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Galadari Hotels Lanka inks US $ 33.5 mn BOI deal for refurbishment

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By: Staff Writer

Colombo (LNW): Galadari Hotels Lanka PLC said yesterday it has successfully signed an agreement with the Board of Investment (BOI) of Sri Lanka as the first step towards the property’s refurbishment process.

Galadari Colombo has over the years built up an enviable reputation in the hospitality industry and proudly boasts of over 39 years of exceptional service.

The company has entered into two agreements which include the Hotel Development Services Agreement (HDSA) which will later be followed by a Hotel Management Agreement (HMA) with Radisson Hotels Asia Pacific Investments Ltd.

The property will go through a total transformation which will enable the hotel to set new standards solidifying its high competitiveness in the industry. A world-renowned architectural company based in Hong Kong will overlook the overall designing process of the property.

The first phase, which includes a project cost estimated at $ 33.5 million will include 200 rooms, restaurant outlets, guest lobby and common areas and a completely revamped hotel facade. The second phase will commence one year after the completion of phase 1.

Galadari said the BOI signoff is the first of a series of events that will be taking place as the hotel starts its new journey, which will ultimately lead to an engagement with Radisson Hotels Asia Pacific Investments Ltd. to manage Galadari Hotel Colombo under a new brand name.

Galadari Hotels Lanka PLC intends to rope in multinational hospitality management company Radisson Hotels Asia Pacific Investments Pte. Ltd to manage Galadari Hotel Colombo, under the name ‘Radisson Blu Hotel Galadari Colombo’.

“In this regard, the company has undertaken to renovate Galadari Hotel Colombo in preparation of the management and operation of the same by Radisson. Accordingly, the company has entered into a Hotel Development Services Agreement (HDSA) and a Hotel Management Agreement (HMA),” official circular said.

“The HMA provides for (both in form and content) a License Agreement and Management Consultancy Agreement, which may be entered into on a future date, at the option of the company and subject to satisfaction of identified conditions,” it added.

The deal has been determined by the board to be a major transaction under and in terms of Section 185 of Companies Act No.7 of 2007.

“The HDSA and HMA were executed on May 1, 2023 and shall be effective as at May 1, 2023, upon the passing of a special resolution by the shareholders of the company,” the circular said.

The company in May 2019 initially announced its plan to refurbish 400 rooms, MFP work and F&B outlets, at an estimated cost of US $ 15 million. The refurbishment was originally scheduled to commence in June 2019. However, it was pushed back, as the company decided to come up with fresh design plans.

Galadari Brothers Co LLC owns a 63.57 percent stake in the 1984-established Galadari Hotels (Lanka) PLC.

Budget 2024 allocates Rs. 2.3 billion to defuse tourism debt bomb

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By: Staff Writer

Colombo (LNW): Sri Lanka’s 2024 Budget has been hailed as a game-changer, positioning tourism as a catalyst for economic development, Tourism Minister Harin Fernando emphasized.

With a focus on making Sri Lanka a premier global tourist destination, the Budget has allocated a substantial Rs. 2.3 billion to improve the tourism sector.

These allocations were not mere proposals but a well-thought-out execution plan to propel Sri Lanka into a top travel destination,” he added.

Minister Fernando stressed that the President’s vision to attract five million tourists by 2030 hinges on collaborative efforts at the provincial and local levels, urging the enhancement of new attractions and facilities.

However the critical tourism industry’s outstanding debt has risen to a staggering Rs. 700 billion due to high interest rates prompting analysts to describe it as ‘unsustainable’ and needs urgent response from the Government and the banking sector.

The massive indebtedness of the tourism industry came to light during the pre-Budget webinar on Saturday organised by the Daily FT and other stakeholders.

Former Price water house Coopers Managing Partner Sujeewa Mudalige revealed that in 2018, the tourism industry outstanding debt was Rs. 300 billion and it has doubled to Rs. 600 billion last year and estimate it have increased to Rs. 700 billion this year and could possibly balloon to Rs. 1 trillion in the next few years.

He said that the increase was despite the industry borrowing anew hence it was due to accumulation of capital and interest payable amidst the debt moratorium.

He categorically stated that tourism debt was unsustainable like that of the Government hence needs urgent action by all stakeholders.

He called for an appointment of a Task Force comprising Government, banks and tourism industry stakeholders to deal with the issue.

Mudalige noted the tourism sector will never be able to recover from the record interest rates of 2022/23.

