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Orzone Group creates history with drinking water exports to Australia

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By: Staff Writer

March 26, Colombo (LNW): Sri Lanka drinking water bottled companies have entered global market with 181 brands that are registered currently under Food Control Administration Unit (FCAU) in Sri Lanka

Among those registered companies, the leading players which are made a splash at a local, regional and global are: Orzone Mineral Water, Aquarich, Sun Aqua, Pearl Water, Aqua Fresh, Mount Spring Water, American Water, and Kinley are undoubtedly the brand giants of the local bottled water market in Sri Lanka.

According  to the  Food  Control  Administration  Unit  records,  174  brands  which  are  manufactured  known- mineral water  bottled companies  in Sri Lanka.

Water Sources Most of the local bottled water industries are sourced water from dug wells, tube wells, and springs across Sri Lanka.

 Many springs found in Sri Lanka are active throughout the year to supply a sufficient amount of water for industrial and domestic uses

Orzone Mineral Water Exports Ltd. recently exported 40 High-cube (HQ) containers of 600 millilitre (ml) drinking water bottles to Sydney, Australia, becoming the first ever Sri Lankan company to do so.

The Company has been awarded an order to supply one million 600 ml water bottles to Sydney, Australia, and the recent import marked the initial phase of it.

The Company started exporting water bottles to other parts of the world 30 years ago and has commenced exports to Australia with the aim of expanding the business.

Their drinking water is in high demand internationally due to hygienic bottling of water and packaging of the bottles in accordance with local and internationally accepted standards and using latest technology.

 Over the past, the Company has been able to secure the trust of the international clients by delivering their orders on time.

Affirming its excellence, Orzone Mineral Water Exports Ltd., recently bagged three awards at National Industry Excellence (NIE) Awards organised by the Industrial Development Board (IDB) and ‘Uva Abhimani’

 Awards organised by the National Enterprise Development Authority (NEDA) and the Uva Provincial Chamber of Commerce and Industry. The awards include two Gold awards and the Best Exporter Award.

“Over the past, we have achieved continuous success thanks to our customer’s worldwide and dedicated staff. Our aim is to expand our production capacity and the necessary plans have already been made. By doing so, we will be able to export more products and help to strengthen the country’s foreign currency reserves. Commencing exports to Australia is just one step towards that goal,” said Orzone Group of Companies Managing Director Dr. Upul B. Senarath.

HRB requests US court to Hold on Bondholder Suit till April 16

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By: Staff Writer

March 26, Colombo (LNW): Plaintiff Hamilton Reserve Bank Ltd. (HRB), countering the defendant Democratic Socialist Republic of Sri Lanka’s motion for a five-month stay, has requested the New York Southern District Court to extend the stay till the end of April 2024 on the condition that timely and specific information about the status of restructuring be submitted by 16 April.

Sri Lanka was seeking a five-month hold on a lawsuit filed by a bondholder over the country’s historic debt default, telling a New York federal judge that it wants more time to negotiate with private creditors.

The island nation was sued in July 2022 by Hamilton Reserve Bank Ltd., which sought full payment on more than $250 million of Sri Lanka’s dollar bond that was due that month. The bank says it holds more than 25% of the bonds, which would likely enable it to block any modification of the notes.

Complete details about any restructuring proposal Sri Lanka made or received and the progress are the key contents of the proposed reports the Plaintiff demands.

In its ‘Memorandum of Law in Opposition to Defendant’s Motion for Further Stay,’ HRB argued a further five-month stay until the end of July 2024 is unwarranted. “

The traditional stay factors and comity do not support a five-month stay. The prior four-month stay has already afforded Sri Lanka a limited opportunity to achieve a consensual resolution before judgments are entered or enforced against its debts. Nothing more is required,” the Bank said.

Bringing out Peru’s restructuring, which took seven years as an example, the HRB pleaded: “Second Circuit law clearly states that bondholder actions cannot be kept indefinitely.

That is because sovereign debt restructurings, which involve ‘voluntary and open-ended negotiations’, are not the equivalent of a judicially enforced bankruptcy proceeding. Instead, sovereign debt restructurings are merely voluntary, private negotiations, with no judicial supervision or clear timeline, that typically take years.

Given such negotiations’ protracted and uncertain nature, courts should not deny bondholders’ right to enforce the underlying debt by making their rights conditional on the completion of restructuring.”

“Sri Lanka is pursuing private negotiations with other creditors that have ‘no obvious and reasonably proximate termination date,’ indeed, these negotiations remain at an early stage nearly two years after Sri Lanka’s default.

