SLPP Leader & Former President Mahinda Rajapaksa says his Party had neither decided on a candidate for the Presidential election nor decided to contest that election.
Senior IMF Mission Chief Peter Breuer says the Property Tax will help SL to take a “quantum leap” to achieve the IMF programme’s goals: also says SL’s economic recovery is still in the infancy level & yet to reach the broader population, ahough Sri Lanka’s macro economy is stabilizing.
Former State Minister and CB Governor Ajith Nivard Cabraal says the Govt hasn”t been able to negotiate a single Dollar “hair-cut” from it’s external debt, although the IMF had indicated that 60% of the loans from External Bi-lateral & Private Creditors could be “cut” by USD 17bn out of USD 28bn: points out that the only the poor EPF Members had suffered a “hair-cut”although the Govt & the CB Governor had assured Local Debt will not be affected by the “Debt Re-structuring”.
Dissident SLPP MP Gevindu Cumaratunga says in 2022, EPF members had been given only 9.0% interest, whereas CB employees received a staggering 29.27%: also points out that in 2020 & 2021, EPF members received 9.0% interest whereas CB employees were paid only 6.37% and 8.24%.
Colombo Stock Market plunges to a 6-month low as investor sentiment remains depressed: so far in Jan’24, ASPI is down by 2.1% to 10,433: average daily turnover for the week dips to a mere Rs.850mn.
SJB Deputy National Organiser S M Marikkar reiterates his Party will re-negotiate the agreement between SL Govt and IMF: assures the Party will “reform” the current tax regime: however, SJB’s Economic Guru Harsha Silva had previously been ardently advocating a tight IMF programme and higher taxes
Narammala Magistrate’s Court remands the Sub Inspector whose firearm reportedly went off accidentally, killing a lorry driver: Acting IGP Deshabandu Tennakoon hands over Rs.1mn to the family of the lorry driver.
Combined Trade Union Alliance of CEB Secretary Ranjan Jayalal says the CEB Unions have convened a meeting of all state & private sector unions to decide on action against the CEB decision to suspend 15 of workers for allegedly “disrupting services” during a protest against the proposed restructuring of the state-owned electricity supplier.
Malwatte Chapter’s Venerable Thibbatuwawe Sumangala Mahanayaka Thera says the nation is at risk of complete deterioration unless it is entrusted to a competent group during this pivotal period.
CB once again stresses the importance of Consolidation in the Banking and Non-bankibg sector for greater scale, efficiency & strength: rolls out a “Consolidation master plan”: the financial sector was being systematically consolidated in 2013/14, but that programme was summarily discontinued in 2015 by the Yahapalanaya Govt.
January 20, Colombo (LNW): The United Nations Human Rights Office has voiced serious concerns regarding the revised Anti-Terrorism Bill currently under consideration by the Sri Lankan parliament. The proposed legislation, intended to replace the draconian Prevention of Terrorism Act (PTA), has been criticized for perpetuating past human rights violations and failing to adhere to international standards.
Ravina Shamdasani, spokesperson for the UN High Commissioner for Human Rights, emphasized that the repeal of the PTA should mark a turning point for meaningful reform in Sri Lanka’s internal security approach. However, the current proposed law raises alarms as it risks perpetuating historical patterns of rights violations.
According to the United Nations Human Rights Office, the bill defines acts of “terrorism” too broadly, restricts judicial guarantees, especially in challenging the lawfulness of detention orders, and limits the Human Rights Commission’s ability to visit places of detention, among other problematic provisions.
The statement issued by the UN office warned that if passed in its current form, the Bill would grant excessive powers to the executive, lacking adequate safeguards against potential abuse of these powers.
The United Nations Human Rights Office urged Sri Lankan authorities to revise the Bill and align it fully with the country’s international human rights obligations.
January 20, Colombo (LNW): Sri Lanka’s future shines with digital possibilities, as outlined by Technology Minister Kanaka Herath at a recent conference.
The Minister emphasized the need to move beyond simply digitizing processes to a complete organizational overhaul driven by technology. This “digital transformation” aims to propel Sri Lanka onto the global stage.
Leveraging its strategic location and thriving service sector, Sri Lanka plans to expand beyond established areas like BPO, ICT, and tourism.
Education, health tourism, and agri-tourism are identified as promising avenues for growth. The manufacturing sector will also target niche markets through exports of value-added products.