He noted that the interest policy of the Central Bank has hurt several sectors. Sri Lanka’s Tourism Sector went through the Easter bombing in April 2019 followed by the COVID pandemic and the political and economic crisis.

Mudalige opined that even if Sri Lanka draws over 2 million tourists, the industry won’t be able to pay even the interest.

The sector cannot service loans at 30% and the penalties at 30%. The Banks have called upon the beneficiaries of the moratorium to commence the settlement of the full accumulated debt and the interest, within 60 months.

Former President of The Hotels Association of Sri Lanka (THASL) Anura Lokuhetty said: “We are not even in a position to earn sufficient Dollars to cover the monthly Bank commitments, given the period is only 60 months.

He called on President Ranil Wickremesinghe to offer via Budget 2024, a freeze in repayment till mid next year and banks to opt for a rescheduled repayment plan over a period of 10 years.

Ex British PM David Cameron, friend of SL, becomes UK Foreign Secretary

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By: Staff Writer

Colombo (LNW): Former British Prime Minister David Cameron, a friend of Sri Lanka especially having close contacts with President Ranil Wickremasinghe has been appointed as the Foreign Secretary of the United Kingdom

U.K. Prime Minister Rishi Sunak reshuffled his Cabinet today (Monday), bringing in former PM David Cameron as Foreign Secretary in a surprising move, UK media reported.

This appointment will renew friendly relations between Sri Lanka and Great Britan which were tainted by human rights issues in the recent past.

Relations with the West have been shaky in recent years over the country’s human rights record. The UK, in particular, has been instrumental in international attempts to hold Sri Lanka accountable for alleged human rights violations.

When incumbent UK Prime minister Rishi Sunak was sworn in in October 2022, President Wickremesinghe expressed his confidence that ties between the two island nations would be further strengthened under Sunak’s leadership

President Wickremesinghe is looking westward in his ambitions to resolve Sri Lanka’s ongoing currency crisis and usher in development.

Former UK Prime Minister David Cameron has met Sri Lanka President Ranil Wickremesinghe in Colombo in Janaury this year.

Cameron was recently involved in promoting the Colombo Port City among investors in the MIddle East, at the behest of the Government of Sri Lanka.

He replaces James Cleverly, who is replacing Suella Braverman as Home Secretary. Braverman was sacked after days of speculation following her criticism of police actions with regard to pro-Palestinian protests in the UK.

Meanwhile, Under-Secretary of State for Primary Care and Public Health Neil O’Brien and Schools Minister Nick Gibb have said they intend to step down for unrelated reasons.

Cameron has taken measures to promote the Colombo Port City at an invitee-only separate top events in Abu Dhabi and Dubai on 26 September.

He was involved in a conversation on “Now is the time to invest in the Port City Colombo, Sri Lanka.”

The exclusive event was also focused on the role of Sri Lanka in the new Indo-Pacific economy and position Port City as the nexus of trade investment and sustainability.

The event showcased Port City Colombo as a new city rising from the Indian ocean, as a strategic financial, residential, medical, education, leisure and entertainment hub for South Asia, Indian-Sub Continent, Middle East, East Africa and Southeast Asia.

Prime movers of the event included Senior Advisor to the President of Sri Lanka Nirj Deva Aditya who is a former UK MEP European Parliament and ex-MP of British Parliament and The Sovereign Wealth Fund Institute Chairman Lakshmi Narayanan and the Port City Economic Commission.

The 56 year old Cameron served as Prime Minister of the United Kingdom from 2010 to 2016 and Leader of the Conservative Party from 2005 to 2016.

He served as Leader of the Opposition from 2005 to 2010, and was Member of Parliament (MP) for Witney from 2001 to 2016. He identifies as a one-nation conservative, and has been associated with both economically liberal and socially liberal policies.

LKR value against USD at commercial banks today (Nov 14)

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Colombo (LNW): The Sri Lankan Rupee (LKR) indicates fluctuation against the US Dollar at leading commercial banks in the country today (14) in comparison to yesterday.

At Peoples Bank, the buying price of the US Dollar has dropped to Rs. 321.43 from Rs. 321.67, and the selling price to Rs. 332.63 from Rs. 332.89.

Commercial Bank follows a different pattern, with buying price of the US Dollar rising to Rs. 320.76 from Rs. 320.49, and the selling price dropping to Rs. 331 from Rs. 331.50.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 322 and Rs. 332, respectively.

