January 21, Colombo (LNW): Indian External Affairs Minister S. Jaishankar met with Sri Lankan President Ranil Wickremesinghe yesterday (20) to discuss the advancement of bilateral initiatives between the two nations.
This meeting took place in the Ugandan capital city of Kampala, where Jaishankar is representing India at the two-day summit of the Non-Aligned Movement (NAM), which commenced on Friday.
Expressing his satisfaction, Jaishankar shared the encounter with President Wickremesinghe on social media, stating, “Pleased to call on Sri Lankan President Ranil Wickremesinghe on the sidelines of the NAM Summit in Kampala.”
“Appreciate his continued guidance for the advancement of our bilateral initiatives. India’s commitment is reflected in our Neighbourhood First and SAGAR policy,” he praised the Sri Lankan President.
Pleased to call on Sri Lankan President @RW_UNP on the sidelines of the NAM Summit in Kampala.
Appreciate his continued guidance for the advancement of our bilateral initiatives. India’s commitment is reflected in our Neighbourhood First and SAGAR policy. pic.twitter.com/i0XifvdEs0
January 21, Colombo (LNW): The Public Utilities Commission of Sri Lanka (PUCSL) is set to review the proposed revision of electricity tariffs submitted by the Ceylon Electricity Board (CEB) during a meeting scheduled for January 22.
A definitive decision on the proposed tariff adjustments is expected to be reached during this meeting, with both the proposal and the PUCSL’s decision being expected to be disclosed to the public for a three-week period.
Following public scrutiny, the PUCSL will incorporate feedback into the proposal and subsequently present the final tariff revision to the CEB.
In a briefing held on January 20, the CEB asserted that electricity tariffs would be promptly adjusted once approval is obtained from the PUCSL.
January 21, Colombo (LNW): Several spells of showers may occur in North-central, Eastern and Uva Provinces, with showers or thundershowers being expected at several places in the Central and Sabaragamuwa provinces and in Galle and Matara districts after 2.00 p.m, the Department of Meteorology said in its daily weather forecast today (20).
Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces and in Galle and Matara districts during the morning, the statement added.
The public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers may occur few places in the sea areas off the coast extending from Colombo to Matara via Galle during the evening or night.
Winds:
Winds will be north-easterly and wind speed will be (20-30) kmph. Wind speed may increase up to (40-45) kmph at times in the sea areas off the coasts extending from Colombo to Mannar via Puttalam and from Galle to Pottuvil via Matara and Hambantota.
State of Sea:
The sea areas off the coasts extending from Colombo to Mannar via Puttalam and from Galle to Pottuvil via Matara and Hambantota will be fairly rough at times. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
January 20, Colombo (LNW): Chief Government Whip and Urban Development and Housing Minister Prasanna Ranathunga has asserted the importance of avoiding political novices in the upcoming presidential election, stating that the country cannot be jeopardized again by electing someone inexperienced for the role. Minister Ranathunga personally expressed his belief that President Ranil Wickremesinghe should be granted another opportunity to address economic challenges and stabilize the nation.
Addressing questions from journalists after participating in the Matara District Coordination Committee meeting on Wednesday, Minister Ranathunga emphasized that the decision on whether Pohottuwa, as a party, will present a candidate for the presidential election is yet to be made. He underscored that the party will make this decision at the appropriate time.
Minister Ranathunga elaborated on the distinction between general elections and presidential elections, noting that the latter is crucial for resolving the country’s national problems. Citing historical examples, he pointed out that leaders like former President Mahinda Rajapaksa were elected to end wars, and former President Maithripala Sirisena was chosen to establish good governance. In the current context, he highlighted the significance of President Gotabaya Rajapaksa’s role in ensuring national security.
Expressing his personal opinion, Minister Ranathunga advocated for President Ranil Wickremesinghe’s nomination as the Pohottuwa candidate for the presidential election. He praised President Wickremesinghe for taking responsibility during the economic crisis when other leaders did not, and suggested that giving him another chance would be crucial for steering the country away from economic challenges and ensuring stability.
The meeting in Matara, where Minister Ranathunga shared his views, was attended by Power and Energy Minister Kanchana Wijesekera, Matara District Coordinating Committee Chairman MP Nipuna Ranawaka, Southern Province Governor Dr. Willie Gamage, and other dignitaries.
