August 01, Colombo (LNW): Showers will occur at times in Western and Sabaragamuwa provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts, the Department of Meteorology said in its daily weather forecast today (01).
Fairly heavy showers above 50 mm are likely at some places.
Several spells of showers will occur in North-western province and in Matale district.
Showers or thundershowers may occur at a few places in Badulla, Ampara and in Batticaloa districts in the evening or night.
Strong winds of about 50 kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Trincomalee, Monaragala and Hambantota districts.
Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island.
Marine Weather:
Condition of Rain:
Showers will occur at times in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be westerly to south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to 60 kmph at times in the sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil. Wind speed can increase up to 50 kmph at times in the sea areas off the coasts extending from Trincomalee to Kankasanthurai via Mullaittivu and from Puttalam to Hambantota via Colombo and Galle.
State of Sea:
The sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil will be rough at times. The sea areas off the coasts extending from Trincomalee to Kankasanthurai via Mullaittivu, and from Puttalam to Hambantota via Colombo and Galle can be fairly rough at times. Naval and fishing communities are requested to be attentive in this regard.
July 31, Colombo (LNW): Sri Lanka is on the path of economic recovery followed by shifting from brain drain to brain gain, as emphasized by Former Finance Minister and Presidential national organizer Ravi Karunanayake.
With nearly 3 million Sri Lankans living abroad, there’s significant untapped potential in the expatriate community, many of whom excel in various fields.
To leverage this, strategies should be developed to attract expatriates back to Sri Lanka and encourage their investment and expertise, he said. .
This includes facilitating brain gain through attractive incentives, encouraging periodic returns, and enabling financial investments.
Expatriates can significantly contribute by leading multinational corporations’ Sri Lankan branches, driving technological innovation, and enhancing global competitiveness.
Their international experience and networks can help attract investment, raise global awareness, and bridge skill gaps.
For Sri Lanka to advance to a higher income level, the knowledge and investment of expatriates are crucial. Expatriates trained in advanced economies can foster innovation and growth, while their savings and networks can provide vital investments and access to markets.
Potential growth areas include capital markets, venture capital, private equity, outsourcing, and education.
Attracting international students and developing natural resources through strategic marketing can also boost the economy.
Offering tax and citizenship benefits to the second-generation diaspora could further enhance investments in manufacturing and export industries. Additionally, appealing to the senior diaspora with high-quality caregiving options could provide another influx of resources.
To compete globally, Sri Lankan companies must produce world-class products and embrace global marketing. Unlike American firms, few Sri Lankan companies have excelled in global branding.
The education system often emphasizes connections over practical skills, which can create an unfair advantage. Bridging the gap between educational theory and real-life success is essential for creating equal opportunities.
In the first quarter of 2024, 75,175 Sri Lankans left for foreign employment, with a monthly average of 25,058. In 2022, over 1.1 million Sri Lankans departed, primarily for education.
In 2023, 297,656 left for foreign employment, with a monthly average of 24,805. Worker remittances averaged US$ 541 million per month in the fourth quarter of 2023, up from $ 507 million in the third quarter.
Sri Lanka’s economic recovery relies heavily on the successful implementation of policies agreed upon with the International Monetary Fund (IMF).
Under President Ranil Wickremesinghe, the government has enacted significant reforms, including increasing taxes, cutting government spending, and restructuring state enterprises Mr Karunanayake disclosed. .
These measures aim to stabilize inflation and restore economic stability. Deviating from these policies could risk a return to previous economic crises.
The IMF-backed reforms have shown positive outcomes: the Sri Lankan rupee has strengthened, inflation has decreased, tax revenues have risen, and state enterprises have reduced their losses.
Interest rates have also dropped, contributing to overall economic growth. In 2023, the country achieved a primary surplus, a significant milestone.
Despite these improvements, opposition parties are advocating for revisions to some of the IMF’s conditions, particularly those related to higher taxes.
