June 30, Colombo (LNW): In anticipation of the forthcoming Presidential election, the Election Commission has instructed several major institutions to gear up for the event.

Those notified include the Government Printing Department, the Inspector General of Police, the Ceylon Electricity Board, the National Water Supply and Drainage Board, and the Sri Lanka Transport Board.

Government Printer Gangani Kalpana Liyanage confirmed that all preparations are in place, awaiting the Election Commission’s declaration of the election date.

Chairman of the Election Commission, R.M.A.L. Ratnayake, stated that these steps are taken to ensure a seamless electoral process.

The Election Commission recently announced that the Presidential election will occur between 14 September and 16 October.

June 29, Colombo (LNW): Sri Lanka’s Micro, Small and Medium Enterprises (MSMEs) hit by the economic downturn will receive a new impetus with the introduction of Rs 20  billion new loan relief package proposed in the budget 2024 , finance ministry sources confirmed.

The micro, small, and medium enterprise (MSME) sector in Sri Lanka accounts for 90 percent of all businesses in the country, provides 45percent of employment, and contributes 52percent to the GDP.

A recent ILO study revealed that 79.8 percent of the one million MSMEs that operated in 2018 were still in operation Among the 20.2 percent businesses either permanently or temporarily closed, 8.3percent of closures were reported to be due to economic crisis while 11.9percent were due to reasons other than economic crisis.

The move aims to provide concessionary credit to eligible MSMEs via selected Participatory Financial Institutions (PFIs), helping these businesses survive, recover and expand, as well as providing seed capital for new ventures.

The package includes a Rs. 15 billion funds for investment category with a 7% lending rate, repayable over 10 years, including a maximum one-year grace period. PFIs can receive up to Rs. 750 million initially, with the possibility of an additional Rs. 500 million after utilising 80% of their allocation. 

Additionally, Rs. 5 billion is allocated to support MSMEs in the Non-Performing Loan (NPL) category, with an 8% interest rate and a 5-year repayment period, including a six-month grace period.

Eligible sectors for this scheme include manufacturing, construction, export-oriented businesses, tourism, apparel, fisheries, animal husbandry, agriculture, and agro-based industries.

 Activities eligible for funding include purchasing assets for business expansion, implementing cost reduction initiatives, upgrading technology, and refurbishing or expanding facilities. Ineligible activities include trading, leasing, renting businesses, and vehicle purchases, unless for land vehicles in the hotel or tourism sectors.

The finance ministry in collaboration with ministry of industries will provide credit facilities of Rs 5 million each to 1000 selected existing MSMEs for further expansion and recovery of their businesses via licensed commercial banks and licensed specialised banks at concessional interest rates.

Another special loan scheme amounting to Rs.3 billion will be implemented with support from the Asian Development Bank (ADB) in addition to the 2024 budgetary support.

The government is also considering the possibility of upgrading the Sri Lanka Savings Bank a subsidiary of the National Savings Bank to a MSME Bank or to set up a special purpose vehicle (SPV) to disburse loans easing the burden on the banking sector.

MSMEs must meet certain criteria to qualify, including a turnover below Rs. 1 billion and fewer than 200 employees. The enterprise must be registered, and each registered entity can obtain only one loan. Additionally, at least 51% of women-led enterprises must be controlled by women.

Participating credit institutions include Bank of Ceylon, People’s Bank, Regional Development Bank, Hatton National Bank, NDB Bank, DFCC Bank, Sampath Bank, Commercial Bank, Seylan Bank, Sanasa Development Bank, Cargill’s Bank PLC, State Mortgage and Investment Bank, Pan Asia Banking Corporation PLC, Union Bank of Colombo, Nations Trust Bank PLC and Housing Development Finance Corporation.

The Government also introduced the SMILE III Revolving Fund Loan Scheme and the E-Friend II Revolving Fund Loan Scheme to further support the MSME sector. 

These schemes offer various financial assistance options with different interest rates, loan amounts, and repayment periods, targeting specific needs such as technical transfers and environmental compliance.

The initiatives aim to promote stable and balanced economic growth, empower MSMEs and strengthen the institutional capabilities of intermediary financial institutions.