January 20, Colombo (LNW): On Monday (15), Sri Lanka’s High Commissioner to Pakistan, Admiral Ravindra Wijegunaratne, engaged in discussions with Pakistan’s Chief of Naval Staff, Admiral Naveed Ashraf. The talks centered around various crucial subjects, including mutual interests, the contemporary geopolitical landscape, and emerging challenges in maritime security. Both dignitaries underscored the enduring relationship between Sri Lanka and Pakistan, highlighting the consistent growth of bilateral ties over the past seven decades.
Admiral Naveed Ashraf emphasized the significance of collaborative efforts to uphold regional maritime security. Commending the strong leadership of the President of Sri Lanka, the Chief of Naval Staff assured Pakistan’s continued support to Sri Lanka in the years ahead.
In response, the High Commissioner expressed gratitude for the pivotal role played by the Pakistan Navy in ensuring maritime security in the region. The meeting reflects the commitment of both nations to fostering cooperation and addressing shared challenges in the maritime domain.
January 20, Colombo (LNW): Education Minister Dr. Susil Premajayantha has revealed significant proposals aimed at expanding Sri Lanka’s higher education sector during the ongoing education reform process. Among the key recommendations is the establishment of separate commissions to regulate State and non-State universities, as well as vocational education institutions.
Addressing the fourth graduation ceremony of the Nagananda International Institute of Buddhist Education as the Chief Guest, Minister Premajayantha highlighted the comprehensive efforts to enhance higher education, with reforms slated for implementation in four identified areas from the beginning of the upcoming year.
The Minister announced an allocation of Rs 8,000 million in this year’s budget for research across various disciplines. He emphasized that longstanding delays in the development of the higher education sector would soon be addressed through collaborative efforts involving the University Grants Commission (UGC), the Education Ministry, and all public universities. These efforts include fostering academic research relations with globally recognized high-ranking universities.
Minister Premajayantha underscored the need to reduce the time spent by students in school education by one year, providing them with expedited opportunities to attain degrees and post-graduate qualifications. He emphasized the urgency of closing the gap between Sri Lankan students and their counterparts in developed countries.
As part of the proposed higher education reforms, the Minister highlighted the intention to establish separate commissions for the regulation of public and private universities, along with vocational education institutions. Quality checks will be conducted by the National Education Commission, with relevant bills already drafted and submitted to the cabinet.
The ongoing education reform process aims to elevate Sri Lanka’s education sector, including vocational education, to internationally recognized standards of quality development.
Minister Premajayantha commended the noteworthy contributions of Ven. Dr. Bodagama Chandima Thera in establishing the Nagananda International Buddhist Educational Institute as a prestigious educational institution within a short timeframe. The graduation ceremony witnessed the conferment of degrees upon 97 students, including six foreign students. Dignitaries from Sri Lanka and abroad participated in the event alongside Vice-Chancellor Ven. Dr. Bodagama Chandima Thera.
January 20, Colombo (LNW): Minister of Agriculture and Plantation Industries, Mahinda Amaraweera, has raised concerns about a potential shortage of vegetables in June, even if the current shortfall is expected to ease in the near future. The minister attributes the looming issue to the possibility of a drought later this year.
In response to this anticipated challenge, Minister Amaraweera has directed the Department of Agriculture to promptly initiate a suitable program to address and manage the potential shortage of vegetables. The proactive approach aims to mitigate the impact of the predicted drought on vegetable production, ensuring the availability of essential food items in the market.
January 20, Colombo (LNW): The Sri Lanka Navy has successfully intercepted two fishing trawlers suspected of carrying a cache of narcotics, believed to be heroin, off the southern coast of the island. The operation, conducted by the naval intelligence unit, resulted in the impoundment of a local multiday fishing trawler and a one-day fishing trawler.
The seized vessels, along with the confiscated narcotics and apprehended suspects, are currently being brought ashore to the Galle Harbour. Further investigations will be carried out to determine the origin, destination, and individuals involved in the illicit drug trafficking operation.
January 20, Colombo (LNW): The International Monetary Fund (IMF) 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, Senior Mission Chief Peter Breuer told a media conference in Colombo.
However, swift completion of final agreements with official creditors and reaching a resolution with external private creditors remain critical, the statement underscored.
According to the delegation, progress in meeting key commitments under the IMF-supported program is set to be formally assessed in the context of the second review of the EFF arrangement alongside the forthcoming 2024 Article IV consultation assessing Sri Lanka’s economic health.
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.
“Building on the Central Bank of Sri Lanka’s success in taming inflation, future monetary policy decisions should remain prudent with a focus on keeping inflation expectations well anchored.
Against continued uncertainty, it remains important to continue rebuilding external buffers through strong reserve accumulation. Protecting the poor and the vulnerable through improved targeting and better coverage of cash transfers remains critical.
