Secretary to the President, Dr. Nandika Sanath Kumanayake, has directed all government institutions to obtain written approval from the Presidential Secretariat prior to displaying the President’s photographs or messages on commemorative plaques or in designated celebration areas for various events.
Sri Lanka’s economy has stabilized, with growth expected to reach 4.4 percent in 2024, surpassing earlier forecasts. This positive outlook follows four consecutive quarters of growth driven by the industrial and tourism sectors and supported by critical structural and policy reforms, says the World Bank.
Sugath Wasantha De Silva, President of the Sri Lanka Council of Visually Handicapped Graduates, has been nominated by the National People’s Power (NPP) to their national list for the upcoming Parliamentary election. Social activist Sugath Wasantha De Silva supported President Anura Kumara Dissanayake in the last Presidential Election.
Former Central Bank Governor Ajith Nivard Cabraal and three other defendants were formally indicted in the presence of Colombo High Court Judge R.S.S. Sapuwida. The charges relate to the alleged purchase of Greek treasury bills in 2012, which resulted in a loss exceeding Rs. 1.84 billion to the Sri Lankan government during Greece’s severe economic crisis. During the court proceedings, defense attorneys argued that the defendants had fully cooperated with the investigations from the outset, and therefore, there was no need to remand them in custody.
Former Minister of State for Finance Shehan Semasinghe has announced that he will not be contesting in the upcoming parliamentary elections. Issuing a statement, Semasinghe reflected on the country’s economic challenges over the past year and his dedication to rebuilding the economy alongside former President Ranil Wickremesinghe, following the economic collapse.
The National Police Commission has approved the reappointment of former Senior Superintendent of Police (SSP) Shani Abeysekera in the Police Service on a contract basis for one year. Speculation has been rife that Abeysekara, who retired from the service 3 years ago, is expected to lead a new assets recovery unit of the police department.
The Colombo Fort Magistrate’s Court has imposed an overseas travel ban on former Member of Parliament Johnston Fernando. The travel ban has been imposed over allegations of possessing an illegally assembled luxury vehicle.
President Anura Kumara Dissanayake has advised relevant Ministry officials to allocate 11,000 acres of land belonging to the Kantale Sugar Company to farmers for the cultivation of short-term crops, the President’s Media Division (PMD) said.
Former Member of Parliament Patali Champika Ranawaka says that his party – the United Republic Front (URF) will not contest the 2024 Parliamentary Election.
The Department of Posts has issued a clarification regarding the recent release of stamps featuring Prime Minister Dr. Harini Amarasuriya and Minister Vijitha Herath. The statement also emphasized that the Postal Department offers the public the opportunity to create personalized stamps with their preferred images, a service traditionally provided as souvenirs for special occasions.
October 11, Colombo (LNW): The prevailing showery condition is expected to continue further in the south-western part of the Island, due to the atmospheric disturbance in the vicinity of Sri Lanka.Showers or thundershowers will occur at times in Western, Sabaragamuwa, Southern, North-western and Central provinces. Very heavy showers above 150mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.
Showers or thundershowers will occur elsewhere at several places in the island during the evening or night.Fairly heavy showers above 75mm are likely at some places.
Strong winds about (40-50)kmph can be expected at times over Western, Sabaragamuwa, Southern, North-western and Central provinces.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
October 10, Colombo (LNW): Sri Lanka is confronting significant challenges in its monetary policy due to an economic downturn and the ongoing impacts of the pandemic, as highlighted in a recent report by the International Monetary Fund (IMF).
A mission from the IMF South Asia Regional Training and Technical Assistance Center (SARTTAC) visited Colombo to offer guidance on developing liquidity monitoring tools aimed at enhancing the Central Bank’s oversight of domestic currency liquidity.
To transition to a flexible inflation-targeting approach, crucial for modern monetary policy, structural reforms are needed to stabilize the macroeconomic environment.
This includes ending monetary financing (government deficit funding by the central bank) and anchoring inflation expectations by keeping inflation low and stable. A systematic strategy is vital for modernizing monetary policy tools and operations.
