July 01, Colombo (LNW): President Ranil Wickremesinghe has emphasised the importance of unity and prioritising the nation’s interests over individual or party concerns in order to progress collectively.
Speaking at the inaugural rally of the “Victory through Unity” series, organised by Minister of Power and Energy Kanchana Wijesekara at Matara Fort Ground today (30th), the President highlighted the significant efforts made by his administration over the past two years.
He underscored the necessity for a united commitment to safeguard and advance the country’s political journey for the benefit of all citizens.
In his address, President Wickremesinghe declared that today marks the beginning of a new political journey.
He stressed the unity of a coalition dedicated to the nation’s interests, regardless of political affiliations, and the importance of maintaining and advancing this collective effort for the country’s success.
The President also invited the opposition to prioritise national interests over partisan politics and join this initiative.
He promised an opportunity to learn how to unite and build the country for everyone’s benefit.
July 01, Colombo (LNW): Former leader of the Tamil National Alliance (TNA) and ex-Opposition Leader, R. Sampanthan, has died at the age of 91.
Reports indicate that Sampanthan passed away while receiving medical care at a private hospital in Colombo.
A prominent Tamil politician and significant member of Ilankai Tamil Arasu Kadchi (ITAK), Sampanthan’s political journey spanned six decades, with his initial entry into the Sri Lankan parliament dating back to 1977.
Sampanthan was the serving MP for Trincomalee District and had been a member of five different parliaments since 1977.
A lawyer by profession, he led the Tamil National Alliance from 2001 onwards. He was continuously an MP from 2001 until his passing in 2024, having previously served from 1977 to 1983 and from 1997 to 2000.
He held the position of Leader of the Opposition from September 2015 to December 2018.
Earlier this year in April, Parliament granted the former TNA leader and Trincomalee District MP a three-month leave from sessions due to his medical treatment.
Former President Mahinda Rajapaksa, MP Field Marshal Sarath Fonseka, and TNA MP M.A. Sumanthiran expressed their condolences on ‘X’ (formerly known as Twitter) upon learning of his death.
“We announce with deep regret the passing of Hon. R Sampanthan, Leader of the TNA and MP for Trincomalee. Funeral arrangements will be notified later,” stated Sumanthiran via the TNA media unit.
“My deepest condolences on the passing of TNA Leader R. Sampanthan. He was an old friend and colleague, and we shared many days discussing various issues. His demise is a loss to Sri Lanka’s political fraternity, and may his family and friends overcome this sad loss,” posted the SLPP leader on ‘X’.
In addition, former army chief Fonseka said: “I express my deepest condolences. Hon. R. Sampanthan was a very senior politician. His loss will be greatly felt.”
July 01, Colombo (LNW): The Ceylon Petroleum Corporation (CEYPETCO) has revealed new fuel prices that will be effective from midnight yesterday (30).
The cost of Petrol 92 Octane has been lowered by Rs. 11, bringing the price down to Rs. 344 per litre. Petrol 95 Octane sees a significant reduction of Rs. 41, now priced at Rs. 379 per litre.
Super Diesel has also seen a decrease, with a reduction of Rs. 22, setting the new price at Rs. 355 per litre.
Meanwhile, the prices for Auto Diesel and Kerosene will remain unchanged, according to the CPC.
June 30, Colombo (LNW): The Sri Lanka Bank’s Association (SLBA) has strongly rebutted recent criticisms leveled against banks by two senior lawmakers, describing their remarks as misguided and detrimental.
The SLBA’s response follows statements by Ministers Ramesh Pathirana and Wijeyadasa Rajapakshe at an MSME awareness conference, alleging banks misuse lending based on personal and political ties, abuse parate laws, and exploit customers.
The SLBA asserts these claims are unfounded, stressing that loans are rigorously managed and debts recovered responsibly.
Citing the Finance Ministry’s Annual Report, which highlights substantial lending to SMEs in 2023 amounting to Rs. 704 billion, the SLBA assures depositors that loan recovery safeguards their funds.
They argue that while some borrowers struggle with unproductive ventures, banks work to resolve these issues through cooperative reviews, not lobbying. They emphasize their commitment to repay depositors as promised and support viable businesses, especially amid external crises like COVID-19 and economic downturns.
The SLBA acknowledges a small but vocal minority of borrowers resisting necessary business reviews, potentially risking depositors’ security.
They emphasize that banking practices adhere to strict regulatory standards, crucial for economic stability and growth. The association underscores banks’ pivotal role in national economic support, including investment in government securities and facilitating essential imports.
