March 23, Colombo, LNW: Japanese Ambassador to Sri Lanka, Mizukoshi Hideaki, has voiced Japan’s backing for the current program aimed at revitalizing the Sri Lankan economy. Speaking at a panel discussion chaired by President Ranil Wickremesinghe and organized by the “Geopolitical Cartographer,” Ambassador Hideaki drew parallels between Japan’s historical journey and Sri Lanka’s current economic challenges, highlighting Japan’s resilience and economic resurgence as a model for Sri Lanka.

In his keynote address titled “Japan’s Modernization and Lessons for Sri Lanka’s Economic Recovery and Governance,” Ambassador Hideaki shared insights into Japan’s historical challenges, its adaptation to modern changes, and its journey towards rapid development. He particularly emphasized Japan’s strategic reconstruction efforts post-World War II and the role played by former President J.R. Jayawardene in facilitating Japan’s reintegration into the international community.

Moreover, Ambassador Hideaki commended Sri Lanka’s ongoing anti-corruption initiatives and expressed Japan’s commitment to supporting these efforts financially, including aid through the United Nations Development Program and assistance from institutions like the Japan International Cooperation Agency (JICA). He also highlighted the potential benefits of fostering bilateral economic ties between Japan and Sri Lanka.

Following the keynote address, Ambassador Hideaki participated in a panel discussion alongside representatives from the United Nations Development Programme and Colombo University. The discussion, themed “Economic Development and Modernization with Lessons from Japan,” explored strategies for economic advancement and drew on Japan’s experiences as a case study for Sri Lanka’s development journey.

March 23, Colombo, LNW: Several spells of showers may occur in North-central and Northern provinces.

Showers or thundershowers will occur at several places elsewhere in the island during the afternoon or night.

Heavy showers above 100mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.

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

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

March 22, Colombo, LNW: New European Union (EU) regulations on deforestation-free products (EUDR) are applicable for Sri Lanka’s exports, the Foreign Ministry announced yesterday.

The EU Deforestation Regulation (EUDR) was formally adopted and came into effect on 29 June 2023. Companies will have 18 months (until 30 December 2024) to be compliant, except for micro- and small undertakings for which the Regulation will apply from 30 June 2025

Foreign Secretary Aruni Wijewardane chaired a meeting at the Foreign Ministry with the participation of the EU Ambassador Carmen Moreno to brief key industry stakeholders on the new EUDR.

As a direct beneficiary of the EU GSP+ concessions, Sri Lanka’s rubber exports to the EU market will have to adopt due diligence to prove that products do not originate from recently deforested land or have contributed to forest degradation. 

 The EU adopted the EUDR in June 2023, to ensure that agricultural products consumed by EU citizens do not contribute to global deforestation or forest degradation. The regulation will apply to the production of commodities like cattle, wood, cocoa, soy, palm oil, coffee, rubber, and their derived products.

The Foreign Secretary, in her introductory remarks, focused on the priority given by Sri Lanka to sustainable industry including in the rubber products exports sector, and sought technical assistance from the EU for adaptation.

The European Commission in Brussels Directorate-General for Environment participated in the hybrid Information Session, involving key Industry and government officials to discuss the EU Regulation on Deforestation-free products (EUDR). 

They provided a comprehensive overview of the new regulation while Michelin Lanka Ltd, as the largest rubber tire exporter to the EU in Sri Lanka, provided their case presentation. 

The Department of Forest Conservation made a presentation of measures taken to combat deforestation and increase forest cover in the country, to address climate change and protect biodiversity.

 Secretary, Ministry of Agriculture & Plantation Industries, Ministry of Industries, and relevant government agencies including rubber industry associations, officials of the Sri Lanka Embassies in Brussels and Paris, and over 60 rubber-producing companies in Sri Lanka participated in the information session.  

The information session provided a platform for a constructive exchange of ideas on EUDR to assist Sri Lankan rubber exporters with the new compliance procedure.

March 22, Colombo, LNW: In the wake of IMFs call for Sri Lanka to finalize the agreements with the official creditors and reach Agreements in Principle with the main external private creditors the government is close to finalising a debt treatment plan with India and the Paris Club, sources familiar with the negotiations said, pointing to a likely moratorium of up to six years and a reduced interest rate during the repayment period.

Peter Breuer, IMF Senior Mission Chie told a media briefing on Thursday 21, “The critical next steps are to finalize the agreements with the official creditors and reach Agreements in Principle with the main external private creditors in line with program parameters in a timely manner. This should help restore Sri Lanka’s debt sustainability over the medium term

“The discussions are at an advanced stage. A formal agreement on the terms can be expected very soon,” the Colombo-based source said after a recent discussion among members of the Official Creditor Committee [OCC].  

