July 13, Colombo (LNW): The Asian Development Bank (ADB) today approved a $100 million policy-based loan to support and facilitate reforms aimed at enhancing the financial sustainability of the power sector in Sri Lanka.

The Power Sector Reforms and Financial Sustainability Program will complement the International Monetary Fund’s Extended Fund Facility arrangement and bolster the operational efficiency and competitiveness of country’s power sector. 

The program will help create a conducive environment for private investments, boosting renewable energy development, and modernizing power grids.

“Developing cost-competitive renewable energy and providing reliable and affordable electricity supply—with a transparent and independent power sector regulatory framework—will help Sri Lanka drive economic growth and address the current financial and economic crisis,” said ADB Principal Energy Specialist Jaimes Kolantharaj. 

“This program will support reforms in the power sector introduced under the Electricity Act, including institutional and regulatory reforms and improve operational sustainability of the electricity sector, he said. . 

The program will also support the development of renewable energy to accelerate the country’s transition to clean energy as envisaged under Sri Lanka’s nationally determined contributions.”

The program will help the government undertake institutional reforms in the electricity sector by establishing independent companies with defined functions and support strengthening their corporate governance and financial sustainability.

 It will support regulatory reforms with the implementation of the new national tariff policy that will improve financial sustainability of the sector through cost-reflective tariffs.

To help accelerate investments in renewable energy, the program will assist multiple initiatives under the renewable energy expansion plans for 2023–2030. 

The key initiatives include implementing a periodic revision of feed-in tariffs for small power plants and rooftop solar users, facilitating integration of renewable energy projects into the national grid, and effective application of a competitive procurement framework for renewable energy projects. 

The program will support increased women’s participation in the power sector by developing policies to promote equitable participation of female customers, female entrepreneurs, and women and disadvantaged community groups.

ADB will provide an additional $1 million technical assistance grant from its Technical Assistance Special Fund to support program implementation, capacity building of electricity companies, the development of their business plans and overall power system development plans.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

1. President Ranil Wickremesinghe stated that a robust economy can be established by enhancing the export economy, manufacturing, tourism, technology sectors, and modern agriculture. He highlighted that the government has already laid the foundation for this vision.
2. A group of Members of Parliament from the opposition have sent a letter to the Election Commission, requesting that the Presidential Election be held on the earliest possible date in order to prevent any attempts to delay polls. Accordingly, the parliamentarians urged the commission to exercise its maximum legal authority to ensure the election is conducted in a free and fair atmosphere.
3. The Sri Lanka Railway Station Masters’ Union says its trade union action was called off yesterday following the intervention of former Speaker Karu Jayasuriya to convene a discussion with the relevant authorities. Speaking to local media, the Chairman of the Union Sumedha Somaratne said the former Speaker had convened a meeting with the Minister and State Minister of Transportation.
4. President’s Counsel Mr. K.A. Parinda Ranasinghe has been appointed as the new Attorney General of Sri Lanka by President Ranil Wickremesinghe. He was appointed in terms of Article 61E (b) of the Constitution of Sri Lanka at the Presidential Secretariat, a short while ago, the President’s Media Division said.
5. Former Health Minister Keheliya Rambukwella and six others, arrested over the alleged importation of substandard human immunoglobulin vials, have been further remanded until July 25.
6. Minister of Justice Wijeyadasa Rajapakshe has slammed the Police for releasing video footage on the interrogation of a suspect arrested in connection to the recent shooting in Athurugiriya in which businessman ‘Club Wasantha’ was killed. Addressing the Parliament, the Justice Minister said in the video the Police were seen questioning a suspect in public and with access to media. Stating that it is a violation of the law, he said under such circumstances, the services of the Police officers involved in such interrogation must be suspended.
7. The Asian Development Bank (ADB) approved a $100 million policy-based loan to support and facilitate reforms in Sri Lanka, aimed particularly at enhancing the financial sustainability of the power sector in the island country.
8. Attorney-at-Law Aruna Laksiri has filed a Fundamental Rights (FR) petition before the Supreme Court, seeking an order to prevent holding of the Presidential Election as the 19th Amendment to the Constitution has not been properly passed in Parliament.
9. President Ranil Wickremesinghe inaugurated the second and third phases of the Bingiriya Export Processing Zone, aiming to transform Bingiriya into a major economic hub. The expansion is set to generate an estimated USD 2,600 million in export revenue and create 75,000 job opportunities.
10. India is highly unlikely to travel to Pakistan for the Champions Trophy 2025 which is scheduled to take place in Feb-Mar next year. The Sri Lanka cricket team will replace India cricket team if the latter decide to pull out of the Champions Trophy 2025. Rohit Sharma and co. are highly unlikely to travel to Pakistan which is scheduled to host the marquee tournament next year. As per reports, Sri Lanka who did not qualify for CT 2025 owing to their 9th placed finish in the 2023 ODI World Cup will replace India.

July 13, Colombo (LNW): The Agriculture Ministry announced that the government has saved millions of rupees by merging two fertilizer companies, which previously operated with separate chairmen, boards of directors, and staff. This significant cost-saving move was celebrated at a ceremony held at Water’s Edge Hotel on Thursday, attended by Agriculture and Plantation Industries Minister Mahinda Amaraweera.