DIGIECON 2030 is Sri Lanka’s ambitious roadmap for digital transformation, aiming for a $15 billion digital economy by 2030, a significant jump from $4.3 billion in 2023. This roadmap focuses on six key areas:
Nationwide Broadband Access: Connecting even the remotest corners by 2025 through the “Gamata Sanniwedanaya” project.
Building a Skilled Workforce: Equipping Sri Lanka with the digital talent needed through training programs.
Transforming Government Services: Boosting efficiency and transparency with a Unique Digital Identity and online payment platforms.
Cybersecurity and Data Protection: Safeguarding citizen data through a draft cyber security act and the Data Protection Authority.
Empowering SMEs and Digital Payments: Supporting small businesses with DIGIGO and promoting cashless transactions through Lanka QR.
Data-driven Agriculture and Agri-tourism: Optimizing agricultural yields with the IDAT project and attracting visitors through agri-tourism.
Sri Lankan marketers are urged to adapt to the digital wave, as global advertising spend shifts towards digital channels. Sri Lanka currently lags behind, with only 21% of its marketing budget allocated to digital. Collaboration between marketing and ICT industries is crucial to equip marketers with the necessary skills for the digital future.
Sri Lanka’s digital transformation journey presents immense opportunities, but also challenges. By embracing technology, investing in its people, and fostering collaboration.
Sri Lanka can unlock a future of efficiency, prosperity, and global reach. The path forward is clear, and the island nation is determined to seize the digital future.
January 20, Colombo (LNW): President Ranil Wickremesinghe on Friday (Jan.18) highlighted how digital divide and Weapons of Mass Destruction have deepened inequalities between NAM (Non-Aligned Movement) developing states and the developed world.
Addressing the 19th Non-Aligned Movement Summit in Kampala, Uganda, Wickremesinghe also emphasized the need for a strong, united NAM, the President’s Media Division (PMD) said.
Furthermore, the Sri Lankan Head of the State urged the reinvention of NAM to contribute to a better world, according to the PMD.
He emphasized the critical need to bridge digital divides and tackle the looming threat of Weapons of Mass Destruction.
Under the theme “Deepening Cooperation for Shared Global Affluence,” the President highlighted how these issues have further widened the gap between NAM developing states and the developed world, deepening global inequalities
IMF says Swift completion of final agreements with official creditors critical for Sri Lanka.
The International Monetary Fund (IMF) says it is critical for Sri Lanka to swiftly complete the final agreements with the official creditors and reach a resolution with the external private creditors.
IMF mission team, led by Senior Mission Chief Peter Breuer, was in Sri Lanka from January 11-19 to discuss recent macroeconomic developments and progress in implementing economic and financial policies under the EFF arrangement.
The delegation says the economic reform program implemented by the Sri Lankan authorities is now yielding the first signs of recovery with positive real GDP growth in the third quarter of 2023, low inflation, increased revenue collection, and a build-up of external reserves.
Commending the commendable progress made by putting debt on a path towards sustainability, the IMF mission team highlighted that execution of the domestic debt restructuring was an important milestone.
However, swift completion of final agreements with official creditors and reaching a resolution with external private creditors remain critical, the statement underscored.
January 20, Colombo (LNW): Dr. Bandula Gunawardena, the Minister of Transport, Highways, and Mass Media, announced that development projects are scheduled to commence in February after the finalization of agreements related to debt restructuring and ongoing discussions with foreign creditors in Sri Lanka. During a media briefing at the Presidential Media Centre, Minister Gunawardena highlighted that Rs. 150 million has been allocated to the District Development Committees for road development, and an additional Rs. 50 million through the Ministry of Rural Affairs for the development of small roads.
The minister underscored the importance of careful consideration of income and expenditure in the challenging year ahead. In 2022, the government’s total tax revenue amounted to Rs. 1,751 billion, with significant allocations to government employee salaries, pensions, and support for the less privileged. Minister Gunawardena acknowledged the challenge of balancing expenses, including interest payments on loans and capital expenditure.
He reported earnings from various government departments and outlined the financial landscape for 2023, where expenses outpaced revenue, resulting in a deficit. Looking ahead to 2024, Minister Gunawardena revealed that development schemes are slated to begin in February after the restructuring of debt and finalizing agreements with creditors. Notably, a USD 60 million loan from the World Bank and financial assistance from the Samurdi Fund will be utilized for road repairs.
Despite financial challenges, significant allocations have been made for District Development Committees, with Rs. 150 million for road development and an additional Rs. 50 million for small road development. The restructuring of foreign debt has reached its final stages, paving the way for the resumption of paused development projects in Sri Lanka.
