June 12, Colombo (LNW): To be in line with the Government’s Objective to make Sri Lanka the Logistic hub of South Asia , Sri Lanka Export Credit Insurance Corporation Launched a product Exclusively targeting the Logistic industry. When Protecting the Exporters we cannot omit the logistic partners who plays an integral pivotal role in supporting our Exporters. Considering this effort SLECIC had introduced an Export Performance Guarantee to be issued for potential Non –Vessel Operating Common Carriers (NVOCC), Feeder Operators , Air & Shipping Line Agents and Freight Forwarders in Colombo last May.
With the help of this guarantee the Industry need not to provide Collaterals to the banks for obtaining Guarantees to be given to terminal operators etc. SLECIC requires only 10% of the Total Guarantee as a refundable deposit and a guarantee fee only. With that a Logistic Company could withdraw 100% of their cash deposits kept in banks as collateral and they could in return invest this funds in other revenue streams. There by our Economy will get a Cash inflow and as a result of this investments the Economy would grow. This would allow new SMEs to enter to this logistic field and existing SMEs already in this field should benefit out of this
June 12, Colombo (LNW):LDS Charities, the humanitarian arm of the Church of Jesus Christ of Latter-day Saints in the United States, has donated cancer drugs valued at over US$ 225,000 to the Sri Lankan Health Ministry. Mickey Lui, Asia Area Welfare and Self-Reliance Director at the Church, handed over the consignment to Health Minister Dr. Ramesh Pathirana during a ceremony at the Health Ministry.
This donation is part of a larger commitment by LDS Charities to supply cancer drugs worth over one million US dollars to Sri Lanka over the course of a year. The agreement for this grant was signed in February at the Health Ministry, and this consignment marks the first delivery under the grant. The initial shipment includes 13 types of essential cancer medications such as Abiraterone Acetate, Anastrozole, Capecitabine, Carboplatin, Cisplatin, Dacarbazine, Docetaxel, and Irinotecan, among others.
High-ranking officials, including Health Ministry Secretary Dr. Palitha Mahipala, Health Services Director General Dr. Asela Gunawardena, Medical Supply Division Director Dr. Dedunu Dias, and LDS Charities International Institute Representatives Eric Chen and Ada Lam, were present at the event.
June 12, Colombo (LNW): A senior official from the Urban Development and Housing Ministry announced that starting from August, solid waste collected from the Colombo, Gampaha, and Kalutara districts will be transported to the newly constructed landfill in Aruwakkalu, Puttalam. The official noted that previous objections to the project have been resolved through discussions with relevant parties.
Colombo Waste Management Project Director Sarath Bandara confirmed that the construction of the solid waste management facility in Wanawasala is complete, and operations will commence by August. Preliminary trials began in May, paving the way for the project’s full-scale launch.
Initiated in 2014, the project aims to address the growing urban solid waste disposal issue by utilizing abandoned limestone quarries in Aruwakkalu for safe landfill and waste treatment. The Urban Development and Housing Ministry has been responsible for constructing the necessary facilities, including sanitary landfills and waste treatment systems.
Key components of the project include two waste transfer stations at Wanawasala and Puttalam, along with the required railway infrastructure and road systems. Initially, 1,200 metric tonnes of waste from the Colombo metropolitan area were planned to be transported to the Wanawasala transfer station, where it would be compressed, containerized, and then moved by train to Aruwakkalu for disposal. The project has since expanded to handle all waste from the Western Provincial Council.
The total cost of the project is US$ 130 million. Four locomotives have been imported for waste transportation between the Kelaniya transfer station and Aruwakkalu. Until the project becomes fully operational, these engines are being used by the Railways Department for passenger transport. Additionally, 94 containers have been acquired for waste transportation, and 17 railway carriages have been refurbished for the journey from Kelaniya to Aruwakkalu.
June 12, Colombo (LNW): Russian Foreign Minister Sergey Lavrov has assured Sri Lankan Foreign Minister Ali Sabry, PC, that no further recruitment will be made from Sri Lanka into the Russian armed forces. This assurance came during a meeting between the two Foreign Ministers in Russia on Monday.
