August 03, Colombo (LNW): The final rites of the late Ven. Galaboda Gnanissara Thero of the Gangaramaya Temple will be conducted under state patronage on Monday, August 5, at the grounds adjoining the temple, as announced by the funeral committee.
The funeral committee also stated that the remains of the late Thero will be brought to the Gangaramaya Temple at 6:00 a.m. tomorrow, August 3, where it will lie in state for the public to pay their final respects until Monday, August 5.
Ven. Galaboda Gnanissara Thero, the Chief Sangha Nayake of the Colombo New Korale and Chief Incumbent of Hunupitiya Gangarama Temple in Colombo, popularly known as “Podi Hamuduruwo,” passed away today, August 2, at the age of 81. The Thero was reportedly receiving treatment at a private hospital in Colombo at the time of his passing.
August 03, Colombo (LNW): The Sri Lanka Tourism Promotion Bureau (SLTPB) has been honored with the “Best International Tourism Board” accolade at the Global Tourism Awards 2024, organized by Travel World Online (TWO). The prestigious event took place on August 2, 2024, at The Suryaa in New Delhi, India.
The Global Tourism Awards serve as a platform to honor and celebrate organizations that have made outstanding contributions to the tourism industry, shaping its landscape and driving positive change. With the industry’s leading experts as part of the jury, the awards promise to recognize the dedication and hard work of tourism professionals worldwide.
The event was expected to draw attendees from various sectors of the tourism industry, including travel agencies, tour operators, hospitality professionals, and government representatives. It promised to be an evening of celebration, networking, and recognition of the best in the business.
Travel World Online (TWO) organized the maiden edition of the Global Tourism Awards 2024, setting a benchmark for excellence in the tourism industry. The recognition of SLTPB highlights Sri Lanka’s significant efforts and achievements in promoting its tourism industry on an international stage.
August 03, Colombo (LNW): The Bank of Ceylon (BOC) is set to introduce new and emerging technologies, empowering ordinary citizens with access to financial services and pioneering digital banking solutions.
Celebrating its 85th anniversary, BOC continues to be a pillar of strength for Sri Lankans, having transformed the banking experience for millions.
One significant milestone announced during this celebration is the granting of 10,000 youth loans, highlighting BOC’s dedication to fostering young entrepreneurs and empowering future leaders.
BOC was honored as ‘The Bank of the Year – Sri Lanka’ by the prestigious Banker magazine and remains the only Sri Lankan bank listed among the Top 1,000 Banks in the world in 2024.
This recognition underscores BOC’s sustained growth and customer confidence. BOC’s commitment to digital excellence was further acknowledged at the Technnovation Awards 2024, where it won the ‘Overall Award – Gold for Excellence in Digital Payments,’ as well as Gold awards for ‘Bank of the Year for Financial Inclusivity’ and ‘Best Common ATM Enabler of the Year.’
A standout initiative during the 85th year was the successful conclusion of the ‘Pita Pita Rata Thegi’ program, which rewarded Sri Lankan expatriates for securely remitting their foreign currency. The grand prize, a luxurious, fully furnished house valued at Rs. 30 million, was presented to the lucky winner.
As BOC celebrates 85 years, it reflects on its journey with pride and looks forward with determination to continue serving the country and its people. BOC’s mission has always been about more than banking; it focuses on empowering people and driving national development.
The bank is committed to innovating and expanding its services to ensure that every Sri Lankan has the opportunity to thrive.
In the upcoming year, BOC is set to embrace new and emerging technologies and deepen its commitment to financial literacy, sustainability, and community development.
The 85th-anniversary celebration was held at BOC’s Head Office in Colombo, featuring special religious sermons to bless the staff and customers.
The event was attended by the Bank’s Chairman. Kavan Ratnayaka, General Manager/CEO Mr. Russel Fonseka, members of the Board of Directors, corporate and executive management, staff members, customers, and well-wishers. BOC’s branch network also celebrated the anniversary with their loyal customers and well-wishers.
