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Tri-Forces Personnel Mobilized as Health Sector Strike Disrupts Services

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January 16, Colombo (LNW):Amid an island-wide strike initiated by health sector employees, the Ministry of Defence has deployed tri-forces personnel to support hospital operations. The 24-hour token strike, launched by approximately 72 trade unions in the healthcare service (excluding doctors), began at 6.30 a.m. The unions have opted to carry out only essential duties during this period.

The primary demand of the striking trade unions is the extension of the Rs. 35,000 allowance increase provided to doctors to other health sector employees. In response to the strike, Health Minister Dr. Ramesh Pathirana has invited the striking trade unions for discussions on the matter.

Acting Finance Minister Shehan Semasinghe has announced plans to meet with Health Minister Dr. Ramesh Pathirana later in the evening to address the concerns raised by the health sector and work towards finding suitable solutions.

Sri Lanka Original Narrative Summary: 16/01

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  1. President Ranil Wickrmasinghe expected to highlight SL’s commitment to sustainable development and green energy solutions at the World Economic Forum Annual Meeting in Klosters, Switzerland.
  2. SLTPB Chairman Chalaka Gajabahu says SL has earned low tourism revenue despite having 1.5mn arrivals in 2023 due to the arrival of low to medium-end travellers from the top two tourist markets to SL, namely, Russia & India.
  3. State Finance Minister Shehan Semasinghe says the new Micro-finance bill will be introduced soon: also says lenders are providing Micro-finance credit at over 360% interest: laments 95% of struggling borrowers are women whose financial literacy is very low: asserts that according to the new bill, no one will be able to grant Micro-finance loans without a licence.
  4. Ministry of Public Security says 1,468 “wanted suspects” out of the list of 42,248 such suspects as shared with all police stations in connection with various crimes, have been arrested so far under the ‘Yukthiya’ operation.
  5. Amnesty International, Human Rights Watch & International Commission of Jurists, together with several other “international human rights organisations” attempt to pressure the Govt to halt the ongoing “Yukthiya” operation which is targeting narcotics & underworld organized crime: express concern over alleged “drastic intensification of anti-drug operations, leading to significant human rights violations”.
  6. Telecom arm of India’s Reliance Industries, “Jio Platforms” expresses interest in buying a stake in SL Telecom: Govt names Jio Platforms, Gortune International Investment Holding Ltd, and Pettigo Comercio International LDA as the 3 potential bidders for SLT: SL’s IMF programme is currently pushing hard for the privatisation of several State Owned Enterprises.
  7. Telecom Engineers’ Union questions the presence of only 3 bidders for the proposed divestiture of the Govt’s stake of over 50% in SL Telecom: write to the President expressing their concerns.
  8. Police arrest self-proclaimed “Avalokiteshvara Bodhisattva” Mahinda Kodituwakku: accuse Kodituwakku of “committing irreligious activities that are contrary to Buddhist teachings”: Colombo Fort Magistrate’s Court imposes an overseas travel ban on the suspect: complaint filed by the President of the Buddhist Information Centre, Ven. Agulugalle Sri Jinananda Thera.
  9. Sectetary of the Govt Medical Officers’ Assn Dr Haritha Aluthge says the island-wide strike action organized by health sector employees is unjustified: also says only 50% of the “Disturbance, Availability and Transport” allowance and 15% of the requested increments have been received by the Doctors.
  10. Senior Chartered Accountant and Tax Expert N R Gajendran says the current tax system is neither fair nor reasonable: also says any tax system had to be based on the “principle of capacity to pay”: lamebts that taxes have now become “unbearable”; previously, several Chartered Accountants and Chambers of Commerce had been at the forefront of advocating the increase in taxes.

IMF Officials Visit Jaffna

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January 16, Colombo (LNW): A team of senior officials from the International Monetary Fund (IMF), overseeing Sri Lanka’s USD 2.9 billion bailout program, recently visited the Tamil-dominated Northern district of Jaffna for the first time under the current agreement. Led by Peter Brueur, the IMF senior mission chief for Sri Lanka, the team engaged in discussions with Northern Province Governor PMS Charles and other officials on various issues.

The topics covered during the meetings included economic growth in the province, demining programs, resettlement of conflict-displaced individuals, compensation for conflict victims, educational matters related to Jaffna University, post-COVID operations, and the adverse effects of climate change in the northern region.

After their visit to Jaffna, the team returned to Colombo and is scheduled to engage with the finance ministry. Talks are expected to take place with Shehan Semasinghe, the state minister of finance, who leads the local IMF engagement under President Ranil Wickremesinghe. Discussions in Colombo are anticipated to focus on the targets outlined in the current IMF program, which advocates significant economic reforms in Sri Lanka.

