In a significant development, Sri Lanka’s Cabinet has given the green light for the establishment of the Sri Lanka Economic Commission and the drafting of the Sri Lanka New Investment Act, as announced by Cabinet Spokesman and Mass Media Minister Dr. Bandula Gunawardhana during the weekly Cabinet media briefing held at the Government Information Department.
The decision to merge the Investment Board and the Export Development Board was reached in a Cabinet meeting held on January 16, with the primary goal of creating a more conducive environment for investment and export promotion. A supervisory committee on exports and investments, comprising experts in relevant fields, has been formed under the President’s Office to oversee and implement the necessary measures to achieve this objective.
Minister Gunawardhana highlighted that historically, Sri Lanka has attracted relatively low Foreign Direct Investment (FDI) per year, while neighboring countries have been successful in attracting substantial FDI ranging from 80 billion to 200 billion US dollars annually. Recognizing the importance of bolstering investment and export promotion, President Ranil Wickremesinghe’s proposal to introduce a comprehensive institutional plan for these purposes and the establishment of the Sri Lanka Economic Commission has been unanimously approved by the Cabinet.
Addressing a media briefing held at the Presidential Media Centre (PMC) yesterday (07), under the theme ‘Collective path to a stable country,’ Member of Parliament Mr. Wajira Abeywardena articulated the importance of fostering unity and supporting the country’s comprehensive development program. He emphasized that President Ranil Wickremesinghe has launched an official initiative to bolster both the 1.6 million public sector employees and the 8 million private sector employees, with a focus on advancing the nation’s economic well-being.
Mr. Abeywardena underscored the potential benefits of this program, emphasizing that its success, under President Wickremesinghe’s leadership, can lead to future reductions in the prices of essential commodities such as electricity, gas and fuel, ultimately contributing to a more prosperous and stable economy for the citizens.
Mr. Abeywardena went on to provide a more in-depth analysis of the nation’s economic trajectory. He emphasized that aligning the state’s budget with its financial apparatus should primarily address the path to recovery for a country that had faced bankruptcy. He pointed out that the economic crisis had intensified after a regime change in 2019, marked by a shift in tax policy that led to a rapid erosion of government revenue. In response, the government resorted to printing money through the central bank, leading to a surge in inflation.
The nation’s economy suffered a significant setback and ultimately declared bankruptcy, but President Ranil Wickremesinghe assumed leadership and garnered the trust of crucial stakeholders, including international financial institutions such as the International Monetary Fund (IMF), the World Bank (WB) and the Asian Development Bank (ADB). Consequently, the country’s economic revival is well underway.
Mr. Wickremesinghe’s prior role as Prime Minister from 2001 to 2003 played a pivotal role in rebuilding the nation. However, this era came to an end on April 10, 2004 and by 2014, the country was once again on the brink of financial collapse. The subsequent economic recovery took place in 2015 under his leadership, with government employees receiving substantial salary increases and both the public and private sectors being reinforced to establish the essential foundations for economic stability.
Regrettably, in 2020, the government that implemented these reforms was overthrown by a coalition of government employees and the public, resulting in a period of instability.
Against the backdrop of the nation’s on-going economic crisis and its successful efforts to navigate this challenge, Mr. Abeywardena cautioned against initiating strikes. Such actions, often accompanied by demonstrations and slogans, can harm the nation’s international reputation and deter potential tourists. In light of the present situation, Mr. Abeywardena stressed the necessity for government trade unions to adopt new and more effective strategies rather than relying on traditional strike practices, as these may not yield the desired results.
Significant changes have already been introduced through new rules and regulations, addressing existing deficiencies, strengthening various sectors and responding to the demands of the public. Additionally, steps are being taken to ensure that political parties refrain from making unwarranted promises.
President Ranil Wickremesinghe has also announced plans to increase the salaries of 1.6 million government employees in this year’s budget, with similar adjustments in the private sector. President Wickremesinghe’s formal program aims to fortify both the public and private sectors, which together employ millions of individuals.
The success of this program is expected to result in a tangible reduction in the prices of essential commodities, including electricity, gas and fuel, fostering a more stable and comfortable economic environment for the population.
