By: Staff Writer

March 19, Colombo (LNW): Sri Lanka will be entering into five Free Trade Agreements: A Path to Economic Stability and Growth

FTA talks underway between India, Indonesia, Malaysia, Vietnam, and China Minister of Foreign Affairs Ali Sabry disclosed.

By the end of 2024, Sri Lanka aims to finalize free trade agreements with India, China, Singapore, Indonesia, Malaysia, and Vietnam. These agreements have the potential to significantly expand market access for Sri Lankan businesses and attract even more foreign investment.

Sri Lanka and Indonesia formally launched the negotiations for a Preferential Trade Agreement (PTA) between the two countries recently. .

The Ministers conveyed that the commencement of the Sri Lanka-Indonesia PTA negotiations would serve as a step towards a Free Trade Agreement (FTA).

He highlighted the recent FTA with Thailand as a historic step towards achieving President Wickremesinghe’s vision of a stable economy. He emphasized that this agreement has already provided Sri Lanka access to a USD 2.2 billion market, representing a significant advancement.

Sri Lanka and Indonesia Preferential Trade Agreement (PTA) talks held virtually State Minister of Foreign Affairs Tharaka Balasuriya led the Sri Lanka delegation and Indonesia’s team was led by its Vice Minister of Trade Jerry Sambuaga.

The Ministers conveyed that the commencement of the Sri Lanka-Indonesia PTA negotiations would serve as a step towards a Free Trade Agreement (FTA).

They agreed that both countries are keen to strengthen bilateral trade relations and achieve meaningful market access under the proposed PTA. The Ministers expressed the hope that the PTA negotiations will be conducted

International Trade Office Chief Negotiator K.J. Weerasinghe revealed that following the Free Trade Agreement (FTA) signed with Thailand on 3 February, Sri Lanka was looking to enter into a PTA, with discussions in this regard scheduled for March.

As part of the Government’s drive to expand Sri Lanka’s inventory of trade agreements, it was announced recently that Sri Lanka would also be seeking to enter into an FTA with Malaysia.

According to Weerasinghe, the first round of talks between Sri Lanka and Malaysia is likely to take place end-March. However, he said that both parties were yet to agree on a date and location.

In addition to these PTAs being considered, Sri Lanka has also been negotiating with India to upgrade the existing trade agreement between the two nations.

While India and Sri Lanka have entered into the Indo-Sri Lanka Free Trade Agreement (ISFTA), both nations have since attempted to upgrade the agreement by entering into an Economic and Technology Cooperation Agreement (ETCA).

Accordingly, Cabinet Spokesman Bandula Gunawardana on Monday (19) revealed that the 14th round of talks between Sri Lanka and India on the ETCA was scheduled to be held in New Delhi soon.

March 19, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further appreciation against the US Dollar today (19) 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. 299.29 from Rs. 300.05, and the selling price to Rs. 308.90 from Rs. 309.67.

The Sri Lankan Rupee indicates appreciation against several other currencies as well.

1. Sources reveal that President Ranil Wickremesinghe has clarified that the presidential election will be held before the general election, instructing the cabinet to prepare accordingly based on the country’s constitution.
   
2. Former MP Hirunika Premachandra files a FR petition with the Supreme Court, seeking to block Deshabandu Tennakoon from becoming IGP due to his alleged involvement in assault cases: The petition names several respondents, including the Attorney General and members of the Constitutional Council, citing concerns about public interest and violations of constitutional provisions.
   
3. NPP Leader MP Anura Kumara Dissanayake says a future NPP government should include ministers from the North: emphasises discussions with moderate Tamil leaders for this inclusion, aiming to address Tamil issues like language and land: pledges constitutional amendments to secure political rights for Tamils, promising to resolve language concerns and ensure the right to engage with the state in Tamil.
   