June 29, (LNW) Colombo : Yesterday, a complaint was reported to the Sports Ministry’s ombudsman regarding several personalities related to Sri Lanka Rugby. Rizly Illyas, a former president, presented the allegations, highlighting that the rugby account is heavily indebted, and that the rugby administration had made decisions that would result in international fines.
Today, it has been reported that preparations are underway to make several accusations against Dilroy Fernando. It is also reported from those facts that Dilroy and other people will have to appear before legal proceedings even if they are not found guilty due to their involvement in contacting him. Sri Lanka Rugby has been informed twice that he will be unable to take on certain responsibilities as a rugby coach and in rugby administration, despite his ownership of a sporting goods supply company. In some cases, through lawyers, the wrongness of such situations has been pointed out through the Sports Act and the Sri Lanka Rugby Constitution, although attention has been paid to stopping those relationships, but they have not stopped completely. He has also been accused of being involved in the game of Sri Lankan rugby through the roles of a coach and referee and selling goods to Sri Lankan rugby while holding such responsibilities. Under these circumstances, if a sports club or school engages him for rugby training, coaching, counseling, or any other rugby-related responsibility, Dilroy would involved without disclosing to those parties the legal restrictions imposed by the rugby constitution and the country’s sports laws.
Those sources also indicate that if he undertakes responsibilities with any school or sports club in this manner without disclosure, they may also become involved in legal proceedings regarding this misconduct, requiring them to testify before the law. At least some of the existing rugby administrations have been removed from the responsibilities assigned to him after these situations were reported, and in the presence of those facts, some people have called Dilroy again to the rugby responsibilities and have also taken action to do various things by collecting Sri Lanka Rugby with him. It is reported that there are grounds for the accusations. The same sources indicate that the Old Rugby Association of the school he attended has also decided not to involve him in any activities. These facts will also support these accusations as evidence. However, Dilroy Fernando has the opportunity to comment on this news if the information we have is inaccurate. Accordingly, if he does not own a business entity related to rugby sports goods, and while being associated with rugby and having responsibilities, if he has not sold any goods to Sri Lanka Rugby through that entity, and if such a business entity exists, if he has not offered to assume
official rugby responsibilities, or if the information that he will not be contacted for rugby at his school is incorrect and if no such decision has been made, we will be obliged to publish a correction on our website. We have highlighted the possibility of intervention if there are accuracy issues when presenting allegations related to Rugby in multiple instances. However, regrettably, they have not utilized that opportunity nor provided a similar chance to correct any inaccuracies. Instead, they have presented their case through various responsible figures in society and have informed the website administration to cease the reports about them. The intervention of the sports department is for the benefit of any sport and anyone who brings the accusations with acceptable evidence for the sport and those with opposing views will also have the opportunity to present strong evidence to refute the facts we have reported as incorrect. Here again, we have no personal issue with Dilroy, and we recognize that he has gained international recognition as a highly qualified judge.

But what is important here is that Dilroy has become an accused because he tried to travel both ways at the same time, ignoring the fact that there is no space for that knowledge to be used professionally
according to the Sri Lankan Sports Act and Rugby Constitution. If he truly intends to engage in the sport, he and his wife may need to take a hiatus from their current business commitments and actively participate in rugby. But he is going to face these charges because of the violation of certain legal matters by going to acquire everything. Don is a Don, Simon is Simon. There’s a saying in our village that you can’t have two Dong Simons. Dilroy is also accused of tangled up Don Simon.

June 29, Colombo (LNW):  Sri Lanka’s agreements with China and other creditor nations to restructure about $10 billion in bilateral debt brought it a step closer towards restoring debt sustainability, the International Monetary Fund (IMF) said on Thursday.

The island nation signed deals with China and other creditor nations to restructure about $10 billion in bilateral debt on Wednesday, helping it approach the end of a restructuring process that began in September 2022 after its reserves hit record lows and forced it to default on foreign debt for the first time.

Sri Lankan officials in Paris inked the agreement with the Official Creditor Committee (OCC) co-chaired by Japan, India and France that have lent a combined $5.8 billion.