In light of the severe economic crisis facing the nation, the call to action is for the public sector and the entire population to comprehend the present situation and wholeheartedly engage in the nation’s development over the next 5 to 10 years.
It’s worth noting that the current government is taking measures to safeguard the functioning of the entire state machinery. President Wickremesinghe has outlined plans to attract 10 million tourists in the coming year as a means to alleviate the substantial debt burden. To achieve this goal, efforts are underway to enhance facilities for tourists and demonstrate political stability.
In a forward-looking move, President Wickremesinghe has established a “National Council” in the Parliament, providing a platform for all individuals to present national concerns and encouraging a more inclusive and innovative approach to politics. This signals a departure from conventional political methods, emphasizing the need for fresh ideas and approaches to address the nation’s challenges. All political parties and civil society groups are invited to submit their proposals in addition to the existing program.
Divisional Secretaries’ Union agrees to support continuation of Aswasuma Welfare Program Each village will have a dedicated officer.
Chairman of the Welfare Benefits Board, Mr. Jayantha Wijeratne, revealed that the Union of Sri Lanka Divisional Secretaries has agreed to support the continued implementation of Aswasuma welfare benefits program during a meeting that took place yesterday (07) at the Presidential Secretariat.
The meeting was attended by key dignitaries, including Minister of State for Finance Shehan Semasinghe, President’s Senior Adviser on National Security and Chief of Presidential Staff Sagala Ratnayaka, as well as President’s Secretary Saman Ekanayake and a team of officials from the Ministry of Public Administration
A key component of the decision includes the appointment of dedicated officers at the village level to ensure the efficient and formal execution of the Aswasuma welfare program. This move aims to enhance the program’s delivery and impact.
Additionally, Mr. Wijeratne, addressed the existing technical challenges facing the Aswasuma welfare program, assuring that prompt solutions will be implemented to facilitate its continued progress.
The Aswasuma welfare benefit program, which is being carried out under the provisions of the Welfare Benefits Act No. 24 of 2002, and subsequent amendments, was approved by the Cabinet on December 15, 2022. The program, as detailed in Special Gazette No. 2302/23 dated October 20, 2022, encompasses welfare benefit payments across four social categories: transitional, vulnerable, poor, and extremely poor. Moreover, it extends financial support and allowances to individuals with disabilities, the elderly, and kidney patients.
Colombo (LNW): Veteran lawyer, Attorney-at-Law Priyadarshani Fernandopulle, beloved wife of Mr. Nishendra Ekanayake, beloved sister of Mr. Fecilian Fernandopulle, and late Mr. Jeyaraj Fernandopulle, and beloved sister-in-law of Mrs. Anoma Fernandopulle, has passed away.
As LNW, we wish to add our deep condolences and deeply regret the demise of Mrs. Fernandopulle, who was our friend.
The funeral arrangements will be carried out in Melbourne, Australia.
With regard to the budget allocation for the Ministry of Education in 2024, Minister of Higher Education Mr. Susil Premajayath announced that it has been planned to allocate a sum of Rs. 237 billion to the Ministry of Education’s budget for the year 2024.
This amount specifically pertains to education-related capital and recurring expenses in the nine provinces. The Cabinet has already approved the policy framework for education reforms, which we will present in Parliament after receiving sectoral parliamentary approval. This initiative aims to establish a stable education policy that endures across different governments and ministers. It will drive reforms in four key areas, focusing on transitioning from an exam-centric system to a more diversified and inclusive classroom assessment. The ultimate goal is to provide quality education to both students and educators.
The Minister stated that the upcoming academic year will commence on February 19, 2024, marking the initiation of the first school term. He emphasized that the curriculum spanning from the first to the eleventh year will be completed within the same academic year.
Addressing the press conference held at the Presidential Media Centre yesterday (6), held under the theme ‘Collective path to a stable country,’ Minister Susil Premajayanth shared further insights:
“Due to certain delays in the country, the school year began on March 27, 2023. We have taken measures to prevent such delays, enabling the start of the new school term on February 19, 2024. Our objective is to ensure the full completion of the curriculum from the first year to the eleventh year within the same academic year, allowing us to conduct the 2025 school year without disruptions.”