Mr. Karunanayake stressed that while the IMF’s core objectives—fiscal consolidation, revenue enhancement, and financial stability—remain unchanged, the methods to achieve them can be adjusted. External factors such as global economic shifts and geopolitical tensions could influence Sri Lanka’s recovery.
A major challenge is ensuring consistent policy implementation across different administrations to sustain long-term economic stability.
For 2024, Sri Lanka’s economy is projected to grow by 2.2%, recovering from the downturn experienced in 2022.
However, persistent issues such as high poverty rates, income inequality, and labor market difficulties continue to challenge the nation. Sri Lanka’s economy has shown resilience by outperforming expectations in the first quarter of the year.
The Asian Development Bank (ADB) highlighted that the future remains uncertain, particularly due to the approaching election cycle in 2024 and 2025. Policy reforms and continuity are critical concerns as the nation prepares for these elections.
July 31, Colombo (LNW): Melco Resorts & Entertainment’s new City of Dreams project in Colombo, Sri Lanka, is poised to capitalize on the growing wealth and outbound tourism from India. According to Morgan Stanley, the casino at this integrated resort could generate around 50% of the property’s EBITDA.
Melco announced a joint venture with John Keells Holdings PLC, Sri Lanka’s largest conglomerate, to include a casino in the $1 billion-plus project. During a conference call, Melco executives expressed confidence in their $125 million investment, viewing it as a strategic move with substantial returns.
Melco Resorts & Entertainment’s casino project in Sri Lanka will predominantly target the Indian market, with estimated annual gaming revenues of up to US$250 million per year, the company stated on Tuesday.
Melco will fit-out and operate the casino and some hotel rooms at Sri Lanka’s US$1 billion Cinnamon Life Integrated Resort after being awarded a 20-year casino license by the Government of Sri Lanka. The casino is expected to open in mid-2025.
Providing some further insight into the deal during the company’s 1Q24 earnings call, Melco Chairman and CEO Lawrence Ho said he saw Sri Lanka becoming to India what Macau is to China by tapping into its enormous population base and growing economy.
Tourism in Sri Lanka has experienced disruptions due to a terror attack in 2019 and the COVID-19 pandemic. However, the market is rebounding, with tourist visits peaking at 2.3 million in 2018, of which 18% were Indian nationals. As of May 2024, tourism levels have recovered to 88% of the 2018 peak.
Melco’s City of Dreams aims to leverage the increasing interest and financial capability of Indian tourists. Although Indian tourists traditionally spend less on casinos than their Chinese counterparts, the partnership with John Keells is expected to bolster the project’s success.
John Keells, a veteran in the leisure and hospitality industry, operates around 2,500 rooms across Sri Lanka and the Maldives under the Cinnamon brand.
The City of Dreams development will feature a casino and 113 ultra high-end hotel rooms. Melco will operate the casino, which is expected to begin operations by mid-2025.
Financial arrangements dictate that Melco will receive EBITDA from gaming operations after remitting a portion to John Keells and paying income tax on the remainder. Additionally, Melco will earn management fees for the hotel operations.
With a significant investment and strategic partnership, the Melco project aims to capture the rapidly growing wealth in India, potentially generating substantial returns and contributing to the growth of Sri Lanka’s tourism sector.
July 31, Colombo (LNW): Sri Lanka Government is losing massive amounts in tax revenues due to illegal imports of luxury consumer items, electronic appliances, mobile phones and leather products with the connivance of some corrupt custom officials.
As per Volza’s Sri Lanka Import data, Grey import shipments in Sri Lanka stood at 94.7K, imported by 3,353 Sri Lanka Importers from 2,875 Suppliers.
Sri Lanka imports most of its items illegally from India, Pakistan and China..The top 3 importers of Grey market products are India with 871,942 shipments followed by United States with 609,583 and Indonesia at the 3rd spot with 312,705 shipments.
