August 09, Colombo (LNW):Sri Lanka is experiencing significant losses in tax revenue due to the surge in the online casino market, with many young people accessing internationally regulated betting sites, according to the Ministry of Finance. The country currently does not issue licenses for any online gambling operators to function domestically, leading Sri Lankans to participate only in offshore online casinos that operate without jurisdictional restrictions.

Sports betting, now commonly offered by online casinos, falls under the broader category of gambling. At least ten internationally licensed gambling platforms, including those based on the Sri Lankan rupee, attract both local and international users.

While Sri Lanka’s legal framework permits land-based casinos, the Ministry of Finance is considering the legalization of online casinos and the establishment of a dedicated regulator, as advised by the Committee on Public Finance (CoPF) led by SJB MP Dr. Harsha de Silva. Dr. de Silva emphasized in a recent CoPF meeting that the current laws are inadequate, allowing offshore operators to function freely and resulting in lost tax revenue.

During a recent parliamentary session, officials from the Ministry of Finance and the Central Bank supported the idea of creating a specialized regulator to address the challenges in the gambling sector. In an effort to better manage the casino industry, Sri Lanka has amended its casino licensing regulations, introducing minimum investment thresholds and updated fee structures. 

These changes, effective January 1, 2024, reflect a shift in the country’s approach to integrated development projects, following the submission of ten casino applications.The revised regulations aim to mitigate the social and economic impacts of gambling, such as addiction and financial overextension. Under the new rules, applicants for casino licenses within integrated developments must meet government-set minimum investment requirements. 

Projects with an investment of at least $250 million are required to pay a casino license fee and a renewal fee of $31 million. For investments exceeding $500 million, the casino license fee is $15.5 million, with the same renewal fee of $31 million.

In 2023, Sri Lanka’s Cabinet of Ministers approved the creation of a Gambling Regulatory Authority to oversee the gambling industry and ensure proper tax collection. However, CoPF recently expressed concerns over delays in establishing this regulator. The director-general of fiscal policy has been summoned to provide details on both physical and online casinos, including the tax revenues generated.It was revealed that although the law prohibits online casinos, they continue to operate openly, depriving the country of significant revenue. Players using foreign online gambling sites in Sri Lanka face no legal consequences, and the government does not restrict access to these platforms. Additionally, no online gambling websites offer services in Sri Lanka’s official languages, Sinhala and Tamil

August 09, Colombo (LNW): The government has developed a comprehensive State-Owned Enterprise (SOE) policy and has begun divestiture processes for several entities, attracting significant interest from both local and international investors. However, the speed and approach of these reforms have caused concern among trade unions and employees.

Sri Lanka’s SOEs have managed to turn financial losses into profits in the first six months of this year, despite delays in restructuring certain entities. The SOE Act is designed to align with good governance principles and, if implemented properly, could improve both fiscal and governance outcomes for commercial SOEs. 

Key factors for success include the independence, competence, and diligence of the holding company’s board and management, alongside effective oversight mechanisms such as an advisory committee free from political interference.

The IMF has recommended model performance contracts and transparency measures, including quarterly accounts and annual reports, to enhance accountability. The proposed bill, which is being finalized by the Attorney General, aims to reduce financial stress on State banks from Treasury guarantees for loss-making SOEs and increase SOE transparency.

 It also addresses issues like overstaffing, with around 80 SOEs slated for restructuring, some of which will be granted a grace period for revival.The SOE Restructuring Unit (SOERU) has identified 60 key SOEs for restructuring, including high-profile entities like the Ceylon Electricity Board (CEB), Sri Lanka Insurance Corporation Ltd. (SLIC), and Sri Lankan Airlines.

 Despite the government’s previous calls for bids and shortlisting of companies, President Ranil Wickremesinghe’s administration has not restructured any SOEs in the past two years. Delays in restructuring at least seven entities over the past eight months have been attributed to the government’s emphasis on transparency, maximizing value, protecting employee rights, and improving service quality, according to State Minister of Finance Ranjith Siyambalapitiya.

In the first half of 2024, 52 key SOEs recorded a collective profit of Rs. 185.9 billion, up from Rs. 144 billion in the same period of 2023. Finance ministry data shows that key SOEs turned a total loss of Rs. 743 billion in 2022 into a profit of Rs. 456 billion in 2023.