“We have also made arrangements to conduct Advanced-Level Examinations. Although there have been some professional challenges, we have managed to maintain the examination schedules, ensuring timely examinations. We are also prepared to release the results of the Ordinary Level Examinations conducted in the third week of this month. Despite the on-going circumstances, we are determined to manage time efficiently and conduct exams as scheduled.
When we assumed office, there were 808 vacant positions. The Treasury approved the recruitment of 50% of these vacancies. As the examinations have been completed, we are actively preparing for interviews and recruitment. Furthermore, approval has been granted for 707 teacher education service positions and we are working towards their immediate appointment. This move aims to provide training for teachers across 19 faculties. Our goal is to fill all teaching service vacancies before the upcoming school term.
The Minister also addressed the challenges encountered regarding the appointment of teachers and development officers as graduates:
A group of individuals took the matter to court when we were ready to hire teachers and development officers as graduates. As a temporary solution, provincial-level vacancies for retired dignitaries and teachers who have left service have been approved and recruitment is underway to address the needs of all provinces.
In an effort to bolster education in specific subjects, the Treasury approved the recruitment of 5,450 personnel for science, mathematics, English, foreign languages and technology subjects. These recruitments are being conducted at the provincial level and the gazette notification for national schools is scheduled for release this week.
Minister Premajayanth also revealed plans for textbook distribution, school uniforms and meal provisions, Preparations and distribution of textbooks for the year 2024 are completed, with 80% of school uniform work finalized. Beginning next year, the government is planning to provide meals to all school students, with the aspiration of offering lunch to every school child by 2030. Several programs, in collaboration with the World Food Program, USAID and the private sector, are already underway to realize this goal.
In conclusion, the Senior Minister underscored the government’s commitment to providing professional training in skills and technology to students post-general and advanced level examinations. Selected schools will offer evening classes over a four-month period, focusing on guidance, English, information technology, or various other courses tailored to students’ preferences.”
The Consulate General of Sri Lanka in Milan hosted the first ever ‘Sri Lankan Festival in Milan’ at Parco Sempione, Milan, under the patronage of the Municipal Council of Milan and in collaboration with the Sri Lanka Tourism Promotion Bureau.
The event was a celebration of Sri Lankan heritage and culture, in the heart of Milan.
The festival welcomed a large number of visitors, including tour operators, media, professionals and general public, both Italians as well as Sri Lankan expatriates.
At the core of the Sri Lankan Festival was the mission to bridge cultures, promote the country among wider Italian community and create a platform for what the country has to offer to the world.
The festival shared the unique beauty and diversity of Sri Lanka with the visitors in a platter that offered an assortment of colors, sounds and flavors, offering a glimpse into the rich Sri Lankan culture and heritage.
The two-day festival’s highlights included cultural performances ranging from traditional dance to music; culinary delights featuring authentic Sri Lankan dishes; an art and photography exhibition, demonstration of traditional Ayurveda and wellness treatments, Ceylon Tea tasting, handicraft, batik and handloom craft section.
Sri Lanka also displayed precious and semi-precious gem stones; saree parade and fashion show, an enchanting traditional manor house furnished with antique Sri Lankan furniture, Sri Lanka tourism pavilion, a photo booth, exhibition and sale of Sri Lankan products; question and answer sessions with giveaways; and video presentations reflecting diverse aspects of the country.
In addition, an Italian author and an illustrator who published the book ‘Il ponte de Adamo’ (The bridge of Adam) on Sri Lanka in Italian language, shared their fond experiences in Sri Lanka.
An exhibition consisting of paintings of an Italian illustrator and a renowned Sri Lankan artist and photographs of an award-winning Sri Lankan photographer residing in Italy created a tapestry of splendors of Sri Lanka.
Five Sri Lankan Restaurants based in Milan demonstrated live cooking of a variety of Sri Lankan savory street food and sweet delights while the Consulate General office in Milan organized a stall for Ceylon Tea tasting and sampling with the courtesy of different private brands.
