July 04, Colombo (LNW): The ongoing ‘Yukthiya’ nationwide operation to eradicate illegal activities will be reinvigorated from today (07), according to the Sri Lanka Police.

Police spokesman Deputy Inspector General (DIG) Nihal Thalduwa announced that the operation will also enlist the support of the Sri Lanka Army.

DIG Thalduwa further indicated that the operation, already active in several regions around Colombo, will soon be extended to cover the entire island.

July 04, Colombo (LNW): Showers will occur at times in Western and Sabaragamuwa provinces and in Galle and Matara districts, with several spells of showers being expected to occur in North-western province and in Kandy, Nuwara-Eliya districts, the Department of Meteorology said in its daily weather forecast today (04).

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 over the Western slopes of the central hills, Northern, North-central and North-western provinces and in Trincomalee, Hambantota and Monaragala districts.

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

Marine Weather:

Sri Lanka’s outstanding credit card balance slipped in May after rising in April in a sign that people are still reluctant to use credit card debt due to exponentially high rates which are long overdue for correction.

Rate on unpaid card balance still remains around 28, an inexplicable level considering the eased financial conditions

The data for May showed that the outstanding credit card balance has declined by Rs.1,894 million to a total outstanding of Rs.149.7 billion.

In April, this balance rose by a relatively robust Rs.2,891 million as people swiped their cards more often during the month of festivities and extended holidays.

The banks have since ramped up promotional campaigns, offers, discounts and easy payment schemes to persuade their card holders to swipe their cards more often.

Offers on leisure packages, healthcare payments and other big ticket purchases are becoming more ubiquitous by almost all banks and some have even said to cut off their lifetime annual fee to certain groups to lure more customers.

In the first five months, the total outstanding card balance has slipped by Rs.1,687 million.

Although the prime lending rate has come down substantially to around 8 percent levels by the end of last week, the rate on unpaid card balance still remains around 28 percent, an inexplicable level considering the eased financial conditions.

The banks are accused vehemently from all around for cutting the rates only for their big clients but not for the small businesses and others, holding back the potential growth in the economy.

While the consumer demand has certainly picked up from where it was a year ago, it is undermined by still high rates on consumer credit, tight credit conditions and unconscionable levels of taxes.

The business confidence has however risen to over one year levels, reaching 101 index points in June reflecting that the corporates are feeling better on their top and bottom-lines.

However, the lower taxes are required to translate it meaningfully to the consumers who are substantially worse off financially after the hyper-inflationary spiral during 2022 and part of 2023.

Sri Lanka’s State-Owned Enterprises (SOEs) that come under harsh criticism for their financial inefficiencies have reported “robust performance” in the first four months of 2024, according to the Ministry of Finance.

The surge in profitability is attributed to the appreciation of the rupee and comprehensive SOE reforms. 

These reforms include the introduction of cost-reflective electricity tariff adjustments in 2022, the implementation of a fuel price formula, and the restructuring of balance sheets for key SOEs.

Accordingly, the key 52 SOEs recorded a total profit of Rs. 185.9 billion in the first four months of 2024, compared to the total profit of Rs. 144 billion recorded in the same period of 2023, data released in the Mid-Year Fiscal Report 2024 showed.

The collection of levies and dividends from the SOEs increased to Rs. 13.2 billion in the first four months of 2024, compared to Rs. 9.6 billion in the same period of 2023.

The report highlighted that key initiatives for major SOEs paved the way for the improvement in performance.

For State Owned Banks, the entities were pushed to enhance credit quality and improve monitoring and collections. 

While the banks were expected to be updated with the evolving regulatory landscape, implement necessary changes, and maintain transparent reporting practices, they were urged to adopt digital technologies to enhance operational efficiency, and improve customer experience, and expand the reach. 

Developing new products to assist existing customers and attract new customers was an area of focus, however, the entities were also urged to expand financial services to underserved population and promoting financial inclusion. 

One of the key initiatives was to strengthen governance and risk management practices as approved by the Cabinet of Ministers in order to make the State-Owned Banks more competitive in the market.

For the Ceylon Electricity Board (CEB), the Sri Lanka Electricity bill was passed on 6 June, which intends to unbundle the entity. This helps to ensure greater autonomy and transparency between the generation, transmission, and distribution segments of the entity, the Finance Ministry said.

