April 23, Colombo (LNW): The Central Bank of Sri Lanka (CBSL) has announced the identification of eight additional entities involved in conducting or having conducted prohibited schemes.
In a notice addressed to the general public, the Central Bank emphasised that participating in pyramid schemes constitutes a punishable offense under Sri Lankan law.
The CBSL reiterated its ongoing efforts to safeguard consumers and preserve the integrity of the financial system by combatting illicit financial activities.
April 23, Colombo (LNW): In a proactive move aimed at fostering transparent and constructive political dialogue, the National People’s Power (NPP) has formally communicated with the Samagi Jana Balawegaya (SJB), the main opposition party in Parliament, regarding the proposed debate between NPP Leader, MP Anura Kumara Dissanayake and SJB Leader, MP Sajith Premadasa.
Yesterday (22), executive member of the NPP, former MP Dr. Nalinda Jayatissa dispatched a letter to SJB Secretary General MP Ranjith Madduma Bandara, extending invitations for the debate to be held on one of the following dates: May 7, 9, 13, or 14.
The communication underscored the importance of establishing a definitive date for the debate to prevent potential misunderstandings among the public.
The NPP has expressed its readiness to engage in this critical exchange of ideas and viewpoints, highlighting the significance of transparent discourse in shaping informed public opinion.
Previously, many MPs and stalwarts of the SJB challenged the NPP to debate on which course should the JVP-led alliance take were the economic crisis facing Sri Lanka to be resolved under an NPP-rule.
The NPP awaits the prompt response of the SJB regarding their stance on the proposed debate, fostering an environment conducive to meaningful political engagement and accountability.
April 23, Colombo (LNW): Tragedy unfolded in Moragahahena as police officers resorted to opening fire at a three-wheeler that failed to adhere to directives to stop.
This unfortunate incident led to the loss of two lives.
The encounter occurred near the vicinity of a tyre factory in Moragahahena.
Regrettably, despite police warnings, the three-wheeler driver did not halt the vehicle, prompting law enforcement to take action.
While two individuals succumbed to the consequences of the gunfire, another occupant of the vehicle managed to evade capture during the incident.
April 23, Colombo (LNW): The Department of Census and Statistics (DCS) in its latest report has revealed a decrease in the overall rate of inflation, as measured by the National Consumer Price Index (NCPI) on a Year-on-Year basis, to 2.5 per cent in March 2024,
This marks a notable decline from the 5.1 per cent recorded in February 2024.
While the contributions to the inflation rate in March 2024 from the food group and non-food group stand at 2.1 per cent and 0.4 per cent respectively, there are notable fluctuations in specific categories within these groups.
The Y-o-Y inflation of the food group remained steady at 5.0 per cent in March 2024, consistent with February 2024, with the Y-o-Y inflation of the non-food group decreasing to 0.7 per cent from 5.1 per cent in the same period, according to report.
This decline in the non-food group index values in March 2024, compared to the previous month, can be attributed primarily to price decreases in categories such as ‘Housing, Water, Electricity, Gas and Other fuels’ (including electricity bills) and ‘Clothing and Footwear’.
However, price increases were reported in categories such as ‘Alcoholic Beverages, Tobacco and Narcotics’ and ‘Restaurants and Hotels’.
Moreover, core inflation, which excludes volatile items like food, energy, and transport, has seen an increase to 3.4 per cent in March 2024 from 2.7 per cent reported in February 2024, indicating underlying inflationary pressures within the economy.
While these figures may suggest some degree of stability, it would be imperative to note that challenges persist, particularly in addressing the cost of living for citizens.
The government must continue to implement robust economic policies aimed at mitigating inflationary pressures and ensuring sustainable economic growth, according to analysts.
April 23, Colombo (LNW): H.M.K.W. Bandara, the General Manager of Railways, tragically passed away this morning (23) after succumbing to a sudden and unexpected illness.
April 23, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, Uva and North-western provinces and in Galle and Matara districts after 2.00 p.m., with showers or thundershowers being expected to occur at a few places in North-central and Northern provinces during the afternoon or night, the Department of Meteorology said in its daily weather forecast today (23).
Showers or thundershowers will occur over the coastal areas of Puttalam to Galle via Colombo during the morning too, the statement added.
Fairly heavy showers about 75 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.
Misty conditions can be expected at some places in Sabaragamuwa, Central and Uva provinces and in Ampara district during the morning.
General public is kindly requested to take adequate precautions to minimise damages caused by temporary localised strong winds and lightning during thundershowers.
Marine Weather:
Condition of Rain:
Showers or thundershowers will occur at several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be southwesterly or variable and wind speed will be (20-30)kmph.
State of Sea:
Sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
Meanwhile, heat index, the temperature felt on human body is further expected to increase up to ‘Caution level’ at some places in Northern, North-central, Western, Sabaragamuwa, Eastern, Southern and North-Western provinces and Monaragala district.
The public, therefore, is advised to stay hydrated and take breaks in the shade as often as possible, check up on the elderly and the sick, never leave children unattended, limit strenuous outdoor activities, find shade and stay hydrated, wear lightweight and white or light-coloured clothing.