Ceylon Artisan Tea Association also availed of this event to promote their unique products. Sri Lankan origin children born in Italy were briefing the visitors on the difference between Ceylon cinnamon and Cassia and of other spices Sri Lanka produces at the kiosk designated for spices.
Sri Lanka began a fresh push to woo tourists by promoting MICE and hub tourism in the island nation to attract more travellers from Europe, Asia and the Pacific.
Tourism Minister Harin Fernando yesterday said the industry has managed to rebound with earnings nearing $ 1.6 billion along with the boost in arrivals in 2023.
“During the first 10 months of the year, earnings have totalled $ 1.59 billion. It is a 56% year-on-year (YoY) growth compared to the same period in 2022. October earnings stood at $ 136.70 million,” he added .
“We are confident that by the end of the year, tourism earnings will reach $ 2.5 billion,” he added.
His prediction of new resurgence in tourism cones at a time where Sri Lanka began another fresh push to attract tourists with a grand participation at the World Travel Market in London which kicked off yesterday.
Here Tourism Minister Harin Fernando, UK Duchess of Rutland Emma Manners, Sri Lanka’s High Commissioner Saroja Sirisena, and industry veteran Chandra Wickramasinghe cut the ribbon at the WTM Sri Lanka stand in London.
This year’s show saw over 75 Sri Lankan companies, hotels, and tour operators participating. The WTM concludes on Thursday
Meanwhile the Ministry of Tourism will take over the idling Hambantota Convention Centre and convert it to a major active conference and event hosting venue.
A hotel school too would be set up to accommodate around 400 students in this convention centre which will be a major feeder of youth for the growing human resources crisis in the hospitality sector.
Minister Fernando said that this would be the epicentre of the proposed Yala Tourism Hub program which will be initiated soon under a directive of President Ranil Wickremesinghe.
The Minister said that under the program upmarket hotels too would be invited to build hotels in the Deep South area moving up to the Embilipitiya area.
The convention project started in 2006 with Korean aid with an objective of ‘promoting balanced and comprehensive regional development through this Centre in Hambantota’ and has direct access to the southern expressway between Colombo and the other regions.
It also hosted the CHOGM youth conference. The Centre has a seating capacity of over 1,500, a banquet hall , adequate parking for nearly 1,000 vehicles, grand lobby and reception area, dining facilities, majestic kitchen, cafeteria and business and administration centre.
While issuing a public notice, the Central Bank of Sri Lanka (CBSL) announced that the license issued to Bimputh Finance PLC (BFP) to carry on finance business has been cancelled with effect from September 1, 2023.
The suspension of this finance company was taken in terms of Section 37 of the Finance Business Act No. 42 of 2011.
The CBSL said they will take steps to pay compensation to all insured depositors as per the provisions of the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) Regulation, No. 02 of 2021.
Therefore, all depositors are requested to submit the duly completed claim forms published in newspapers as specified, along with the required documents as given in the instructions for paying compensation.
Joint depositors are required to submit separate claim forms. Compensation payments for depositors will be directly credited to specified bank accounts through the Sri Lanka Inter Bank Payment System.
In terms of SLDILSS Regulations, insured depositors of BFP are required to submit their claims not later than two years starting from September 1, 2023, or before the appointment of the liquidator by a competent court in respect of the liquidation of BFP, whichever occurs earlier.
The claim form is available on the CBSL website, www.cbsl.gov.lk and copies of the same are available at the Head Office and Regional Offices of CBSL in Anuradhapura, Kilinochchi, Matale, Matara, Nuwara Eliya and Trincomalee.
Duly completed claim forms, along with the required documents, should either be hand delivered to the CBSL mail room or sent by registered post as early as possible. Please mention “BFP” on the top left-hand corner of the envelope.
Any further details can be obtained from the CBSL Head Office through the following telephone numbers: 0112-477261, 0112477276.
Bimputh Finance Plc, a non-micro-lender has been hit by price controls on microfinance.
Sri Lanka slapped across the board price controls on micro-loans which are costly to administer, instead punishing individual firms which were engaging in questionable practices including pushing loans to people who did not originally seek them.
