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RIUNIT enters exclusive agreement with Port City for a prime mixed-use development site

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By: Staff Writer

September 26, Colombo (LNW): Research Intelligence Unit (RIUNIT), a leading international research and consulting firm, yesterday announced the signing of an exclusivity agreement for a prime plot allocation within Port City Colombo.

This marks a pivotal second step in RIUNIT’s ambitious real estate venture, “Asia’s Real Estate Opportunity of the Century.”

The agreement was signed on 24 September by Port City Colombo General Manager of Investment Promotion and Marketing Zheng Tian reinforcing RIUNIT’s ongoing commitment to driving economic growth and innovation in the region.

This milestone follows the successful launch event held on 16 July, where RIUNIT unveiled its comprehensive initiative designed to empower local developers and investors to engage with the transformative Port City project.

The signing ceremony underscores RIUNIT’s role as a key player in opening new avenues for Sri Lankan developers and small investors within the Port City development. By securing this plot, RIUNIT strengthens its ability to create accessible entry points for local participation, offering a unique opportunity to invest in one of Asia’s most promising real estate markets.

Speaking on the occasion RIUNIT CEO Roshan Madawela stated: “This agreement represents a critical step towards our vision of involving regional developers in Port City Colombo. Our initiative is geared towards facilitating sustainable investments for Sri Lanka ensuring they can take advantage of the vast potential of this ground-breaking project.”

This agreement builds on the success of RIUNIT’s launch event, which attracted industry leaders, visionaries, and experts to explore the unparalleled opportunities within Port City.

The initiative, titled “Asia’s Real Estate Opportunity of the Century,” offers detailed insights into market trends, investment strategies, and regulatory frameworks, making it an essential resource for investors.

“The Port City represents a strictly regulated and zoned space that respects the aesthetic needs of humans while also providing all supporting commercial and recreational amenities at close hand. The lifestyle opportunities that will be offered here are unparalleled in Sri Lanka and perhaps the world over,” said RIUNIT Member of Advisory Board Architect Nilesh De Silva.

With this exclusivity agreement now signed, RIUNIT said it is well-positioned to advance its goal of fostering local involvement in Port City’s growth. RIUNIT added that it remains committed to providing in-depth research, analysis, and insights to guide industry professionals and investors as they navigate this evolving landscape.

Fitch predicts SL’s economic recovery, growth forecast at 3.9% in 2024

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By: Isuru Parakrama

September 26, Colombo (LNW): Global ratings agency Fitch has projected that Sri Lanka’s economic growth will rebound to 3.9 per cent in 2024, with an average growth rate of 3.6 per cent expected for the years 2025-2026.

This recovery follows a challenging period of economic contraction in 2023, with the economy showing signs of stabilisation and improvement.

According to Fitch, Sri Lanka’s real GDP growth, adjusted for seasonal fluctuations, rose by 5.0 per cent year-on-year in the first half of 2024.

This marks a significant recovery from the 7 per cent contraction experienced during the same period in 2023.

Industrial growth was a key driver of this resurgence, expanding by 11.3 per cent following an 18 per cent decline in the first half of 2023.

Similarly, the services sector saw a 2.7 per cent recovery after a contraction the previous year, highlighting the broader stabilisation of the economy.

Fitch anticipates further easing of monetary policy over the next two years, as the Central Bank of Sri Lanka has already lowered the standing deposit facility rate by a cumulative 725 basis points since June 2023.

This policy shift is expected to continue in light of subdued inflationary pressures. Inflation stood at 0.6 per cent in August 2024, marking over a year of single-digit inflation, a significant improvement from the 67 per cent inflation rate recorded in September 2022.

Another positive development has been the improvement in Sri Lanka’s foreign-currency reserves, which reached around US$ 6 billion in August 2024, up from US$ 4.4 billion at the end of 2023. T

his increase is attributed to a suspension of external debt service, along with higher tourism revenues and overseas worker remittances.

Fitch also noted that the country’s current account remained in surplus in 2023 and is expected to continue this trend into 2024.

Despite these positive indicators, Sri Lanka remains in default on its foreign currency obligations, with restructuring negotiations ongoing with private external creditors.

Fitch has affirmed Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘RD’ (Restricted Default) and its Long-Term Local-Currency IDR at ‘CCC-’.