The report emphasizes that these advancements depend on ongoing debt restructuring, managing financial risks, improving the Central Bank’s balance sheet, and stabilizing the wider economy. The modernization process involves multiple phases, with some actions prioritized while others are postponed until financial stability is achieved.
The IMF recommends that the Central Bank of Sri Lanka (CBSL) transition from using two policy rates to a single policy rate to better guide market interest rates and enhance communication about its monetary stance.
It also cautions against temporary restrictions on access to the central bank’s standing facilities, as this could hinder market-based interest rate adjustments and harm the central bank’s credibility.
As part of modernizing the interest rate framework, CBSL is advised to widen the Interest Rate Corridor (IRC) and reduce its monetary instruments supporting the local bond market, particularly for Sri Lankan Rupee bonds. Non-bank primary dealers should not access these instruments for financing bond market operations.
In the second reform stage, a transitional model for monetary operations focusing on weekly liquidity management is proposed, addressing liquidity needs across various market segments until the CBSL can target overall liquidity. Adjustments to reserve requirements will also be necessary as financial stability improves.
Future stages involve the CBSL managing overall liquidity through Open Market Operations (OMOs) aligned with liquidity forecasts, aiming to return to a mid-corridor system in accordance with monetary policy committee announcements.
The CBSL currently employs an operational liquidity forecasting tool based on daily data from its units and commercial banks. However, enhanced forecasting capabilities are needed, especially given the unique banking arrangements with government accounts. Improvements in forecasting tools, data formats, and daily balance sheet updates are essential for effective liquidity management.
As the financial system stabilizes, the Central Bank must implement these reforms with skilled staff and improved communication between monitoring and forecasting units, critical for successful inflation targeting and modernizing monetary policy, according to the IMF.
October 10, Colombo (LNW): The Ceylon Chamber of Commerce and the Sri Lanka Banks’ Association (SLBA) signed a Memorandum of Understanding (MOU) to formalise and strengthen their ongoing partnership in promoting sustainable finance and financial inclusion in Sri Lanka.
The collaboration aims to build capacity on both the demand and supply sides of sustainable finance, supporting the advancement of Sri Lanka’s Sustainable Finance Roadmap and National Financial Inclusion Strategy.
A key objective of this MoU is to improve access to finance for Sri Lanka’s private sector, with a particular focus on export-oriented value chains and SMEs to aid their sustainability transitions. The Ceylon Chamber’s Vision 2030:
Five Year Economic Plan (2025-2030) sets targets to increase exports to 30% of GDP and raise the SME contribution to 60% of GDP. With global trade increasingly emphasizing sustainability, the private sector must adapt quickly to remain competitive.
The Ceylon Chamber’s Vision 2030 highlights mobilization efforts to support Sri Lanka’s goal of achieving 70% renewable energy in electricity, reducing commercial energy intensity by 20%, and increasing climate adaptation and resilience, especially in sectors like agri-food.
SLBA, representing over 60% of Sri Lanka’s financial assets, has been actively backing the country’s green economy and financial inclusion through its Sustainable Banking Initiative (SBI) since 2015. The initiative has built internal banking capacity and partnered with other sectors to develop innovative sustainable finance solutions.
In 2023, the Ceylon Chamber, SLBA SBI, and the Sustainable Development Council collaborated to explore new sustainable finance solutions, focusing on creating a Blended Finance Facility to attract private capital to bridge gaps in key sectors through risk-sharing mechanisms.
The MoU between the Ceylon Chamber and SLBA, whilst strengthening the ongoing cooperation on blended finance initiative, also aims to extend support to Member companies of the two organisations with national and industry level engagement on their sustainability and climate strategies – on opportunities and risks (IFRS S1 and S2); in developing capacity to align financing needs and mobilisation in terms of Sri Lanka’s Green Finance Taxonomy
It aims to extend support to the member companies of both organizations, enhancing their sustainability and climate strategies. It also focuses on aligning their financing needs with Sri Lanka’s Green Finance Taxonomy and addressing opportunities and risks related to IFRS S1 and S2.