BOC was established on August 1, 1939, by British Governor Sir Andrew Caldecott, allowing ordinary people and businesses to open accounts and use cheques for transactions. Today, it stands as a modern bank with technology at the core of its operations, dedicated to delivering exceptional experiences to its valued customers.
August 03, Colombo (LNW): The economic reform program in Sri Lanka has shown positive results, with three consecutive quarters of GDP growth and a 5.3% year-on-year increase in the first quarter of 2024, Senior IMF Mission Chief. Peter Breuer disclosed following the conclusion of his team’s vsit to review the progress of this initiative.
He stated that Inflation remains under the Central Bank 5% target, and domestic borrowing rates have decreased.
Gross international reserves rose by US $1.2 billion in the first half of 2024, reaching $5.6 billion, while fiscal revenue collections also increased. The focus now is on ensuring these improvements benefit all Sri Lankans.
As Sri Lanka’s recovery remains fragile, maintaining reform momentum and timely implementation of program commitments are essential to secure economic progress and stabilize the economy, he claimed. .
To restore debt sustainability, increasing fiscal revenues is crucial. He noted that the 2025 Budget should focus on appropriate revenue measures and continued spending restraint to achieve a medium-term primary balance objective of 2.3% of GDP.
The planned relaxation of import restrictions on motor vehicles will aid revenue mobilization, and tax administration reforms could enhance compliance, including the establishment of a functioning VAT refund system for exporters by April 2025.
Avoiding new tax exemptions will reduce corruption risks and fiscal revenue leakages, ensuring a more predictable and transparent tax system.
Maintaining energy prices at cost-recovery levels is vital to avoid potential fiscal costs, and protecting the poor through improved targeting and better cash transfer coverage remains critical.
The recent parliamentary approval of the Public Financial Management Act and the Public Debt Management Act marks a significant milestone in improving fiscal discipline and prudent debt management.
Developing a holistic debt management strategy and creating a well-structured Public Debt Management Office will help reduce government financing risks.
Maintaining price stability also requires safeguarding CBSL’s independence. Continued reserve accumulation and exchange rate flexibility are key priorities.
Recent amendments to the Banking Act and related regulations will help safeguard financial stability. Ensuring the banking sector is adequately capitalized will allow it to contribute to economic growth.
The National Anti-corruption Agenda, building on earlier governance plans, is a positive step. Implementing governance reforms outlined in the Governance Diagnostic Report is crucial to addressing corruption risks and correcting past policy missteps.
Creating an enabling environment for these reforms is key to bolstering public confidence and facilitating their implementation.
Sri Lanka has made notable progress towards debt sustainability. The execution of domestic debt restructuring and agreements with the Official Creditor Committee and China EXIM Bank are significant milestones.
The IMF has assessed the “Joint Working Framework” with the bondholder committee and provided feedback to the authorities and financial advisors.
Swift resolution of remaining steps is encouraged to achieve debt sustainability and regain investor confidence. The IMF will continue to support Sri Lanka’s debt restructuring efforts.
August 03, Colombo (LNW): Uber, the largest ridesharing company globally, has entered into a partnership with Sri Lanka’s Tourism and Lands Ministry to promote Sri Lanka as a tourist destination to its Indian rider base.
This initiative is in preparation for the upcoming Sri Lanka Tourism Promotion Bureau (SLTPB) roadshows in select Indian cities.
The aim of this collaboration is to help rejuvenate Sri Lanka’s tourism sector, which has been severely affected by the COVID-19 pandemic and recent economic turmoil.
As part of the Memorandum of Understanding (MoU) signed between Uber and the Sri Lankan authorities,
Uber will leverage its extensive platform to highlight Sri Lanka’s tourist attractions and culinary delights to its broad customer base in India, which is one of the largest sources of tourists for Sri Lanka.
The promotional campaign will run over the next few months, coinciding with the SLTPB’s roadshows, which are designed to attract more Indian tourists to Sri Lanka.