The recent announcement of a preliminary debt restructuring agreement with foreign bondholders and the China Development Bank suggests progress is being made in resolving the country’s external debt crisis.

The restructuring follows the suspension of debt servicing announced in April 2022, which impacted several categories of external debt, including international bonds and foreign currency-denominated loans.

Sri Lanka’s Long-Term Foreign-Currency IDR has been rated ‘RD’ since May 2022, following the expiry of a grace period.

The IMF has forecast Sri Lanka’s gross general government debt-to-GDP ratio to gradually decline to around 103 per cent by 2028, down from 116 per cent in 2022.

However, even with ongoing debt restructuring efforts, Sri Lanka’s debt levels are expected to remain elevated.

Tilak Siyambalapitiya appointed new Chairman of CEB

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By: Isuru Parakrama

September 26, Colombo (LNW): Tilak Siyambalapitiya has been appointed as the new Chairman of the state-owned Ceylon Electricity Board (CEB), effective immediately.

This leadership change comes at a time when the CEB faces critical challenges, including financial instability, operational inefficiencies, and the pressing need to modernise the country’s power infrastructure.

Siyambalapitiya, a respected figure in the energy industry, brings with him decades of experience in electrical engineering and energy management.

His appointment is seen as a strategic move to stabilise the CEB and address the ongoing concerns related to power generation, distribution, and the board’s long-term sustainability.

Breast cancer deaths in SL see concerning rise: Health Authorities

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By: Isuru Parakrama

September 26, Colombo (LNW): Health authorities in Sri Lanka have raised alarms over the growing number of breast cancer deaths, particularly when compared to other nations.

Dr. Hasareli Fernando, a community health specialist at the National Cancer Control Programme, emphasised that the mortality rate associated with breast cancer has seen a notable increase, sparking concern among medical professionals and public health officials.

During a media briefing held at the Health Promotions Bureau, Dr. Fernando revealed that approximately 5,500 women are diagnosed with breast cancer in the country each year.

The issue has become a major public health concern, given the rising incidence of the disease. Whilst breast cancer is typically viewed as a condition primarily affecting women, Dr. Fernando underscored the particular dangers it poses to men, who often face more dire outcomes due to the disease’s late diagnosis.

Sri Lanka sees around 125 male breast cancer cases annually, and due to a lack of awareness, men are more likely to succumb to the disease.

Dr. Fernando explained that early detection and timely intervention could dramatically reduce fatalities, but many Sri Lankans still fail to recognise the early warning signs of breast cancer.

As a result, the disease is often discovered in its later stages, when treatment options are more limited and less effective. She stressed the need for enhanced public awareness campaigns, targeted specifically at encouraging both women and men to regularly self-examine and seek medical advice if they detect any abnormalities.

The rising number of breast cancer deaths has prompted renewed efforts from the National Cancer Control Programme to improve early detection strategies. They aim to increase access to mammograms and other diagnostic services, especially in rural areas where healthcare resources are often limited.

Additionally, Dr. Fernando highlighted the importance of training healthcare workers to identify symptoms in men, given that breast cancer in males is less commonly discussed and understood.

Health authorities are now calling for a more coordinated approach to tackle this pressing concern, with a focus on prevention, early detection, and better access to treatment for both women and men.

Court orders nationwide acceptance of complaints against ONMAX DT pyramid scheme scam

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September 26, Colombo (LNW): Colombo Chief Magistrate Thilina Gamage on September 25 ordered all Police stations island-wide to accept complaints pertaining to victims of the ONMAX DT pyramid scheme scam.

No formal complaints involving this financial scam have been processed to date, and all police stations, therefore, have been ordered to formulate a model to lodge complaints of those deprived of their money due to their subjugation to ONMAX.

Accordingly, Chief Magistrate Gamage has ordered the Senior Deputy Inspector General (Administration) to issue a directive for the formulation of a model accepting such complaints.

The Court further ordered Sampath Sandaruwan, the Director of ONMAX DT and the third suspect to the case, to appear before the Criminal Investigation Department (CID) on November 04, 2024 and to produce information he has knowledge of, and other suspects to produce plans of lands and houses required for the obtainment of estimation records of five properties owned by the suspects.

Attorney-at-Law Namal Rajapaksa appearing for the aggrieved party told Court that the depositors of ONMAX DT scheme suffer from severe frustration due to the scam, thereby expecting an immediate relief.

