The World Bank Executive Board has granted approval for a financial package of US$ 150 million to Sri Lanka, aimed at bolstering the resilience of the country’s financial sector. The funding is designated to enhance the financial and institutional capabilities of Sri Lanka’s financial sector safety net, with a primary focus on reinforcing the Sri Lanka Deposit Insurance Scheme.

In a statement, Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka, emphasized the importance of a robust safety net in the wake of Sri Lanka’s economic challenges. The funding will specifically contribute to strengthening the Deposit Insurance Scheme, providing protection to the savings of smaller depositors, including women and individuals in rural areas. This initiative aims to instill confidence in Sri Lanka’s financial system, a critical component of the country’s recovery efforts.

The Financial Sector Safety Net Project is designed to enhance the financial and institutional capacity of the Sri Lanka Deposit Insurance Scheme (SLDIS), managed by the Central Bank of Sri Lanka. The financing will augment the reserves of SLDIS, which can be utilized for payouts to insured depositors of banks and licensed finance companies. Additionally, the project will support the institutional strengthening of SLDIS in alignment with international best practices for effective deposit insurance schemes.

Alexander Pankov, Lead Financial Sector Specialist and Task Team Leader for the project, stressed the significance of reinforcing the financial sector safety net during a macro-debt crisis. A robust deposit insurance system, coupled with enhanced supervision and resolution frameworks, is crucial for maintaining financial stability, preserving public confidence in the financial system, and safeguarding people’s savings.

Established in 2010, the SLDIS has conducted multiple payouts for failed licensed finance companies in recent years. Presently, the scheme guarantees deposits for households and enterprises up to LKR 1,100,000, covering over 90 percent of deposit accounts in Sri Lanka. The recent legal upgrade through the approval of the Banking Special Provisions Act underscores the need for institutional and financial strengthening of SLDIS to effectively fulfill its legal mandate in protecting financial sector stability.

The Sri Lankan Rupee has experienced a marginal appreciation against the US Dollar in commercial banks today, as compared to Thursday’s rates. At Peoples Bank, the buying rate for the US Dollar has risen from Rs. 321.15 to Rs. 321.92, while the selling rate has decreased from Rs. 334.41 to Rs. 333.14.

Similarly, Commercial Bank has reported a decrease in both buying and selling rates for the US Dollar, with the rates moving from Rs. 322.63 to Rs. 320.99 for buying and from Rs. 333 to Rs. 332 for selling.

At Sampath Bank, there has also been a slight decline in the buying and selling rates of the US Dollar, moving from Rs. 323 to Rs. 322 for buying and from Rs. 333 to Rs. 332 for selling.

In a recent development, the National Medicines Regulatory Authority (NMRA) has appointed Senior Chemist D. D. Bulathsinhala as the Acting Chief Executive Officer. The announcement was made by Dr. Ananda Wijewickrama, Chairman of the NMRA, who revealed that the appointment was endorsed by the NMRA board members.

Dr. Wijewickrama clarified that while Bulathsinhala assumes the role of Acting CEO, a permanent appointment for the Chief Executive Officer position is anticipated in the future.

This change comes on the heels of the removal of Dr. Vijith Gunasekera from the position of Chief Executive Officer on Wednesday. Health Secretary Janaka Sri Chandragupta, in a letter dated Tuesday, informed Dr. Gunasekera of his immediate transfer to the Health Ministry. The decision was purportedly made based on a resolution reached by the NMRA Board of Directors.

However, Dr. Wijewickrama revealed that the Health Secretary had initially sought written clarification from the Board of Directors regarding the necessity of Dr. Vijith Gunasekera’s services. In response, the Board communicated that, in order to restore trust in the NMRA, Dr. Gunasekera’s services were deemed no longer essential.

Allegations related to the importation of substandard medicines to the country have implicated the NMRA’s top officials, leading to a series of changes in leadership. Dr. Ananda Wijewickrama recently replaced the former NMRA Chairman. Additionally, the Health Minister, Keheliya Rambukwella, was previously removed from his post.