The issue of Sri Lankan citizens joining the Russian Armed Forces was a key topic during the bilateral discussions. Minister Sabry, who is in Nizhny Novgorod for the BRICS 2024 Foreign Ministerial Session with developing countries, sought Lavrov’s assistance in addressing the challenges faced by these individuals.
Additionally, the upcoming meeting on June 26 and 27 between a high-level Sri Lankan delegation led by State Minister of Foreign Affairs Tharaka Balasuriya and the Russian Deputy Minister of Defense will review these issues comprehensively and take appropriate actions to resolve the situation. This meeting will further reinforce the agreement to halt any new recruitment of Sri Lankan citizens into the Russian armed forces.
The two Foreign Ministers also agreed to strengthen bilateral relations in various sectors, including tourism, higher education, and economic cooperation.
June 12, Colombo (LNW):The daily wage of plantation workers employed by the Elkaduwa Plantations Company in Matale has been increased to Rs.1,700. President Ranil Wickremesinghe announced this wage hike on May 1 during the May Day rally at the Kotagala Public Grounds, organized by the Labour Congress.
Following the announcement, the government issued a special gazette notification to officially raise the wages of plantation workers, effective from April 30th. Despite resistance from several estate owners, who have expressed their inability to pay the higher wages and have taken legal action, Elkaduwa Plantations Company has taken steps to implement the wage increase.
On June 10th, the company began providing the increased wages to its employees, benefiting 1,500 plantation workers. In addition to the Rs.1,700 daily wage, an additional Rs.202.50 will be provided for ETF and EPF contributions, bringing the total wage increase to Rs.1,902.50, according to Elkaduwa Plantations Company Chairman Sumith Jayaratne.
June 12, Colombo (LNW): Showers will occur intermittently in the Western, Sabaragamuwa, and North-western provinces, as well as in the Kandy, Nuwara Eliya, Galle, and Matara districts. Some areas in the Western and Sabaragamuwa provinces may experience fairly heavy showers, with rainfall expected to be around 75 mm.
Showers or thundershowers are also possible in a few locations within the Uva province and the Ampara and Batticaloa districts during the evening or night.
Strong winds, ranging from 40 to 50 kmph, are anticipated at times over the Western slopes of the central hills, and in the Northern, North-central, and North-western provinces, as well as the Trincomalee, Hambantota, and Monaragala districts.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
June 11, Colombo (LNW): The government will enact new tax administration act soon in addition to existing statutes clearing complications in some sections of these acts in the recovery of tax dues and imposing penalties, finance ministry sources disclosed.
The new act has been devised in accordance with the International Monetary Fund’s governance assessment. Directives.
The existing Inland Revenue Department (IRD) Act and the Default Taxes Special Provisions Act have stipulated conditions under which company officers, including directors, CEOs, and CFOs, can be personally held liable for the company’s tax defaults.
According to the section 149 of the Inland Revenue Act No. 24 of 2017 read with sections 164,165 and 166, managers of the entities liable to pay the taxes in default of the Company, W.A. Sepalika Chandrasekara, Commissioner General of Inland Revenue Department said.
In this section manager” of an entity includes a person purporting to act as a manager of the entity and, in the case of a company, includes a director, the chief executive officer, and the chief financial officer of the company, she confirmed.
This is not a new provision Ms Changrasekera noted adding that as per section 177A of the Inland Revenue Act No 10 of 2006 read with section 178 also had provision to recover the taxes in default from principal officers of the company.
Section 164, 165 and 166 of the Inland Revenue Act No. 24 of 2017, has explained the process of the recovery, he said.
However the new tax administration act that applies to all taxes containing provisions that effectively deter corruption by imposing stricter penalties (including criminal charges) on habitual tax dodgers as well as on tax officials for taking bribes or aiding tax avoidance.
The recovery proceedings commenced under the old act regarding collection of taxes will continue as the new act had not come into force, a senior official of the finance ministry disclosed.
Instead, the Commissioner General of Inland Revenue may also recover such taxes in accordance with transitional provisions.