“The contraction of Bimputh’s high-yield microfinance portfolio and regulatory interest-rate cap on microfinance lending continued to exert pressure on its net-interest margin,” finace ministry sources said.
A sharp deterioration in Bimputh’s capital position is no longer commensurate with its high-risk appetite,””This is due to the significant decline in asset quality and sustained fall in pre-impairment operating profitability.”
The central bank had already put a ceiling of 2.2 billion rupees on Bimputh until it can raise more capital.
The firm will need 1.35 billion rupees of capital to meet a 2.5 billion rupee regulatory requirement by 2021. It also had unprovisioned bad loans.
Sri Lanka’s leading blue chip Company John Keells Holdings has entered into an agreement with an international gaming operator recently to run a casino in the Cinnamon Life integrated resort in accordance with a plan initiated in 2014.
JKH’s 2014/15 Annual Report, former Chairman Susantha Ratnayake has assured shareholders that the Waterfront was to lease a 150,000 square foot area to conduct casino business.
This was a mere 3% of a total area of 4.5 million square feet of the constructed area, to an existing casino licence holder to operate in partnership with an international Gaming operator under strict gaming regulations consistent with the best in the world.
Waterfront Properties Ltd. did not intend to operate a casino nor did it intend to own a casino licence,” the former JKH Chief has said in his review in the Annual Report.
After allmost 9 years, John Keells Holdings recently said it has signed up an international gaming operator to run is casino in the Cinnamon Life integrated resort.
Waterfront Properties Ltd (WPL), the operating firm had entered into a memorandum of understanding with a ‘leading international gaming operator’, the firm said.
“This MOU consists of the framework for investing into and operating of a casino at the Cinnamon Life Integrated Resort as well as the commercial framework between the parties,” Chaiman Krishan Balendra told shareholders in interim accounts.,
“As originally envisaged, WPL will lease out space at the Cinnamon Life Integrated Resort for the operation of the casino.
On finalising details of the fit-out and equipping costs and conclusion of the lease agreement, a detailed disclosure will be made.
“We are confident that the convergence of all elements in the launch of the integrated resort will unlock its full potential as a transformative development in South Asia and be a catalyst in creating tourism demand and foreign exchange earnings for Sri Lanka.”
JKH was hit by a large forex loss in the September quarter on a 225 million US dollar loan taken to build Cinnamon Life after accounts were converted from US dollars to rupees. The loans will mature from 2026.
“Once operations commence, the business will generate USD denominated streams of revenue through its hotel and conferencing facilities,” the firm said
n JKH’s 2014/15 Annual Report, former Chairman Susantha Ratnayake has assured shareholders that the Waterfront project will continue. He also clarified about the casino operations.
He said it was also noteworthy that the Waterfront project “did not request, and, in fact, turned down, any tax exemptions on gaming activities under the Strategic Development Projects Act”.
Meetings, Incentives, Conferences and Exhibitions (MICE) traffic, particularly from India , with services, products and facilities that are on par or exceed those of other regional destinations,” Ratnayake said.
“This, I am confident, will enable us to attract the high spending segment of tourists which Sri Lanka has hitherto been unable to satisfy.
It is indeed this vision of Colombo as a hub for business and leisure travel which was at the heart of conceptualising the Waterfront project,” the former JKH Chairman added nine years ago.
Today, the Sri Lankan Rupee has experienced a minor depreciation against the US Dollar in commercial banks compared to Tuesday’s rates.
At Peoples Bank, the buying and selling rates of the US Dollar have risen, with the buying rate increasing from Rs. 320.42 to Rs. 321.15, and the selling rate moving from Rs. 332.16 to Rs. 332.92.
According to the Commercial Bank, the buying rate for the US Dollar has also seen a slight uptick, moving from Rs. 320.65 to Rs. 321.15, while the selling rate has increased from Rs. 331 to Rs. 331.50.
Similarly, at Sampath Bank, the buying and selling rates of the US Dollar have witnessed a marginal increase, with the buying rate going from Rs. 321 to Rs. 322 and the selling rate increasing from Rs. 331 to Rs. 332. This slight fluctuation in currency exchange rates reflects the ongoing dynamics in the foreign exchange market.