Uber’s promotion strategy includes offering special promo codes to tourists, facilitating their access to safe and convenient transportation through Uber, and easy food and grocery deliveries via Uber Eats.
Additionally, a contest will be organized by the Sri Lanka Tourism Board, in collaboration with Uber, offering five Indian citizens a chance to win an all-expenses-paid holiday in Sri Lanka for three nights and four days.
Chalaka Gajabahu, Chairman of the Sri Lanka Tourism Promotion Bureau, expressed optimism about the partnership, emphasizing that tourism represents a significant opportunity and source of hope for Sri Lanka.
He highlighted the country’s beautiful landscapes, delicious food, direct-flight connectivity, and efficient rail network as key attractions. Gajabahu believes that Uber’s global presence can play a crucial role in promoting Sri Lanka to its customers, providing a familiar and reliable travel option for tourists.
Kaushalya Gunaratne, Uber Mobility Sri Lanka Country Manager, reiterated Uber’s commitment to the communities it serves. He expressed delight in partnering with the Tourism and Lands Ministry to aid in the revival of Sri Lanka’s tourism industry.
Gunaratne highlighted the country’s potential, citing its scenic beauty, rich culture, and diverse culinary offerings. He emphasized that Uber aims to enhance tourists’ experiences by providing seamless connectivity within and between cities, along with a variety of local and international cuisines available on Uber’s twin platforms.
Tourism has been a vital contributor to Sri Lanka’s economy, accounting for 13% of the country’s GDP. The island’s rich cultural heritage, stunning landscapes, and pristine beaches have made it a favored destination for tourists worldwide. Prominent tourist spots include Galle, Kandy, Sigiriya, Yala National Park, and Nuwara Eliya.
President Ranil Wickremesinghe declared the immediate initiation of the “River for Jaffna” project, which is designed to provide a comprehensive solution to the water scarcity issues in the northern region of Sri Lanka. The President made these remarks while attending the opening of the Thalaiyady Seawater Desalination Plant, part of the Jaffna-Kilinochchi Water Supply Project.
Former President Mahinda Rajapaksa has denied reports which claimed he met President Ranil Wickremesinghe. Meanwhile, MP Namal Rajapaksa says that claims by Presidential Advisor Ashu Marasinghe suggesting an alleged meeting between him and Opposition Leader Sajith Premadasa are completely false.
The Online Safety (Amendment) Bill has been published via government gazette. The Online Safety Bill has been a subject of debate and contention, with several parties having raised concerns about potential limitation.
The Sri Lanka Tourism Promotion Bureau (SLTPB) has won the “Best International Tourism Board” accolade at the Global Tourism Awards 2024, organized by the Travel World Online (TWO). The Global Tourism Awards 2024 was held on 2nd of August 2024 in New Delhi, India.
The final rites of the late Ven. Galaboda Gnanissara Thero of the Gangaramaya Temple will be held under state patronage on Monday (Aug 05) at the grounds adjoining the temple, according to the funeral committee. Meanwhile, the funeral committee stated that the remains of the late Thero will be brought to the Gangaramaya Temple at 06.00 a.m. today (03) where it will lie-in-state for the public to pay final respects until Monday (05).
The Supreme Court has issued an interim order preventing the implementation of the Cabinet decision to grant approval for online Visa Electronic Travel Authorization to two private entities. Furthermore, the court has issued another interim injunction preventing the implementation of the agreements reached with the relevant foreign companies.
A meeting has taken place between representatives of the Ceylon Chamber of Commerce including its Chairman, Duminda Hulangamuwa and the leader of the National People’s Power (NPP) Anura Kumara Dissanayake at the headquarters of Janatha Vimukthi Peramuna (JVP).
The Supreme Court has fixed for consideration on October 14 the five Fundamental Rights petitions filed seeking an order to invalidate the Cabinet approval granted for India’s Adani Green Energy for a wind power project in Wedithalathivu, Mannar.