4. Today marks the start of the two-day parliamentary debate on the no-confidence motion against Speaker Mahinda Yapa Abeywardena: The debate will run from 9:30 a.m. to 5:30 p.m. today and is expected to conclude by 4:30 p.m. tomorrow, March 20, with a vote to follow: The motion, submitted on March 5, alleges that the Speaker disregarded Supreme Court recommendations on the Online Safety Bill and unconstitutionally confirmed the appointment of IGP Deshabandu Tennakoon.
   
5. The Finance Ministry launches a loan programme to aid private mill owners in paddy procurement during the Maha season, disbursing Rs. 1,500 million with a total projected loan amount of Rs. 9,000 million: No funds were allocated to the Paddy Marketing Board due to outstanding dues of Rs. 28,600 million owed to the Treasury.
   
6. The tourism industry celebrates a milestone as tourist arrivals exceeded 500,000 in the 1Q24’, with March alone welcoming over 100,000 visitors: This rapid recovery, reaching levels not seen since the pandemic’s onset, signifies strong momentum: Despite March’s weekly data suggesting a slight dip compared to February, the sector’s overall growth remains impressive: Major source markets include Russia, India, Germany, the UK, France, and China: The tourism sector’s revenue in the first two months of 2024 reached US $687.5 million, a substantial increase from the same period in 2023, contributing significantly to the country’s economic stability.
   
7. The Inland Revenue Department plans to boost tax compliance among high-income earners by targeting a group of 100 taxpayers with significant reported incomes: Using various data sources like real estate holdings and bank records, the IRD aims to ensure fairness and confidence in tax administration: A dedicated unit, the High Wealth Individuals Unit (HWIU), to oversee this effort.
   
8. Transport and Highways Minister Bandula Gunawardana aims to accelerate the completion of the third phase of the Central Expressway, spanning from Pothuhera to Galagedara, within two years: The initial phase from Pothuhera to Rambukkana is targeted for completion by 2025, with the entire project expected to conclude by July 2026: This expressway will improve connectivity from Mirigama to Rambukkana, with construction activities ongoing for four interchanges along the route.
   
9. The Sri Lankan Rupee appreciates against the US Dollar to the point where the buying price reaches below the Rs. 300 threshold at leading commercial banks: Peoples Bank’s buying price Rs. 298.36; selling price Rs. 308.47: Commercial Bank’s buying price Rs. 298.67; selling price Rs. 308: Sampath Bank’s buying price Rs. 299.50; selling price Rs. 308.50.
   
10. The Sri Lanka Cricket Selection Committee finalises a 17-member squad for the upcoming Test series against Bangladesh: Dhananjaya De Silva will lead the team, with Kusal Mendis as vice-captain: The series will kick off on March 22 in Sylhet.

March 19, Colombo (LNW): The government faces an additional financial burden of Rs.11 billion should a snap parliamentary election be declared before the constitutionally mandated Presidential Election, a report by Daily Mirror disclosed.

This expenditure would be on top of the already allocated over Rs.10 billion in the 2024 budget to the Election Commission for the upcoming Presidential Election.

A spokesperson for the Election Commission confirmed that no funds were earmarked in the current budget for a General Election, as one is not slated for this year.

However, President Ranil Wickremesinghe retains the authority to dissolve Parliament at his discretion, potentially prompting a snap general election.

In such a scenario, he holds the power to allocate funds from the Consolidated Fund to facilitate the election.

As per the Constitution, the President has the prerogative to dissolve Parliament and set a date for a general election.

If Parliament has not already provided for such expenses, the President, after consulting with the election authorities, can authorise allocations from the Consolidated Fund for the necessary expenditure, according to report.

Presently, the Sri Lanka Podujana Peramuna (SLPP), which provides parliamentary support to the President’s administration, advocates for a general election.

Conversely, the United National Party (UNP), led by the President, contends that holding a general election at this juncture would be ill-advised.

March 19, Colombo (LNW): The Ministry of Finance has launched a loan programme designed to provide support to private mill owners engaged in paddy procurement activities during the Maha season.

Under this initiative, a substantial loan amounting to Rs. 1,500 million has been disbursed to assist private mill owners in their paddy purchases.