During a meeting with President Wickremesinghe, Peter Brueur expressed satisfaction with Sri Lanka’s progress in implementing reforms aimed at revitalizing the economy. The IMF has commended Sri Lanka for its advancements in policy-oriented variables and fiscal consolidation. Sri Lanka, having declared its first-ever debt default in April 2022, secured the USD 2.9 billion IMF bailout agreement in the last quarter of 2022. The first tranche of USD 1.5 billion was released in March 2023, with the second installment of USD 337 million arriving in December 2023 following the first review.

Misty conditions expected in some provinces

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January 16, Colombo (LNW): Mainly fair weather will prevail over the island.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, Uva, North Western, Southern and North-central provinces during the morning.

There is a possibility of ground frost at some places in Nuwara-Eliya district during the early hours of the morning.

Mukesh Ambani’s Jio Platforms expresses interest of taking over Sri Lanka Telecom.

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By: Staff Writer

January 15, Colombo (LNW): The telecom arm of Reliance Industries Jio Platforms,, has expressed interest in buying a stake in Sri Lanka Telecom PLC, the state-owned telecommunication company.

The financially-stressed Sri Lankan government is looking to privatize several sectors of the economy to raise money. Colombo had invited proposals from potential investors from November 10.

Post the deadline on January 12, the Sri Lankan government issued a press release, naming Jio Platforms, Gortune International Investment Holding Ltd, and Pettigo Comercio International LDA as the three potential bidders, adding that proposals will be “evaluated as per the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers”.

The island nation is also mandated by International Monetary Fund (IMF) programmes to push for privatisation of non-core sectors.

With Sri Lanka Telecom, Jio is eyeing a strategic foothold in the neighbouring market.

Brokerage BofA has pegged Jio Platforms’s valuation at $107 billion. BofA in a note said it expects Jio Platforms to continue adding subscribers this year while making deeper inroads with its advanced feature phone JioBharat and wireless broadband device JioAirFiber.

Three submissions in total were received earlier for the Request for Qualification (RfQ) on the divestment of shares in Sri Lanka Telecom PLC, the Finance Ministry disclosed yesterday.

Accordingly, Jio Platforms Ltd. in Gujrat, India, Gortune International Investment Holding Ltd., c/o Capital Alliance Ltd. and Pettigo Comercio International LDA., c/o NDB Investment Bank Ltd. submitted their offers.

On 10 November 2023, the Government, acting through the Ministry of Finance, Economic Stabilization, and National Policies, released an RfQ via international and local media. The RfQ sought interested parties for the divestiture of the Government’s shares in Sri Lanka Telecom PLC. The submission deadline for proposals concluded recently.

The evaluation of the RfQs will adhere to the Special Guidelines on Divestiture of State-Owned Enterprises, a framework approved by the Cabinet of Ministers in July 2023.

The International Finance Corporation (IFC) acts as the Transaction Advisor for the divestiture of shares held by the Government in Sri Lanka Telecom PLC.

COPF pledges to revoke duty-free rules hindering Port City investments.

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By: Staff Writer

January 15, Colombo (LNW): The Colombo Port City Economic Commission (CPCEC) has acknowledged that it lacks the authority to establish duty-free rules, at the duty-free malls, in the Port City and pledged to revoke the already set regulations within a week.

This pledge was given to the Committee on Public Finance (COPF) by the CPCEC at the recent committee meeting chaired by Dr. Harsha de Silva MP.

Reconsideration of Colombo Port City Economic Commission Act, No. 11 of 2021 for the 3rd Consecutive Time Sparks Strong Displeasure: CoPF Raises Concerns over major blunder and Lack of Accountability.

The Committee on Public Finance reconsidered the Regulations under Section 71 read with Section 52(5) of the Colombo Port City Economic Commissions Act, No. 11 of 2021.

This was reconsidered at the Committee on Public Finance held recently (Jan. 09) under the Chairmanship of. (Dr.) Harsha de Silva.

In the course of examining the legality of Duty-Free Rules issued by the Port City Commission for Duty-Free Malls during a prior Committee meeting, the Committee sought the opinion of the Attorney General.

As a result, it was revealed that the Commission lacks the authority to establish such rules, highlighting a policy inconsistency that could lead to market distortion and potential cannibalization.

The officials from the Port City Commission, who were present, acknowledged the error and assured that the rules would be revoked by the end of this week.

However, when the Committee sought clarification on the individual responsible for these erroneous decisions, considering that the Port City Commission had entered agreements with four investors based on these rules, there was a noticeable absence of accountability.