The government has called for bids on several state-owned entities, including Hotel Developers Lanka Ltd, Canwill Holdings Pvt Ltd, Lanka Hospitals Corporation PLC, Sri Lanka Telecom PLC, Litro Gas Lanka Limited, and Sri Lanka Insurance Corporation. However, the restructuring process has slowed due to political uncertainty with the upcoming presidential election. Pre-qualified bidders for Sri Lanka Telecom (SLT) include India’s Jio Platforms Ltd. and China’s Gortune International Investment Holding Ltd., according to finance ministry sources.

Respondents to RFQs for Sri Lanka Insurance Corporation Life Ltd. include LIC (Lanka) Ltd., Union Assurance PLC, and Asiri Hospital Holdings PLC. For Sri Lanka Insurance Corporation General Ltd., respondents are Fair first Insurance Ltd. and Euro Exim Bank Ltd. The next step for these entities is the issuance of RFP documents.

Canwill Holdings, the parent company of Sino Lanka Hotels & Spa Ltd. and Helanco Hotels & Spa Ltd., received proposals from six bidders, including five Indian firms and one Sri Lankan firm.

August 09, Colombo (LNW): Hayleys Solar, the leading player in Sri Lanka’s renewable energy industry and the renewable energy arm of Hayleys Fentons, has completed a groundbreaking project for the Watch Tower Bible and Tract Society of Lanka. The project establishes Sri Lanka’s largest non-government-funded battery energy storage system (BESS), powered by solar photovoltaic (PV) technology.

The Battery Commissioning Event took place on 24th of July 2024 at the Watch Tower Sri Lanka headquarters. 

By storing excess solar power during peak production times and releasing it when needed, battery storage ensures a reliable and consistent power supply. 

This not only enhances the usability of solar power but also mitigates the impact of power outages. Sascha Balakrishnan, representing Watch Tower Sri Lanka, states, “We are grateful for this successful partnership with Hayleys Solar. 

This innovative system will facilitate our energy independence and significantly contribute to our sustainability efforts. Furthermore, our independence will ensure that more energy will be available for our community’s benefit. This would be in line with the government’s overall sustainability initiative.”

“This journey began in September 2023, when Hayleys Fentons installed hybrid systems at 17 of Watch Tower Sri Lanka’s strategic locations across the country. This installation showcases our expertise in designing and implementing cutting-edge renewable energy solutions, strengthening Hayleys Solar’s position as a leader in sustainable energy in Sri Lanka,” said Hasith Prematillake, Managing Director of Hayleys Fentons Limited.

“At a time when energy security became a priority with the scarcity of fuel in Sri Lanka, this project showcases that any institution that wishes to be independent of on-grid power or fossil fuel now has the technology and knowhow within the country to become energy independent,” emphasises Roshane Perera, the Executive Director and CEO of Hayleys Solar.

“I am happy that Hayleys Electronics collaborated with Hayleys Solar to win this project,” stated Clyed Gabriel, General Manager of Hayleys Electronics.

The project recently secured the overall best-managed project of the year title at the National Project Management Excellence Awards, winning the gold award for ‘Best Managed Project in the Social Enterprise Sector.’

August 09, Colombo (LNW): The 15th edition of the premier international textile sourcing platform in South Asia commenced in Colombo yesterday (August 7) and will run until August 9 at BMICH, Colombo.

Over the last 10 years, Intex Sri Lanka has been at the forefront of Sri Lanka’s textile and apparel sector, playing a pivotal role in facilitating trade, innovation and driving business opportunities to support the country’s garment exports.

Dedicated country pavilions from China, India, Taiwan, Pakistan, Korea and Japan with exhibitors from 12+ countries including Korea, Taiwan, Japan, Sri Lanka, India, Pakistan, China, Thailand, Netherlands, Germany, Luxembourg & USA will present the latest natural and MMF fibres & yarns, textiles & fabrics, trims & accessories, dyes & chemicals and software solutions across four halls at BMICH.

International buyer delegations from Russia, Mexico, India, and buyers from 20+ countries including Bangladesh, China India, Indonesia, Japan, Maldives, Mexico, Myanmar, Pakistan, Qatar, Russia, Seychelles, Singapore, Taiwan, Thailand, UAE, UK, USA & Vietnam will visit Intex Sri Lanka.

Buying teams from MAS Holdings, Brandix, Hirdaramani, Maliban and many more will visit Intex Sri Lanka to discover the next big thing.

“2024 presents a unique opportunity to reshape the global textile and apparel industry,” said Arti Bhagat, Executive Director of Worldex India and Organiser of Intex Sri Lanka. 