January 20, Colombo (LNW): Agriculture and Plantation Industries Minister Mahinda Amaraweera has reported extensive damage to nearly 61,000 acres of paddy fields due to heavy rains and floods in the past four months across the country. In response, the Minister has directed the Agriculture and Agrarian Insurance Board to promptly initiate the assessment of the damages incurred in the affected paddy fields.
Utilizing modern technology, the Agriculture and Agrarian Insurance Board plans to employ drone technology for a comprehensive evaluation of the flood-induced damage, a method previously employed for assessing crop damage caused by drought in the last season.
In addition to addressing the immediate aftermath, Minister Amaraweera anticipates a potential vegetable shortage by June, emphasizing the risk of drought this year. Consequently, he has instructed the Agriculture Department to promptly implement a suitable program to counteract the anticipated shortage and ensure sustainable agricultural practices.
January 20, Colombo (LNW):Showers will occur at times in Eastern and Uva provinces and in Polonnaruwa and Matale districts.
Several spells of showers may occur in Northern province and in Anuradhapura district.Showers or thundershowers may occur at several places in the Western, Sabaragamuwa, Central and North-western provinces and in Galle and Matara districts after 2.00 p.m.
Fairly heavy showers about 75 mm are likely at some places in Western and Sabaragamuwa provinces.Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces and in Galle and Matara districts during the morning.
The public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
January 19, Colombo (LNW): Japan International Cooperation Agency (JICA) and the Sri Lanka Export Development Board (SLEDB) have jointly initiated and implemented efforts to introduce Sri Lankan ICT companies to the Japanese market
As part of its dynamic approach to fostering global trade, EDB is actively engaged in identifying and cultivating potential markets for exporters worldwide.
Furthermore, the EDB is actively exploring opportunities for technical assistance from its international collaborators.
This includes harnessing cutting-edge technologies, adopting innovative business practices, and enhancing the overall competitiveness of the export sector.
EDB has solidified its commitment to advancing the ICT BPM sector by establishing a strategic partnership with the Japan International Cooperation Agency (JICA).
This collaboration is set to play a pivotal role in expanding and cultivating the Japanese market for Sri Lanka’s burgeoning ICT BPM industry aiming to create a network that goes beyond immediate economic benefits, promoting a culture of collaboration and knowledge exchange that transcends borders.
In 2020, EDB initiated a significant initiative in collaboration with JICA to enhance technological collaborations. After a comprehensive survey on Sri Lankan tech industry, a compelling proposal was submitted in 2022.
Marking a remarkable journey between two tech industries in both countries, the approval was received from JICA, with the agreement to extend the Japanese technical assistance for Sri Lankan tech companies by introducing Sri Lankan ICT/BPM companies to the Japanese market.
The project aims to assist approximately 30 SME ICT/BPM companies and tech startups in two cohorts over a two-year period starting in 2024 by providing market intelligence, business coaching and matchmaking support.
To provide technical consultancy, JICA assigned Mr. Yoichi KOGURE, Senior Consultant in the Consulting Division at Japan Development Service Co., Ltd. (JDS), and Mr. Malith Gunasekara, Technology Advisor specializing in Digital Financial Services, FinTech, and e-Health, to the project.
The technical consultancy will be multifaceted, by close collaboration with Sri Lankan tech companies to understand their unique capabilities, challenges and aspirations. At the same time the consultancy team will identify the potential areas of synergy and establish connections between two tech ecosystems.
Sri Lanka’s Export Development Board has worked tirelessly to establish the country’s IT BPM sector in the competitive Japanese market.. Through key events and meetings with influential Japanese institutions, Sri Lanka gained media exposure and recognition, leading to collaborations in software development ventures.
Recognizing the growing demand, EDB expanded its efforts to Central and Western Japan in 2023 with Osaka IT Week, resulting in successful business leads. The collaboration between Sri Lanka and Japan has become a success story, serving as inspiration for other nations.
January 19, Colombo (LNW): The Committee on Public Finance (COPF) has expressed its deep dissatisfaction with the Finance Ministry and the Inland Revenue Department (IRD) over the failure to collect foregone taxes from major corporations implicated in the Sugar scam, as outlined in the forensic report compiled by the Auditor General.
A meeting of COPF was convened under the chairmanship of Dr. Harsha de Silva, during which the committee members underscored its disappointment with the lack of action taken by the authorities despite a 99.5% reduction in the Special Commodity Levy on sugar imports, as stipulated on Extraordinary Gazette dated October 13, 2020.