It is projected that a total of Rs. 9,000 million in loans will be extended through this programme.

Notably, despite the commencement of the loan programme, the Ministry of Finance has not allocated funds to the Paddy Marketing Board for paddy procurement during this period.

This decision stems from the outstanding dues owed by the Paddy Marketing Board to the Treasury, which currently amount to Rs. 28,600 million.

March 19, Colombo (LNW): The two-day parliamentary debate on the motion of no-confidence against Speaker Mahinda Yapa Abeywardena is set to commence today (19).

Following the decision made at last week’s Committee on Parliamentary Business meeting chaired by Abeywardena, the debate is scheduled to begin at 9:30 a.m. and will continue until 5:30 p.m. today.

Tomorrow, March 20, the debate is expected to conclude by 4:30 p.m., with a vote on the no-confidence motion to follow.

The motion against the Speaker was submitted to the Deputy General Secretary of Parliament on March 5 and has garnered the signatures of 44 parliamentarians, including Opposition Leader Sajith Premadasa, Chief Opposition Whip Lakshman Kiriella, and several other MPs.

The no-confidence motion alleges that the Speaker disregarded recommendations from the Supreme Court regarding various sections of the Online Safety Bill.

Additionally, it accuses Abeywardena of allowing the passage of the bill’s third reading without a vote and ignoring calls for a division by the Chief Opposition Whip during the Committee Stage.

Furthermore, opposition MPs contend that the Speaker unconstitutionally used his decisive vote to confirm the appointment of IGP Deshabandu Tennakoon, despite a split decision within the Constitutional Council.

The Speaker’s vote broke the tie and facilitated the appointment, disregarding the abstentions of two council members, they alleged.

March 19, Colombo (LNW): Transport and Highways Minister Bandula Gunawardana has announced plans for the expeditious completion of the third phase of the Central Expressway, spanning from Pothuhera to Galagedara, within a two-year timeframe.

Gunawardana outlined that the government aims to finalise the initial phase of construction from Pothuhera to Rambukkana by 2025, with the entire project anticipated to conclude by July 2026.

Upon completion, the Central Expressway will provide enhanced connectivity for the public, facilitating travel from Mirigama to Rambukkana.

These updates were provided during a progress review meeting held at the project office situated in the Lihinigiriya area of Pothuhera.

The third phase of the Central Expressway, covering a distance of 32.45 kilometres, features four interchanges: Pothuhera, Polgahawela, Rambukkana, and Galagedara.

Construction activities for the associated interchanges are presently underway.

March 19, Colombo (LNW): The Inland Revenue Department (IRD) of Sri Lanka is set to implement a strategy aimed at enhancing tax compliance among the nation’s highest-income earners, with plans to identify a group of 100 taxpayers with the most substantial reported incomes from diverse sources.

This targeted group will be selected through a comprehensive review of various data sources, including third-party information such as real estate holdings, reports from the Financial Intelligence Unit (FIU), bank account records, and data obtained from treaty partners, a report by Sunday Times disclosed.

The IRD’s initiative includes ongoing monitoring and review, with additional individuals slated to be added to the scrutiny list as the programme progresses.

Commissioner General of the IRD, W.A. Sepalika Chandrasekara, emphasised that this measure is part of a broader effort to enhance fairness and instill confidence in the nation’s tax administration.

To facilitate this endeavour, the IRD has established a dedicated unit known as the High Wealth Individuals Unit (HWIU), comprising ten members located at the Large Taxpayer Office of the department.

This unit is tasked with engaging select high-net-worth individuals and their advisors to ensure compliance with tax filing obligations.

Furthermore, the HWIU will conduct additional risk assessments and profiling of affluent taxpayers, with a focus on auditing cases deemed to pose the highest risks.

In pursuit of comprehensive information, the IRD will collaborate with both domestic and international entities to access relevant data that can aid the HWIU in identifying potential instances of tax non-compliance.