As in Peru, Plaintiff’s rights cannot be made conditional on the completion of Sri Lanka’s restructuring, since there is no assurance of whether or when that will occur. 

Sri Lanka Original Narrative Summary: 26/03

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  1. President Wickremesinghe highlights the importance of holistic education, advocating for a curriculum that includes nutritional support and integrates modern technologies like AI: aims a “2024 School Meal Programme” at providing nutritious meals to all grade 1-5 students nationwide: intends to improve attendance, academic performance, and healthy habits among students: With a budget of Rs. 16.6 billion and support from organisations like the WFP and USDA, the programme benefits 1.6 million students across over 9,000 government schools.
  2. Opposition Leader Sajith Premadasa says the government should serve justice for the people who lost their lives in the Easter Sunday massacre: urges those who make claims about the attack to stop playing with the lives of the people, referring to the recent controversial remarks made by ex-President Maithripala Sirisena: further urges the government to reveal the responsible parties’ names, and by doing so to take legal action.
  3. Member of NPP’s Economic Council, JVP former MP Sunil Handunnetti says the current debt restructuring programme with the IMF will be reviewed again under an NPP government, asserting that they have the right to review each debt agreement in repayment of the loans: adds they may have to go through a new debt restructuring programme with all relevant stakeholders.
  4. COPA instructs the Finance Ministry to refer the case of 102 containers of spoiled fish imported into Sri Lanka to the CID, suspecting criminal activity: Despite customs regulations, the fish were unloaded in Sri Lanka. Concerns arose over discrepancies in import procedures and invoice dates: The Import and Export Control General says the fish were imported for organic fertiliser, with some destroyed, used for fertiliser, or re-exported: The delay in investigating and allegations of customs favoritism were criticised during the COPA session.
  5. The Teachers’ Principals’ Trade Union Alliance (TPTUA) warns the Finance Ministry Secretary of impending trade union actions if their demands regarding salary anomalies remain unmet: Despite a written request submitted earlier, they received no response, prompting them to visit the Ministry premises and issue a media release detailing their grievances: stresses the importance of resolving the issues without disrupting the education system but cautioned of future actions if their concerns are not addressed.
  6. Sri Lanka has implements crucial tax measures to stabilise its economy, backed by the IMF: IMF Senior Mission Chief Peter Breuer emphasises maintaining current tax levels to fund essential services, urging proportional contributions from all citizens: Sri Lanka faces economic challenges with a significant drop in GDP and revenue collection levels: The IMF stresses the need for continued fiscal reforms, including property tax introduction and revenue mobilisation efforts beyond 2025, to mitigate fiscal risks.
  7. The Coconut Development Authority says Sri Lanka’s coconut water exports surged in February 2024, fetching Rs. 3,439 million, up from Rs. 2,705 million in the corresponding period in 2023: CDA Chief Prof. Roshan Perera highlights a substantial Rs. 734 million increase in export income during the same period: Agriculture Minister Mahinda Amaraweera discusses these figures, noting potential for further growth by addressing Rs. 300 million annual losses from wildlife-related damages to coconut trees, benefiting growers’ income.
  8. Veteran Sri Lankan singer Chandra Kumara Kandanarachchi passes away aged 76: His popular songs includes: ‘Ege Sinahawa Thahanam’, ‘Pem Benda Sith Benda’, ‘Ganga Nadee Theeraye’, and ‘Hithe Sathuta Jiwithe.’
  9. The Central Bank’s Monetary Policy Board lowers the SDFR and SLFR by 50 basis points each to 8.50% and 9.50%, aiming to maintain inflation at 5% and foster economic growth: Factors considered include subdued demand, stable inflation expectations, and manageable external pressures: urges financial institutions to swiftly reduce lending rates to aid economic recovery: Additionally, restrictions on the Central Bank’s Standing Deposit Facility will be lifted from April 1 to enhance policy transmission.
  10. Sri Lanka clinched a dominant 328-run victory against Bangladesh in the first test match at Sylhet, securing a 1-0 series lead: Kasun Rajitha’s 5-wicket haul, supported by Vishwa Fernando (3/36) and Lahiru Kumara (2/39), paved the way for victory as Bangladesh were bowled out for 182 in their second innings: Dhananjaya de Silva and Kamindu Mendis starred with back-to-back centuries, setting up SL’s commanding position: Bangladesh struggled against SL’s seamers, with Mominul Haque’s fighting knock of 87 not enough to prevent defeat: Rajitha, with 8 wickets in the match, was named Man of the Match. The second test begins on March 30 in Chattogram.