The Association pointed out that banks have helped and continue to help borrowers including MSMEs that got into difficulty due to their exposure to external risks such as the COVID-19 pandemic, the Easter Sunday attacks of 2019, and the economic crisis, and that many of these borrowers have overcome those difficulties.
“The banking sector though much maligned, also supported the Government as well as the country’s economy with US Dollar and Rupee investments in Government securities, and providing foreign currency when there was need to fund essential imports,” the Association said.
“The reality however, is that some businesses have gone beyond the resolution stage and need to be exited by the owners. Such businesses must understand that depositors’ funds cannot be misused to support a desire to continue failed businesses with the backing of non-banking sector lobbyists. This is dangerously misleading,” the SLBA said.
“We wish to emphasise,” the SLBA concluded, “that banking is a regulated industry with the highest standards of compliance, and a stable and progressive banking system is the bedrock of future economic growth. Making sweeping generalisations and unfounded accusations about banking practices is therefore extremely ill-advised.
In conclusion, the SLBA urges against sweeping criticisms of banking practices, asserting the industry’s adherence to high compliance standards and its indispensable role in fostering economic resilience. They caution that unsubstantiated allegations undermine public trust and the stability of the banking sector, advocating for informed dialogue over sensational claims.
June 30, Colombo (LNW): The Sri Lankan government has reported that during a ban on vehicle imports, 44,430 vehicles entered the market, resulting in potential tax losses amounting to Rs. 100 billion.
This revelation came after discussions with local vehicle assembly companies. Of these vehicles, 38,144 were motorcycles and 6,286 were motorcars.
Vehicle assembly in Sri Lanka dates back to the 1980s with the establishment of the Upali Fiat car assembly, pioneered by Upali Wijewardene.
A formal vehicle assembly factory was set up in 2002. Despite restrictions on importing used vehicles older than three years, imports continued by dismantling vehicles before shipping. These vehicles were often older, having been used for 5-6 years.
Since 2004, Sri Lanka has had a local vehicle manufacturing facility producing vans and cars, assigning vehicle identification numbers according to local standards. The first locally assembled vehicle was launched around 2006.
Taxes on vehicle production are governed by the Excise (Special Provisions) Act No. 13 of 1989, allowing for exemptions and levies as amended through gazette notifications, the latest being gazette No. 2364/36-2023 issued on December 31, 2023.
The Act outlines five methods for tax deductions, including provisions for foreign ambassadors, presidential concessions, duty-free shop purchases, and ministerial gazette notices aimed at economic conditions.
This situation underscores ongoing issues in tax compliance and regulation within Sri Lanka’s vehicle industry amidst efforts to balance economic development and revenue collection.
Around 2006, Sri Lanka’s first locally assembled vehicle was released to the market. Taxes were also levied on the production of these vehicles under the Excise (Special Provisions) Act No. 13 of 1989. According to this act, taxes were both imposed and exempted.
The act clearly outlines the procedures for collecting such charges and granting exemptions. Specifically, Section 3(i) of the Part 2 of the act explains the manner of taxation and tax concessions.
The minister has the authority to levy and set taxes, and a gazette is issued for this purpose. This gazette has been amended from time to time, with the latest amendment being gazette No. 2364/36-2023, issued on December 31, 2023.
According to the Excise Act, five methods of deducting tax on vehicles or any other products have been discussed. One method is for foreign ambassadors and those at the United Nations, and the criteria which can be used to exempt their taxes is clearly stated in the act. The second method allows the President of the country to grant tax concessions on imported goods. The third method of tax exemption permits tax relief for items purchased from a customs duty-free shop. The fourth method allows the minister to grant tax concessions through a gazette notice, considering the state of the country’s economy.
June 30, Colombo (LNW): Sri Lanka experienced a significant boost in foreign exchange revenue from remittances and gross services totalled 2,016 million dollars, according to the central bank.
This surge in revenue accompanied a substantial rise in tourist arrivals, has also had a positive impact on the country’s imports and merchandise trade deficit, gradually mitigating it as tourism earnings increased and individuals within the sector spent their wages and other earnings.
Sri Lanka’s current foreign exchange earnings from exports, remittances and gross services totalled 2,016 million dollars, exceeding imports of 1,404 million dollars by 611 million US dollars in May 2024, official data showed.
Sri Lanka’s exports were 1,011 million dollars in May, remittances were 460.1 million dollars and gross services inflows including from tourism was 460.1 million dollars.
The net services account surplus, after deducting outward like tourism, sea and air transport of 229.8 million US dollars was 230.3 million dollars.