Sri Lankans convicted of tax evasion can be liable to a fine not exceeding Rs. 10 million or imprisonment for up to two years, or to both under the Inland Revenue Act No. 24 of 2017.
The punishment is for those who wilfully evade or try to evade the assessment, payment or collection of tax or who wilfully and fraudulently claims a refund of tax to which they are not entitled.
In order to punish defaulters, the Inland Revenue Chief may place a legal claim against a taxpayer’s bank accounts by issuing a bank seizure notice, requesting the bank to remit money held in the taxpayer’s bank account to the Commissioner General (CGIR) of IRD, he added.
The CGIR could commence court proceedings to recover amounts outstanding asa last resort.
Moreover the government is contemplating to confiscate property of habitual tax defaulters if they fail to pay accumulated tax dues running up to billions of rupees within three years, informed official sources disclosed.
The government will enact a new tax administration act soon in addition to existing statutes clearing complications in some sections of these acts in the recovery of tax dues and imposing penalties, finance ministry sources disclosed.
The new act has been devised in accordance with the International Monetary Fund’s governance assessment. Directives.
The existing Inland Revenue Department (IRD) Act and the Default Taxes Special Provisions Act have stipulated conditions under which company officers, including directors, CEOs, and CFOs, can be personally held liable for the company’s tax defaults.
According to the section 149 of the Inland Revenue Act No. 24 of 2017 read with sections 164,165 and 166, managers of the entities liable to pay the taxes in default of the Company, W.A. Sepalika Chandrasekara, Commissioner General of Inland Revenue Department said.
In this section manager” of an entity includes a person purporting to act as a manager of the entity and, in the case of a company, includes a director, the chief executive officer, and the chief financial officer of the company, she confirmed.
This is not a new provision Ms Changrasekera noted adding that as per section 177A of the Inland Revenue Act No 10 of 2006 read with section 178 also had provision to recover the taxes in default from principal officers of the company.
Section 164, 165 and 166 of the Inland Revenue Act No. 24 of 2017, has explained the process of the recovery, he said.
However the new tax administration act that applies to all taxes containing provisions that effectively deter corruption by imposing stricter penalties (including criminal charges) on habitual tax dodgers as well as on tax officials for taking bribes or aiding tax avoidance.
The recovery proceedings commenced under the old act regarding collection of taxes will continue as the new act had not come into force, a senior official of the finance ministry disclosed.
Instead, the Commissioner General of Inland Revenue may also recover such taxes in accordance with transitional provisions.
Sri Lankans convicted of tax evasion can be liable to a fine not exceeding Rs. 10 million or imprisonment for up to two years, or to both under the Inland Revenue Act No. 24 of 2017.
The punishment is for those who wilfully evade or try to evade the assessment, payment or collection of tax or who wilfully and fraudulently claims a refund of tax to which they are not entitled.
In order to punish defaulters, the Inland Revenue Chief may place a legal claim against a taxpayer’s bank accounts by issuing a bank seizure notice, requesting the bank to remit money held in the taxpayer’s bank account to the Commissioner General (CGIR) of IRD, he added.
The CGIR could commence court proceedings to recover amounts outstanding asa last resort.
Moreover the government is contemplating to confiscate property of habitual tax defaulters if they fail to pay accumulated tax dues running up to billions of rupees within three years, informed official sources disclosed.
June 11, Colombo (LNW): The ‘Sri Lanka Festival’ (Shri Lanka Mahothsawaya) after a four-year hiatus influenced by various reasons has finally come out of the woods, with a glamorous event being organised in Japan, it was reported.
According to the Sri Lanka Japan Business Association in Japan, the ‘Sri Lanka Festival’ will return to arena at Yoyogi Park in Tokyo, Japan, on June 15 and 16 from 9.00 a.m. to 7.00 p.m.
The ‘Sri Lanka Festival’ is known to be the biggest Sri Lankan celebration evident in Japan, with a participation of hundred thousands of Sri Lankans living in the East Asian country.
The festival following a four-year hiatus will return to its prime with many events consisting of cultural diversity of Sri Lanka, said President of the Sri Lanka Japan Business Association Jagath Ramanayake.