October 10, Colombo (LNW): Admiral Steve Koehler, the Commander of the U.S. Pacific Fleet and a 4-star U.S. Navy Admiral, is set to visit Sri Lanka on October 10. This visit represents the highest-ranking U.S. military presence in the country since 2021.
According to the U.S. Embassy in Sri Lanka, Admiral Koehler’s visit aims to strengthen the partnership between the United States and Sri Lanka in maintaining a resilient, free, and open Indo-Pacific region.
During his visit, he will engage with Sri Lankan leaders to address emerging security challenges in the Indian Ocean, enhance maritime domain awareness, improve disaster response capabilities, and reinforce U.S. support in combating transnational threats. He will also discuss expanding military collaboration between the two nations.
This visit highlights the United States’ dedication to deepening security ties with Sri Lanka, a crucial ally in promoting peace and stability in the Indo-Pacific region.
Admiral Koehler has a strong military background, having grown up in a Navy family. He graduated from the University of Colorado at Boulder in 1986 with a degree in Physics and was commissioned through the Naval Reserve Officer Training Corps (NROTC). Since becoming a naval aviator in 1989, he has logged over 3,900 flight hours and completed 600 carrier landings.
His extensive career includes serving in various leadership roles at sea, including commanding several U.S. Navy vessels and supporting numerous military operations in regions like the Middle East, Bosnia-Herzegovina, and Libya. Admiral Koehler also played key roles in disaster relief operations in Haiti and strategic activities in the East and South China Seas.
Onshore, Admiral Koehler has served in positions such as instructor pilot, placement officer, and chief of staff at Joint Task Force Horn of Africa. As a flag officer, his roles have included director of Fleet Training, director for Operations at U.S. Indo-Pacific Command, and commander of U.S. 3rd Fleet. He has been leading the U.S. Pacific Fleet since April 2024.
October 10, Colombo (LNW): The Sri Lanka Gem and Jewellery Association (SLGJA) has issued a renewed call for urgent reforms as the domestic industry struggles with a downturn driven by soaring gold prices and persistent policy challenges that hinder growth.
Local jewellery sales have experienced a notable decline, while exporters are grappling with a complicated regulatory framework that has reduced their global competitiveness. The impact of these challenges is evident in the sector’s export performance, which only saw positive year-on-year (Y-O-Y) revenue growth in February and May 2024.
For the first eight months ending in August 2024, the sector recorded cumulative revenue of $214.31 million, marking an 18.69% Y-O-Y decline compared to the same period in the previous year.
According to the SLGJA, this decline is directly tied to inconsistent government policies that have made it increasingly difficult for businesses to operate efficiently.
The SLGJA’s newly appointed President, Akram Cassim, last week urged for immediate policy reforms and the promotion of what he termed as “a Sapphire Experience.” Cassim outlined his vision at the SLGJA’s Annual General Meeting, aiming to propel the industry forward, address challenges collectively, and leverage the unique legacy of the Ceylon Sapphire.
Acknowledging the numerous challenges ahead, he called for unity across all areas of the gem and jewellery trade to tackle common issues and enhance the industry’s prospects. He highlighted the importance of collaboration across all segments of the trade—from Ratnapura, the center of gem mining, to the gem trading hubs of Beruwela, and the gold and jewellery craftsmanship found in Kandy and Sea Street—to drive the sector’s growth.
Cassim pointed out the urgent need for policy reforms to reverse changes that have hampered growth, reduced global competitiveness, and pushed businesses to consider relocating their operations abroad.
“If we can implement urgent reforms and reverse policies that have negatively impacted our industry, we can create a business-friendly environment that will enable our trade to thrive,” he stated. Cassim expressed a strong commitment to working closely with the new government and other authorities to cultivate a business climate conducive to the growth of this vital sector.
A key highlight of Cassim’s address was the proposal to integrate the gem and jewellery industry with the expanding tourism sector.
He suggested forming strategic partnerships with Sri Lanka Tourism and Sri Lankan Airlines to enhance the experience of every tourist visiting the island, offering a unique opportunity to position the country as a premier destination for gemstone shopping and cultural experiences.
“Let’s create an amazing Sapphire Experience for tourists visiting this Island,” Cassim proposed, emphasizing the unmatched potential to capitalize on the country’s rich heritage as a source of the world’s finest blue sapphires.
