May 28, Colombo (LNW): The Ceylon Electricity Board (CEB) has partially settled its outstanding dues to West Coast Power (Pvt.) Ltd by divesting a 28 per cent shareholding in LTL Holdings (Pvt.) Ltd., reports claimed.
According to a recent disclosure to the Colombo Stock Exchange, the CEB transferred the shares on 7 February 2024, for a total consideration of over Rs. 26 billion (Rs. 26,081,160,000).
This transaction was carried out under Section 8.2 of the Listing Rules of the Colombo Stock Exchange.
As a result of this share transfer, the CEB’s stake in LTL Holdings (Pvt.) Ltd has now been reduced to 35 per cent.
May 28, Colombo (LNW): Alawathugoda Police have apprehended eight individuals in connection with a drug trafficking operation.
Among those arrested are an employee of the Excise Department and a person purportedly serving as a manager at a private bank, according to Police.
The arrests led to the seizure of various drugs, including heroin, crystal methamphetamine (‘Ice’), and cannabis, along with a digital scale and approximately Rs. 10,000 in cash.
The court has authorised the detention and questioning of the Excise Department employee and the private bank manager until May 29.
The suspects were apprehended following information obtained from an individual previously arrested by Alawathugoda Police for heroin distribution.
May 28, Colombo (LNW): The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) at their current levels of 8.50 per cent and 9.50 per cent, respectively.
This decision, made during the Board’s meeting on 27 May 2024, follows a comprehensive assessment of current and projected macroeconomic developments and potential risks both domestically and globally.
The Board aims to maintain inflation at the targeted level of 5 per cent over the medium term while supporting the economy to achieve its potential, according to their statement.
Despite the stability in the medium-term inflation outlook and well-anchored inflation expectations, the Board recognised the necessity for a further reduction in market lending interest rates.
This alignment with policy interest rates and other benchmark rates is crucial for easing domestic monetary conditions and fostering economic recovery.
However, this decision comes against a backdrop of the government’s ongoing struggle to effectively address the economic crisis.
The failure to implement robust recovery measures has left the economy in a fragile state, further underscoring the need for a reduction in lending rates to stimulate domestic economic activity.
May 28, Colombo (LNW): The deadline for applications for the 2024/2025 scholarship programme, jointly offered by the Sri Lanka Telecommunication Regulatory Commission (TRCSL) and the President’s Fund for students studying Information and Communication Technology at the G.C.E Advanced Level, has been extended to 7th June 2024.
Given the urgency of awarding these scholarships, students who meet the qualifications are advised to complete their applications meticulously, said the Presidential Media Division (PMD).
Applications must be endorsed by the Grama Seva Officer, Divisional Secretary, class teacher, school principal, and zonal director.
Completed applications should be sent by registered post to the Secretary, President’s Fund, No. 35, 3rd Floor, Lakehouse Building, DR Wijewardena Mawatha, Colombo 10, before the new deadline.
The scholarship programme name and the educational zone to which the school belongs should be clearly indicated on the top left corner of the envelope.
The original deadline for applications was 22nd May. However, due to numerous requests from students who encountered administrative difficulties and adverse weather conditions, the deadline has been extended.
May 28, Colombo (LNW): Sri Lanka aims to enhance collaboration with Saudi Arabia in tourism, labour, and renewable energy to align with Saudi Arabia’s Vision 2030, Arab News reported, citing comments from the island nation’s newly appointed ambassador in Riyadh, Omar Lebbe Ameer Ajwad.
Ajwad, a seasoned diplomat with 26 years of experience, previously served as ambassador in Oman and Yemen, as well as acting high commissioner in Singapore and deputy high commissioner in Chennai, India.
One of his early roles was deputy chief of mission at the Sri Lankan Embassy in Riyadh.
Ajwad expressed his support for Saudi Arabia’s Vision 2030 and highlighted Sri Lanka’s intention to contribute to the Kingdom’s transformative and diversification efforts.
“Sri Lanka seeks to partner with Saudi Arabia in this transformative journey. My primary focus will be on promoting economic diplomacy,” he said.
Celebrating 50 years of diplomatic relations this year, both nations are positioned for greater connectivity and deeper economic cooperation.
Ajwad emphasised the potential for collaboration in key sectors identified in Saudi Arabia’s diversification plans, such as tourism, transportation, logistics, and renewable energy.
Sri Lanka aims to engage with Saudi megaprojects like the NEOM smart city. Ajwad noted that Sri Lankan workers could support various aspects of NEOM’s construction, engineering, and service industries, particularly in renewable energy, agriculture, and IT development.
Saudi Arabia remains a significant destination for Sri Lankan workers, contributing substantially to foreign remittances for Colombo. Ajwad highlighted Sri Lanka’s expertise in sustainable and eco-tourism, which could benefit NEOM’s hospitality sector.
To foster stronger ties, Ajwad plans to enhance engagements between Saudi and Sri Lankan public and private sectors through political consultations and the establishment of a bilateral business council.