Dr. Vijith Gunasekera, who was informed to step down earlier, reportedly resisted the decision. Furthermore, trade unions alleged his involvement in the destruction of sensitive documents at the NMRA. The reshuffling within the NMRA’s leadership is indicative of ongoing efforts to address concerns and enhance transparency within the regulatory authority.

The International Monetary Fund (IMF) Executive Board has given its approval to a proposal set to be presented to the Board of Governors, aiming to conclude the 16th General Review of Quotas with a substantial increase. This move aligns with guidance received from the International Monetary and Financial Committee (IMFC) during the 2023 Annual Meetings.

IMF Managing Director Kristalina Georgieva emphasized the importance of this proposal, stating, “Concluding the 16th Review with a quota increase will help preserve a strong, quota-based and adequately resourced IMF at the center of the Global Financial Safety Net. An adequately resourced IMF is essential to safeguard global financial stability and respond to members’ potential needs in an uncertain and shock-prone world.”

The proposed increase involves a 50 percent boost in quotas, distributed among members based on their existing quotas. This initiative aims to fortify the IMF’s permanent resources and reinforce the quota-based structure of the Fund by minimizing reliance on borrowing, thereby upholding the primary role of quotas in Fund resources.

Furthermore, the proposal envisions a reduction in borrowed resources, including Bilateral Borrowing Agreements and New Arrangements to Borrow (NAB), once quota increases take effect. This adjustment is intended to maintain the Fund’s current lending capacity.

Acknowledging the urgency of quota share realignment to better reflect members’ relative positions in the global economy, the proposal calls for the Executive Board to develop possible approaches for quota realignment by June 2025, as a guide for the 17th General Review of Quotas. Implementation of this guidance is slated to commence promptly following the conclusion of the 16th Review.

IMF Managing Director Kristalina Georgieva expressed optimism regarding the proposal, given the complexities of the current global economic landscape. She urged international cooperation, stating, “In the spirit of international cooperation, I am hopeful this proposal will garner the broadest possible support from the membership, and that we will then make progress on a quota realignment under the 17th Review.”

Highlighting the significance of unity in challenging times, Georgieva remarked, “As the world grapples with rising fragmentation, today’s decision is a strong signal that the membership can still come together in support of cooperative solutions that instill confidence in the IMF’s ability to effectively support its membership to navigate a challenging global landscape.”

The Executive Board has called for a vote on the proposal by December 15, 2023, with approval requiring an 85 percent majority of the total voting power from the Board of Governors.

1. International Labour Organisation Country Director for SL Simrin Singh says around 42% of SL’s existing Micro, Small & Medium Enterprises (MSMEs) are at risk of failure within a year: also says 50% of MSMEs are struggling to retain or hire employees due to their unaffordability to pay enough salaries due to the rising cost of living.
2. GMOA Secretary Dr Haritha Aluthge claims around 100 hospitals & medical specialists’ units are in danger of closure due to the lack of medical practitioners: says around 20 hospitals have already been closed due to the exodus of doctors.
3. CBSL data shows that only Rs 2,372mn (7.91%) of the original 364-day Treasury Bills offer of Rs 30,000mn had been issued at this week’s T-Bill auction: this was the 7th consecutive market week that the 364-day tenure was sparsely subscribed: CBSL data also shows the Govt was able to sell only Rs.158,202mn (95.9%) of the total value of Rs. 165,000mn offered, marking the 6th consecutive week where the Govt was unable to sell the totality of the T-Bills offered.
4. National Dengue Control Unit says the total number of dengue cases had risen to a startling 70,178, with a total of 43 dengue deaths so far: highest number of cases from Colombo District with 14,884 (21.1%): Gampaha & Kalutara Districts record 14,232 (20.4%) and 4,456 (6.4%) cases respectively.
5. Committee on Public Finance directs Ministry of Finance to tax companies that
   benefited from the recent ‘midnight gazette’ which increased import duty on sugar from 25 cents per kg to Rs.50 per kg: questions MOF officials about the “suspicious timing” of the duty increase & the surge in sugar imports by certain companies just before the duty hike: MOF officials say the duty increase was part of the fiscal-based revenue consolidation programme of the IMF.
6. Presidential Secretariat Director General on Trade Unions Saman Ratnapriya says the Opposition’s claim that sugar importers had benefited from the latest increase in the Special Commodity Levy from 25 cents per kg of sugar to Rs 50 per kg with effect from midnight Nov 1, is “unsubstantiated”: asserts only 520 MT of white sugar had been imported immediately before the upward revision of the levy.
7. Parliament unanimously passes the Joint proposal of the Govt & Opposition to remove the Office Bearers of Sri Lanka Cricket, without a vote: Opposition Leader Sajith Premadasa says the Speaker violated MP privileges by preventing voting by MP’s name.
8. Sri Lanka Cricket invites the 3 retired judges who were part of the Interim Committee formed by Minister Roshan Ranasinghe, to form an “independent committee” of their own: says the mandate of the committee could remain the same as outlined in the Gazette issued by the Minister.
9. President’s Secretary Saman Ekanayake hands over a draft Bill to introduce a new Constitution for SL Cricket to the Cabinet Sub-Committee appointed to “resolve” Sri Lanka Cricket issues: the draft Bill had been prepared by a Committee headed by former Supreme Court Judge K T Chitrasiri.
10. SL loses its last ICC Cricket World Cup 2023 match against New Zealand, by 5 wickets: SL – 171 all out (46.4 overs), Kusal Perera – 51, Mahesh Theekshana – 39*: NZ – 172/5 (23.2 overs), Angelo Mathews – 29/2: SL placed 9th out of 10, in the final points tally.