“To safeguard the stability of the financial sector and bolster its capacity to support economic growth, the authorities need to urgently finalize amendments to the Banking Act in line with their commitment under the IMF-supported program, implement the bank recapitalization plan and strengthen the financial supervision and crisis management framework.
The authorities have made commendable progress with putting debt on a path towards sustainability. The execution of the domestic debt restructuring was an important milestone.
A swift completion of final agreements with official creditors and reaching a resolution with external private creditors remain critical. Progress in meeting key commitments under the IMF-supported program will be formally assessed in the context of the second review of the EFF arrangement alongside the forthcoming 2024 Article IV consultation assessing Sri Lanka’s economic health.
January 20, Colombo (LNW): The Government has the right to take corrective actions in light of new developments and difficulties in the implementation of reform programme and adjusting or wavering any International Monetary Fund (IMF) condition which is detrimental to the country, former finance minister Ravi Karunanyake cited.
True to these views expressed by seasoned financial expert and the ‘Best Finance Minister of the Year 2017 – Asia Pacific Region’ Ravi Karunanayake, Senior IMF Mission Chief Peter Breuer told a media conference in Colombo, it is now imperative for the authorities to adopt their own action plan for implementing the recommendations in the report beyond the priority commitments under the EFF arrangement.
At the same time, ensuring an enabling environment for governance and transparency reforms to take place is key to bolstering public confidence and facilitating implementation of these important efforts, he added.
When a country borrows from the IMF, the government agrees to adjust its economic policies to overcome the problems that led it to seek financial assistance.
These policy adjustments are conditions for US$ 3 billion IMF Extended Fund Facility (EFF) and help to ensure that the country adopts strong and effective policies.
Accordingly IMF staff technical team now concluded periodic programmme reviews to assess whether it is on track or needs to be adjusted in light of new developments, Mr. Karunanayake said.
Sri Lankan top officials involved in negotiations with the IMF have now been given an opportunity to take corrective actions relating to current monetary or fiscal policies stipulated in the reform programme if they are detrimental to the country, he added.
It has to be done in consultation, consensus and compromise with the IMF staff team now in the island on a fact finding mission to discuss recent developments and follow up on reform programme targets and commitments, he claimed.
Former finance minister Ravi Karunanayake who successfully negotiated a loan of $1.5 billion from the IMF in 2016 to boost foreign exchange reserves and avert a balance of payments problem noted that central bank and finance ministry officials should be able to negotiate the best possible conditions for the country.
However he noted that the responsibility of these high level officials to bring to the notice of visiting IMF staff team on public concerns relating to tax reforms such as VAT hike and high cost of living while suggesting corrective actions.
Expressing his view on Sri Lanka’s taxation system, he emphasised that it has to be independent of IMF recommendations and fairer by rich and the middle class alike considering their earning capacity without burdening the poor via indirect taxes.
Sri Lanka’s Inland Revenue Department announced that it collected a record tax revenue of Rs. 1,550.6 billion in 2023. It said that this figure is 104 percent of the revenue target set for the Department in that year.
Mr. Karunanayake noted that the government is persistently addressing the impact of the Value Added Tax (VAT) revision with the exclusion of additional taxes on goods and services under VAT and implementing necessary tax adjustments.
3 percent hike in value added tax (VAT), would finance the Rs 10,000 salary increase of public sector employees numbering around 1.3 million, he claimed adding that he also has some concerns relating to impacts of VAT on vulnerable community.
Missed structural benchmarks and indicative targets are assessed in the context of overall programme performance by the current IMF mission.
Sri Lanka has to expedite the public debt restructuring process and implementation of government’s ambitious reform programme supported by the International Monetary Fund (IMF) for the recovery and rebound of the country’s economy.
As part of the IMF-supported extended fund facility arrangement, Sri Lanka has undertaken significant reforms to pave the way out of a deep economic and debt crisis.
The economy is showing tentative signs of stabilisation, supported by rapid disinflation and a significant fiscal adjustment.
Measures are being taken to rebuild fiscal credibility and to improve governance and reduce corruption vulnerabilities.
The authorities reached agreements in principle with official creditors on debt treatments consistent with program parameters and are in good faith discussions with their private creditors.
The economy has begun the transformation from primarily agriculture to higher value added industry and service sectors and has the potential to further diversify and upgrade its economic structure.As of now, the Sri Lankan economy relies primarily on tourism, tea export, clothing, rice, and other agricultural production.