“Intex Sri Lanka is at the forefront of driving this transformation by connecting the Sri Lankan manufacturing powerhouse with global and regional stakeholders to create a more resilient, secure supply chain that prioritizes efficiency and long-term industry sustainability. 

It is setting new industry standards and solidifying our position as Sri Lanka’s premier B2B platform.

The Textile Association India (TAI) is also partnering with Intex Sri Lanka and organized the TAI Overseas Conference at BMICH where industry leaders from India will network with Sri Lankan businesses at the day-long Conference.

The Interactive Business Forum (IBF) Seminar Series will share actionable strategies to future-proof and grow your business internationally by industry experts.

Intex Sri Lanka also presents Trendz Now – The Innovation and Fashion Zone by the University of Moratuwa, presenting the future of fashion, latest trends, innovations, upcoming designs and movements in the fashion world.

 This year also sees the debut of InMac, the international garment machinery & technology show co-located with Intex Sri Lanka. InMac showcases the latest machinery and technology including printing, packaging & automated systems, providing much needed solutions to drive efficiencies empowering Sri Lankan manufacturers and exporters to be globally competitive.

August 09, Colombo (LNW): The Indian High Commission, in collaboration with the Sri Lanka–India Parliamentary Friendship Association and the Urban Development and Housing Ministry, inaugurated the ‘Sri Lanka–India Friendship Arch’ at the National Sandalwood Garden in Sri Jayewardenepura Kotte on August 8.

The event began with the unveiling of the arch by Speaker Mahinda Yapa Abeywardana, who served as the chief guest, alongside Indian High Commissioner Santosh Jha. Prominent attendees included Minister Prasanna Ranatunga, and members of the Sri Lanka–India Parliamentary Friendship Association, such as Parliamentarians M.A. Sumanthiran, Dr. V. Radhakrishnan, and Jagath Kumara Sumithraarachchi. They participated in the planting of murutha tree saplings in an arch-shaped tract within the garden.

The inauguration was part of the #Plant4Mother campaign, initiated by Indian Prime Minister Narendra Modi on World Environment Day 2024. The campaign, launched with the planting of a Bodhi Tree sapling at Buddha Jayanti Park in New Delhi, aims to plant 800 million trees across India by September 2024, and 1.4 billion trees by March 2025.

August 09, Colombo (LNW):Foreign Minister Ali Sabry is set to make an official visit to Egypt from August 7-9 at the invitation of Egyptian Foreign Minister Badr Abdelatty.

During his visit, Minister Sabry will engage in bilateral discussions with his Egyptian counterpart at the Ministry of Foreign Affairs in Cairo. He is also scheduled to meet with Egypt’s Minister of Investment and Foreign Trade. Additionally, Minister Sabry will hold talks at the Federation of Egyptian Chambers of Commerce and meet with several other dignitaries, aiming to bolster the multifaceted relations between the two nations.

August 09, Colombo (LNW):Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Showers or thundershowers may occur at several places elsewhere of the island during the evening or night.

General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

August 08, Colombo (LNW): Transport, Highways, and Mass Media Minister Dr. Bandula Gunawardena announced that for the first time, national programs aimed at strengthening the country’s economy have been passed into law in accordance with international standards. He made this statement during a press conference in Kandy on Tuesday evening, after reviewing development activities in the city, including the construction of the Getambe flyover with assistance from the Hungarian government. Representatives from Hungary were also present.

Minister Gunawardena emphasized several key legislative measures:

1. Central Bank Act: Suspends the printing of money for price stabilization.
2. Debt Control Act: Prevents the government from borrowing at exorbitant interest rates.
3. Public Financial Management Act: Ensures economic policies are consistent and budgets are prepared by experts from the Budget Committee.
4. Anti-Corruption Act: Strengthens efforts to combat corruption.

He highlighted recent agreements, including a Comprehensive Loan Agreement with the International Monetary Fund (IMF) and debt repayment agreements with the Paris Equity Group, China, and India.

“In our effort to develop Kandy as a green city, representatives from the World Bank have shown interest in providing 200 electric buses on a loan basis,” Minister Gunawardena stated. He underscored Sri Lanka’s commitment to reducing its debt to 95 percent of GDP by 2032, down from the current 128 percent.