The COPF emphasized that no accountability measures have been taken , allowing certain large corporations to unfairly benefit from the reduced tax rate at the expense of consumers.
Specifically, the COPF inquired about the extent of tax collection from the implicated companies and directed the Inland Revenue Department to submit a comprehensive report within one week. The COPF members said they aim to gain clarity on the current status of tax collection related to the Sugar scam.
Further addressing the issue, the committee highlighted its concerns over the proposed reversal of the tax policy, which aims to increase the Special Commodity Levy on sugar from Rs. 0.25/ per kilogram back to Rs. 50 per kilogram.
The Finance Ministry’s intention to collect Rs. 30 billion from the average Sri Lankan while allowing implicated corporations to evade responsibility was strongly criticized. The committee emphasized the need to hold wrongdoers accountable before imposing additional financial burdens on the general public.
Additionally, the committee engaged with officials from the Consumer Affairs Authority (CAA) to address concerns about the maximum retail price (MRP) not being adhered to by distributors.
The CAA officials revealed that despite conducting 342 raids and imposing fines on micro, small, and medium businesses exceeding the MRP, challenges persist in penalizing wholesale distributors due to the absence of a maximum wholesale price in the gazette.
The committee directed the CAA to conduct a comprehensive study on the imposition of MRP, considering factors such as the Special Commodity Levy and importer prices.
Furthermore, the COPF requested the CAA to propose a mechanism to address the ongoing issue of wholesale distributors selling above the MRP and engaging in fraudulent activities.
Additionally, the Committee delved into the implications of the Order under Section 22 of the Foreign Exchange Act No. 12 of 2017.
This order outlines provisions designed to regulate the movement of funds and foreign exchange transactions for individuals and companies in Sri Lanka, with the overarching objective of sustaining economic stability and effectively managing foreign exchange reserves.
The migration allowance, as stipulated in the order, remains at USD 50,000 with a reduced allowance of USD 20,000 for temporary visa holders.
Officials from the Central Bank apprised the Committee of amendments to the previous gazette, including provisions allowing Sri Lankan individuals to purchase share options in their own overseas companies.
January 19, Colombo (LNW): The Attorney General’s Department said it will file objections before the British High Court of Admiralty on the 29th of January against the restrictions imposed on compensation for the damage caused by the fire and sinking of the X-Press Pearl vessel.
The Attorney General’s Department said the court had earlier limited the compensation that could be obtained from the company that owns the vessel to 19.5 million Sterling Pounds.
As a result, there were limitations to recover sufficient compensation for the damage caused by the sinking of the vessel.
A detailed statement is scheduled to be submitted to the Court on the 27th of January in relation to the lawsuit brought before the Singapore International Commercial Court (SICC) to recover compensation from the shipping company.
Even then, the U.K. would also limit compensation to 19.5 million pounds ($24 million). In Sri Lanka, however, there would be no such cap.
Justice Minister Wijedasa Rajapakshe said the government would appoint a British lawyer to negotiate the compensation limitation set in the U.K. for the insurers. He reiterated the position that prospects for a favorable outcome are better in those overseas courts than in Sri Lanka.
The evidence in the case will be heard thereafter. The Attorney General’s Department added that the Harbor Master will be presented as the first witness.
The Singapore court has allowed the case filed by the Sri Lankan government against the company that owns the X-Press Pearl vessel to continue.
Accordingly, the case will be called before the Singapore International Commercial Court on the 29th of January.
The Attorney General’s Department said a detailed complaint should be filed before the court on behalf of the Sri Lankan government, prior to the hearing, and measures are being taken in this regard at present.
The Attorney General’s Department said court granted the relevant permission after the shipping company submitted preliminary objections in the case.
The case was filed to recover compensation for the damage caused to the marine ecosystem of Sri Lanka due to the X-Press Pearl fire and the sinking of the ship.
A 40-member expert committee convened by the Marine Environment Protection Authority (MEPA) to assess the environmental damage issued its second interim report in January this year, in which it put a price on the disaster: $6.4 billion.
Maritime rules require a claim for compensation to be filed within two years of the occurrence of the accident. The Singapore-flagged X-Press Pearl caught fire in Sri Lankan waters on May 20, 2021, and sank several days later.
But the long wait without filing action has caused anxiety among activists, who have criticized the government for not moving fast enough.