Thulitha Mendis, Chairman of the Import Section at the Ceylon Chamber of Commerce, recently emphasized the severe economic repercussions of unauthorized imports on Sri Lanka. At the 89th Annual General Meeting,
Mendis explained that grey market products, or parallel imports, involve the unauthorized import and sale of branded goods, which significantly undercuts legitimate importers by avoiding taxes and tariffs.
Mendis highlighted that these unauthorized imports have led to substantial tax revenue losses and foreign exchange outflows.
In 2023, Sri Lanka reportedly lost Rs. 3.1 billion ($9.4 million) in tax revenue and Rs. 31.6 billion ($96 million) through illegal channels due to grey market activities.
The influx of parallel imports is also expected to reduce legitimate imports by Rs. 2.5 billion, driven by the rising costs of genuine products.
The clandestine nature of these operations makes it difficult to quantify the exact losses, but the impact is undeniably severe.
Grey market imports create an uneven playing field for legitimate businesses that adhere to legal importation processes and tax regulations. Authorized distributors and retailers struggle to compete with the lower prices offered by grey market operators who evade the costs associated with tariffs and taxes.
While grey market imports might offer lower prices, they carry significant risks. Products sourced through unofficial channels often lack proper warranties, support, and after-sales service, which can lead to higher costs for consumers if the products fail or need repairs.
Without the backing of the manufacturer, consumers have limited recourse for defective or substandard products.
To mitigate the economic impact of grey market imports, Mendis emphasized the need for a multi-faceted approach. Strengthening regulatory frameworks, raising consumer awareness, and supporting legitimate businesses are essential steps.
The government’s ongoing efforts to curb grey market activities will be crucial in securing a more robust and equitable economy for Sri Lankans. While grey market products might offer short-term financial benefits to consumers, the long-term consequences for the country’s economy are profound.
July 31, Colombo (LNW): Sri Lanka’s Department of National Archives has received a Dutch grant to lead research into Sri Lankan-origin palm-leaf collections in the Netherlands, aiming for restitution. The Dutch Research Council funded 11 projects under the call ‘Research into collections with a colonial context’. This initiative seeks to address historical injustices and bolster cooperation with the countries of origin.
The National Archives of Sri Lanka secured a consortium grant for the project “Whose Knowledge, Whose Values? Palm Leaf Manuscripts and the Question of Colonial Collections in Dutch Heritage Institutions.” Dr. N. T. Rupesinghe is the main applicant, with consortium partners Kurt de Belder (Leiden University), Prof. Nirmal Ranjith Dewasiri (Colombo University), and Dr. Tanuja Thurairajah (Collective for Historical Dialogue and Memory).
The project focuses on reconciling with the colonial past and understanding the role objects play in this process, using the palm leaf manuscripts requested for restitution by Sri Lanka as a case study.
Palm leaf manuscripts are one of the vital types of documents containing the indigenous knowledge of Sri Lanka. Treated and seasoned Palmyra leaf was widely used for writing before paper was utilized as writing material. Ancient people were not hesitant to write down their wealth of local knowledge in these palm leaf manuscripts. This gigantic task is important in preserving indigenous knowledge for future generations.
The Dutch Research Council is particularly interested in how reconciliation processes differ between Sri Lanka and the Netherlands and the value these objects hold for various communities across the (post)colonial divide.
Sri Lanka also secured a second consortium grant under the project “Whose Law? Addressing Injustice in the Entangled Histories of Sri Lanka and the Netherlands and Advancing the Practices of Provenance Research.” Prof. Dr. N. Kamardeen (University of Colombo) is the main applicant, with consortium partners Prof. Dr. Wayne Modest (Wereldmuseum) and Dilip Tambyrajah (Netherlands-Sri Lanka Foundation).
This project explores different perspectives on justice and legality regarding colonial cultural property in the Netherlands and Sri Lanka. It aims to improve provenance research methodologies to assist in decisions about restitution and return of cultural objects.