He believes these platforms will facilitate information flow, networking, and follow-up, promoting greater cooperation between the two countries.
May 28, Colombo (LNW): The prevailing showery and windy conditions are expected to continue further, due to the active South West Monsoonal condition.
Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central, North-western and Southern provinces.
Heavy showers above 100 mm are likely at some places in Western and Sabaragamuwa province and in Nuwara-Eliya district.
Showers or thundershowers will occur at several places in Uva province and in Ampara and Batticaloa districts in the evening or night.
Strong winds of about (50-60) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Western, Southern and North-western provinces and in Trincomalee and Monaragala districts.
Marine Weather:
The sea areas around the island will be very rough due to the active south-west monsoonal condition. Naval and fishing communities are advised not to venture into the sea areas around the island, until further notice.
Condition of Rain:
Showers or thundershowers will occur at times in the sea areas extending from Puttalam to Hambantota via Colombo and Galle.
Winds:
Winds will be south-westerly in the sea areas around the island. Wind speed will be (40-50) kmph and wind speed may increase up to (60-70) kmph at times.
State of Sea:
The sea areas around the island will be very rough at times The swell waves (about 2.5–3.0 m) height (this is not for land area) may increase in the sea areas off the coast extending from Kalpitiya to Pottuvil via Colombo, Galle, and Hambantota. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
There is a possibility that near shore sea areas off the coast extending from Kalpitiya to Matara via, Colombo and Galle may experience surges due to swell waves.
Naval and fishing communities are also requested to be attentive to future forecasts issued by the Department in this regard.
Meanwhile, the cyclonic storm known as “Remal” located over the North Bay of Bengal and adjoining West Bengal (India) has made landfall crossing the same coast during the morning yesterday (27).
However, very strong winds (60-70) kmph, accompanied with heavy rainfalls and very rough seas are likely to continue further over the sea areas around the island, Arabian Sea areas and Bay of Bengal Sea areas due to the active south-west monsoonal condition.
Naval and fishing communities are advised not to venture into the sea areas marked by RED colour on the map above until further notice.
Actions Required:
Those who are out at aforementioned sea regions are advised to return to coasts or moved safer areas immediately.
Fishing and naval community are requested to be attentive to future forecasts issued by the Department of Meteorology in this regard.
Strong winds of about (50-60) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central, Western, Southern and North-western provinces and in Trincomalee and Monaragala district, due to the increase of south-west monsoonal wind flow over the island.
Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island.
May 27, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates slight depreciation against the US Dollar today (27) in comparison to last week, as per leading commercial banks in the country.
According to Peoples Bank, the buying price of the US Dollar has increased to Rs. 294.59 from Rs. 294.24, and the selling price to Rs. 304.56. from Rs. 304.20.
At Commercial Bank, the buying and selling prices of the US Dollar have increased to Rs. 293.58 from Rs. 293.33, and to Rs. 303.75 from Rs. 303.50, respectively.
At Sampath Bank, the buying price of the US Dollar has increased to Rs. 295.50 from Rs. 295, and the selling price to Rs. 304.50 from Rs. 304.
May 27, Colombo (LNW): President Ranil Wickremesinghe states that the initiative of integrating the global ‘Starlink’ network with Sri Lanka aims to address the Wi-Fi connectivity issues, particularly in areas outside Colombo.
President Wickremesinghe expressed that during his recent discussion with tech billionaire Elon Musk regarding the matter, the potential of solar energy and other renewable energy sources available in the country were also explored.
Meanwhile, the President said he extended an invitation for Musk to collaborate on significant projects in Sri Lanka.
Furthermore, he revealed that the Telecommunication Regulatory Commission of Sri Lanka (TRCSL) has been tasked with assessing the ‘Starlink’ network, with most of the preliminary work already completed.
“We are awaiting feedback from the Ministry of Defence to proceed with approval”, he added.
President Wickremesinghe met with billionaire investor Elon Musk on the sidelines of the 10th World Water Forum High-Level Meeting being held in Indonesia on May 19, during which they have discussed the implementation of ‘Starlink’ in Sri Lanka.
Musk was in Indonesia’s resort island of Bali to launch Starlink satellite internet service in the world’s largest archipelago nation.
The billionaire head of Tesla and SpaceX and owner of social platform X had launched the service alongside Indonesian President Joko Widodo in a ceremony at a public health clinic in Denpasar, the provincial capital of Bali.
Preliminary engagement was initiated with SpaceX in exploring the introduction of Starlink Internet Services in Sri Lanka, the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) said today.
The first round of discussions focused on regulatory aspects and prerequisites of initiating the service in the near future for Sri Lanka, the national agency said.
The announcement came in the wake of SpaceX is expanding the beta test of its Starlink satellite internet service, sending emails on Monday to people who expressed interest in signing up for the service, CNBC reported.
Called the “Better Than Nothing Beta” test, according to multiple screenshots of the email seen by CNBC, initial Starlink service is priced at $99 a month — plus a $499 upfront cost to order the Starlink Kit.