Key financial targets outlined by the Minister include:

• Government’s gross financial requirement not exceeding 13 percent of GDP.
• Loan installments and interest payments capped at 4.5 percent of GDP.
• Maintaining a 2.3 percent primary account surplus in the Budget.
• Limiting the balance of payments deficit to no more than 1 percent of GDP annually.
• Sustaining a growth rate above 5 percent per year.
• Keeping unemployment below 5 percent and increasing female labor participation to 40 percent.

Minister Gunawardena stressed that these laws, aligned with international agreements, are part of a broader strategy to transform Sri Lanka into a developed country with a per capita income of USD 20,000 by 2048.

Also present at the press conference were Investment Promotion State Minister Dilum Amunugama, Transport and Highways Ministry Secretary Ranjith Rubasinghe, and Marton Laszlo, Honorary Consul of Sri Lanka to Hungary and CEO of Betonutepito.

August 08, Colombo (LNW): The Anunayake of the Malwatte Chapter, Ven. Dimbulkumbure Wimaladhamma Thera, has expressed concerns over the excessive length of the ballot paper for the Presidential Election. He pointed out that 18 candidates, many of whom are relatively unknown to the public, have extended the ballot unnecessarily by depositing money to participate.

The Thera highlighted that this situation not only increases printing costs but also causes significant inconvenience to voters. “This will result in much inconvenience to the people when voting for their preferences,” he stated, questioning the rationale behind individuals with little chance of securing even 1,000 votes wanting to contest in the Presidential Election.

He further noted that millions of extra rupees would have to be spent on the election due to this issue.

These observations were made when the Chairman of the alliance ‘Let us stop corruption and build the motherland,’ MP Roshan Ranasinghe, and former Chief Justice Sarath N. De Silva visited the Malwatte Maha Vihara on the 7th of August to seek blessings from the Anunayake Thera.

The Thera also commented on the motivations behind these candidacies, attributing them to a desire for personal recognition. He warned that if this trend continues, future ballot papers could become even longer, leading to increased costs and logistical challenges.

Drawing a parallel to the Mahapatharanga Jathakaya, the Thera remarked that the extended ballot paper would demand additional state finances and the time and labor of officials, exacerbating the administrative burden.

August 08, Colombo (LNW): SJB MP Dr. Harsha De Silva addressed Parliament yesterday, asserting that conditions imposed by the International Monetary Fund (IMF) will be revised under their government.

“A structural change should be made in the agreements signed with the IMF. It can be done, and we will do it under our government,” he stated. He emphasized that measures would be taken to support local entrepreneurs and provide relief by reducing the tax burden on the people.

Dr. De Silva expressed partial agreement with the core principles of the Economic Transformation Act but voiced concerns over certain conditions agreed upon with the IMF. He stressed the necessity of economic reform to recover from the ongoing crisis.

Criticizing the current government’s increase in petrol prices from Rs.150 to Rs.400, he proposed an innovative solution: a program to credit Rs.200 to the bank accounts of individuals based on their income category after they pay Rs.400 per liter. He urged for this idea to be recorded in the Hansard before others could replicate it, clarifying that it would benefit low-income individuals, not those paying income tax.

Highlighting the importance of earning foreign currency to address the nation’s debt, Dr. De Silva announced plans to promote an export-oriented economy. He called for continued support to enhance the economic growth rate achieved in the first quarter of 2024.

Reflecting on past political events, he mentioned that his party did not abandon the country when former President Gotabaya Rajapaksa left. He explained that the then-government did not provide accurate economic data, making it difficult to address the situation effectively.

“Our goal is to distribute benefits among the people by applying new technology and improving local businesses,” he stated, emphasizing the importance of reducing the high cost of living.

Dr. De Silva criticized the government’s plan to impose an 18 percent VAT on food and stressed the need for a revised IMF agreement. He highlighted the potential of achieving 10 percent economic growth, which could make Sri Lanka a developed country by 2046, as opposed to 2075 if current trends continue. He also emphasized the role of digital technology in development and criticized market inefficiencies caused by various mafias, including the rice mafia.

“We are starting the Shakti rice campaign again to support farmers. Despite my appearance, I am committed to strengthening the farming community by providing necessary facilities and technology,” he added.

Dr. De Silva acknowledged President Ranil Wickremesinghe’s role in bringing him into politics and noted their personal camaraderie, despite differences in policies and politics. “Even at the Royal-Thomian match, we meet, drink a beer, and sing a song. There is no problem with that. But there are problems in terms of policies and politics between us,” he concluded.