April 22, Colombo (LNW): Cinnamon Life, Sri Lanka’s largest mixed development project, a mega 4.5 million sqft. complex with its architecturally stunning 30-storey tower, said it is offering prime office spaces and a prestigious new address, elevating businesses to new heights.
To date, the office tower has already secured renowned anchor tenants such as HCL Technologies and Cinnamon Hotels and Resorts.
Several leading local and international businesses will be able to leverage the exclusive address to access Colombo’s thriving commercial ecosystem.
HCL Technologies Sri Lanka Operations Associate Director Dilan Perera noted, “As a tech company, having the right infrastructure is crucial.
We are a global IT technology solution company with revenues of $ 12.6 billion, operating in over 50 countries. As part of our expansion and consolidation of operations, we have moved into 10 floors in Cinnamon Life office tower.
Cinnamon Life’s office tower exceeded our expectations, providing the connectivity and facilities needed. We are extremely happy to have a committed infrastructure partner who delivered on time and kept all their milestones enabling us to operate smoothly and I would like to commend their exceptional support.”
Cinnamon Hotels and Resorts Chief Executive Officer Mikael Svensson said, “Our Corporate Office at Cinnamon Life Integrated Resort is redefining the way we operate by seamlessly integrating collaboration and the beauty of Colombo’s landscape.
The workspace transcends traditional boundaries, offering an open environment where it provides flexible co-working and networking hubs to inspire innovation and encourage meaningful connections.
John Keells Properties Head of Asset Management and JKH Vice President Rusiru Abeyasinghe said, “Cinnamon Life office spaces represent a truly global work culture with connectivity and convenience.
The tower’s emphasis is towards future-focused businesses. It is a strategic investment in a business’ transformation. With world-class facilities and a central location, it is the ideal choice for those aiming to reach new heights.”
Strategically located in the heart of Colombo’s financial hub, between Colombo Port City and key roads, Cinnamon Life provides corporates an impressive base merging modern workspaces with upscale lifestyle, dining and entertainment – seamlessly connected to the Cinnamon Life hotel, mall and residencies, creating experiences where business and leisure blend.
The tower boasts 24 floors dedicated to offices and five floors for parking. Each level offers 10,564 sqft. of net lettable space, and can cater to the needs of diverse businesses, providing a conducive environment for operations and growth.
The tower is billed as a next-gen ready office space on each level and a move-in-ready hub promising to house the next generation of enterprises.
April 22, Colombo (LNW): Sri Lanka is to sign an agreement with China Petroleum & Chemical Corporation (SINOPEC) to establish a new Petroleum Refinery in the island nation’s deep Southern Hambantota port, Power and Energy Minister Kanchana Wijesekera said.
“Cabinet approval was granted to award the contract to China Petroleum & Chemical Corporation (SINOPEC) of China, to enter into an agreement to establish a new Petroleum Refinery & Associated Product Processing center in Hambantota,” Wijesekera said in his X (formerly Twitter) platform.
The Minister said the government expects at least $4.5 billion investment in the new refinery which will cater into exports as well as local markets. Sinopec has already started fuel retailing in Sri Lanka, competing with Sri Lanka’s state-owned Ceylon Petroleum Corporation (Ceypetco) and Lanka IOC, a fully owned subsidiary of Indian Oil Corporation.
Though Sinopec and Vitol Asia based in Singapore were the two firms shortlisted out of seven companies that responded to an expression of interest early this year, Vitol withdrew its bid, government officials have said.
The move will strengthen China’s position in Sri Lanka where India and other developed countries are trying to win projects and have influence in the South Asian Island nation which is facing an unprecedented economic crisis.
Beijing already has a massive port in Hambantota on a 99-year lease and expects to establish an investment zone in 15,000 acre land
Power and Energy Minister Kanchana Wijesekera expressed optimism yesterday regarding potential developments with Sinopec, aiming for a comprehensive agreement aligned with the Government’s principles by next month, with a target to sign the agreement by June 2024.
He noted that concerns regarding the implications on land extent, logistics, port taxes, water resource management and compliance with Board of Investment (BoI) conditions emerged during deliberations with Sinopec having plans to increase capacities.
“There were concerns raised on plans to increase capacities. We have provided our recommendations and made our decision. I anticipate that Sinopec will return in May 2024 to finalise the Memorandum of Understanding (MoU) once all parties agree on the outlined principles,” he told journalists.
On 27 November 2023, the Cabinet of Ministers approved awarding the contract to Sinopec to forge an agreement for the establishment of a petroleum refinery and associated product processing centre in Hambantota.
The proposed refinery project is expected to invest a minimum of $ 4.5 billion to be built in the Industrial Zone at the Hambantota Port.
Minister Wijesekera clarified that Sinopec would limit the sale of its volume to 10%, with no commitment from the Government to purchase any portion.
He also assured that the Government would adhere to the conditions outlined in the Expression of Interest (EoI) without deviation.