Dollar rate at SL banks today (March 26)

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March 26, Colombo (LNW): The trend of the Sri Lankan Rupee (LKR) being appreciated against the US Dollar continues today (26), with the selling price remaining below the Rs. 300 threshold at leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 296.40 from Rs. 297.38, and the selling price to Rs. 306.44 from Rs. 307.45.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 296.44 from Rs. 296.77, and the selling price to Rs. 305.75 from Rs. 306.50.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 298 and Rs. 307, respectively.

TPTUA issues warning over salary anomalies to Finance Ministry, urges resolution to grievances

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March 26, Colombo (LNW): The Teachers’ Principals’ Trade Union Alliance (TPTUA) issued a stern warning to the Secretary of the Finance Ministry, emphasising their intention to undertake significant trade union measures if their demands, particularly concerning salary anomalies, remain unaddressed.

According to Joseph Stalin, General Secretary of the Ceylon Teachers’ Union (CTU), the TPTUA conveyed their concerns during a meeting with the Finance Ministry Secretary, following a formal written request submitted on March 11.

In their communication, the TPTUA specifically requested the disbursement of the outstanding two-thirds payment for salary anomalies, as allocated in the 2024 budget.

Additionally, they sought clarification on the allocation of funds designated for the evaluation of answer scripts for the 2023 General Certificate of Education (GCE) Ordinary Level (O/L) examinations and related examination duties.

Despite the submission of their written request earlier in March, the TPTUA reported a lack of response from the Ministry, prompting their visit to the Ministry premises on the day prior to issue a media release detailing their grievances.

During the visit, discussions were held with an Additional Secretary, who committed to arranging a subsequent meeting with the Ministry Secretary upon his return from an upcoming overseas trip, anticipated within a week.

Expressing their commitment to resolving these issues without disruption to the education system, the TPTUA stressed the importance of prioritising student welfare.

However, they cautioned the Additional Secretary that failure to address their concerns could lead to escalated trade union actions in the future.

IMF urges sustained taxation measures for Sri Lanka’s economic stability

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March 26, Colombo (LNW): Sri Lanka, emerging from its economic challenges, has implemented significant taxation measures affecting both businesses and individuals.

The International Monetary Fund (IMF) has indicated that these measures are necessary to sustain the country’s stability, at least for the foreseeable future.

IMF Senior Mission Chief for Sri Lanka, Peter Breuer, stressed the importance of maintaining the current tax levels to fund essential government services.

Addressing concerns raised by various sectors of the economy, Breuer emphasised the need for all citizens to contribute proportionally to support the provision of common goods.

Acknowledging Sri Lanka’s significant economic crisis and the resulting decline in real incomes, Breuer highlighted the drastic reduction in economic activity, with GDP dropping by 15 per cent in dollar terms in 2023 compared to the previous year.

He attributed the crisis to the government’s financial constraints due to insufficient revenue sources.

Historically, Sri Lanka has experienced higher revenue collection levels, reaching up to 20 per cent of GDP in the 1980s.

However, recent years have seen a decline, with general revenue averaging around 9 per cent of GDP between 2019 and 2022, significantly lower than the average for other emerging market countries.

Regarding fiscal reforms, the IMF welcomed Sri Lanka’s commitment but stressed the importance of continuing progress, particularly in introducing property tax and implementing revenue measures to meet mobilisation goals beyond 2025.

Additionally, efforts to enhance revenue administration, combat corruption, and ensure cost recovery in fuel and electricity pricing for state-owned enterprises were deemed crucial to minimise fiscal risks.

Sri Lanka’s coconut water exports surge, garnering Rs. 3.4 billion in February 2024

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March 25, Colombo (LNW): In February of this year, Sri Lanka’s export of coconut water generated an income of Rs. 3,439 million, reported the Coconut Development Authority (CDA).

This marks a notable increase compared to the Rs. 2,705 million earned from coconut water exports in February 2023, according to CDA data.

CDA Chairman Professor Roshan Perera highlighted that there has been a significant rise in export income, amounting to Rs. 734 million, during the pre-spring months of this year in comparison to the previous year.

These figures were discussed during a meeting chaired by Agriculture Minister Mahinda Amaraweera earlier yesterday (25).

Amaraweera emphasised the potential for further income growth, noting that by addressing the annual loss of Rs. 300 million incurred due to wildlife-related damages to coconut trees, additional revenue could be generated.

This, in turn, would contribute to augmenting the income of coconut growers.