Breuer clarified that delays in finalizing agreements with official creditors haven’t been flagged as a concern. He acknowledged that converting agreements in principle into formal agreements can take time. However, he emphasized the importance of this process for solidifying debt relief efforts.

Sri Lanka is close to finalising a debt treatment plan with India and the Paris Club, sources familiar with the negotiations said, pointing to a likely moratorium of up to six years and a reduced interest rate during the repayment period.

“The discussions are at an advanced stage. A formal agreement on the terms can be expected very soon,” the Colombo-based source said after a recent discussion among members of the Official Creditor Committee [OCC].  

As many as 17 countries that have extended loans to Sri Lanka formed the Committee last year for ease of debt restructuring negotiations. China opted to stay out of the platform, but has been attending its meetings as an observer. 

Meanwhile, Colombo has repeatedly assured the OCC that it would negotiate repayment of Chinese loans on comparable terms.

Finalising agreements with the official creditors and reaching “in principle” agreements with the key private creditors would be “critical next steps” in Sri Lanka’s economic recovery plan, the International Monetary Fund (IMF) said on Thursday. 

Authorities reached a staff-level agreement with the Fund on the second review of its four-year Extended Fund Facility (EFF) arrangement. Upon completion of the IMF Executive Board’s review, Sri Lanka would have access to about US$337 million, taking IMF assistance it has received so far to US$1 billion, the Fund said in a statement.

March 22, Colombo, LNW:For the fifth consecutive day this week, the US Dollar continues to trade below the Rs. 300 mark at several commercial banks in Sri Lanka, reflecting a sustained trend in the foreign exchange market.

At NDB Bank, the buying rate for the US Dollar has decreased marginally from Rs. 296.85 to Rs. 296.60, while the selling rate has also seen a slight reduction from Rs. 307.85 to Rs. 307.60.

Similarly, Peoples Bank reports a decline in both the buying and selling rates of the US Dollar, with rates dropping from Rs. 298.36 to Rs. 297.87 for buying and from Rs. 308.47 to Rs. 307.96 for selling.

Meanwhile, at Commercial Bank, the buying rate for the US Dollar has decreased from Rs. 297.93 to Rs. 297.51, while the selling rate remains steady at Rs. 307.25.

Similarly, at Sampath Bank, there have been no changes in the buying and selling rates of the US Dollar, which remain constant at Rs. 299 and Rs. 308, respectively.

The consistent performance of the US Dollar below the Rs. 300 threshold indicates stability in the foreign exchange market, providing a favorable environment for businesses and consumers alike.

March 22, Colombo, LNW: In a proactive move to combat the proliferation of illegal weapons and explosives, the Sri Lanka Police has introduced a new initiative aimed at incentivizing the reporting of such contraband. Under this program, individuals who provide credible information leading to the detection and seizure of illegal weapons and explosives will be eligible for cash rewards.

Recognizing the importance of confidential informants in maintaining public safety, the program offers rewards based on the severity and type of weapons seized by law enforcement authorities. This initiative not only aims to encourage the public to come forward with valuable information but also serves as a deterrent against the possession and trafficking of illicit arms.

By fostering collaboration between law enforcement and the community, Sri Lanka Police endeavors to enhance efforts in curbing the illegal circulation of weapons, thereby promoting a safer and more secure environment for all citizens.

March 22, Colombo, LNW: The International Monetary Fund (IMF) has announced that its staff, in conjunction with Sri Lankan authorities, have reached a staff-level agreement on economic policies, marking the conclusion of the second review of the 4-year Extended Fund Facility (EFF)-supported program and the 2024 Article IV Consultation.

Upon approval by IMF Management and completion by the IMF Executive Board, Sri Lanka is set to receive access to SDR 254 million (approximately US$337 million) in financing. This disbursement will bring the total IMF financial support provided under the arrangement to SDR 762 million (about US$1 billion).

The agreement reflects progress in macroeconomic policy reforms, with positive outcomes including rapid disinflation, robust reserve accumulation, and signs of economic growth. Notable achievements include strengthened public finances following substantial fiscal reforms and met performance criteria and indicative targets, with some structural benchmarks yet to be fully implemented.

Economic indicators point towards gradual improvement, with positive growth registered in the third and fourth quarters of 2023 and inflation decelerating significantly. Efforts to sustain reform momentum, address governance weaknesses, and tackle corruption vulnerabilities are highlighted as crucial for ensuring lasting recovery and stable, inclusive growth.