October 10, Colombo (LNW): The National Building Research Organisation (NBRO) has issued an early landslide warning for several vulnerable areas across the Galle, Kalutara, and Matara districts due to recent heavy rainfall.
The warnings highlight a heightened risk for specific regions that are prone to landslides, urging residents to exercise extreme caution.
In the Kalutara district, areas such as Dodangoda, Bulathsinhala, Mathugama, Horana, and Wallawita have been identified as particularly susceptible.
Meanwhile, a Level II warning, indicating an elevated threat, has been issued for Nagoda and Elpitiya in the Galle district, as well as Akuressa in the Matara district.
The NBRO has advised residents to stay vigilant for signs of potential landslides, such as the sudden appearance of water sprouts, unusual cracks on walls, or shifts in the ground.
These indicators may precede landslide activity, giving residents crucial time to take preventive measures or evacuate.
The organisation emphasised the importance of preparedness in these regions, especially as weather patterns become more unpredictable, leading to increased risks of landslides.
In recent years, several districts in Sri Lanka have experienced significant landslides, often resulting in damage to property, infrastructure, and in some cases, loss of life.
In light of this, authorities have urged local communities to stay informed through official updates, ensure safe evacuation routes are planned, and take immediate action if any signs of landslides appear.
The NBRO continues to monitor weather conditions closely and will provide further warnings if necessary.
October 10, Colombo (LNW): The Colombo Fort Magistrate’s Court has issued an overseas travel ban on former MP Johnston Fernando on 10 October, following allegations that he was in possession of a luxury vehicle assembled illegally.
The travel restriction is part of an ongoing investigation into the matter, with authorities seeking to ensure Fernando remains available for legal proceedings.
The case stems from accusations that the former MP had acquired a high-end vehicle that did not comply with standard legal procedures for assembly and registration.
These allegations raise questions about potential involvement in the illegal vehicle trade, which has become a growing concern in Sri Lanka, with luxury vehicles often being smuggled into the country or assembled with non-compliant parts to evade taxes and regulations.
The ban prevents Fernando from leaving the country while investigations continue, a move that requires the conduction of a thorough inquiry into the matter.
October 10, Colombo (LNW): A new director board and a chairman have been appointed to SriLankan Airlines yesterday (09).
Sarath Ganegoda, who served as a director of Hayleys PLC, one of the largest business conglomerates in Sri Lanka, has been appointed as the flag carrier’s Chairperson.
Ganegoda’s appointment follows the appointment of the board of directors, comprising;
October 10, Colombo (LNW): This week, President Anura Kumara appointed Ceylon Chamber of Commerce Chairman, Duminda Hulangamuwa, as Senior Consultant on Economic Affairs and Finance.
Since this appointment does not come with a direct cost to taxpayers, there’s little reason for public complaint. However, Hulangamuwa’s new position gives him significant influence within the government, likely benefiting his accounting practice and business ventures—a situation acceptable in Sri Lanka as long as such interests are disclosed.
What has raised eyebrows among professionals, however, is Hulangamuwa’s reputation as a “man for all seasons.” It’s well-known that he was the tax adviser to PB Jayasundara, whose policies, including the removal of PAYE tax and lowering tax rates, contributed to Sri Lanka’s economic downfall in 2021. The Gotabaya administration had to reinstate PAYE due to financial pressures.
After Gotabaya’s ousting, Hulangamuwa aligned himself with Ranil Wickremesinghe, frequently appearing alongside the former President. He played a key role in driving SOE restructuring and economic transformations under Wickremesinghe’s leadership.
Given Ranil’s political acumen, many were surprised to see Hulangamuwa now appointed as a senior economic adviser to Anura Kumara. Some even speculate that he was writing speeches for the new President in the final weeks of the campaign while simultaneously engaging with both the SJB and Wickremesinghe.
This dual allegiance and ability to adapt across political shifts have made Hulangamuwa a subject of both intrigue and skepticism. As Machiavelli once said “human beings are wretched creatures, governed only by the law of their own self-interest”.