The ‘Sri Lanka Festival’ will feature traditional Sri Lankan dancing and music, with Sri Lankan cuisine along with the serving of king coconut juice exclusively imported from Sri Lanka itself, to fill the mouths of the participants, according to Sri Lanka Society in Japan Chief Anil Priyantha Gamaethige.
The event is being fully sanctioned by the Sri Lankan Embassy in Japan, with support being extended by the Vehicle Importers Association in Japan, Association of Sri Lankan Scholars, Sri Lanka Association, and Sri Lanka Students’ Association, among others, the organisational committee of the ‘Sri Lanka Festival’ said.
All cultural events, including dancing and music, will be performed by Sri Lankan children living in Japan.
Currently, about four hundred thousand Sri Lankans are living in Japan, and about twelve Theravada Buddhist Temples have been established in the country.
June 11, Colombo (LNW): Sri Lanka‘s new company registrations including the partnership business with foreigners have been increased considerably since 2022 up to now even after economic crisis left deep scars among prospective entrepreneurs struggling to find access to capital, official data shows.
The trend of increasing foreign partnership companies even during the period of recession was due to the practice of selling land and property to foreigners by interested parties taking advantage of the 2018 amendment to the Restriction on Alienation of Land Act No. 38 of 2014, several private enterprise associations alleged.
The companies with foreign shareholders have been registered through the company registrar with Board of Directors appointed, a senior finance ministry official said adding that both local and foreign private sector would be able to buy shares.
Foreigners holding over 49 percent shares of companies can own the freehold of any property where the individual proprietors benefit from shared facilities – this includes, apartment blocks, resort developments and condominiums
For all other properties – lands, villas, hotels – foreigners can hold a 99 year lease in their own name, or buy through a minority owned company with a local majority shareholder, he added.
1,995 new companies have been set up in in January 2024, on top of 4,500 companies registered in 2023 despite the gravest economic crisis in the country’s history, according to statistics of the company registrar department.
The number of registration of companies has risen to 22,376 in 2023 from 17.819 in 2022 at a time where 204,100 factories have been permanently closed and 59,100 factories have been temporarily closed, department of census and statistics revealed.
The Department of Registrar of Companies is strictly monitoring the companies registered with the department to prevent operating of shadow or dud companies, Registrar General of Companies Sanjeewa Dissanayake told the Business Times.
He noted that the department has posted a revenue of over Rs 1 billion last year from company registrations and the officials keep a close tab on the process of filing annual reports and financial statements of companies.
The company registrations are being done under Sole Proprietorship, Partnership, Private Limited Company,. Public Limited Company and Company Limited Guarantee.
However he noted that he cannot comment on the breakdown of a particular category and the intentions of entrepreneurs setting up of new companies.
Vice President, of Sri Lankan Micro Small and Medium Chamber of Commerce Mahendra Perera told the Business Times that starting a new genuine business under the present economic situation was impossible.
The sustenance of new ventures cannot be guaranteed as the prospective entrepreneurs are suffering from economic hard ships, high electricity bill coupled with production costs and unbearable taxes, he said.
However he noted that new companies are coming up with foreign partnership with local proprietors aiming to earn money by selling property at high prices to foreigners making use of the ease in regulations.
He claimed that no one will form a new company except persons with hidden agenda at a time where 204,100 factories have been permanently closed and 59,100 factories (have been temporarily closed.
June 11, Colombo (LNW): The Sri Lankan Rupee after a short hiatus continued its trend of depreciation against the US Dollar today (11) in comparison to yesterday at leading commercial banks in the country.
At Peoples Bank, the buying price of the US Dollar has increased to Rs. 297.63 from Rs. 297.14, and the selling price to Rs. 307.71 from Rs. 307.20.
At Commercial Bank, the buying and selling prices of the US Dollar remain unchanged at Rs 296.58 and Rs. 306.75, respectively.
At Sampath Bank, the buying price of the US Dollar has increased to Rs. 298.50 from Rs. 298, and the selling price to Rs. 307.50 from Rs. 307.