Freedom for Palestine! (Live discussion on Nov 18)

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Colombo (LNW): Embark on a journey of intellectual exploration with “Critical Conversation” (Savivara Sanwada), a profound dialogue delving into the realms of colonial violence, struggles of the colonial era, and the intricate geopolitics of West Asia.

The discussion is set for Saturday, November 18, 2023, at 8:00 pm Sri Lanka time, unfolding its narrative via Zoom technology.

This immersive conversation unfolds in two enthralling acts. In the inaugural segment, the stage will be graced by the intellectual prowess of Jude L. Fernando, Saman Pushpakumara, and Rohitha Bhashana Abeywardena. The second act beckons you to step into the spotlight of discourse as the floor is open to a lively public discussion.

The discussion is moderated by Thilak Kodagoda.

Critical Conversations | விமர்சன உரையாடல்கள் | සවිචාර සංවාද

Join ‘Critical Conversations’ Zoom discussion via following link:

http://bit.ly/free_palestine_Nov18

Sri Lanka Original Narrative Summary: 14/11

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  1. President & Finance Minister Ranil Wickremesinghe unveils a plethora of relief & reforms in the 2024 Budget: urges all political parties to join to usher an “economic revolution”: gives increase in allowance for 1,300,000 public servants, 700,000 pensioners & 2,000,000 “Aswesuma” beneficiaries: removes almost all exemptions from VAT & increases the rate to 18%: retains the cascading Social Security Contribution Levy.
  2. President Ranil Wickremasinghe says SL will establish a new technology university in Kandy & expand the capabilities of other higher education institutions: also says 20% of shares of the 2 large state banks will be divested to investors & depositors.
  3. Budget data shows that Govt’s Actual Tax Revenue for 2023 is expected to plunge by a massive Rs.534bn, compared to the Budgeted Revenue for 2023: Govt Revenue loss to be over 17% for the year 2023: Income tax – down by 5%, Tax on Goods & Services – down by 22%, & Tax on External Trade – down by 22%.
  4. SLPP MP Namal Rajapaksa asserts many initiatives that were announced in the last budget have not been implemented & therefore those have been presented again in this year’s budget as well: further asserts the President has come as the Finance Minister of the “Pohottuwa” Govt, & that “fairytales are useless”.
  5. Ceylon Electricity Board Media Spokesman Engineer Noel Priyantha confirms the CEB has disconnected the electricity supply of over 500,000 customers as of Oct’23 due to their failure to settle outstanding bills: asserts that has been done according to CEB regulations: adds the supply will be restored when payment is made.
  6. President Ranil Wickremesinghe receives 3 names to fill 2 vacancies in the Court of Appeal: Chief Justice Jayantha Jayasuriya has nominated the 2 senior-most High Court Judges Gihan Kulatunga & Damith Thotawatta: Attorney General Sanjaya Rajaratnam has nominated Senior Deputy Solicitor General Mahen Gopallawa: President is due to submit 2 names to the Constitutional Council for approval.
  7. Former Chairman of the Central Environmental Authority Supun S Pathirage who was arrested for allegedly accepting a bribe of Rs.10mn, granted bail by the Colombo Chief Magistrate’s Court: other 2 suspects further remanded until 24th November.
  8. Govt’s T-Bond Auction of 13/11/2023 fails miserably: 3-Year Bonds – amount
    offered was Rs.60,000mn, and accepted Rs.60,000mn (100%): 4-Year Bonds – amount offered was Rs.110,000mn, but accepted only Rs.4,557mn (4.1%): 7-Year Bonds – amount offered was Rs. 80,000mn, but accepted only Rs.8,667mn (10.8%): Total T-Bonds offered was Rs.250,000mn, but accepted only Rs.73,224mn (29.3%): analysts warn a massive financial & interest rate crisis is looming in the horizon.
  9. Former Cricketing great Aravinda de Silva is to be inducted into the ICC “Hall of Fame”: he would be the 4th Sri Lankan to join the elite group, after Kumar Sangakkara, Muthiah Muralidharan & Mahela Jayawardena: Aravinda will be honoured at the Wankhede Stadium during the World Cup Semi-final, along with Virender Sehwag and Diana Edulji.
  10. Sports Minister Roshan Ranasinghe files a complaint with the Criminal Investigation Department regarding the Sri Lanka Cricket crisis: informed sources say the complaint is pertaining to matters revealed in the SL Cricket audit report & the death threats against him.

SL’s Top Court holds deradicalisation regulations invalid

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Colombo (LNW): The Supreme Court of Sri Lanka yesterday (13) declared former President Gotabaya Rajapaksa’s regulations on the Prevention of Terrorism (De-radicalisation from holding violent extremist religious ideology) invalid.