SL’s Chief of Defence Staff strengthens military ties during official visit to Kenya

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March 25, Colombo (LNW): Sri Lanka’s Chief of Defence Staff, General Shavendra Silva, embarked on an official visit to the Defence Headquarters of Kenya in Nairobi on Monday (25), where he was received by Kenya’s Chief of Defence Forces, General Francis Ogolla.

General Silva was greeted with a Half Guard of Honour conducted by Kenya Air Force personnel before engaging in discussions with the CDF, VCDF, Service Commanders, and other senior officers of the Kenyan Defence Forces (KDF).

The meeting encompassed various topics aimed at bolstering bilateral military relations between Kenya and Sri Lanka, including plans for joint military trainings, the enhancement of military capabilities, and potential involvement in Peace Support Operations.

Both military leaders affirmed their dedication to fostering collaboration not only in personnel development but also in modernising operational procedures.

As part of his itinerary, General Silva visited the Uhuru Gardens National Museum and Monument (UGNM&M), where he was welcomed by the Director, Colonel Catherine Lagat.

His visit to Kenya also includes scheduled visits to the National Defence College (NDC) and the International Peace Support Training Centre (IPSTC), further strengthening ties between the defense establishments of the two nations.

President advocates holistic education and launches national school meal programme

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March 26, Colombo (LNW): President Ranil Wickremesinghe emphasised the significance of comprehensive education, endorsing a curriculum that integrates academic subjects with nutritional support for children nationwide.

He also stressed the integration of modern technologies like artificial intelligence (AI) into the educational framework, affirming the government’s commitment to reforming school education and examination systems.

These statements were made during the inauguration of the “2024 School Meal Programme” at Sujatha Balika Vidyalaya in Narahenpita, reported the President’s Media Division (PMD).

Led by the Ministry of Education, the initiative aims to provide nutritious meals to all students in grades 1-5 across the country.

Following the president’s directive, breakfast will be served between 7:30 am and 8:30 am, aligning with expert recommendations on optimal nutrition timing.

Under the theme “Healthy Active Generation,” the 2024 school meal programme seeks to address nutritional deficiencies among students, enhance daily attendance rates, instill healthy eating and lifestyle habits, elevate academic performance, and promote local culinary traditions.

This year’s programme benefits 1.6 million students from over 9,000 government schools, with a budget of Rs. 16.6 billion allocated directly to provincial councils, supplemented by sponsorship from organisations like the World Food Programme (WFP) and the United States Department of Agriculture (USDA).

Local suppliers provide the necessary food, contributing to the country’s manufacturing economy by creating new jobs directly and indirectly.

The initiative is supported by a transparent financial oversight mechanism to ensure accountability and reporting for all programme aspects.

The Ministry of Education, particularly its Health and Nutrition Branch, oversees and monitors programme management activities to ensure vigilant implementation.

CoPA urges criminal probe into importation of spoiled fish containers

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March 25, Colombo (LNW): The Committee on Public Accounts (COPA) has directed officials from the Ministry of Finance to promptly escalate the matter of the importation of 102 containers of spoiled fish into the country to the Criminal Investigation Department (CID), deeming it potentially criminal in nature.

During a recent session chaired by MP Lasantha Alagiyawanna, COPA scrutinized the details disclosed by an audit inquiry regarding the arrival of a vessel, originating from Seychelles and en route to Thailand, at the port of Colombo with spoiled fish containers.

Auditor-General W.P.C. Wickramaratne highlighted that despite provisions in the Customs Ordinance prohibiting the importation of unfit items for consumption, including spoiled fish, the decision was made to unload these containers in Sri Lanka.

The COPA session revealed discrepancies in the import process, with discussions highlighting fraudulent practices, including the presentation of non-imported containers as imports. Additionally, concerns were raised regarding the date discrepancies on invoices, indicating potential irregularities.

The Import and Export Control General informed COPA that permission was granted for the importation of the fish for organic fertilizer production, based on recommendations from the Central Environment Authority and in compliance with relevant regulations.

Of the 102 containers, four were destroyed, 43 used for fertilizer production, 40 re-exported, and 15 remained in Sri Lanka. Physical inspections in July 2023 revealed the remaining containers were emitting odors of rotten fish, prompting further concerns.

The COPA chair expressed dismay over delays in appointing a committee to investigate the incident and criticized perceived favorable treatment by customs officials.

State Ministers and Members of Parliament, along with officials from various government departments and law enforcement agencies, attended the COPA session to address the matter.