Additionally, it will examine the potential for digitizing cultural objects and propose an inclusive framework for deciding the future of colonial cultural property, advancing provenance research, and digitizing cultural artifacts.
These initiatives reflect a growing commitment to addressing the legacies of colonialism and ensuring that cultural heritage is appropriately managed, respected, and returned to its rightful origins. The Dutch Research Council’s interest in these projects highlights the importance of understanding and reconciling the colonial past with the present, fostering cooperation and mutual respect between nations.
July 31, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further appreciation against the US Dollar today (31) in comparison to yesterday, as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).
Accordingly, the buying price of the US Dollar has dropped to Rs. 297.85 from Rs. 298.09, and the selling price to Rs. 307.17 from Rs. 307.39.
The LKR also indicates appreciation against several other foreign currencies, including Gulf currencies.
July 31, Colombo (LNW): The Sri Lankan Rupee (LKR) happens to remain steady against the US Dollar today (31) in comparison to yesterday, as per leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 297.14 from Rs. 297.28, and the selling price to Rs. 307.80 from Rs. 307.95.
At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 296.67 from Rs. 297.17, and the selling price to Rs. 306.50 from Rs. 307.
At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 298 and Rs. 307, respectively.
92 MPs, including Ministers and State Ministers, pledge their support for President Ranil Wickremesinghe in the forthcoming presidential polls, despite the SLPP politburo’s decision to field their own candidate: SLPP MPs and Ministers have declared their support, emphasising Wickremesinghe’s role in stabilising the country and progress under his leadership.
Samagi Jana Balawegaya (SJB) General Secretary Ranjith Madduma Bandara places the deposit on behalf of Opposition Leader Sajith Premadasa to contest the 2024 Presidential Polls: Premadasa becomes the sixth candidate to place deposits for the Presidency.
NPP leader Anura Kumara Dissanayake says many MPs seeking to ally with the Samagi Jana Balawegaya (SJB) on August 8 were previously rejected by the National People’s Power (NPP): criticises these MPs for their negative political history and involvement in the country’s destruction: emphasises the NPP will not accept individuals who have supported harmful decisions and contributed to the country’s problems: Dissanayake makes these comments in the backdrop where one ex-military personnel accused of leading a battalion responsible for sexual exploitation of children during a peace mission in Haiti in 2005 is leading his tri-forces collective, and an academic whose claim of being a senior lecturer at Reading University in the UK was proven to be false is a member of his Party’s economic council.
Cabinet Spokesman Bandula Gunawardena says the National Agency for Public-Private Partnership (PPP) will collaborate with international organisations to create and manage PPP programmes: adds legal validation is needed to enhance the agency’s effectiveness and establish a legal framework for partnership agreements: confirms the Cabinet has approved a proposal by the President to instruct the legal Draftsman to prepare a Bill for these initiatives.
New Zealand agrees to support the development of Sri Lanka’s dairy industry following discussions with Agriculture Minister Mahinda Amaraweera: High Commissioner David Pine announces assistance in dairy farming, avocados, pineapples, and mangoes cultivation: With 60% of milk imported, boosting local production requires new technology and advanced techniques: New Zealand will also explore importing Sri Lankan pineapples and mangoes.
Minister Pavithra Wanniarachchi says Sri Lanka anticipates a significant rise in tourists to eco-friendly destinations managed by the Department of Forest Conservation: The first half of 2024 saw 364,521 tourists, with 40% being foreigners: Initiatives to boost eco-tourism include new attractions, improved facilities, and online ticket reservations: Efforts to increase forest cover and mangrove restoration are underway: The Department of National Zoological Gardens and the State Timber Corporation have shown financial growth despite the economic crisis: Measures to control the elephant menace and combat wildlife crimes have also been implemented.