The committee is now awaiting details of a separate agreement that was signed with China EXIM Bank to rework $4.2 billion to be shared with them to ensure comparability of treatment, OCC said in a statement.

Sri Lanka, however, still needs to convince bondholders to restructure about $12.5 billion in international bonds.

“We hope that there will be swift progress on reaching agreements with external private creditors in the near future,” Peter Breuer, IMF’s senior mission chief for Sri Lanka, said in a statement.

Bilateral lenders said they hoped an agreement with bondholders would be “on terms at least as favourable as the terms offered by the OCC.”

The restructuring of bilateral debt agreements was one of the key conditions set by the IMF under a $2.9 billion bailout programme that helped Sri Lanka tame inflation, stabilise its currency, and improve government finances.

The central bank estimates the economy will expand 3% in 2024 after contracting 2.3% last year.

Sri Lanka, whose total external debt is $37 billion, also has to finalise arrangements with China Development Bank to restructure debt of $2.2 billion, according to latest finance ministry data.

Under the restructuring plan, Sri Lanka can delay repaying bilateral creditors till 2028. During this period, the government and creditors can arrange new loans out to 2043.

Once the restructuring is completed, Sri Lanka aims to reduce its debt by $16.9 billion, the government said.

It will seek approval from parliament on July 2 to proceed with the deals, President Ranil Wickemesinghe said during an address to the nation late on Wednesday.

The debt restructuring will help the cash-strapped nation more than halve its foreign debt repayments to 4.5% of gross domestic product between 2027-2032, from 9.2% in 2022 at the peak of the economic crisis.

 But the country has to still improve governance and stay on the path of reforms, including implementing legislation to lock in IMF-stipulated fiscal targets, impose a property tax, and limit lending by state banks to loss making state-run companies, according to analysts.

June 29, Colombo (LNW): Officers of the Sri Lanka Customs Narcotics Control Unit have seized cocaine and ‘Kush’ cannabis worth nearly Rs. 190 million during inspections at a courier clearance station in Seeduwa.

A total of 2,030 grams of cocaine and 2,177 grams of ‘Kush’ cannabis were discovered inside several whey protein powder containers within six parcels sent from Canada and the USA to addresses in Colombo and Kadawatha. Investigations revealed these addresses to be fake.

The parcels had aroused suspicion as no one had come forward to collect them for over a month since their arrival. Upon inspection, the narcotics were found.

The confiscated drugs will be handed over to the Police Narcotics Bureau for further investigations.

June 29, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has announced the implementation of the Banking (Amendment) Act, No. 24 of 2024, which came into effect on June 15, 2024.

Key provisions of the Banking (Amendment) Act include:

• Minimum Licensing Requirements: Establishing clear criteria for obtaining a bank license.
• Shareholder Suitability Criteria: Defining standards for shareholder eligibility.
• Subsidiarization of Foreign Banks: Empowering the conversion of foreign bank branches into subsidiaries if necessary.
• Enhanced Bank Ownership Measures: Introducing stricter controls on bank ownership.
• Consolidated Supervision: Strengthening the supervision of banking groups.
• Proportionality in Supervision and Regulation: Allowing tailored regulatory measures based on the size and risk profile of banks.
• Broadening Provisions on Large Exposures: Expanding regulations concerning significant credit exposures.
• Strengthening Related Party Transactions: Implementing stricter rules to manage transactions with related parties.
• Governance Requirements: Enhancing the assessment of the fitness and propriety of directors, CEOs, and key management personnel across all licensed banks, including state-owned banks.
• Financial Statements and Audit Requirements: Improving standards for financial reporting and audits.
• Capital and Liquidity Frameworks: Bolstering the requirements for bank capital and liquidity.

These amendments aim to fortify the legal and regulatory framework for licensed commercial and specialized banks, thereby enhancing the resilience of Sri Lanka’s banking sector. The last amendment to the Banking Act was in 2006, making this update crucial to reflect current economic and market developments, as well as international best practices in prudential regulation.

The CBSL incorporated feedback from various stakeholders, including the banking sector, auditing bodies, and other regulatory authorities, in drafting these amendments.