State Counsel Oswald Perera appearing for the Attorney General’s Department told Court that associations formed by the aggrieved parties consist of more than 2,000 members. 

About 100 complaints pertaining to the aforementioned pyramid scheme have received so far, and orders could have been issued for the the Attorney General’s Office, the Sri Lanka Police, the Central Bank of Sri Lanka and the Judiciary to take necessary steps for the reimbursement of money, had any formal complaints been lodged, the State Counsel added.

Anuja Premaratne PC appearing for the suspects told Court that their clients have produced information pertaining to more than 65,000 depositors of the scheme, adding that the so called associations of the aggrieved should have produced accurate information.

Official exchange rates in SL today (Sep 26)

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By: Isuru Parakrama

September 26, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further appreciation against the US Dollar today (26) in comparison to yesterday, as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).

Accordingly, the buying price of the US Dollar has decreased to Rs. 295.80, and the selling price to Rs. 304.91.

The LKR also indicates appreciation against several other foreign currencies, including Gulf currencies.

SL Foreign Ministry monitors safety of nationals amidst escalating tensions in Israel and Lebanon

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By: Isuru Parakrama

September 26, Colombo (LNW): In light of escalating tensions in Israel and Lebanon, Sri Lanka’s Ministry of Foreign Affairs has confirmed that its diplomatic missions in Beirut and Tel Aviv are on high alert, closely monitoring the situation to ensure the safety of Sri Lankans residing in these volatile regions.

The Ministry has reassured that, as of now, no Sri Lankans have been reported as affected by the ongoing unrest. However, proactive measures have been put in place to address any potential risks.

Sri Lankan embassies are working to keep communication lines open with their citizens in both countries, offering assistance and guidance where necessary.

The missions are particularly focused on the safety of migrant workers and expatriates, with contingency plans being developed to facilitate swift action in case the situation deteriorates further.

Local authorities in Israel and Lebanon have also been contacted to ensure that the necessary precautions are in place to protect foreign nationals, including Sri Lankans.

Sri Lanka, which maintains a significant migrant workforce in both countries, especially in Israel, has urged its citizens to remain cautious and follow local safety advisories.

The Ministry has also advised Sri Lankans to register with their nearest embassy if they have not already done so, to ensure that they can be contacted swiftly in case of an emergency.

As regional hostilities continue to intensify, the Foreign Ministry in Colombo is keeping a close watch on developments, emphasising that the protection of Sri Lankan nationals remains a priority.

Should the situation demand, evacuation plans may be activated to ensure the safe return of citizens from high-risk areas.

The Ministry has assured the public that they are working in coordination with international agencies and regional governments to monitor the situation, while remaining ready to assist Sri Lankans in affected areas.

Ex Minister Dilum Amunugama joins MJP, appointed as Party’s National Organiser

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By: Isuru Parakrama

September 26, Colombo (LNW): Former State Minister Dilum Amunugama has officially aligned himself with the Mawbima Janatha Party (MJP), a political entity led by prominent Sri Lankan entrepreneur Dilith Jayaweera.

The move marks a departure from Amunugama’s previous association with the Sri Lanka Podujana Peramuna (SLPP), where he had held a key role in the government.

Amunugama, who previously served as the State Minister of Investment Promotion under the administration of former President Ranil Wickremesinghe, has now taken on the position of national organiser within the MJP.

His decision to join the party comes as the MJP seeks to expand its influence in the evolving political landscape of Sri Lanka.

As reports have indicated, Amunugama’s shift away from the SLPP follows his growing alignment with the leadership of Ranil Wickremesinghe, for whom he voiced support in the most recent presidential election.

Ex CID Chief alleges military intelligence misled Easter Massacre probe

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By: Isuru Parakrama

September 26, Colombo (LNW): Former Director of the Criminal Investigation Department (CID), Shani Abeysekara, has made startling claims regarding the 2019 Easter Sunday attacks and the subsequent inquiry.

Speaking at the launch of a book by senior journalist Sunanda Deshapriya, Abeysekara provided alarming insights into how military intelligence allegedly obstructed and misled the CID during critical stages of the investigation, and suggested potential financial links between intelligence agencies and the attackers.

In his speech, Abeysekara asserted that the Easter attacks, which resulted in the deaths of over 270 people on 21 April 2019, were part of a deliberate conspiracy rather than an isolated event.

