September 04, Colombo (LNW): The Sri Lanka Gem and Jewellery Association (SLGJA), the leading body for the country’s gem and jewellery sector, has urged the government to take decisive actions to elevate the industry to new heights. 

Established in 2002, the SLGJA aims to position Sri Lanka as the “Sapphire Capital” of the world, where 80% of globally mined sapphires are processed locally, and more than half of the world’s sapphire jewellery is manufactured in the country.

In its recent appeal, the SLGJA highlighted the potential for the gem and jewellery sector to become a multi-billion-dollar industry, driving inclusive economic growth and sustainability in Sri Lanka. 

To achieve this, the association emphasized the need to improve the ease of doing business to attract raw materials, investments, and international branding opportunities.

The SLGJA outlined four strategic priorities: supply development, manufacturing development, market development, and investment promotion. 

A key aspect of this strategy is ensuring the free flow of raw materials at competitive costs, enabling the growth of a vibrant, value-added industry. Sri Lanka’s rich history as a top producer of high-quality sapphires provides a strong foundation for this vision. 

The SLGJA also recommended conducting a gem deposit survey using digital geoscience technologies to identify and systematically mine accessible gem deposits.

To streamline the industry, the association proposed digitizing the gem mining license application process and implementing a one-stop-shop concept for approvals, reducing delays and minimizing corruption.

Additionally, the SLGJA called for the development of sustainable mining standards to ensure safety, environmental protection, and land restoration for agriculture after mining activities.

The SLGJA advocated for several tax reforms to support the industry, including duty-free importation of worked and unworked gemstones, precious metals, and machinery essential for gem and jewellery production. 

It also emphasized the importance of establishing a robust traceability system to prevent the diversion of imported materials into grey markets.

To enhance Sri Lanka’s reputation in gem cutting and jewellery manufacturing, the SLGJA suggested establishing a world-class training school and encouraging the adoption of advanced technologies like 3D printing and artificial intelligence. Collaborations with universities and the establishment of international gem testing laboratories in Sri Lanka were also recommended.

In terms of market development, the SLGJA highlighted the importance of negotiating tax-free access to China and India, two emerging markets, and establishing a VAT refund mechanism for non-residents. The registration of a Geographical Indication for Ceylon Sapphire with the World Trade Organization (WTO) was also suggested to secure premium value for Sri Lankan gemstones.

 Finally, the SLGJA called for an international marketing campaign to enhance the brand image of Ceylon Sapphire and increase global demand by developing an “Ethical Sri Lanka Sapphire Standard” to boost consumer confidence and appeal. These strategic reforms are seen as crucial steps towards unlocking the full potential of Sri Lanka’s gem and jewellery industry

September 04, Colombo (LNW): LTL Holdings Limited, a leading power sector conglomerate in Sri Lanka with over 40 years of experience, has announced its plans to launch the largest Initial Public Offering (IPO) in the history of the Colombo Stock Exchange (CSE). 

The company plans to offer 1,379,310,400 new ordinary voting shares at LKR 14.50 per share, aiming to raise LKR 16 billion, with the possibility of increasing to LKR 20 billion through a greenshoe option. This IPO, opening on September 10, 2024, will make up to 22.3% of LTL’s shares available to the public.

The funds raised from the IPO will primarily support two major projects. LKR 13.5 billion will be used to partially finance a 350 MW combined cycle power plant in Kerawalapitiya, which will be Sri Lanka’s second LNG-powered facility.

 Additionally, LKR 6 billion will be allocated to acquire a 50% equity stake in the 100 MW Siyambalanduwa Solar Power Project. These initiatives underscore LTL’s commitment to cleaner energy and mark a significant step in the company’s growth strategy.

LTL operates across various sectors, including power generation, engineering services, and manufacturing of power distribution equipment. 

The company has 894 MW of existing power generation capacity across Sri Lanka, Bangladesh, and Nepal, with plans to surpass 1,000 MW, making it the largest Independent Power Producer (IPP) listed on the CSE.

 LTL also holds a dominant position in transformer manufacturing and galvanizing, with a strong export presence in over 30 countries, particularly in South Asia and Africa.

LTL’s future plans include expanding its power generation projects, enhancing manufacturing facilities abroad, and exploring opportunities in LNG infrastructure. 

The company’s current shareholders include the Ceylon Electricity Board (CEB), West Coast Power (Pvt) Ltd, Teckpro Investment Limited, and Peradev Limited. LTL’s Board of Directors comprises experts from various fields, contributing to its robust governance.

Financially, LTL has demonstrated strong performance, with consolidated revenue of Rs. 59.8 billion and a profit after tax of Rs. 5.8 billion for the financial year ending March 31, 2024.

 Seventy percent of the company’s revenue is linked to foreign currency, highlighting its international reach. 

The company’s total assets and equity stood at Rs. 133.6 billion and Rs. 74.4 billion, respectively, as of March 2024. With a 5-year average profit after tax margin of 35% and a return on equity of 27%, LTL is well-positioned to benefit from emerging energy trends both in Sri Lanka and globally.