The Committee expressed strong dissatisfaction during the inquiry, as no official stepped forward to take responsibility.

In light of the evident lack of clarity and accountability and the issues brought to the forefront, the Committee was of the opinion that a thorough reconsideration of the mentioned Regulation was warranted.

Consequently, the Committee directed the Ministry of Investment Promotion to identify the responsible party and outline measures to prevent similar errors in the future. This action was deemed essential to safeguard against potential discouragement of future investments.

Furthermore, the Committee on Public Finance considered Gazette Extraordinary No. 2334/39, as per Section 24 of the Board of Investment (BOI) of Sri Lanka Law, No. 4 of 1978.

This gazette outlines a proposal by the BOI to amend regulations, permitting non-BOI or Section 16 BOI companies to attain Section 17 approval with exemptions for specific sectors and criteria.

Such amendments would expedite Foreign Direct Investments and facilitate collaborations between foreign companies and existing BOI entities, enabling them to benefit from customs duty exemptions.

After meticulous examination, the Committee approved the aforementioned Regulation to be presented to Parliament. This decision was made with confidence, as the proposed amendments maintained consistent thresholds for companies registering for Section 17, ensuring there were no discrepancies introduced.

New Microfinance Act to regulate unlicensed credit providers.

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By: Staff Writer

January 15, Colombo (LNW): Sri Lanka is to bring in the new Microfinance bill after a delay of 3 years amidst reports of businesses providing microfinance credit with over 360% interest as the Government tries to curb licensed credit providers, State Minister of Finance Shehan Semasinghe.

Tabling the Microfinance and Credit Regulatory Authority Bill at Parliament on Friday (12), he said that according to the bill, no business, collective or individual can lend microfinance credit without a licence from the regulator.

The State Minister said that according to a survey done by the Samurdhi Department in the Anuradhapura district, 95% of the borrowers who are struggling with microfinance debt were women. At the same time, the majority of the credit was taken for consumption purposes.

“They don’t know what they are signing, their financial literacy is very low. Microfinance credit issues are gradually moving towards a big crisis,” he added.

According to the Finance Ministry, there are about 11,000 microfinance institutions in Sri Lanka as of 2023 November out of which only 4 have registered with the Central Bank.

Semasinghe said that the Government under former President Gotabaya Rajapaksa tried to bring in the Microfinance bill in 2021 to solve the issues in microfinance after bringing in all the relevant parties such as the Central Bank of Sri Lanka, the Finance Ministry and Lanka Microfinance Practitioners’ Association, which has a membership of 47 microfinance businesses.

“However, it was not able to be brought to Parliament due to the instability that happened in the country, especially due to the political instability,” he said.

He said that through the new Act, the Government expects to formulate the regulatory framework to regulate businesses that provide money on credit and Microfinance businesses while attention has also been given to the inclusion of businesses that provide credit online.

According to the bill, the Board of the Authority shall consist of the Secretary to the Treasury or his representative who shall be a Deputy Secretary to the Treasury nominated by the Secretary to the Treasury who shall be appointed as the Chairperson.

The Deputy Governor of CBSL in charge of financial system stability and the Registrar of Voluntary Social Service Organizations or his representative not below the rank of a Deputy Registrar of Voluntary Social Service Organizations will be other members .

Also, four members appointed by the Minister of Finance shall be appointed to the said Board where two members shall possess academic or professional qualifications and have experience in the fields of banking, finance, microfinance, accounting, law, administration or any other relevant discipline.

Two other members will be nominated by the Governor of CBSL who shall possess academic or professional qualifications and have experience in the fields of banking, finance, microfinance, accounting, law, administration or any other relevant discipline.

President to highlight SL green energy commitment at the WEF in Davos.

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By: Staff Writer

January 15, Colombo (LNW): Sri Lanka President Ranil Wickrmasinghe will grace the World Economic Forum (WEF) Annual Meeting which is to be commenced today Monday15, in -Klosters, Switzerland.

President Wickrmasinghe and the island nation’s delegation arrived in Davos yesterday to participate in the World Economic Forum (WEF), a distinguished gathering of world leaders, international organizations, and industry titans shaping the global agenda.

Beyond the WEF’s main conference, President Wickramasinghe will lead Sri Lanka’s presence at the Green Tech Forum, organized by the Swiss-Asian Chamber of Commerce.

The Sri Lankan President will be delivering the keynote address titled “Paving the way to an energy secure Sri Lanka and to highlight the nation’s commitment to sustainable development and green energy solutions.

