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Sri Lanka manufacturing, services expand in Dec 2023 amidst challenges

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By: Staff Writer

January 18, Colombo (LNW): Sri Lanka’s manufacturing and service sectors are currently expanding amidst significant challenges due to demand destruction policies and a temporary slowdown in the apparel export market.

Monetary tightening and higher inflation in major markets like the US and Europe have contributed to a drop in the Industrial Production.

However, there are signs of improvement, with the Central Bank’s Purchasing Managers’ Index for December 2023 showing an expansion in the broader manufacturing and service sectors after a long term decline.

Manufacturing PMI recorded an index value of 52.7 in December 2023, indicating an expansion in manufacturing activities. This improvement was attributable to the increases observed in all the sub-indices except Employment.

The increases in New Orders and Production were driven by the manufacture of food and beverages sector with the seasonal demand.

However, New Orders and Production in the manufacture of textiles and apparel sector declined during the month, which mainly contributed to the decline in Employment as well.

Meanwhile, stock of purchases increased during the month due to the increase in Production and New Orders. Further, Suppliers’ Delivery Time continued to lengthen in December.

Expectations for the manufacturing activities for the next three months remain positive. However, the firms are concerned about the impact of tax revisions from January 2024, and the shipping disruptions due to the unrest in the Red Sea, Central Bank predicted.

Services sector PMI recorded an index value of 58.9 in December 2023 indicating an expansion in the services activities.

This was led by the increases observed in New Businesses, Business Activities and Expectations for Activity, CB report revealed.

New Businesses increased in December 2023 compared to November 2023, particularly with the increases observed in wholesale and retail trade, financial services, insurance, other personal service activities and accommodation, food and beverages sub-sectors.

Business Activities continued to expand in December 2023 at a higher pace in line with the positive developments observed in many sub-sectors.

Accordingly, significant improvements were observed in business activities related to other personal service activities, transportation and accommodation, food and beverage sub-sectors, amid the festive and holiday seasons, and tourist arrivals reaching its peak.

Further, the wholesale and retail trade sub-sector showed a strong growth due to seasonal sales. Meanwhile, financial services also improved further in line with the increase in lending activities.

Employment declined despite some new recruitments made to meet the seasonal demand, while Backlogs of Work also continued to decline during December.

Expectations for Business Activities for the next three months continued to rise in December at a slower pace despite concerns regarding the adverse impacts of VAT amendments and related increases in fuel and utility costs.

Scholarship for studying Hindi in India for the Academic Session, 2024-25

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January 18, Colombo (LNW): The Ministry of Human Resource Development, Government of India, announces a fully funded scholarship opportunity for Sri Lankan nationals to pursue Hindi language studies at the Kendriya Hindi Sansthan (Central Institute of Hindi) in Agra for the academic session 2024-2025.

Under this scheme, selected candidates will benefit from comprehensive support, including return airfare, a stipend, hostel accommodation, and an annual book grant, a statement by Indian High Commission in Colombo said.

Eligibility Criteria: All students aged 21-35 who have studied Hindi at the beginner/intermediate level are invited to apply for this scholarship.

Application Process: Interested and eligible candidates are required to fill out the application forms, available on the official website: https://hcicolombo.gov.in/what.

Completed forms should be submitted in person during an interview at the Swami Vivekananda Cultural Centre (Indian Cultural Centre), 16/2, Gregory’s Road, Colombo 07, on 26 February 2024, between 10 am to 01 pm.

This initiative aims to foster cultural exchange and strengthen the linguistic ties between Sri Lanka and India. Students seeking to enhance their Hindi language skills are encouraged to seize this valuable opportunity.

For additional information, interested candidates can refer to the official website or contact the Swami Vivekananda Cultural Centre.

Dollar rate at commercial banks today (Jan 18)

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January 18, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates appreciation against the US Dollar today (18) in comparison to yesterday, as per leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 315.05 from Rs. 315.79, and the selling price to Rs. 326.03 from Rs. 326.79.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 314.05 from Rs. 315.42, and the selling price to Rs. 325 from Rs. 325.50.

At Sampath Bank, the buying price of the US Dollar has dropped to Rs. 315.50 from Rs. 317, and the selling price to Rs. 324.50 from Rs. 326.

Non-academic staff in state universities stage token strike in protest of lecturers’ allowance increase

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January 18, Colombo (LNW): Non-academic staff members of state universities have initiated a one-day token strike this (18) morning to express their dissatisfaction with the government’s decision to raise allowances for lecturers.

Earlier this month, the Cabinet of Ministers approved President Ranil Wickremesinghe’s resolution to increase the study allowance for university lecturers by 25 per cent, with the adjustment set to be reflected in their January salaries.

However, the University Trade Union Joint Committee has raised concerns about this decision, asserting that the salary increase for lecturers has caused unrest among non-academic staff members.