The International Monetary Fund (IMF) says the 2025 Budget needs to be underpinned by appropriate revenue measures and continued spending restraint so as to reach the medium-term primary balance objective of 2.3 percent of GDP—a key requirement for restoring Sri Lanka’s debt sustainability.
Tharushi Karunaratne of Sri Lanka placed 8th in the preliminary round of the women’s 800m running event at the 2024 Paris Olympics on August 2, with a time of 2:07:76 seconds. Despite this result, Karunaratne will have another opportunity to advance as she competes in the repechage round scheduled for August 3
August 03, Colombo (LNW): Showers will occur at times in Sabaragamuwa province and in Kandy and Nuwara-Eliya districts.
Several spells of showers will occur in Western and North-western provinces and in Galle, Matara and Matale districts.
Showers or thundershowers may occur at a few places in the Eastern and Uva provinces in the evening or night.
Strong winds of about 50 kmph can be expected at times over Western slopes of the central hills. Fairly strong winds about (30-40) kmph can be expected at times elsewhere of the island
August 02, Colombo (LNW): The Fisheries Ministry is contemplating a temporary halt on canned fish imports following complaints from local manufacturers who are struggling with a recent VAT increase from zero to eighteen percent. This tax hike, coupled with issues surrounding the quality of imported canned fish, has exacerbated challenges for the local industry.
Currently, 30 containers of substandard canned fish from China, deemed unsuitable for human consumption, are being held at the port. These imports are problematic as they consist of fish that have been stored in deep freeze for extended periods.
The local manufacturers have also highlighted that despite a ban on canned fish imports, a significant amount of such products have been entering the market, with some being sold at very low prices, leading to further market distortions and illegal activities.
The proposal to ban canned fish imports emerged after the Canned Fish Manufacturers Association met with Fisheries Minister Douglas Devananda. The meeting addressed the struggles faced by local manufacturers due to the tax increase, which has caused a significant price disparity between locally produced and imported canned fish.
With the VAT hike, the cost of locally manufactured canned fish is expected to rise by Rs 125, making it difficult for local producers to compete with cheaper imported options.Minister Devananda acknowledged the need to balance supporting local manufacturers with maintaining consumer affordability.
He has instructed senior officials to explore the possibility of implementing a new levy on recent imported fish stocks to address the price disparity and market challenges.
The Lanka Canned Fish Importers Association has also expressed its concerns about market difficulties. Imported canned fish currently faces a Special Commodity Levy (SCL) of Rs 200 per kilogram, with prices ranging from Rs 425 for Chinese brands to Rs 975 for Chilean brands.
Local canned fish prices start at Rs 690 and are expected to increase by Rs 100–125 due to the VAT adjustment. Local manufacturers also pay an SCL tax of Rs 6 per kilogram for imported raw fish.
The Canned Fish Manufacturers Association, represented by President Shiran Fernando, has warned that the local industry, which employs around 2,000 people, is facing critical challenges due to these unfair market conditions.
August 02, Colombo (LNW): Sri Lanka’s foreign joint venture industries in free trade zones nationwide are severely impacted by bureaucratic red tape and corruption, causing intentional delays and deficiencies in shipping and customs clearance operations, according to complaints from FTZ manufacturers.
The Free Trade Zone Manufacturers Association (FTZMA) recently highlighted the concerns of BOI enterprises over significant delays and inefficiencies in shipping and customs processes.
This renewed concern persists despite previous discussions with Customs Additional Director General – Revenue and Services, Seevali Arukgoda.
“We continue to face customs-related delays, exacerbating the operational challenges already posed by the maritime industry’s lack of space and containers,” FTZMA Chairman Dhammika Fernando and Secretary Tyronne Weckasinghe wrote to Arukgoda.
They also sent copies of the letter to BOI Chairman Dinesh Weerakkody and Ceylon Chamber of Commerce Chairman Duminda Hulangamuwa.
Manufacturers have observed consistent delays in clearing Less than Container Load (LCL) cargo from port warehouses, extending to at least two weeks from the de-stuffing day. There is also a significant delay in the de-stuffing process after the import containers arrive.