He cited two instances where military intelligence had allegedly provided false leads, severely hampering the investigation.

The first case involved a bomber who died in a suicide attack in Dehiwela. Abeysekara suggested that this individual had ties to military intelligence, which were later deliberately concealed to protect those involved.

The second example related to the 2018 murders in Vavunathivu. Military intelligence falsely attributed the murders to the Liberation Tigers of Tamil Eelam (LTTE), even going so far as to plant evidence, including a military jacket, to support this narrative, According to Abeysekara.

It was only after the CID apprehended a suspect on 25 April 2019, in possession of weapons linked to the murders, that the connection to Zaharan Hashim’s group – responsible for the Easter attacks – was uncovered.

Abeysekara went on to reveal that a senior military intelligence officer had testified before the Presidential Commission investigating the attacks, admitting that a Sri Lankan intelligence agency had financially supported the group behind the bombings prior to the events of Easter Sunday.

He stressed the importance of investigating these financial ties, which remain a significant concern.

He further accused the head of military intelligence of insisting, on multiple occasions, that the Vavunathivu murders were the work of the LTTE, raising serious questions about the motivation behind these misleading claims.

Abeysekara also questioned why both the CID and former President Maithripala Sirisena were kept in the dark about key aspects of the investigation.

Criticism was also levelled at the Rajapaksa administration. Abeysekara claimed that soon after Gotabaya Rajapaksa assumed the presidency, he was removed from the investigation, even before the appointment of a Prime Minister.

He suggested that this was part of a broader effort to obstruct the inquiry.

Expressing his hopes for the future, Abeysekara voiced confidence that the newly elected government, led by the National People’s Power (NPP), would prioritise a thorough investigation into the events surrounding the Easter attacks.

“That is why I supported the NPP,” he said, emphasising his commitment to transparency and accountability, despite having no previous involvement in politics.

Employment in SL’s Tourism Sector sees 11.24% growth, driven by Hospitality Industry

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By: Staff Writer

September 26, Colombo (LNW): Sri Lanka’s tourism sector experienced a notable surge in employment in 2023, with overall employment, including indirect jobs, rising by 11.24% compared to the previous year.

Provisional data from the Sri Lanka Tourism Development Authority (SLTDA) revealed that the total number of employees in the sector reached 429,641, a reflection of the ongoing recovery and growth within the industry.

Direct employment in the tourism sector also saw significant growth, increasing by 7.3% year-on-year to an all-time high of 204,591 employees. Hotels and restaurants played a crucial role in this expansion, accounting for 80.9% of direct employment, underscoring the vital role of hospitality services in the country’s tourism sector.

Travel agents and tour operators contributed 7.4% to employment figures, while the airline industry made up 4.2%. Tourist guides represented 3.6%, and the public sector employed 1.1% of the workforce in tourism-related activities.

These statistics are based on a comprehensive survey conducted by the SLTDA, covering 6,569 tourism establishments across the country.

The findings highlight the dominance of the hospitality sector in job creation, while other vital segments such as travel agencies, airlines, and tour guides represent smaller portions of the workforce.

The reliance on hospitality reflects the industry’s broader structure, where hotels and restaurants serve as the primary employment hubs.

The report also noted that the annual room occupancy rate in graded accommodation facilities rose to 39% in 2023, an improvement from the 30.4% recorded in 2022.

However, this figure remains below pre-pandemic levels, where room occupancy rates averaged in the mid-70s. At the same time, the number of graded rooms increased slightly to 26,422, compared to 25,597 the previous year, indicating a modest growth in accommodation capacity.

Despite the positive employment figures, there were challenges within the tourism sector. The average length of stay for tourists declined slightly, from nine nights in 2022 to 8.4 nights in 2023.

Additionally, the average daily receipt per tourist remained stagnant at US$164.4, still below the pre-pandemic average of US$181.2 recorded in 2019.

Indirect employment within the tourism sector, driven by ancillary industries such as handicrafts, gems, and jewellery, witnessed a 14.98% increase, reaching 225,050 in 2023. This marks a near recovery to pre-pandemic levels, as indirect employment had reached 229,015 in 2019.

These figures demonstrate the broader economic impact of tourism on related industries and highlight the sector’s ability to drive job creation beyond traditional hospitality services.