April 21, Colombo (LNW): Having hit a roadblock with international bondholders, uncertainty looms over the economy of crisis-hit Sri Lanka and an upcoming review by the International Monetary Fund (IMF), experts warn.
Colombo-based economist Talal Rafi explained that with Sri Lanka still in default status and facing uncertainty regarding credit ratings and foreign investment, the economic fallout could be significant. “The larger impact is the uncertainty as no one knows what the deal will be for them to plan anything,” he said.
However Sri Lanka remains steadfast in its commitment to reaching the debt restructuring targets and is confident of smooth progress in the continued good-faith engagements for a speedy debt resolution that will ensure debt sustainability and comparability of debt treatment, State Minister of Finance Shehan Semasinghe said.
The South Asian island country announced on Tuesday that it has failed to strike an agreement with international bondholders on restructuring more than US $12 billion in debt, a mandatory requirement set out by the IMF.
In March last year, the IMF’s board approved a $2.9 billion bailout package under a 48-month arrangement under the Extended Fund Facility (EFF) to support Sri Lanka’s economic policies and reforms.
Sri Lanka is currently on its second review and is awaiting board approval for a staff-level agreement reached in March this year. Since 1965 to 2016, Sri Lanka has had a total of 16 programs with the IMF and the current program with IMF is the seventeenth.
The delay in reaching an agreement could also affect Sri Lanka’s upcoming IMF review, which is scheduled for June, Rafi said. “As debt restructuring is a key condition for the IMF, it would have an impact on the time taken for board approval.”
But State Finace Minister further stated, it was heartening to note the widespread appreciation and support for Sri Lanka’s debt restructuring process.
“We remain steadfast in our commitment to reaching the restructuring targets and confident of smooth progress in the continued good-faith engagements for a speedy debt resolution that will ensure debt sustainability and comparability of debt treatment,” he added.
The program specifically supports Sri Lanka’s efforts to restore macroeconomic stability and debt sustainability, safeguard financial stability, and enhance growth-oriented structural reforms.
In April 2022, the country defaulted on its foreign debt for the first time, triggering the worst economic crisis in its history. According to official data, Sri Lanka’s gross official foreign currency reserves inched up to $4.5 billion million in February.
Moreover, the nation’s impending presidential election piles pressure on the government to accelerate the negotiation process, raising concerns about the sustainability of any deal struck hastily under such circumstances.
April 22, Colombo (LNW): Sri Lanka’s financial constraints are to be continued in 2024, with the nation on track to miss its budget revenue target for the 33rd consecutive year with fundraising issues mainly from borrowings and taxation becoming increasingly difficult, according to a new report by Verité Research.
The Verité Research report, titled “State of the Budget Report 2024,” paints a concerning picture for Sri Lanka’s financial health.
While the government’s official 2024 budget sets an ambitious revenue target of Rs 4.164 trillion, Verité Research estimates a significant shortfall of 14%.
This leaves a projected revenue of only Rs. 3.57 trillion – a stark contrast to the government’s optimistic projections.
The treasury will have to raise revenue up to Rs.125 billion by year-end with the current compliance rate or a substantial Rs.178 billion with full compliance to maintain cash flows without the bank bailout, it added.
The budget 2024 estimates a record expenditure of Rs 6.98 trillion, a 33 per cent increase from 2023, with a focus on doubling capital expenditure and allocating 450 billion rupees for bank recapitalisation.
To accommodate this, President Wickremesinghe proposed raising Sri Lanka’s debt ceiling by Rs 3.45 trillion to Rs 7.35 trillion rupees
The government is resorting to domestic borrowing of around Rs. 5 trillion to meet heavy expenditure in the forthcoming budget 2024, Finance Ministry estimates revealed.
The Central Bank‘s inability to print money to meet the government expenditure under the new CB act and very limited foreign finance mobilisation from the World bank and other donor agencies and countries were among the reasons for the impending financial crisis.
Verité Research identified overestimated tax revenue as a major source of the projected shortfall. Their analysis suggested that the government has significantly overestimated revenue from Value Added Tax (VAT), with a potential gap of 61%.
The report also warned that projections for other major taxes such as corporate income tax, personal income tax, Social Security Contribution Levy (SSCL), and customs import duty are also likely too optimistic.
The report added that Sri Lanka currently grapples with the highest interest-to-revenue ratio globally, a key indicator of debt sustainability. Reducing this ratio is crucial for ensuring economic stability.
According to Verité Research, the government’s plan to lower the ratio to 64% in the 2024 budget appears overly optimistic.
The Central Bank‘s inability to print money to meet the government expenditure under the new CB act and very limited foreign finance mobilisation from the World bank and other donor agencies and countries were among the reasons for the impending financial crisis.
The “uncertainty” over the impending elections in Sri Lanka will cause a possible downward trend in the country’s economic outlook, the Asian Development Bank (ADB) has said recently.
Delays in the completion of a debt restructuring agreement and any barriers to passing key legislation could dampen sentiment and derail growth, the ADB report highlighted.