The event saw the presence of State Ministers D.B. Herath, Kader Masthan, Mohan Priyadarshana Silva, Ministry Secretary Janaka Dharmakeerthi, and State Fertilizer Company Chairman Dr. Jagath Perera.

Minister Amaraweera noted that many institutions under the ministry dealt with similar subjects, resulting in unnecessary expenditures. Following President Ranil Wickremesinghe’s instructions, the Cabinet initiated a process to merge institutions with overlapping scopes. As a result, the two government-owned fertilizer companies have now been combined into one entity. Out of the 400 former employees of these companies, 273 retired voluntarily, receiving compensation ranging from Rs. 900,000 to Rs. 8.9 million based on their length of service and position.

The merger is part of broader efforts to strengthen the fertilizer program, which was crucial following the 2021 fertilizer crisis that led to widespread farmer protests. Minister Amaraweera highlighted that Sri Lanka has achieved self-sufficiency in rice production due to the reinstatement of chemical fertilizers, preventing rice prices from soaring. He emphasized that no rice has been imported since 2023.

State Fertilizer Chairman Dr. Jagath Perera announced that the merged company now produces 30 types of mixed fertilizers for various crops, including tea, cinnamon, rubber, and coconut. Efforts have been made to significantly reduce the prices of these fertilizers compared to market rates.

July 13, Colombo (LNW): The People’s Republic of China has provided a financial grant to upgrade the digital education infrastructure of 900 smart classrooms in 500 schools, marking a significant change in Sri Lanka’s education sector.

The agreement for this financial grant was signed between Finance Ministry Secretary Mahinda Siriwardena and Vice President of the International Development Agency of the People’s Republic of China Yang Weiqun in Beijing, China.

Finance Ministry Secretary Siriwardena stated that this financial grant is a major boost to the digitization program in Sri Lanka’s education sector. The funds will be used to develop state-of-the-art educational infrastructure, including a modern educational data center, multimedia distance learning, and conference facilities. The Sri Lankan government has introduced several reforms in the education sector, with digitization becoming a leading task. The support from the People’s Republic of China is highly appreciated and welcomed.

July 13, Colombo (LNW): Audrey Azoulay, the Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO), will visit Sri Lanka from July 16 to 19 at the invitation of the Government of Sri Lanka.

During her visit, Director-General Azoulay will meet with President Ranil Wickremesinghe, Education Minister Susil Premajayantha, and Acting Foreign Affairs Minister Tharaka Balasuriya. She will participate in the celebration of the 75th Anniversary of Sri Lanka’s Membership of UNESCO at the Nelum Pokuna Theatre and visit UNESCO World Heritage Sites.

July 13, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Fairly heavy showers above 50 mm are likely at some places.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts in the evening or night.

Strong winds of about (40-50) kmph can be expected at times in Northern and North-central provinces and in Trincomalee and Hambantota districts.

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

July 12, Colombo (LNW): A new maritime dispute between India and Sri Lanka is emerging as Colombo objects to New Delhi’s application to the International Seabed Authority (ISA) for the rights to explore cobalt-rich ferromanganese crusts in the Afanasy Nikitin Seamount in the Indian Ocean.

 Sri Lanka argues that this area falls entirely within its extended continental shelf claim and has urged the ISA to hold off on accepting India’s application until the United Nations Commission on the Limits of the Continental Shelf (UN-CLCS) resolves Sri Lanka’s claim.

 The ISA is currently following the necessary procedures regarding this issue, as stated by a spokesperson from Sri Lanka’s Ministry of Foreign Affairs.

Sri Lanka’s continental shelf claim, which conflicts with India’s, has been pending with the UN-CLCS since 2009. Despite ongoing bilateral negotiations, the two nations have not reached a resolution over the past fifteen years.

The recent dispute over cobalt-rich crusts exploration intensified following India’s parliamentary elections, during which the ruling Bharatiya Janata Party revived the controversy over Katchatheevu Island, criticizing the Congress and the Dravida Munnetra Kazhagam (DMK) for ceding the island to Sri Lanka and thus harming the interests of Tamil Nadu’s fishermen.

On January 18, 2024, the Earth System Science Organization (ESSO), an autonomous institute under India’s Ministry of Earth Sciences, submitted an application to the ISA seeking a 15-year plan for the exploration of cobalt-rich ferromanganese crusts in the Afanasy Nikitin Seamount. 

This move by New Delhi comes amid increasing Chinese research vessel activities in the Indian Ocean.

ESSO paid an application fee of $500,000 to the ISA, which operates under the 1982 United Nations Convention on the Law of the Sea (UNCLOS) to oversee the exploration of mineral resources in international seabeds. 

The Afanasy Nikitin Seamount, located in the equatorial Indian Ocean, is an undersea mountain range extending 400 kilometers in length and 150 kilometers in width. 

It includes a main plateau that rises 1200 meters above the surrounding ocean floor at a depth of 4800 meters, with additional seamount highs at depths of 1600 meters and 2050 meters.

