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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
June 28, Colombo (LNW): President Ranil Wickremesinghe visited Balangoda Sri Dharmananda Vidyayathana Pirivena on Thursday (27), where he received blessings from the Amarapura Maha Sangha Sabha Chairman and Mahanayaka of the Rassagala Chapter of the Amarapura Maha Nikaya of Sri Lanka, Most Ven. Karagoda Uyangoda Maithri Murthi Maha Nayaka Thera.
During his visit, the President briefed the Mahanayake Thera on the economic and financial progress Sri Lanka is making and held a brief meeting to discuss the development of the temple. President Wickremesinghe handed over a cheque for Rs.1 million, provided by the Sabaragamuwa Province Governor’s Office, for the renovation of Sri Dharmananda Vidyayathana Pirivena.
In his discussion with Uyangoda Maithri Murthi Maha Nayaka Thera, President Wickremesinghe highlighted the growing global interest in Theravada Buddhism. He announced plans to establish a centre for the study of Theravada Buddhism in Anuradhapura, which will offer opportunities for both local and international enthusiasts.
He also mentioned the establishment of an institute dedicated to Buddhist teachings in California, USA, for Mahayana Buddhism, and expressed the need for a similar educational centre in Sri Lanka.
Addressing the discipline of Buddhist monks, the President emphasized that such matters should be managed by the respective Nikayas. He drew a parallel to Catholic priests in schools controlled by the Bishop’s House, who are not permitted to engage in trade union activities, and expressed concern about the diminishing respect for the teaching profession due to the actions of teachers’ unions. He stated that future measures would ensure no trade union activities during school hours and mentioned the possibility of implementing emergency laws to secure children’s education if necessary.
The visit was attended by Minister Manusha Nanayakkara, Sabaragamuwa Governor Navin Dissanayake, Senior Adviser to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka, MP Akila Ellawala, and other dignitaries.
June 28, Colombo (LNW): The Japanese government has decided to restart development projects in Sri Lanka that were previously suspended, due to the country’s progress in implementing economic reforms.
Japanese envoy in Colombo, Misukoshi Hideaki, announced that steps will be taken to resume these projects after the relevant Memorandums of Understanding (MoUs) regarding debt restructuring are signed.
Speaking at a press conference in Colombo, the Ambassador expressed satisfaction over the signing of debt restructuring agreements with bilateral creditors and reaffirmed Japan’s commitment to supporting Sri Lanka.
June 28, Colombo (LNW): The Kandy Esala Perahera Festival will commence on August 5 with the auspicious ‘Kap’ planting ceremony at the four main Devalayas (temples), as announced by Pradeep Nilanga Dela, the Diyawadana Nilame of the Temple of the Sacred Tooth Relic.
The ‘Kap’ planting ceremony, which marks the beginning of the festival, will take place facing the northwest direction at 4:10 am on August 5 at the Natha, Vishnu, Kataragama, and Pattini Devalayas, according to the Diyawadana Nilame.
This announcement was made during a discussion held on Wednesday, the 26th, at the multipurpose building of the Temple of the Sacred Tooth Relic, regarding the organizational arrangements for this year’s Kandy Esala Perahera.
June 29, Colombo (LNW): Several spells of light showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara Eliya, Galle and Matara districts.
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.
June 28, (LNW) Colombo : Further details on the grievance submitted to the Sports Ministry’s Ombudsman by Former Rugby President Rizly Illyas, calling for a probe into the officials accountable for the £50,000 penalty levied by the World Rugby Federation and the 55 million rupees debt to Sri Lanka Rugby during Asanga Senaviratne and Lasitha Gunaratne’s administration. Met with Ombudsman Chulananda Perera today to report the more information. After the meeting, he told the media that without consequences for such errors, future appointees might repeat them. Rizly Illyas believes that permitting the administration to continue without taking action against those responsible sets a detrimental precedent for the future.
The Former Rugby President said the media that the ombudsman comprehended the pertinent issues well, but emphasized that within his role, he must ascertain the feasibility of taking action in this matter. Nevertheless, Illyas also stated the media that the ombudsman will prepare a comprehensive report on the matter and ensure its submission to the minister. “The Sports Minister will take appropriate action regarding this matter.”
Rizly Illyas mentioned that he provided the necessary data to the ombudsman for verifying the facts he mentioned, emphasizing that it should not be difficult to ascertain all the relevant details. “The necessary documentation to verify this information can be obtained from the auditor. Additionally, details regarding the fine can be obtained from the World Rugby Federation.” After stating that, Rizly Illyas mentioned that the Minister and the World Rugby Federation can identify the improper influence of a group of individuals on the Sri Lankan rugby constitution, along with the motives of those influencing it, and the reasons behind this fine.
Two leading Ministers Dr. Ramesh Pathirana and Dr. Wijeyadasa Rajapakshe on Sunday lambasted the banking sector for half-hearted support to the struggling Micro, Small and Medium Entrepreneurs (MSMEs) thereby endangering a quicker recovery in the economy following multiple crises. Industries and Health Minister Dr. Ramesh Pathirana on Sunday urged enterprises to take a stand against unfair banking practices and to continue lobbying for their interests regardless of political affiliations.Speaking at an awareness conference organised by the Ceylon Federation of MSMEs on ’Business debt and finance management’ on the side-lines of the Industry Expo 2024, Pathirana insisted the need for businesses to create conversations and pressure policymakers to address their concerns. Dr. Pathirana warned that banks might channel most of the funds from international credit lines to their wealthy clients, calling for vigilance and protest against such practices.