World Travel Market (WTM), the leading global event of Travel and Tourism Trade kicked off on 06 November 2023 at the Excel Exhibition Hall, London, UK promoting international travel throughout the world. The event was held for three days from 06-08 November 2023. With the intention of promoting Sri Lanka as a renowned destination in world travel, Sri Lanka Tourism Promotion Bureau (SLTPB) with the support of the Sri Lanka High Commission in London participated in the event, along with 73 partners of the industry. 

The main objective of this year’s representation is to provide Sri Lanka travel industry an opportunity to meet, interact and network with travel and tourism industry partners from the UK and around the world to gain immediate competitive advantage for the Sri Lanka travel industry, stay abreast with the latest developments and to disseminate information about Sri Lanka along with the new products and services. 

Sri Lanka pavilion at the WTM was declared open on 06 November 2023 by Duchess of Rutland Her Grace Emma Manners, and Minister of Tourism Harin Fernando, in the presence of High Commissioner of Sri Lanka to the United Kingdom Saroja Sirisena, Chairman of Sri Lanka Tourism Promotion Bureau Chalaka Gajabahu,  Chairman, Sri Lanka Convention Bureau Thisum Jayasuriya, Country Manager, SriLankan Airlines Chinthaka Weerasinghe, other officials of Sri Lanka Tourism and distinguished guests representing the UK travel trade. 

Minister Fernando and the Chairman of Sri Lanka Tourism conducted a series of B2B meetings with leading UK travel companies, associations, and travel media during the three days. A press conference by the Sri Lanka Tourism was organized for the UK mainstream and travel media on 07 November 2023 at the exhibition venue.

The Sri Lanka stall showcased traditional Sri Lankan dancing, providing an opportunity for the visitors to get a glimpse of the culturally rich traditions of Sri Lanka performed by a dance troupe based in London, under the overall theme of “You will come back for more”.

A Ceylon tea counter featured at the Sri Lanka stall to serve freshly brewed Ceylon tea to the visitors to the Sri Lanka stall throughout the three-days. 

Sri Lanka is one of the most sought-after travel destinations among tourists with arrivals surpassed One Million for 2023, marking a significant milestone after enduring multiple challenges over the past three years. Among the key markets, the United Kingdom has been the second contributor with a share of 11%. 

The participation of Sri Lanka at the WTM-2023 paved the way to project Sri Lanka among leading UK travel and tour companies, bloggers and social media enthusiasts, as a world class destination. WTM attracts more than 50,000 visitors, 5,000 trade partners (exhibitors) and over 3000 journalists around the world each year.