There is need for a comprehensive approach, the committee emphasised, urging authorities to consider raising the salaries and allowances for all employees if adjustments are made in the university sector.

Co-Secretary of the Inter-University Trade Union Federation, K.L.D.G. Richmond, stated that 23 trade unions are participating in this token strike.

Simultaneously, the past week witnessed disruptions in hospital services as various health sector trade unions, including paramedical services, supplementary medical services, and nursing officers, engaged in token strikes.

These actions were in response to the Cabinet’s decision to double the Disturbance, Availability, and Transport (DAT) allowance for government doctors, increasing it from Rs. 35,000 to Rs. 70,000.

The series of strikes across different sectors reflects the growing concerns and discontent among various employee groups regarding recent government decisions on allowances and salary adjustments.

Sri Lanka Original Narrative Summary: 18/01

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  1. President Ranil Wickremesinghe, currently in Davos, Switzerland, due to leave for Uganda to attend the 19th Non-Aligned Summit: leaders of around 120 countries expected at the Conference: President scheduled to hold bilateral talks with leaders of several African countries to seek their cooperation at the UN Human Rights Council.
  2. President Ranil Wickremesinghe attends roundtable discussion hosted by Consortium of Indian Industry: unveils “economic vision” for SL: emphasizes the successful resolution of supply bottlenecks, removal of import restrictions & restoration of foreign exchange liquidity as key factors contributing to sustained economic growth.
  3. Cement Industry sources say the construction sector is facing it’s toughest period in history due to the negative effects of the sharp reduction of construction activities since the start of 2023: also says the contraction has pushed the industry into near collapse: asserts this fate is inevitable with the anticipated exponential rise of operational costs, following the introduction of VAT in Jan’24.
  4. Mahanayaka Theras bless Public Security Minister Tiran Alles and say the mission started with the goal of freeing the country from the menace of drugs and controlling the crime wave must continue until the end, regardless of obstacles: assert it is in the national interest to free the country from the menace of drugs.
  5. Livestock Planning Directorate of the Dept of Animal Production & Health says 14,294 cattle farms in Sri Lanka have closed during the period Jan to Sept’23: 6,961 in Uva Province, 964 in North-Western, 894 in Eastern, 723 in North-Central, 665 in Southern, 2,289 in Central, 847 in Sabaragamuwa: 376 cattle farms in the Jaffna district and 31 in Mullaitivu district have also closed.
  6. SL’s Tea exports for 2023 earn USD 1.31bn compared with USD 1.26bn in 2022: however, volume of tea exported in 2023 witnesses a decline of 3.3%, with only 241.9 mn kg being exported, marking a decrease of 8.26 mn kg compared to the 250.2 mn kg shipped in 2022.
  7. Labour Minister Manusha Nanayakkara claims the relevant officials of the Finance, Economic Stabilisation and National Policies Ministry are working without any understanding regarding the protection of the fishing community and the industry.
  8. Three-judge Bench of the Supreme Court quashes the Presidential pardon granted by President Gotabaya Rajapaksa to former MP Duminda Silva who was convicted of murder: make order that the pardon had no legal basis.
  9. President Ranil Wickremesinghe pardons 2 prisoners – Nagalingam Madansekar & Selvathurai Kirubakaran, who had been serving life sentences for LTTE activities after being convicted under the PTA & Emergency Regulations: the pardons had been recommended by Justice Minister Wijeyadasa Rajapakshe and backed by a Prisons Dept report that said the duo had “displayed good behaviour”.
  10. Shevoni Gunawardena takes Power-lifting games by storm: sets records at the National Power-lifting Championship 2023 in over 84kg weight class – in squat 120kg, bench press 57.5kg, and deadlift 153.5kg.

Residents express concerns over proposed road renaming in Horton Place

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January 18, Colombo (LNW): The residents of Horton Place have voiced their opposition to the Colombo Municipal Council’s (CMC) proposal to rename the road as “Ponnambalam Arunachalam Mawatha”, Daily Mirror reported citing residents.

Former Mayor of Colombo, Omar Kamil, raised concerns about the proposed renaming, highlighting that residents in the area received notices calling for objections to the change.

Kamil questioned the rationale behind passing a motion for renaming when the council has reportedly ceased to function for the past year.

The distributed notice informed residents about the motion passed by the CMC, outlining the proposed new name for the road. The specified stretch falls within the administration limits of the CMC, starting from assessment number 75 of C.W.W. Kannangara Mawatha and assessment number 75 of Horton Place, terminating between assessment numbers 11 and 120 of Horton Place.

Kamil also questioned the necessity of renaming the road, especially when there is already an avenue named Ponnambalam Arunachalam Avenue in close proximity, just off Horton Place, according to Daily Mirror report.

Former CMC Member Shermila Gonawala, commenting on the matter, indicated that no such motion had been presented during the council’s active days.

Gonawala conveyed that concerned residents, particularly women residing along Horton Place, had reached out to her, expressing their apprehensions about the proposed change.