Despite the end of the Sri Lanka Customs trade union action, importers are still experiencing undue delays of 10 to 14 days in clearing goods due to customs backlogs caused by capacity constraints and a lack of workforce.
Customs are conducting 100% physical inspections on imported cargo without recognizing the importer’s legitimacy through the Authorized Economic Operator (AEO) system, disregarding whether imports are raw materials for BOI enterprises or other merchandise for domestic consumption.
Transport rates are being haphazardly increased by truckers and trucking companies due to ongoing port delays. Exporters are struggling to obtain containers for exports because of prolonged delays in import cargo clearance, leading to a container scarcity.
The port congestion is causing shipping lines to roll over or reject export cargo bookings, disrupting the flow of goods and creating bottlenecks.
This hindrance in product movement from suppliers to end customers erodes customer trust and damages brand reputation, causing businesses to lose out to competitors. Additionally, ocean freight rates have drastically increased, adding an extra $4,000 to $5,000 per TEU.
The majority of officers at both Customs and the Sri Lanka Ports Authority (SLPA) are seen as lethargic and resistant to change, often displaying a rude and dismissive attitude. This behavior is considered a disgrace to the nation. While changing attitudes is challenging, it is achievable over time. The issues outlined are disrupting the supply chain flow, causing bottlenecks, and hindering product movement from suppliers to customers.
Therefore, the FTZMA earnestly requests that these concerns be addressed promptly to mitigate further disruptions and financial burdens faced by stakeholders due to increased storage costs and tied-up working capital.
August 02, Colombo (LNW): Colombo district inflation increased to 2.4% in July up from 1.7% in June. This rise is attributed to fading base effects. Despite this year-on-year increase, monthly prices fell by 0.5% in July compared to June, driven by a decrease in food and non-food prices. These declines followed notable reductions in power tariffs and fuel prices earlier in the month.
The Central Bank remains optimistic about inflation risks being balanced in the medium term, provided there are no external shocks.
Consequently, it kept its medium-term inflation target at 5% and did not reduce interest rates by 25 basis points.
The Bank believes there is potential for credit growth and economic expansion without causing further inflationary pressures.
Sri Lankan consumers are still feeling the strain from high inflation rates experienced in 2022 and increased tax burdens, which have significantly reduced disposable incomes.
In July, food prices rose by 1.5% from the previous year, a slight increase from the 1.4% rise in June.
However, monthly food price inflation slowed considerably to 0.1% in July, compared to a 2.8% rise between April and May. Price increases for some staple items were mitigated by decreases in other staples.
Non-food prices also contributed to the softer inflation reading in July, with a year-on-year increase of 2.8%, up from 1.8% in June.
The non-food index dropped by 0.7% due to significant cuts in electricity tariffs, and reductions in fuel and gas prices. Authorities have announced no further adjustments to gas prices for August.
Core inflation, which excludes volatile items like food, energy, and transport, remained steady at 4.4% year-on-year for July, unchanged from June.
Inflation and the cost of living have become pressing concerns in Sri Lanka. According to the Department of Census and Statistics, the inflation rate rose to 2.4% in July from 1.7% in June 2024.
Both food and non-food items have been significantly affected, with food prices experiencing more pronounced increases compared to non-food items.
Several factors have influenced inflation, including cost-push and demand-pull inflation. Cost-push inflation results from supply shortages caused by import restrictions
Demand-pull inflation arises from increased demand despite limited supply, leading to higher prices.
Although it’s challenging to determine which factor has had the greatest impact, both contribute to the economic burden on the public.
Given the current economic climate, if the Rupee remains stable, imports will continue to be costly for Sri Lankans.
Economic policies have affected everyone, but those with lower incomes are hit hardest. The primary issue is low wages, which are often informal and fixed, unlike the more formal employment with inflation-adjusted wages.
Consequently, those with fixed low incomes face reduced purchasing power and higher food expenses, exacerbating income disparity between the rich and the poor.