Total inflows from exports, remittances and net services were 1,786 million dollars, which exceeded merchandise imports by 318.4 million US dollars.
When people get money from tourism or remittances, they will use them for food, fuel or for other imports driving imports and triggering a trade deficit.
Private credit will also drive imports as savings of the people are turned into investments in buildings, vehicles or machinery.
There is no pressure on the currency as the balance of payments is not in deficit.Sri Lanka has posted a balance of payments surplus of 1,364 million dollars up to May 2024, slightly lower than 1,597 million dollars in 2023.
Pressure on the currency is triggered only when money is printed under flexible inflation targeting, (a type of real interest rate doctrine based on historical 12-month inflation) or inflationary policy is deployed to target potential output (overt macro-economic policy).
The resulting monetary instability is then based on artfully blamed on ‘deficits’ or imports by inflationists and other Mercantilists though a banking system is not a sentient being to distinguish between private and official credit, analysts say.
When reserve collecting central banks without a clean float engages in such activity, currencies collapse, governments get ousted amid social unrest and countries eventually default.
Sri Lanka is currently running deflationary policy but the rupee is under some pressure due to earlier excess liquidity from dollar purchases (strong side pegging) which boomerang on the exchange rate, when left unsterilized or weak side pegging is not deployed.
June 30, Colombo (LNW): Another controversy has arisen regarding the selection of a Contractor for the construction of the New Terminal Building at the Bandaranaike International Airport, coming under the purview of Minister Nimal Siripala De Silva’s Ministry, namely the Ministry of Ports, Shipping and Aviation
The tender for constructing a new terminal at Bandaranaike International Airport (BIA) is poised to be awarded to the Sri Lanka-China Joint Venture (JV) Company, a decision upheld by the Procurement Appeal Board (PAB).
This joint venture consists of Consulting Engineers and Contractors Ltd. (CEC) from Sri Lanka and the China National Aero-technology International Engineering Corporation (CAIEC). However, final approval hinges on the Cabinet’s decision and potentially the Court of Appeal’s ruling.
The call for bids, managed under the International Competitive Bidding category by the Standing Cabinet-Appointed Procurement Committee (SCAPC), was issued around 4 December 2023.
The project, initiated in December 2020 by Airport and Aviation Services (Sri Lanka) Ltd. (AASL) with funding from the Japan International Cooperation Agency (JICA), faced delays due to the economic crisis, pushing its expected completion date from 2023 to an unspecified future date.
The new terminal aims to enhance accessibility and incorporate environmentally friendly features. It includes a remote apron with 23 aircraft parking stands, Ground Support Equipment (GSE) roads, and three stub taxiways.
The terminal will feature 96 additional check-in counters, eight baggage claim belts, seven baggage make-up carousels, 16 contact boarding gates with 28 Passenger Boarding Bridges (PBBs), and six bus gates.
Initially, the Technical Evaluation Committee (TEC) recommended awarding the contract to Sanken Construction Ltd., a local engineering firm, a recommendation accepted by the SCAPC.
Despite this, unsuccessful bidders appealed to the PAB, which subsequently recommended the CEC and CAIEC JV. Secretary K.D.S. Ruwanchandra of the Ministry of Ports, Shipping, and Aviation confirmed this, stating the decision has been submitted to the Cabinet and awaits their response. He noted the pending court case could alter the outcome.
Sanken Construction Ltd. has contested the PAB’s decision through a Writ Application (No.343/2024) in the Court of Appeal.
They allege the PAB made its recommendation without granting them a hearing and despite the JV’s non-responsiveness to technical specifications, as detailed in the TEC report dated 15 March.
Civil Aviation Authority (CAA) Chairman G.S. Withanage, also Chairman of the PAB, emphasized the independence and transparency of the process but refrained from commenting further due to the ongoing court case.
June 30, Colombo (LNW): Senior Additional Solicitor General Parinda Ranasinghe is set to be sworn in as Acting Attorney General of Sri Lanka tomorrow before the Chief Justice.
This follows the Constitutional Council’s rejection last week of President Ranil Wickremesinghe’s proposal to extend incumbent Attorney General Sanjay Rajaratnam’s term by six months, with five members voting against and three in favour. Rajaratnam’s term concludes at the end of this month.
June 30, Colombo (LNW): Following the tragic incident where Sri Lankan fishermen consumed an ‘unknown substance’ from a floating bottle, believing it to be alcohol, the Director General of the Department of Fisheries & Aquatic Resources, Susantha Kahawatta, confirmed another death.