They highlighted the potential inconvenience of altering various official documents if the renaming were to proceed.

The proposed renaming has sparked discussions and objections from residents, prompting a closer examination of the decision-making process and its impact on the local community, the report added.

Early 2024 witnesses 102,000 tourist arrivals in Sri Lanka

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January 18, Colombo (LNW): In the initial 15 days of 2024, Sri Lanka has welcomed 102,000 tourists, marking a comparable figure to the entirety of the first month of the preceding year, Chairperson of the Sri Lanka Tourism Development Authority (SLTDA) Priyantha Fernando disclosed.

The parallel figure between the early days of 2024 and the entirety of January in the previous year reflects the ongoing trends in tourist arrivals.

It provides an early insight into the tourism sector’s performance, hinting at a potential continuation of patterns observed in 2023.

Notably, Sri Lanka registered a total of 1,482,000 tourist arrivals in 2023. This figure, while indicating a substantial influx of visitors, also underscores the challenges and opportunities facing the country’s tourism industry.

The consistent flow of tourists, even in the early days of 2024, signals both the appeal of Sri Lanka as a destination and the resilience of the tourism sector despite global uncertainties.

However, it remains essential to closely monitor how these trends evolve over the course of the year, taking into account various factors that influence global travel patterns.

Duminda Silva receives medical treatment under prison security amidst reinstated murder conviction

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January 18, Colombo (LNW): Former MP Duminda Silva, who is subject to a reinstated murder conviction, is currently receiving medical care at Sri Jayewardenepura Hospital under prison security following the suspension of the presidential pardon granted to him by the Supreme Court in 2022, the Prisons Department disclosed.

The department has communicated Silva’s medical treatment status at Jayewardenepura Hospital to relevant authorities, including the court, Prisons Spokesperson Gamini B Dissanayake confirmed.

The Prisons Department has requested the transfer of Silva to the Prisons Hospital, yet the treating specialist has advised continuing treatment at the current facility, despite the department’s preference.

Notably, the Prisons Department lacks a specialist doctor to override the recommendations of Silva’s treating physicians.

Following the suspension of the presidential pardon by the Supreme Court, Silva was apprehended by the Criminal Investigations Department (CID) while undergoing medical treatment at Sri Jayewardenepura Hospital on June 1, 2022.

The former MP’s sudden adherence to medical care highly reflects his motive of evading the restored conviction over the assassination of Bharatha Lakshman Premachandra in 2011, critics argued.

Silva was granted presidential pardon by ex President Gotabaya Rajapaksa, reversing his murder conviction declared by the Supreme Court in 2016.

Rajapaksa’s decision was challenged before the Supreme Court by filing fundamental rights (FR) petitions by former MP Hirunika Premachandra, her mother Sumana Premachandra, and former Human Rights Commissioner Ghazali Hussain.

The Supreme Court Bench comprising Justices P. Padman Surasena, Gamini Amarasekara, and Arjuna Obeysekara unanimously concluded that the pardon granted to Duminda Silva by Gotabaya Rajapaksa was flawed and therefore, unlawful.

CEB takes legal action against elephant electrocution incidents

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January 18, Colombo (LNW): 50 wild elephants fell victim to electrocution over the past year, Ceylon Electricity Board (CEB) Deputy General Manager (Business & Operational Strategy) and media spokesman Eng. K.A. Noel Priyantha disclosed.

This tragic outcome resulted from the illegal connection of CEB power lines to fences protecting farmlands, he asserted.

Priyantha highlighted that a total of 474 wild elephants lost their lives due to various human activities during the same period.

The CEB has initiated legal proceedings against individuals engaging in the unauthorised use of electricity to harm elephants.

In a bid to combat this issue and protect the elephant population in the country, the CEB is seeking public support. To facilitate immediate reporting of incidents related to the illicit connection of power lines to cultivation fences, the CEB has introduced an emergency hotline with the number 1987.

Showery conditions to continue in several provinces, mainly fair weather to prevail elsewhere (Jan 18)

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By: Isuru Parakrama

January 18, Colombo (LNW): Several spells of showers will occur in North-Central, Eastern and Uva provinces and in Mullaitivu district, with a few showers being expected in Central, Sabaragamuwa, North-western and Southern provinces, the Department of Meteorology said in its daily weather forecast today (18).

Mainly fair weather will prevail elsewhere in the island, the statement added.

Misty conditions can be expected at some places in Western, Sabaragamuwa and Central provinces and in Galle and Matara districts during the morning.

Marine Weather:

Condition of Rain:
Several spells of showers may occur in the sea areas off the coast extending from Mullaitivu to Pottuvil via Trincomalee and Batticaloa, and few showers can be expected in other sea areas around the island.
Winds:
Winds will be north-easterly to easterly and wind speed will be (20-30) kmph.
State of Sea:
The sea areas around the island will be slight.