The IMF team also underscored the importance of fiscal reforms, revenue mobilization goals, revenue administration enhancements, and maintaining cost recovery in fuel and electricity pricing to mitigate fiscal risks. Efforts towards debt restructuring and agreements with official and private creditors are deemed vital for restoring debt sustainability over the medium term.

Furthermore, the authorities’ commitment to implementing governance reforms, as outlined in the recently published Action Plan, is commended. Continued efforts to improve social safety nets, particularly Aswesuma, are essential to safeguarding the vulnerable segments of society.

The IMF mission team, which engaged with various stakeholders including government officials, parliamentarians, private sector representatives, civil society organizations, and development partners, expressed gratitude for the collaboration of the Sri Lankan authorities.

March 22, Colombo, LNW: Shell Global is poised to initiate fuel distribution in Sri Lanka starting from Friday (22), marking a significant milestone in the country’s energy landscape.

Fuel enthusiasts across Sri Lanka will have access to Shell Global products at 150 filling stations, promising enhanced quality and reliability in their refueling experience.

The inaugural consignment of Shell-RM Parks fuel, a collaboration between Shell Global and RM Parks, has arrived at the Colombo Port on Thursday (21) morning, laying the groundwork for seamless distribution operations.

1. President Ranil Wickramasinghe has announced that both the presidential election and the subsequent general election will take place as scheduled. He emphasized his commitment to fostering economic stability within the country and expeditiously transitioning Sri Lanka into an export-oriented economy. Furthermore, highlighted ongoing discussions aimed at reinstating Sri Lanka’s status as a debt-paying nation on the global stage. These deliberations are anticipated to conclude by June and July.
2. IMF staff and the Sri Lankan authorities have reached staff-level agreement on economic policies to conclude the second review of the 4-year EFF-supported program and the 2024 Article IV Consultation. Once the review is approved by IMF Management and completed by the IMF Executive Board, Sri Lanka will have access to SDR 254 million (about US$337 million) in financing, bringing the total IMF financial support disbursed under the arrangement to SDR 762 million (about US$1 billion), the International Monetary Fund (IMF) said.
3. MP Anura Kumara Dissanayake, leader of the National Peoples Power (NPP), is set to engage in multiple public meetings across Canada this weekend. Departing for Canada in preparation for these gatherings, he will speak at events in Toronto on Saturday, March 23, 2024, and in Vancouver on Sunday, March 24, 2024.
4. The vote on the no-confidence motion against Speaker of the Parliament Mahinda Yapa Abeywardena, was defeated in the Parliament,following a three-day debate. The Speaker survived the no-confidence motion, moved by the Samagi Jana Balawegaya (SJB), by a majority of 42 votes.
5. The Governor of the Central Bank of Sri Lanka (CBSL) has informed the Committee on Public Finance (COPF) that they accepted all recommendations from COPF report on salary revisions, the Chairman of the COPF, MP Dr. Harsha de Silva said: also mentioned that President Ranil Wickremesinghe will appoint a committee to review salaries as soon as possible, until which salary increases will be deferred from next month.
6. Four persons including Frontline Socialist Party (FSP) activist Duminda Nagamuwa and youth activist Lahiru Weerasekara, who were arrested during the demonstration by the ‘Jana Aragala Viyaparaya’in Colombo yesterday, have been remanded until March 27 by the Fort Magistrate’s Court.
7. The Asian Development Bank (ADB) has launched a new country partnership strategy (CPS) for Sri Lanka covering the period 2024–2028. The strategy will focus on restoring the country’s macroeconomic stability, reviving growth, and establishing the foundation for sustainable recovery and resilience.
8. The Shell brand will enter the Sri Lankan fuel retailing market later this year after Shell Brands International AG (“Shell”) and RM Parks (Private) Limited signed a retail brand license agreement, and affiliates of Shell and RM Parks (Private) Limited signed a product supply agreement.
9. Parliamentarian and President’s Counsel M. A. Sumanthiran has formally requested that the Fundamental Rights application, which previously challenged the Speaker’s conduct during the passage of the Online Safety Bill and was subsequently dismissed, be reexamined in the presence of a new Supreme Court bench.
10. Sri Lanka Cricket has denied that they exploited any loopholes after the Wanindu Hasaranga Test ban fiasco has grabbed the headlines in recent times. Hasaranga, who had retired from the longest format of the game in August last year, performed a U-turn and was subsequently selected for the Test series against Bangladesh. However, in a major turn of events, the ICC would slap him with a ban on Tuesday, March 19.