India seeks to explore a total area of 3,000 square kilometers, divided into 150 blocks, each no larger than 20 square kilometers. 

These blocks are grouped into six clusters, each containing between 12 and 50 blocks, and the entire application area spans no more than 550 kilometers by 550 kilometers, according to ISA documents.

July 12, Colombo (LNW): Sri Lanka is currently in the midst of a geopolitical race as both India and China extend their support for the country’s digital educational reform initiative, aimed at upgrading educational infrastructure nationwide.

On Wednesday, the Finance Ministry of Sri Lanka signed an agreement with the China International Development Cooperation Agency (CIDCA) for a project under the China-Aid program. This project, called the Digital Transformation of General Education, focuses on enhancing the country’s educational sector with state-of-the-art technology.

Sri Lanka’s Treasury Secretary, Mahinda Siriwardana, announced the agreement on July 11 via Twitter. 

The grant aims to catalyze the digital transformation of Sri Lanka’s education sector by establishing modern educational infrastructure, including an Educational Data Centre, a Multimedia Distance Learning and Conference Solution, and a National Streaming Hub. 

In its initial phase, the project will introduce advanced smart classroom solutions, featuring high-definition interactive distance learning, to 900 classrooms across 500 schools.

 This initiative is designed to enhance the teaching and learning experience and support ongoing education sector reforms aimed at achieving educational equity through digital transformation.

The grant also covers necessary software and technical training, which will be provided by the Chinese government. This comprehensive support is expected to ensure the sustainable and effective implementation of digital education infrastructure in Sri Lanka.

Additionally, Sri Lanka plans to construct 60 smart classrooms in selected schools within the Nuwara-Eliya, Kandy, and Badulla Districts, with funding from the Indian Government. This was confirmed by Cabinet Spokesman Bandula Gunawardena. 

Furthermore, the main opposition party, the Samagi Jana Balawegaya (SJB) led By Sajith Premadasa , has been actively distributing smart classroom technology to schools across the country, although the funding sources for this initiative are unclear.

This digital educational initiative was first launched in 2018 when the current President, Ranil Wickremesinghe, was the Prime Minister.

 However, it faced opposition and protests from political parties and was halted following a change in government. Despite these challenges, smart classrooms were developed in several schools across Sri Lanka during the 2018-2019 period. 

These smart classrooms included technology-enhanced educational components such as interactive whiteboards, classroom and multimedia control centers, computers, tablets, audio/video elements, and classroom management systems.

 A program led by Sri Lanka’s Ministry of Education provided five desktop computers, five laptops, and one interactive smartboard to each school for use among Grade 12 students. As of 2018, 197 schools had received this equipment, representing a broad coverage across all provinces.

Sri Lanka’s renewed focus on digital education, with significant support from both India and China, marks a crucial step in advancing the country’s educational infrastructure and addressing the need for modern, equitable learning environments

Star Garments Group yesterday announced its plan to build a large-scale apparel export manufacturing factory in Togo to boost the West African country’s textile and apparel capabilities, through a financing package that includes a $ 15 million loan by the International Finance Corporation (IFC), a member of the World Bank Group.

The move marks Star’s first manufacturing facility outside of Sri Lanka. This project aims to create thousands of jobs in Togo, putting Star on the global map as a multiple country-of-origin supplier. Star’s facility will also be the first large-scale apparel manufacturing facility in Togo.

Star will build a greenfield clothing factory in Togo in Plateforme Industrielle d’Adétikopé, an industrial park on the outskirts of Lomé, and provide around 4,520 direct and indirect jobs, especially for women, and contribute significantly to export-oriented value addition by 2030. Star’s cut-make-trim factory will be a part of Lomé’s high-value-added industrial chains in several agro-industrial sectors.

The $ 15 million by IFC will comprise $ 7.5 million from its own account and another $ 7.5 million loan supported by the International Development Association Private Sector Window Blended Finance Facility. 

Star is a powerhouse in Sri Lanka’s apparel industry with over four decades of experience, backed by a team of over 9,000. Star is also widely regarded as a champion in sustainability, with eight of its factories LEED-certified including the first passive house factory building in the world. Star’s factory in Togo will also be built under LEED standards.

 The group is also the only group of apparel companies to be certified as carbon neutral across all its processes.

‘‘We are continuously looking at diversifying our manufacturing base and our upcoming facility in Togo will be a cost-competitive alternative to our valued customers and fuel our global growth in bringing some of the best world-class apparel manufacturing to the West African region,’ said Star Garments Group Managing Director A. Sukumaran.

West Africa’s textile and apparel sector holds significant growth potential, with the region having a large and young talent pool. There have been improvements recently that are favourable to the sector, such as building ports and establishing special economic zones.

 This project is an outcome of IFC’s Cotton-to-textiles Value Chain Study in West Africa, focused on developing manufacturing capabilities and building an integrated regional textiles value chain across multiple countries in West Africa. 

As of June 2024, IFC had an active investment portfolio of $ 131 million in Togo that supports agriculture, transport, logistics, access to finance, energy, digital, housing, and health.