At the Sri Lanka Ports Authority, a Collective Bargaining Agreement with employees for the next 3 years was approved and signed with conditions to achieve Key Performance Indicators (KPIs).

Meanwhile, the Airport and Aviation Services saw the approval of a separate salary structure for other staff excluding Air Traffic Controllers in 2024, to address salary anomalies. Similarly, Essential Carder was approved to improve the efficiency of the airport to cater the expanding demand for tourism.

 Further, to make national carrier SriLankan Airlines attractive, the Cabinet of Ministers approved to transfer US$ 310 worth of loans to the government’s balance sheet. Rs. 5 billion worth of equity was infused into SLA to relieve working capital issues

Supreme Court flags constitutional conflicts in two economic reform bills 

Sri Lanka’s attempt of enduring a legislative transformation by introducing a series of new laws and amending prevailing ones taken embroiled in legal tangle following the Supremecourt determination on two bills related to economic and fiscal reforms  

Speaker Mahinda Yapa Abeywardena yesterday announced the Supreme Court’s determination on the Economic Transformation Bill in Parliament, revealing that the apex court found several clauses in the proposed bill inconsistent with the Constitution.

Under Article 121(1) of the Constitution, the Supreme Court reviewed the Bill and proposed several amendments to align it with constitutional principles.

 Key recommendations include deleting certain clauses, empowering the Economic Commission, clarifying qualifications and procedures, and removing inconsistencies with the Constitution to safeguard its integrity.

Pending these amendments, the Supreme Court believes the Bill can pass with a simple majority while upholding constitutional integrity.

President Ranil Wickremesinghe has declared a pivotal move towards economic stability with the introduction of the Economic Transformation Bill.

 Emphasising the bipartisan nature of this initiative, he underscored the necessity for any future Government to uphold this agreement to effectively rejuvenate the national economy

In the second determination against the government, the Supreme Court yesterday held that Clauses 32(3) and 32(4) of the Public Financial Management Bill are unconstitutional, and must only be passed by a Special Majority of Parliament and be approved by the people at a referendum. 

The proposed Public Financial Management law in Sri Lanka aims to enhance fiscal discipline by setting a 13 percent primary spending limit of GDP and repealing the breached Fiscal Management Responsibility Act. 

This landmark legislation, designed to provide a framework for future fiscal management, includes a 2 percent budget reserve and provisions for exceeding the spending limit under specific circumstances such as national emergencies. 

Transparency International Sri Lanka (TISL) challenged the Bill in the Supreme Court on the basis that Clause 32 seriously weakens the controls on public procurement, thereby increasing corruption risk and weakening the level playing field.

The Court held that Clause 32 (3), which allowed the Minister of Finance to exempt State Owned Enterprises (SOEs) from compliance with the procurement guidelines, and Clause 32 (4), which allowed Provincial Councils to adopt their own guidelines, violate Articles 3 and 12(1) of the Constitution. 

The Court proposed that Clause 32(3) to be amended to: “The National Procurement Commission may, if it deems necessary, formulate and publish in the Gazette specific guidelines for State-Owned Enterprises,” in which case the said inconsistency shall cease.

The Court proposed Clause 32(4) to be amended as “The National Procurement Commission may, if it deems necessary, formulate and publish in the Gazette specific guidelines for Provincial Councils.”

July 03, Colombo (LNW): India is to provide an additional grant of Rs.100 million to complete the Low Cost Transit Housing Construction Project at Madhu Shrine, Mannar increasing its total grant to Rs 400 million, Indian High Commission announced today. 

High Commissioner of India Santosh Jha and Secretary, Ministry of Urban Development and Housing MW.S. Sathyananda signed and exchanged diplomatic letters on 02 July 2024 to formalize modalities related to the housing project at Madhu Shrine, Mannar.

 Responding to the challenges that arose in the economic landscape of Sri Lanka, Indian government had decided to infuse additional funds into nine ongoing grant projects in order to expeditiously complete them, while also minimizing the impact of the significant rise in cost of construction materials on the original scope of the projects. 

The Low Cost Transit Housing Construction Project at Madhu Shrine, Mannar, is among the said nine projects.  

 A total of 96 transit houses shall now be constructed with the Indian grant at Madhu Shrine that could be used by pilgrims visiting the shrine. The project is currently underway and the proposed transit houses are at various stages of construction.

