thought the country was on the wrong track plummeted to 32%, positioning Sri Lanka among the top three countries with a positive outlook.

The big change in views in Sri Lanka meant that Sri Lankans went from being amongst the pessimistic nations when thinking about the direction of the country to being the  amongst the most positive after the elections.

. In a global IPSOS poll of 29 countries, an average of 61% of adults thought their country was heading in the wrong direction, according to September estimates.

By comparison, 79% of Sri Lankans held this view before the election (during 1-20 Sep), a figure only better than South Korea and Japan, but far behind other South Asian countries tracked. After the election, this percentage dropped to 32% (68% in the right direction) moving Sri Lanka into the top three countries with positive outlooks

October 26, Colombo (LNW): The Israel Defense Forces (IDF) have announced targeted strikes on military sites in Iran, citing “months of continuous attacks” from Iran’s regime, including a recent missile barrage on October 1. Reports suggest explosions near military bases in western and southwestern Tehran, with Iranian air defenses activated. Iranian sources linked to the Islamic Revolutionary Guard Corps (IRGC) claim that none of its bases were struck.

Additional reports indicate Israeli air strikes on military sites in Syria’s central and southern regions, though Israel has not commented on these operations outside of Iran. In Gaza, 12 Palestinians were reportedly killed by Israeli drone strikes while waiting for aid in northern Gaza, as stated by Gaza’s civil defense agency.

According to the United Nations, the toll from Israeli strikes in Gaza since October 7 has reached over 42,847 dead and 100,544 wounded. Meanwhile, the October 7 attack led by Hamas left an estimated 1,139 Israelis dead and more than 200 captives. The UN human rights chief has raised concerns over possible atrocity crimes in Gaza, with potential implications for crimes against humanity.

October 26, Colombo (LNW): Polling for the Elpitiya Pradeshiya Sabha Election is being held today (26) from 7:00 a.m. to 4:00 p.m. The Election Commission (EC) ensured that all voting materials, including ballot papers and boxes, reached the 48 polling centers yesterday. A total of 55,643 eligible voters will cast their ballots based on the 2018 voter registration list.

To ensure smooth proceedings, the left thumb will be marked instead of the little finger, which was used for the 2024 Presidential Election. The EC Chairman R.M.A.L. Rathnayake confirmed that comprehensive security measures are in place. Additionally, PAFFREL has deployed monitors across all polling stations to oversee the election process.

1. President Anura Kumara Dissanayake met with the South African High Commissioner, Sandile Edwin Schalk, at the Presidential Secretariat in Colombo. During the meeting, the Ambassador presented a greeting message from the President of South Africa and reaffirmed South Africa’s commitment to strengthening bilateral relations with Sri Lanka. He also expressed continued support for applying South Africa’s peace and national reconciliation model in Sri Lanka.
2. President Anura Kumara Dissanayake criticized former President Ranil Wickremesinghe’s recent comments about provisions for increasing salaries of public sector employees. Wickremesinghe had claimed that funds had been allocated for a salary increase for public servants before the presidential election. Dissanayake disputed this, stating that no such allocations were made by Wickremesinghe’s administration. “There were no funds allocated for a salary increase for state employees by the previous administration.
3. Prime Minister Dr. Harini Amarasuriya, engaged in separate discussions with the representatives of the Government Medical Officers Association (GMOA) and the Association of Medical Specialists (AMS), focusing on the challenges facing Sri Lanka’s healthcare sector. In the first meeting, the GMOA delegation, led by President Dr. Sanjeeva Tennakoon and Secretary Mr. Prabhath Sugathadasa, presented the association’s future plans aimed at sustaining quality health services in the country.
4. The Election Commission has made public the document detailing the expenses incurred by candidates who contested the last presidential election. Accordingly, the presidential candidate of the ‘Samagi Jana Balavegaya’ (SJB), Sajith Premadasa’s expenses are the highest in the 2024 presidential election, with the figure exceeding Rs. 1.12 billion.
5. Police have obtained detention orders to question three suspects arrested in connection with alleged security threats to Israeli nationals in Sri Lanka, according to Police Spokesman DIG Nihal Thalduwa. The three suspects had been arrested by the Terrorism Investigation Division (TID)
6. The All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) has crossed the 12,500 points mark, for the first time since 10 May 2024. Accordingly, the ASPI increase by 44.08 points today to close at 12,517.58. Meanwhile, the market turnover was recorded at Rs.4.75 billion today.
7. President Anura Kumara Dissanayake met with the European Union (EU) Delegation, led by EU Ambassador H.E. Carmen Moreno, at the Presidential Secretariat. The Delegation held a fruitful & cordial meeting with a wide overview on trade and investment relations, tourism, remittances, education, reconciliation, governance and public sector reform, among others
8. A petition was filed with the Supreme Court requesting an order to reject the nomination of former Member of Parliament Ranjan Ramanayake, who is contesting for the Gampaha District under the United Democratic Voice in the upcoming general election. The petition seeks a ruling that Ranjan Ramanayake is not entitled to sit in Parliament or to cast a vote.
9. The Ministry of Trade has announced the initiation of an investigation to determine whether rice is being released to the market at controlled prices. According to the ministry’s secretary, M.M. Naimudeen, officials from the Consumer Affairs Authority have begun district-level inspections to ensure compliance.
10. Sri Lanka, having clinched the ODI series 2-0 against the West Indies, will aim for a clean sweep in the third match today at the Pallekele International Cricket Stadium, commencing at 2:30 pm. In the first match, Sri Lanka emerged victorious by five wickets via the DLS method, while in the second game, they once again recorded a five-wicket win, chasing 190 runs in 38.2 overs in a 44-over game due to rain interruption.

October 26, Colombo (LNW): British High Commissioner to Sri Lanka, Andrew Patrick, encouraged local students to pursue academic qualifications and work experience abroad while highlighting the value of returning to Sri Lanka for long-term career growth. Speaking at the Higher Education Forum 2024 in Colombo, Patrick underscored that future economic growth would be concentrated in regions closer to Sri Lanka, particularly in Tamil Nadu, just 45 minutes away.

Patrick noted, “Economists predict that in the coming 50 years, the epicenter of growth will not be in Europe, the United States, Canada, or Australia, but right here in this region.” He emphasized that Sri Lankan students who are farsighted would find exciting opportunities upon their return.

He also acknowledged Sri Lanka’s prominent role in the global market for BTEC qualifications, which are internationally recognized and equip students with English proficiency, enhancing their readiness for the global workforce.

The event also recognized top-performing educational institutions. However, media representatives invited by organizers Pearson’s Higher Education expressed concerns about restricted access, describing their treatment at the event as unwelcoming.

October 26, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa, North-western and Northern provinces and in Galle and Matara districts.

Fairly heavy showers above 75 mm are likely at some places in Western, Sabaragamuwa and North-western provinces.

Showers or thundershowers will occur at several places in the other areas of the island during the evening or night.

Strong winds about (40-45)kmph can be expected at times over Northern, North-central and North-western provinces and in Trincomalee and Hambantota districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

October 25, Colombo (LNW): Marie-Noelle Duris, Charge d’Affaires of the French Embassy in Sri Lanka, paid a courtesy visit to Prime Minister Dr. Harini Amarasuriya at the Prime Minister’s Office on Wednesday (23). During the meeting, Duris highlighted France’s long-standing friendship with Sri Lanka and reaffirmed France’s ongoing support for the country.

The discussion centered around the upcoming 75th anniversary of diplomatic relations between Sri Lanka and France, exploring potential areas of cooperation to further strengthen bilateral ties between the two nations.