Furthermore, Sri Lanka’s investment potential will be showcased at a business roundtable conference co-organized by the Sri Lanka Investment Board and the Swiss Asian Chamber of Commerce.

The WEF, a distinguished international stage, fosters interaction among leaders from diverse arenas such as government, international organizations, business, civil society, academia, and media.

Over 1,000 representatives are expected to converge at this event, deliberating on the moulding of global political, economic, social, and environmental trajectories.

During his stay in Switzerland, President Wickremesinghe will illuminate the Green Tech Forum with a keynote address.

This event, orchestrated by the Swiss Asian Chamber of Commerce, will witness him expound on the theme ‘Paving the way towards an Energy Secure Sri Lanka’.

The address is anticipated to shed light on his vision of steering Sri Lanka towards a future bolstered by sustainable energy.

Another significant part of his agenda is participation in the Business Roundtable.

Organized by the Board of Investment of Sri Lanka, in conjunction with the Swiss Asian Chamber of Commerce, this event presents a platform for meaningful dialogue on investment opportunities in Sri Lanka. Here, President Wickremesinghe will engage with business leaders and international investors, further fortifying Sri Lanka’s global economic relations.

Apart from the outlined events, the President’s itinerary also includes a series of bilateral meetings with fellow country leaders and key business figures. In these discussions, he will explore avenues to enhance Sri Lanka’s international ties and economic prospects.

A business delegation will accompany President Wickremesinghe, a testament to the serious intent behind Sri Lanka’s economic diplomacy.

The Sri Lankan Permanent Mission to the United Nations in Geneva has been entrusted with coordinating the President’s visit.

Minister Devananda Unveils Strategic Plan for Freshwater Fishing Development in 2024

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January 15, Colombo (LNW): Fisheries Minister Douglas Devananda engaged in discussions with ministry officials and representatives from the National Aquatic Resources Development Authority (NAQDA) to deliberate on the strategic plan formulated by the Fisheries Ministry and NAQDA. The plan, initiated at the Minister’s directive, aims to propel the freshwater fishing industry’s growth in 2024.

Minister Devananda announced the allocation of Rs. 100 million for the enhancement of key fish breeding centers located at Udawalawa, Dambulla, Sevanapitiya, Rambodagalla, and Inginiyagala. Directing officials to promptly initiate and conclude ongoing fish breeding projects, the Minister emphasized the importance of efficient project management.

In addition, the Minister instructed officials to swiftly devise projects utilizing the Rs. 500 million earmarked in the last budget, particularly for the Northern Province. He urged them to submit these projects promptly, highlighting President Ranil Wickremesinghe’s commitment to developing freshwater fish culture and earning foreign exchange for the country. Minister Devananda expressed confidence in the officials’ dedication and assured them of full support in facilitating the development initiatives.

The meeting, attended by Fisheries Ministry Secretary Kumari Somarathne, NAQDA Institute Chairman Prof. B. Wijerathne, NAQDA’s Director General Asoka, and Fisheries Department Director General Susantha Kahawaththa, focused on collaborative efforts to realize the President’s vision for the growth of the freshwater fishing industry.

Sri Lanka Achieves Rice Self-Sufficiency in 2023

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January 15, Colombo (LNW): Agriculture and Plantation Industries Minister Mahinda Amaraweera commended Sri Lankan farmers for preventing the importation of rice in 2023, despite facing challenges. Speaking at the inauguration of a coconut by-product village for export in the Kachchigalara area of Barawakumbuka on Saturday (13), the Minister highlighted the significant achievement that saved the country foreign exchange.

Minister Amaraweera revealed that in 2022, Sri Lanka had imported 800,000 metric tons of rice at a cost of US$ 300 million. However, due to the efforts of local farmers, not a single grain of rice was imported in 2023, marking a substantial saving for the country.

The Minister acknowledged the demand for coir and other coconut products in China, along with the growing industry’s contribution to generating foreign exchange, particularly from Dubai. He inaugurated the production factory for the coconut by-product village in the presence of Chinese representatives.

Despite challenges such as floods affecting rice cultivation in the current season, Minister Amaraweera expressed confidence, based on Agriculture Department inquiries, that overall rice harvest would not be significantly impacted. He assured that there would be no need to import rice in 2024 and urged immediate action to commence cultivation for the upcoming Yala Season.

To diversify agricultural activities, the Minister instructed the Agriculture Department and the Agricultural Development Department to inform farmers about the cultivation of additional crops such as green gram, cowpea, and maize in lands under small-scale tanks. This strategic approach aims to enhance agricultural productivity and further contribute to the nation’s self-sufficiency.