To support the implementation of the Banking (Amendment) Act, the CBSL has issued several new regulations and instructions to licensed banks.

1. The President stated that Theravada Buddhism is currently in high demand globally. Plans are underway to establish a center for studying Theravada Buddhism in Anuradhapura for both local and international enthusiasts. Additionally, the President mentioned a Buddhist institute in California focused on Mahayana Buddhism and emphasized the need for a similar center here.
2. Sri Lanka’s main Opposition party, the Samagi Jana Balawegaya (SJB) says it has formulated policies and plans to address the issues faced by teachers and principals under a future SJB- government. Issuing a statement, the SJB urged the teachers and principal trade unions to support its policies devoid of political preferences, in the future.
3. The National Peoples Power (NPP) has called on the government to resolve the issues of teachers and principals who are striking over salary anomalies, pointing out the severe impact on the education of school students. Addressing a Teachers Summit, NPP Leader MP Anura Kumara Dissanayake emphasized the importance of the education sector, stating that the main responsibility assigned to teachers is to create a good human resource for the country.
4. Former Minister of Health Keheliya Rambukwella and 07 others have been further remanded until 12 July by the Maligakanda Magistrate’s Court over the import of substandard human Immunoglobulin vials.
5. The overall rate of inflation as measured by the Colombo Consumer Price Index (CCPI) on Year-on-Year basis has increased to 1.7% in June 2024, compared to 0.9% in May 2024, according to the Department of Census and Statistics. Meanwhile food inflation has increased to 1.4% in June 2024, compared to 0.0% in May 2024 while non-food inflation has climbed to 1.8% in June 2024, compared to 1.3% the previous month.
6. A decision has been taken to reduce bus fares by 5% with effect from July 01. Meanwhile, the minimum fare has been reduced by Rs. 2 to Rs. 28.
7. The Committee on Parliamentary Business has decided to debate the Resolution for the Implementation of External Debt Restructuring Agreements on July 2nd and 3rd, according to the Chief of Staff and Deputy Secretary General of Parliament.
8. The Central Bank of Sri Lanka (CBSL) has announced the implementation of the Banking (Amendment) Act, No. 24 of 2024, effective from 15 June 2024. According to the CBSL, these amendments were formulated with a view to further strengthening the legal and regulatory framework applicable for licensed commercial banks and licensed specialised banks (licensed banks) to enhance the resilience of the banking sector of Sri Lanka.
9. China’s Vice Minister of Foreign Affairs Sun Weidong called on former President Mahinda Rajapaksa in Beijing. Recalling President Xi Jinping’s historic visit to Sri Lanka during Presidency of Mahinda Rajapksa in 2014, Vice Minister of Foreign Affairs called him an old friend of China.
10. West Indies women secured a thrilling last-over victory by 6 wickets against Sri Lanka women in the third and final T20 game, clinching the series 2-1 at the Mahinda Rajapaksa International Cricket Stadium. Led by Hayley Matthews, West Indies chased down a target of 142 with one ball to spare. Matthews (49 off 40 balls) and Stafanie Taylor (33 off 30 balls) set a strong foundation with a 60-run opening partnership.

June 28, Colombo (LNW): The Minister of Justice, Prisons Affairs and Constitutional Reforms has introduced new regulations for the appointments, suspensions, cancellations, and code of conduct for Justices of the Peace under the Judicature Act No. 2 of 1978. These regulations received approval from the Ministerial Consultative Committee on Justice, Prisons Affairs and Constitutional Reforms.

The approval was granted during the committee meeting held recently (18) in Parliament, chaired by Dr. Wijeyadasa Rajapakshe, PC.

The primary aim of these regulations is to promote moral and ethical conduct among Justices of the Peace, ensuring the effective administration of justice and eliminating opportunities for corrupt practices. Minister Rajapakshe highlighted that there has been no specific method for appointing Justices of the Peace or defining their qualifications until now.

Additionally, the Minister emphasized that these new regulations address the lack of a system to remove Justices of the Peace from their positions in cases of misuse. A code of ethics has also been introduced to uphold the dignity of the position and maintain public trust.