One of the two critically ill fishermen taken aboard a Singaporean merchant vessel has passed away, bringing the total deaths to five among the six-member crew.
Initially reported this morning, the crew of fishing vessel “Devon 5,” originating from Tangalle, encountered multiple floating bottles at sea.
Medical guidance was provided remotely due to the vessel’s deep-sea location, with efforts ongoing to retrieve the remaining survivor and inform nearby boats.
The incident occurred approximately 320 nautical miles off Sri Lanka’s coast, with assistance from the Sri Lanka Navy in towing the vessel back to shore with external aid.
President’s Secretary E.M.S.B. Ekanayake issues an extraordinary gazette, classifying public transport services as essential: As a result, all passenger and goods transport services, along with the maintenance and provision of facilities for road and rail transport, including roads, bridges, culverts, and railway lines, are now deemed essential services.
The Election Commission directs key institutions like the Government Printing Department, Police Inspector General, and utility boards to prepare for the upcoming Presidential election: Government Printer Gangani Kalpana Liyanage affirms readiness, pending the Election Commission’s official date announcement: Chairman R.M.A.L. Ratnayake aims for a smooth electoral process, following the Commission’s schedule from 14 September to 16 October for the Presidential election.
The Judicial Service Association of Sri Lanka (JSASL) convenes a Special General Meeting in Colombo today to address criticism against the judiciary: District Court Judges and Magistrates gather to discuss the impact of recent remarks on judicial independence, following speeches by the Justice Minister and MPs on 19 June 2024: The Bar Association of Sri Lanka and Lawyers’ Collective advocate for formal complaints, not parliamentary statements, on judiciary matters.
Sri Lanka pledges police gendarmerie and criminal justice experts to the United Nations to combat global security challenges: At UNCOPS 2024, Public Security Minister Tiran Alles affirms Sri Lanka’s readiness, highlighting rising threats like organised crime and gang violence: urges UN deployment of specialised police teams and emphasises Sri Lanka’s commitment to share expertise worldwide, underscoring the nation’s capability at Readiness Level 3.
The Immigration and Emigration Department will extend passports expiring after June 30 by one year, free of charge, ahead of the launch of e-passports in January: The new passports will feature embedded electronic chips: A company has been selected to produce them, aiming to issue around 700,000 annually once operational: Citizens are encouraged to upgrade to the new e-passport format.
The Central Bank reports in June 2024, y-o-y headline inflation in Sri Lanka, as per the CCPI, increased to 1.7% from May’s 0.9%: Food inflation rose to 1.4% from May’s 0.0%, and non-food inflation increased to 1.8% from 1.3%: Month-on-month inflation saw a slight uptick of 0.77% after three consecutive months of decline. Core inflation rose to 4.4% in June from 3.5% in May: Despite these increases, inflation remains comfortably below the 5% target, with CB expecting it to remain so in the near term, aligning with targets over the medium term with appropriate policy measures.
Sri Lanka celebrates welcoming its one millionth tourist of the year, Mr. Paul Roy from Ireland, at Bandaranaike International Airport: Organised by Tourism Sri Lanka and Airport & Aviation Services Sri Lanka Pvt Ltd., the event highlighted the country’s tourism recovery: Tourism Minister Harin Fernando praises the milestone, aiming for 2 million tourists in 2024, noting a 106% increase in 2023 arrivals: Cultural performances showcased Sri Lanka’s rich heritage and hospitality.
Kollupitiya Police imposes a travel ban on Sena Yaddehige, Chairman of Richard Pieris Group, amid allegations of sexual misconduct by a female business analyst: The 39-year-old victim accuses him of abuse at a luxury Kollupitiya hotel on May 07: reports working remotely while he was overseas, and being summoned upon his return: The incident was promptly reported to authorities, with the Chairman reportedly fleeing the country afterward.
Four fishermen from Tangalle die after consuming an ‘unknown substance’ found floating at sea, with two others critically ill and receiving treatment on a Singaporean merchant vessel: The Sri Lanka Navy is investigating the incident, which occurred 320 nautical miles (592.64 km) off the coast: Authorities urge fishermen to exercise caution and avoid consuming unidentified substances.
West Indies women clinch the T20 series 2-1 against Sri Lanka with a thrilling last-over win, chasing down 142 to victory: Hayley Matthews (49) and Stafanie Taylor (33) set the foundation, while Shemaine Campbell’s unbeaten 41 sealed the win: Chamari Athapaththu’s 38 led Sri Lanka to 141/7 earlier, with Matthews named Player of the Series.