 Former Indian High Commissioner Gopal Baglay laid the foundation stone on March 12  2021   for the construction of 144 transit housing units for pilgrims at the Shrine of Our Lady of Madhu in Mannar under an Indian grant assistance of Rs 300 million,

Pilgrims welcomed the project as many visit the Marian shrine two or three times a year. This, they told AsiaNews, is a significant step” and “a help of great value”.

The Indian High Commissioner also announced that more initiatives will be undertaken in the future to strengthen the longstanding friendship and bonds between the two neighbouring nations.

Minister Prasanna Ranatunga added that the Sri Lankan government is preparing to restore direct links between Jaffna and Chennai, suspended due to the coronavirus pandemic.

“India is the largest source market for tourist traffic in Sri Lanka,” he explained. “However, due to the pandemic, tourists from India have stopped coming.”

This has led to the proposal of creating an ‘air travel bubble’ to revive tourism. “We look forward to launching this programme in the near future,” the Tourism Minister added.

Madhu, in the north-western Sri Lanka, was directly impacted by the country’s civil war and was, for a while, under the control of Tamil Tigers.

Since 1990 the Church has helped house thousands of people until the area near the shrine became a virtual refugee camp.

Despite being a non-military zone, the area was bombed in 2008, forcing the Church to close the shrine and move the statue of Our Lady to a safer place.

The latter returned on 15 August 2010, the feast of the Assumption day and of the historic pilgrimage to Madhu, welcomed by thousands of faithful, including non-Christians.

July 03, Colombo (LNW): The Government Medical Officers Association (GMOA) has announced its newly elected office-bearers for the year 2024/2025, committed to making positive interventions to protect the medical profession and health service in Sri Lanka.

In a statement, the GMOA highlighted its ongoing efforts to strengthen the health service and address various issues such as medicine shortages, doctors’ salary concerns, and the issue of doctors leaving the country. The association also pledged to improve the quality of medical degrees offered in Sri Lanka and to ensure the provision of quality education.

Dr. Sajeewa Tennekone has been elected as the President of the GMOA, while Dr. Prabath Sugathadasa has been appointed as the Secretary. The newly elected Executive Committee consists of 16 members, and the Central Working Committee comprises 35 members.

July 03, Colombo (LNW): The All Ceylon Health Trade Union Federation has declared Wednesday (03) as a national protest day. Chairman Samantha Koralearachchi announced that protests will be held at all hospitals nationwide at noon on Wednesday (03).

The protests are centered around six key demands: a five-day workweek for hospital staff, a stringent process for promotions and transfers, and a transport allowance. Koralearachchi stated that repeated requests for a discussion with Minister of Health Dr. Ramesh Pathirana over the past month have gone unanswered.

He urged authorities to address the issues faced by hospital staff, emphasizing the need for immediate attention to their demands.

July 03, Colombo (LNW): Kathiravelu Sanmugam Kuhadasan has been nominated to fill the parliamentary seat left vacant following the passing of former Tamil National Alliance (TNA) leader Rajavarothiam Sampanthan. According to the Election Commission, Kuhadasan will represent the Trincomalee electoral division in the 9th Parliament. The relevant gazette notification has been issued confirming his appointment.

Meanwhile, the remains of the late R. Sampanthan currently lie at a private funeral parlour in Colombo and will remain there until noon today (03). The remains will then be transported to Parliament in the afternoon and placed there from 2:00 p.m. to 4:00 p.m. for public representatives and parliament staff to pay their respects.

Tomorrow (04), the remains will be moved to Trincomalee, where the public can pay their final respects until Sunday. The funeral is scheduled for Sunday.

July 03, Colombo (LNW): Cabinet approval has been granted to sign the proposed agreement on the Global Textiles and Apparel Program between the Sri Lanka Export Development Board (EDB) and the Swiss State Secretariat for Economic Affairs.

The government has proposed entering into a project agreement with the Swiss State Secretariat for Economic Affairs and the EDB for the implementation of the second phase of the Global Textile and Apparel Program. This initiative aims to support the transformation of Sri Lanka’s textile and apparel industry by promoting digitization and moving towards quality green products.

The proposal, presented by the President in his capacity as Minister of Investment Promotion, was approved by the Cabinet, paving the way for Sri Lanka to seek support from the Global Textiles and Apparel Program for industry advancements.