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.
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.
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.
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.
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.
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.
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.
March 26, Colombo (LNW): The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has announced a reduction in the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 50 basis points (bps) each, to 8.50 per cent and 9.50 per cent, respectively.
This decision, made during its meeting on March 25, 2024, follows a comprehensive assessment of both domestic and international economic conditions.
The primary objective is to maintain inflation at the targeted level of 5 per cent over the medium term while fostering economic growth.
In its deliberations, the Board considered several factors, including subdued aggregate demand, the limited impact of recent tax changes on inflation, favourable near-term inflation dynamics due to adjustments in electricity tariffs, stable inflation expectations, and manageable external sector pressures.
The Board also noted the importance of continuing the downward trend in market interest rates.
While acknowledging potential near-term inflation risks, the Board believes that these would not significantly alter the medium-term inflation outlook, given the anticipated prolonged period of below-par economic activity.
Furthermore, the Board emphasised the imperative of ensuring the effective transmission of monetary easing measures to market interest rates, particularly lending rates, by financial institutions.
It urged swift action to reduce lending rates, thereby facilitating the normalisation of market interest rates in the foreseeable future.
Additionally, the Board highlighted improvements in domestic money market activity and liquidity conditions.
Consequently, it has decided to lift the remaining restrictions on the usage of the Central Bank’s Standing Deposit Facility (SDF) starting April 1, 2024.
This move aims to enhance the market-based transmission of monetary policy adjustments.
In conclusion, the Monetary Policy Board urged all financial institutions to promptly implement measures to lower market lending interest rates.
This concerted effort is crucial to ensure that the benefits of the monetary policy easing measures are effectively passed on to businesses and households, thus supporting economic recovery and growth.
March 26, Colombo (LNW): Several spells of showers will occur in Eastern and Uva provinces and in Polonnaruwa district, with showers or thundershowers being expected at several places in Western, Sabaragamuwa, Southern and Central provinces during the afternoon or night.
Heavy showers above100 mm are likely at some places in Southern province and in Ampara and Monaragala districts.
Misty conditions can be expected at some places in Central, Sabaragamuwa and Uva provinces and in Kalutara, Galle and Matara districts during the morning.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at times in the sea areas off the coast extending from Trincomalee to Galle via Batticaloa and Hambantota. Showers or thundershowers may occur at a few places in the sea areas off the coast extending from Colombo to Galle during the afternoon or night.
Winds:
Winds will be north-easterly and wind speed will be (20-30)kmph. Wind speed may increase up to 40 kmph at times in the sea areas off the coasts extending from Puttalam to Kankasanthurai via Mannar.
State of Sea:
The sea areas off the coasts extending from Puttalam to Kankasanthurai via Mannar can be moderate. Other sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
March 25, Colombo (LNW): The Government is widening the tax net via mandating sharing of information quarterly and monthly by multiple institutions and individuals with the Commissioner General of Inland Revenue (CGIR) from next month.
The Gazette bearing the number 2376/25 and dated 21 March was issued by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister to enhance tax compliance and administration in the country.
Effective 1 April 2024, several institutions and select public sector personnel must provide specified information outlined in Schedule I of the notice to the CGIR.
The information will be incorporated into the Revenue Administration Management Information System (RAMIS) of the Inland Revenue Department to manage tax risks effectively.
Accordingly, financial institutions including banks and non-banking financial institutions regulated by the Central Bank of Sri Lanka and Colombo Stock Exchange are required to submit information quarterly, no later than the 20th day of the month following the end of each quarter. If any information is not currently maintained by individuals or institutions, they must commence record-keeping by 1 July 2024 and comply with the notification accordingly.
Banks and leasing companies are mandated to supply Current Account holders’ balances, loans and advances, leasing contracts and all information shared with Credit Information Bureau (CRIB).
The CSE is required to submit information of investors’ shareholding and value among other details.
The Registrar General’s Department is to supply information on land and property deals. The Registrar General of Companies and Department of Motor Traffic are also among mandated institutions.
Public sector personnel in charge of granting contracts for supply of goods, work or consulting are required to furnish monthly information.
The CGIR will notify individuals and Government institutions of the commencement date for furnishing information under Schedule I through written or public notices.
Meanwhile the government will enact new tax administration act in addition to existing statutes clearing complications in some sections of these acts in the recovery of tax dues and imposing penalties,.
The new act has been devised in accordance with the International Monetary Fund’s governance assessment. Directives.
The existing Inland Revenue Department (IRD) Act and the Default Taxes Special Provisions Act have stipulated conditions under which company officers, including directors, CEOs, and CFOs, can be personally held liable for the company’s tax defaults.
However the new tax administration act that applies to all taxes containing provisions that effectively deter corruption by imposing stricter penalties (including criminal charges) on habitual tax dodgers as well as on tax officials for taking bribes or aiding tax avoidance.
