Colombo (LNW): The Sri Lanka Export Development Board (EDB), in collaboration with the Tertiary and Vocational Education Commission (TVEC), has introduced the “Production Associate – Manual Soldering” (NVQ Level 4) National Competency Standard to enhance the Electrical and Electronics sector in Sri Lanka.

This standard, developed as part of the Vocational Education and Training Plan (VET Plan), aims to bridge skill gaps and fulfill training requirements within the industry.

Jointly funded by the EDB and TVEC, with support from the Sri Lanka Electronic Manufacturers and Exporters Association (SLEMEA), the initiative seeks to address the shortage of manual workers and encourage youth participation in the sector.

Initiated in 2012, the VET Plan was upgraded by TVEC to cater to the needs of the Electronic and Electrical manufacturing and export-oriented industry.

The overarching goal is to attract youth to pursue education in this sector, ultimately increasing the pool of skilled professionals to meet industry demands.

This National Competency Standard is expected to contribute to the growth of the Electronic and Electrical Manufacturing sector, fostering sales, profits, and supporting the national export drive.

The collaboration between EDB and TVEC aims to alleviate human resources shortages in technical, craft, and operational occupations at the entry level over the next five years, contributing to the advancement of the Sri Lankan Electronics and Electrical Sector.

By: Staff Writer

Colombo (LNW): The Government has shared the terms of a $ 4.2 billion China debt deal with other creditors — a key sticking point with countries like India — paving the way for more loans from the International Monetary Fund.

This was confirmed by Central Bank Governor Dr. Nandalal Weerasinghe adding that he hopes the official creditors committee, which is led by Japan, India and the Paris Club of nations, will now propose an agreement to restructure Sri Lanka’s debt.

He expects that will allow the IMF to approve a payout of $ 330 million before the end of the year.

The indicative terms agreed with China Exim Bank will provide the necessary fiscal space for Sri Lanka to implement its ambitious reform agenda.

The Government commends the engagement and continuous support of China Exim bank in reaching this agreement in principle, which demonstrates a mutual commitment in line with the goal/objective of restoring public debt sustainability consistent with the IMF-supported program.

The Sri Lankan authorities hope that this landmark achievement will provide an anchor to their ongoing engagement with the Official Creditor Committee and commercial creditors, including the bondholders.

It should also facilitate approval by the IMF Executive Board of the first review of the IMF-supported program in the coming weeks, allowing for the next tranche of IMF financing of about US$334 million to be disbursed.

The Secretary to the Treasury K M Mahinda Siriwardana said “the agreement marked a big step for Sri Lanka as we reach this landmark agreement in principle on debt treatment terms with our largest single creditor.

This agreement constitutes a key milestone in Sri Lanka’s ongoing efforts to foster its economic recovery.”

The Sri Lankan authorities and China Exim bank will actively work on formalizing and implementing the agreed parameters of the debt treatment. with China Exim Bank agreed to provide the necessary fiscal space for Sri Lanka to implement its ambitious reform agenda.

Sri Lanka has also received a debt restructuring proposal from a group of dollar bondholders, which didn’t get the backing of the Government.

Weerasinghe said the authorities continue to engage with commercial lenders, who may also be waiting to assess the debt proposal from bilateral creditors.

By: Staff Writer

Colombo (LNW): The services sector continued its expansion in October but the recent electricity hike and proposed higher VAT from January have clouded its outlook, the Central Bank highlighted.

On the other hand, the manufacturing sector contraction had softened in October and immediate prospects looked better due to the festive season.

CBSL said manufacturing PMI recorded an index value of 49.5 in October 2023, reaching towards the neutral threshold, during the month.

Considering the sub-indices, new orders and stock of purchases increased during the month, while production and employment remained contracted.

New orders expanded during the month, driven by the manufacture of textiles and wearing apparel sector, mainly attributable to the seasonal demand.

The decline in production was mainly due to the manufacture of food and beverages, partly owing to the prevailing extreme weather conditions.

Moreover, employment continued to decrease on a month-on-month basis as most of the firms only recruited for the resignations and retirements.

The overall stock of purchases increased during the month due to the accumulation of raw materials, targeting the seasonal production. Suppliers’ delivery time shortened at a slower pace during October compared to the previous month.

Expectations for the manufacturing activities for the next three months remained positive, mainly due to the expected increase in demand in the upcoming festive season.

CBSL said services sector in October 2023 has been continued expansion in the services activities.

This was led by the increases observed in new businesses, business activities and expectations for activity. Nevertheless, backlogs of work and employment contracted during the month.

New businesses increased in October 2023 compared to September 2023, particularly with the increases observed in financial services, wholesale and retail trade, other personal activities and insurance sub-sectors.

Business activities also expanded at a higher pace in October 2023 attributable to positive developments in most of the sub-sectors.

Accordingly, business activities in the financial services sub-sector continued to increase amid some improvements observed in credit demand.

Further, some notable developments were also seen in wholesale and retail trade, and other personal activities sub-sectors during the month.

Employment fell back below the threshold level after previous month’s marginal increase, while backlogs of work also decreased at a slower pace during October.

Expectations for business activities for the next three months continued to increase in October.

Many respondents highlighted the expected improvements in their business activities during the upcoming festive and tourist season.

However, some respondents expressed their concerns regarding the recent increase in the electricity tariff and the proposed increase in Value Added Tax.