The Interim Secretariat for Truth and Reconciliation Mechanism (ISTRM) launches its website, with Secretary to the President, Mr. Saman Ekanayake, as the guest of honour: The ISTRM aims to address post-conflict grievances, promote reconciliation, and prevent future conflicts: It will implement recommendations from past commissions, such as the LLRC, and build legal frameworks for reconciliation: Nationwide consultations are ongoing to engage communities, and the website launch aims to enhance transparent communication and public involvement in the reconciliation process.
Transparency International Sri Lanka (TISL) files a fundamental rights petition with the Supreme Court against officials over alleged violations in procuring private entities to manage the Electronic Travel Authorisation (ETA) system: argues this breaches citizens’ rights to equality and information and could cause financial losses: The petition names several respondents, including the Minister of Public Security and the Attorney General, and highlights Mobitel’s efficient, cost-effective service since 2012.
The Colombo High Court sentences four individuals to death for the 2013 murder of a man attacked with clubs and stones: Judge Aditya Patabandige delivers the sentence on 30 July, targeting the accused from Orugodawatta: Of the original six defendants, one died during the trial, and another was acquitted: The prosecution proved their guilt beyond a reasonable doubt.
The Sri Lanka Cricket Selection Committee announces a 16-member squad for the ODI series against India, with Charith Asalanka continuing as captain: The squad includes Chamika Karunaratne and has been approved by Sports Minister Harin Fernando: The ODIs are set for 2nd, 4th, and 7th August 2024 at RPICS in Colombo: The squad comprises Charith Asalanka (Captain), Pathum Nissanka, Avishka Fernando, Kusal Mendis, Sadeera Samarawickrama, Kamindu Mendis, Janith Liyanage, Nishan Madushka, Wanindu Hasaranga, Dunith Wellalage, Chamika Karunaratne, Maheesh Theekshana, Akila Dananjaya, Dilshan Madushanka, Matheesha Pathirana, and Asitha Fernando.
July 31, Colombo (LNW): Transparency International Sri Lanka (TISL) has lodged a fundamental rights petition with the Supreme Court, seeking action against procedural violations and abuse of public trust by officials in the procurement of private entities to manage the Electronic Travel Authorization (ETA) system for issuing visas to tourists.
Filed in the public interest, the petition addresses alleged transparency issues and non-compliance with guidelines in decision-making and procurement processes affecting tourism, the economy, and national security.
TISL claims that citizens’ fundamental rights to equality and information, guaranteed under Articles 12(1) and 14A of the Constitution, have been breached by the respondents’ actions and inactions.
The respondents named include the Minister of Public Security, the Controller General of Immigration, the Sri Lanka Tourism Development Authority, GBS Technology Services & IVS Global-FZCO, VFS VF Worldwide Holdings Ltd, the Cabinet of Sri Lanka, and the Attorney General.
TISL challenges the selection of private entities as authorised visa representatives, alleging that these agreements could result in significant financial losses and harm to the tourism sector.
The petition highlights that the existing partnership with Mobitel (Pvt) Limited, running since 2012, has been efficient and problem-free.
Mobitel’s proposal to improve the ETA system in August 2023 offered services at no cost to the government, with a fee of USD 1 per application, compared to the USD 18.50 charged by the newly selected entities.
The petition calls for accountability from the respondents for their illegal, arbitrary, and unreasonable actions in the procurement process.
July 31, Colombo (LNW): The New Zealand government has agreed to support the development of Sri Lanka’s dairy industry.
Following discussions with Agriculture Minister Mahinda Amaraweera, New Zealand High Commissioner David Pine announced assistance in promoting dairy farming in Sri Lanka.
Their talks also covered the cultivation of avocados, pineapples, and mangoes. Currently, avocados are being grown in Sri Lanka’s central hills to meet high foreign demand.
With 60% of Sri Lanka’s milk still imported, boosting local production requires new technology, quality semen imports, and advanced dairy farming techniques.
The High Commissioner confirmed New Zealand’s commitment to providing the necessary technical support in collaboration with the Sri Lankan government.
Additionally, New Zealand will explore opportunities to import Sri Lankan pineapples and mangoes.