“We learn that banks are trying to push most of the funding facilities to their already rich clients from the loans extended by the international agencies like the World Bank and the Asian Deve-lopment Bank,” the Industries Minister alleged. He also pointed out that promoting fair banking practices are essential to drive economic development in Sri Lanka. Separately at the same conference, in a scathing critique of the banking system, Justice Minister Dr. Wijeyadasa Rajapakshe criticised the policymakers for their failure to establish a credible economic policy to support enterprises and entrepreneurs. In practice no bank can survive if it alienates its customers. As with all business, it’s a balancing act. In general Government policies have been designed to limit bank failures and the panic they can ignite. Therefore the safety and soundness of banks is paramount, growing all banks to such levels of safety and soundness should be the deliverable, not just a handful of systemically important banks. The recent pronouncements on a development bank in Sri Lanka limited to serving the needs of the MSMEs, should be pursued with vigour.
True role of banks
Banks play a pivotal role serving as the backbone that the entire financial system rests on. Its primary role is to safeguard depositors and to disburse loans. Banks however as the primary supplier of credit as the Minister highlighted have a crucial role in stabilising the economy and supporting their customers. Banks in general accept deposits and provide loans, and derive a profit from the difference in the interest rates paid and charged to depositors and borrowers respectively. This process performed by banks of taking in funds from a depositor and then lending them out to a borrower is known as financial intermediation.
Through financial intermediation, certain assets are transformed into different assets or liabilities. As such, financial intermediaries channel funds from people who have extra money or surplus savings (savers), and then lend to those who do not have enough money to carry out a desired activity (borrowers). Banking thrives on the financial intermediation abilities of financial institutions that allow them to lend money and receive money on deposit. The bank is the most important financial intermediary in the economy as it connects surplus and deficit economic agents.
Way forward
Banks are vital institutions in any society as they significantly contribute to the development of an economy through facilitation of business. Banks also create money and facilitate the growth of savings in the economy, and are instruments of the Government’s monetary strategy, among many others. The most important service provided by a bank is the provision of credit. Credit fuels economic activity by allowing businesses to invest beyond their cash on hand, households to purchase homes without saving the entire investment in advance, and enables governments to smooth out their spending by mitigating the cyclical pattern of tax revenues, and to invest in huge public infrastructure projects. Therefore, the key role for a financial institution is to facilitate investment and employment to sustain the long-term economic growth of the country.
What Sri Lanka needs is four strong banks with an asset base exceeding Rs. 2 trillion each by 2025, to get us to an over-$ 100 billion GDP economy. Therefore, the Government should push for bank consolidation keeping in view synergies and the benefits of mergers, with the Government role purely as that of a facilitator. However in certain institutions there is certainly a need to get rid of board toxicity and the management capacity deterioration, and investigate the vested lending.
Therefore, in the final analysis, the President, as the Minister of Finance (which supervises the Central Bank and the Securities and Exchange Commission [SEC]), has a great opportunity to drive the financial sector reforms agenda, thereby giving a very strong signal to the financial markets that the Government is ready to support genuine investor appetite and provide competitive businesses the freedom to create wealth and growth. Whilst the banks need to ensure that they demonstrate to their clients that they have their best interests at heart.
June 28, Colombo (LNW): Former Colombo district Parliamentarian Hirunika Premachandra was found guilty of her involvement in the abduction of a youth using a Defender and was given a three-year prison sentence by the Colombo High Court today.
Colombo High Court Judge Amal Ranaraja sentenced Hirunika Premachandra to three years imprisonment after taking into consideration the seriousness of the offences.
June 28, Colombo (LNW): U.S. Ambassador Julie Chung emphasized the balance necessary for robust trade, stating, “The challenge lies in achieving an equilibrium between enabling smooth trade and ensuring robust security measures.
The United States works together with our partners to cultivate trading environments that support legitimate operations and restrict illegal activities, so that countries can not only foster economic growth but also develop that competitive edge within the global marketplace.”. she added
She was speaking at the launching ceremony of the first Sri Lanka Strategic Trade Forum which was organized US Embassy in Colombo, in partnership with the Sri Lanka Department of Import and Export Control.
This event brought together a diverse audience from government and the private sector to address critical aspects of trade security and explore the development of competitive practices for global trade hubs.
Following a welcome from Department of Import-Export Controller General T.T. Upulmalee Premathilaka, trade regulators from Malaysia, the Philippines and Singapore showcased their national strategies for overseeing the trade and transshipment of strategic items.
These items are any ‘dual use’ goods or technologies that can be used for both commercial and military applications and play a vital role in advancing innovation across various sectors, including software development, aviation, medicine, and sanitation.
The forum also featured insights from Singapore’s Centre for Trade Excellence and the U.S. Department of Commerce as well as Sri Lankan experts from CRDF Global, McLarens Maritime Academy, the Trade Finance Association of Bankers, and the Hub Operators Association.
These specialists provided valuable tips and strategies for establishing robust compliance practices to effectively navigate the complexities of a dynamic regulatory landscape.
The United States also emphasized the importance of both consulting with all relevant stakeholders in drafting labor legislation and providing adequate opportunities and time for public review and comment. In this regard, Sri Lanka elaborated on the procedures adopted in labor law reforms. The United States expressed its readiness to extend support in developing and implementing ongoing labor reforms.
The United States encouraged the reduction of agricultural trade barriers to bolster food security in Sri Lanka. The United States also advocated for greater market access for U.S. exports of various agricultural products, including input products such as animal feed to support demand in Sri Lanka’s domestic sector.