The court ruled that these regulations violated fundamental rights under Articles 10, 12(1), and 13 of the Constitution.

The three-judge bench comprising Justices Buwaneka Aluwihare, Murdu Fernando and Mahinda Samayawardhena ordered the State Party to pay Rs. 25,000 to each petitioner, including the Centre for Policy Alternative and its Executive Director, Dr. Paikiasothy Saravanamuttu.

The court observed that amending the regulations to align with fundamental rights was impractical.

The petitioners argued that the regulations allowed executive detention without proper judicial evaluation, violating constitutional safeguards and international human rights norms.

Senior Counsel Viran Corea, Luwie Ganeshathasan and Thilini Vidanagamage appeared for the CPC, Counsel Suren Fernando with K. Wikramanayake appeared for Shreen Saroor and Pulasthi Hewamanna with Harini Jayawardena appeared for Ambika Satkunanathan.

Additional Solicitor General Nerin Pulle and Deputy Solicitor General Awanthi Perera appeared for the Attorney General.

Thirteen post offices in Western Province operate round-the-clock for traffic fines

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Colombo (LNW): Thirteen post offices within the Western Province-South, covering the regions of Colombo and Kalutara, are set to provide round-the-clock services for accepting fines associated with traffic offenses during the night.

Deputy Inspector General (DIG) in charge of Traffic Control and Road Safety, Indika Hapugoda said this innovative initiative was discreetly conveyed to Divisional Officers in specific areas of Colombo (North, South, Central), Nugegoda, Mount Lavinia, Kalutara, Seethawakapura, Kelaniya, and Gampaha as part of a pilot project.

These specified post offices are located in Slave Island, Havelock Town, Wellawatta, Borella, Kotahena, Battaramulla, Nugegoda, Dehiwala, Mount Lavinia, Moratuwa, Panadura, Kalutara, and Seethawakapura and have been specifically designated to operate 24/7, including during the nocturnal hours, for the purpose of fine collection.

This covert collaboration between the Department of Posts and law enforcement ensures the seamless provision of this service.

Additionally, the DIG discreetly instructed traffic duty officers to subtly communicate this initiative to drivers while handling cases related to traffic offenses.

Sale of 20 per cent stake in 02 state banks injects life into CSE

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Colombo (LNW): President Ranil Wickremesinghe’s announcement of selling a 20 per cent stake in People’s Bank and Bank of Ceylon injected vitality into the stock market during a lackluster day, analysts pointed out.

The government aims to sell the stake to strategic investors or the public to enhance capital and support future growth, reducing taxpayer burden.

The 2024 budget proposes stringent measures, including legal action against non-filers and mandatory submission of Taxpayer Identification Number certificates for certain transactions.

Despite these challenges, the stock indices rose, with the All-Share Price Index up by 10 points and the S&P SL20 increasing by 7.6 points.

The turnover reached Rs 559 million without any crossings, and notable contributors were Capital Alliance, JKH, and Ceylon Grain Elevators.

In the retail market, 19.2 million shares changed hands in 8570 transactions. The day saw the rupee opening flat against the US dollar at Rs 327.00/40.

Bond activity was subdued as investors adopted a cautious stance before the budget reading.

DFCC Bank posts robust Q3 2023 performance amidst economic defiance

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Colombo (LNW): DFCC Bank has reported a strong performance for the third quarter of 2023, recording an Operating Profit Before Taxes on Financial Services of Rs. 10,693 million, Profit Before Income Tax (PBT) of Rs. 8,305 million, and a Profit After Tax (PAT) of Rs. 5,498 million.

This marks a significant improvement from the third quarter of 2022. The Bank’s Return on Equity (ROE) increased to 11.66 per cent, and Return on Assets (ROA) before tax for the period ended September 2023 is 1.76 per cent, compared to 0.46 per cent for the year ended December 2022.

The Net Interest Income (NII) increased by 26 per cent, reaching Rs. 23,655 million, and fee and commission income rose by 40 per cent to Rs. 2,848 million.

The impaired loan ratio increased to 6.13 per cent, and the Bank made impairment provisions to address additional risks in the economic environment.

Operating expenses increased to Rs. 8,370 million, primarily due to inflation. Other comprehensive income includes fair value gains on equity securities and fixed-income securities.

The Bank remains committed to providing high-quality, customer-centric banking services amid unprecedented challenges in the banking industry.