That kit includes a user terminal to connect to the satellites, a mounting tripod and a Wi-Fi router. There is also now a Starlink app listed by SpaceX on the Google Play and Apple iOS app stores.
May 27, Colombo (LNW): The government is set to enact new Public Procurement Law to end the practice of accepting unsolicited proposals without competing bids continues and there is a lack of clarity in the government procurement which leads to reports of large-scale corruption, official sources said.
Many government purchases are made by public tenders, usually advertised in the local media and increasingly through government websites.
The government has publicly committed to follow international government procurement standards but often implementation of international procurement standards is weak, especially for projects and goods not funded through international financial institutions.
Well-informed local agents can be the key to winning these tenders, though even the most connected local firms have trouble navigating the labyrinth of the government-tender process.
Local agents also often represent more than one foreign supplier, so when they encounter difficulties, including charges of possible corruption, they are reluctant to voice concerns fearing it will jeopardize other business interests. It can sometimes be difficult to get an objective appraisal from local agents.
Sri Lanka’s current public procurement system based on comprehensive National Procurement Guidelines issued in 2006/7 is being replaced by a new Public Procurement Law in December 2024, public finance department sources proclaimed.
The country currently lacks a formal legislative basis for procurement. All government procurement are being carried out in accordance with Cabinet approved guidelines.
The Procurement Guidelines 2006, sets out various procurement methods, bidding procedures, and rules for awarding contracts.
The proposed law is aimed at enhancing the effectiveness, efficiency and transparency in the public procurement system making it more accountable, streamlined and cost effective, a high official of the department said.
This will be a fulfillment of International Monetary Fund conditions under its public reforms and management of public resources.
The government authorities recognise that public procurement remains an area of governance weakness, with associated corruption vulnerabilities, despite attempts to improve its effectiveness.
The reports of the Finance Ministry, the Auditor-General’s Department, and the Department of Management of Audit have indicated procurement malpractices and corruption that have led to inefficiencies and waste of scarce state resources.
These reports have identified issues including lack of procurement planning, not using relevant procurement procedures stipulated by the Procurement Guidelines, inadequate competitiveness in the selection procedure, accepting unsolicited proposals for high value projects.
The other short comings were poor contract management, lack of knowledge and capacity of the officials in procurement, poor monitoring and weak external oversight, and the incomplete coverage of independent complaints mechanisms.
A regulatory body will be established under the new law with necessary authority and competency for the modernisation of the legal framework, public finance department high official disclosed.
Necessary action will be taken to design and operate a designated website containing information on al public procurement contracts above Rs 1 billion while updating it in every 6 months.
A list of contracts above a designated threshold that were assigned without a competitive tendering process will be published in the web site Information is to be updated every 6 months.
All public procurement transactions will be carried out under an e-Government Procurement System by the end of 2025 in accordance with recommendations made by the IMF, he said.
May 27, Colombo (LNW): The plan to lift the ban on motor vehicle imports next year relies on recommendations from a committee of Treasury officials aiming to meet revenue targets set by the IMF.
The committee emphasizes that without allowing vehicle imports, hitting these targets would be difficult. President Ranil Wickremesinghe, also the Finance Minister, will review these recommendations before making a final decision.
The urgency arises from the understanding that controlling the US dollar rate for an extended period isn’t feasible. Additionally, the committee considers the IMF’s higher revenue targets for the next year.
While specifics like which vehicles to import and their manufacturing years are still undecided, the goal is clear: to boost revenue.
Already, 1,000 vehicles, including coaches and vans, have been allowed for the tourism sector, showing a gradual relaxation of restrictions.
The substantial increase in foreign reserves, from $431 million to $4,951 million in March, supports the case for lifting the ban. Despite an expected annual loss of up to $800 million, the projected tax revenue of Rs 340 billion helps meet local revenue targets.
The Government is also planning to pass a law implementing vehicle import standards to prevent malpractices and irregularities in the current process before removing the present restrictions finance ministry sources said.
The state authorizes are compelled to take this decision in the wake of directives issued by a parliamentary committee on present scheme of importing e-vehicles for foreign expatriate workers.
The gradual increase in dollar reserves and the rise in the value of the rupee will allow the import of vehicles at least by next year, Finance State Minister Ranjith Siyambalapitiya said.
The committee appointed to carry out a comprehensive study to systematically remove restrictions on the import of vehicles has already made its recommendations, he added.
Cabinet of ministers have recently approved the extension of an electrical vehicle import license scheme, for Sri Lankan expatriates, till June 30.
The Chairman of the Committee on Public Finance Dr. Harsha de Silva noted that there is no transparency in the scheme of providing fully electric vehicle licenses to Sri Lankans working abroad.The committee also stated that through this, vehicles with a tax relief amounting to Rs. 100 million have been imported. It was disclosed that 1,019 licenses have been granted so far and $109.8 million remittances have been received through this.