The IPO is managed by NDB Investment Bank Limited and CT CLSA Capital (Private) Limited, with F J & G de Saram serving as legal advisors, SSP Corporate Services (Private) Limited as registrars, and Hatton National Bank PLC and Sampath Bank PLC as the bankers for the issue.

September 04, Colombo (LNW): Sri Lanka’s Inland Revenue Department (IRD) has made significant strides in tax collection and compliance by the end of June 2024. 

The IRD collected 55% of defaulted taxes, amounting to Rs. 104 billion, from a total of Rs. 188 billion owed outside the appeals process as of 2023. Additionally, the IRD surpassed its target by collecting Rs. 902 billion in the first half of 2024, exceeding the goal of Rs. 826 billion.

The Ministry of Finance announced that while Rs. 1,066 billion in taxes were defaulted by the end of 2023, Rs. 878 billion of these are still in various stages of the appeals process. 

To expedite the collection of these taxes, judicial reforms are being implemented, focusing on making the appeals process more efficient. 

The Treasury emphasized that Sri Lanka’s democratic system ensures checks and balances, allowing citizens to appeal tax assessments they find unfair. 

The government acknowledges the necessity for a faster appeals process but rejects the idea of bypassing due process to collect taxes unilaterally.

In a broader effort to ensure tax fairness, the IRD launched the High Wealth Individuals Unit (HWIU) on March 7, 2024. 

This specialized unit within the Large Taxpayer Office is designed to enhance tax compliance among the country’s wealthiest individuals and associated entities, such as corporations, private trusts, and family members.

 The goal is to ensure that high wealth individuals (HWIs) contribute their fair share to the country’s revenue.

The HWIU’s scrutiny is not just limited to HWIs but extends to their related groups to ensure a comprehensive assessment of their tax obligations.

 HWIs are advised to review their tax filings meticulously, especially for complex and offshore investments, to avoid any compliance issues. Professional tax advice is recommended for navigating the complexities of tax legislation.

The IRD has identified higher-risk cases based on complex financial arrangements and offshore investments, which are more susceptible to tax evasion and avoidance. 

Despite public concerns about potential political influence, the IRD has assured that the HWIU operates impartially, without political interference, ensuring fairness and integrity in the tax system.

The establishment of the HWIU and the IRD’s focus on tax compliance among high wealth individuals are crucial steps towards creating a more equitable tax system in Sri Lanka. 

By promoting transparency and adherence to tax laws, these initiatives are expected to enhance government revenue for socio-economic development while building trust in the integrity of the tax system.

September 04, Colombo (LNW): The postal voting process for the upcoming presidential election will officially begin today, as announced by the Election Commission. Voting will continue over the next two days, with more than 1,500 centers established across the country to facilitate the process.

From 8:30 AM to 4:30 PM, government institutions will host postal voting centers to provide eligible voters an opportunity to cast their ballots. For those unable to vote today or tomorrow, additional opportunities will be available on the 11th and 12th of this month at district election offices corresponding to their workplace locations.

The Election Commission has specified that public servants directly involved in the election process, including those at district secretariats and the Election Commission, can cast their postal votes today. This provision extends to personnel from Senior Deputy and DIG Offices, Superintendent of Police and Assistant Superintendent of Police offices, police stations, Special Task Force camps, special police units, and VIP security divisions, who are allowed to vote today and tomorrow.

Furthermore, postal voters from the three armed forces and other government institutions will have the opportunity to vote tomorrow and the day after. This year, a total of 712,319 government employees are eligible for postal voting.

To ensure the security of the postal polling stations, a special security program has been put in place, as confirmed by Police Spokesperson DIG Nihal Talduwa.

September 04, Colombo (LNW): Election observers have announced the launch of a special program aimed at monitoring the postal voting process for the upcoming presidential election, with a focus on ensuring transparency and integrity throughout the voting period.

Rohana Hettaarachchi, Executive Director of the People’s Action for Free and Fair Elections (PAFFREL), stated that over 900 observers will be deployed to oversee the postal voting process. Additionally, Manjula Gajanayake, Executive Director of the Institute of Democratic Reforms and Electoral Studies, confirmed that mobile teams have been dispatched to monitor postal voting activities across various regions.

This initiative is part of broader efforts to maintain fairness and credibility in the election process.

September 04, Colombo (LNW): Independent Presidential Candidate and current President Ranil Wickremesinghe has called on the Samagi Jana Balawegaya (SJB) and the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) to remove proposals related to increasing public sector salaries from their election manifestos, asserting that this work has already been accomplished.

Speaking at a recent event, President Wickremesinghe highlighted that two years ago, many would not have believed he could announce a public sector wage increase. He emphasized that unlike other leaders who make promises on stage, he consistently fulfills his commitments.

The President also underscored the tough decisions he and his team had to make to stabilize the country’s economy and protect the rupee. “Had we not taken those steps, we would be in a much worse situation today, similar to what Greece faced,” he stated. He further noted that his administration implemented a relief program in 2023 to support the people and increased allowances for government employees in 2024 to help them better cope with the rising cost of living.