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India’s Finance Minister launches new initiatives throughout SL in diverse areas

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–         Immediate roll out of USD 15 million grant for promotion of Buddhist ties

–         Allocation of USD 10 million for solar electrification of places of worship across Sri Lanka

–         Launch of construction of 10,000 houses in plantation areas of Sri Lanka

–         Inauguration of the upgraded Thondaman Vocational Training Center

–         Supply of school bags and notebooks to 10,000 students

–         Installation of RO plants in schools

        Finance Minister of India, Nirmala Sitharaman led a five-member official delegation as well as a high-powered business delegation consisting of senior functionaries of leading industry organizations like Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce & Industry (FICII) to Sri Lanka from 1–3 November 2023.

2.     Finance Minister Nirmala Sitharaman called on H.E President Ranil Wickremesinghe and H.E Prime Minister Dinesh Gunawardena during the visit. She paid respects to the Chief Prelates of the Asgiriya and Malwatta chapters as also offered prayers at the sacred Sri Dalada Maligawa in Kandy and sacred Jaya Sri Maha Bodhi Temple in Anuradhapura, in addition to Nallur Kandaswamy Temple in Jaffna. She was the Guest of Honour at ‘Naam 200’ event to mark 200 years of arrival of the Indian origin Tamil community to Sri Lanka and delivered the keynote address at an India – Sri Lanka Business Summit – Enhancing Connectivity; Partnering for Prosperity.  She also inaugurated branches of State Bank of India in Trincomalee and Jaffna during the visit.

3.     She held fruitful discussions with the President of Sri Lanka on 2 November 2023 and they witnessed the exchange of bilateral documents, which pave way for early commencement of projects under the USD 15 million grant announced by Prime Minister Narendra Modi for the promotion of Buddhist ties between the two countries. First project being undertaken under this grant is the solar electrification of places of worship across Sri Lanka with a grant allocation of USD 10 million and the MOU regarding details of the project was also exchanged yesterday.

4.     Finance Minister of India announced in ‘Naam 200’ event that Government of India would soon send trainers to equip teachers in STEM subjects in plantation regions of Sri Lanka. As one of the first projects under the SLR 3 billion multi-sectoral package announced by Prime Minister Narendra Modi in July 2023 for the Indian origin Tamil community, qualified trainers from India would be deployed in Sri Lanka for defined periods towards achieving this. She also outlined several other projects which are being rolled out under the package including solar lanterns for plantation workers, stitching units for women self-help groups etc. In the education sphere, she kicked off the supply of notebooks and school bags to 10000 school-going children in the plantation regions and started a project to distribute RO plants among schools to address drinking water problems in select schools.

5.     Marking a new milestone, she virtually launched the Phase-4 of flagship Indian Housing Project (IHP) for the construction of 10,000 houses for plantation workers along with the President of Sri Lanka. This is an extension of the third phase under which close to 4000 houses have been built in these regions. It may be recalled that a total of around 50,000 houses have been completed under IHP till date. She also virtually inaugurated the upgraded Thondaman Vocational Training Center in Hatton along with President Wickremesinghe. Government of India built several facilities in the Center and provided equipment including desktop computers towards imparting employable skills of youth.

6.     The visit is expected to give further impetus to bilateral engagements in the economic sphere. Industry captains who visited Sri Lanka from several sectors actively sought mutually beneficial investment opportunities and sustainable commercial partnerships in Sri Lanka. The Business Summit was a meeting of minds platform in which both Indian and Sri Lankan business entities came together to discuss future collaborations.

7.     It may be recalled that Finance Minister Sitharaman had strongly advocated for Sri Lanka in IMF meetings in 2022 which was critical in enabling the IMF package for Sri Lanka. As the Finance Minister, her role in fast tracking the multi-pronged support of USD 4 billion by India last year was instrumental.

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Colombo

03 November 2023

Today’s (Nov 05) weather: Showers, thundershowers to continue; misty conditions expected in several provinces

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By: Isuru Parakrama

Colombo (LNW): Showers or thundershowers will occur at several places in the most provinces of the island after 02.00 p.m, and fairly heavy showers above 75mm are likely at some places in Western, Central, Sabaragamuwa, North-western, North-Central and Southern provinces, the Department of Meteorology said in its daily weather forecast today (05).

Showers may occur in Northern, Eastern and Southern provinces during the morning too, the statement added, revealing that misty conditions can be expected at some places in Western, Sabaragamuwa, Central and Uva provinces during the morning.

The 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 sea areas around the Island particularly during the afternoon or night.
Winds:
Winds will be South-easterly or variable in direction and wind speed will be (20-30) kmph.
State of Sea:
The sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.

SL Cricket officials to lose their jobs following cricket debacle.

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By: Staff Writer

Colombo (LNW): Underfire Sri Lanka Cricket (SLC) and the Selection Committee have been asked to resign from their posts or face drastic action after national cricket teams debacle in the world cup 2023.

Sports Minister Roshan Ranasinghe has urged the Executive Committee (ExCo) of Sri Lanka Cricket (SLC) and the Selection Committee to step down from their positions or face drastic action, in light of the Lions’ crushing defeat to India by a massive 302 runs in the ODI 33 of the ongoing ICC Men’s Cricket World Cup.

In a press release, the lawmaker said the cricket board’s ExCo and the Selection Committee should bear the responsibility for the recent defeats the national team has faced.

Sri Lanka officials have no moral, ethical right to remain in office. They should resign from their posts,” the Minister has said.

He also said that the non-inclusion of senior cricketers like Angelo Mathews and Dinesh Chandimal had an effect on Sri Lanka’s World Cup campaign.

“The victimization of Angelo Mathews and Dinesh Chandimal by not including them in the World Cup squad also had an effect on Sri Lanka’s debacle at the World Cup,” he claimed.

“It is a joke that SLC is defending the selectors and its executive committee.

His remarks followed SLC President Shammi Silva’s letter to President Ranil Wickremesinghe about the ‘challenging situation’ that the national cricket board is currently facing.,

He alleged that the day-to-day operations and professional conduct of the cricket board are being greatly affected due to what he said a ‘deliberate harassment’ from the Sports Ministry.

Silva said this interference and continuous condemnation with false accusations about the SLC and its officials are negatively affecting the administrative progress and sought President Wickremesinghe’s immediate intervention to address the unresolved issues and ensure that SLC can function independently and efficiently to fulfill all of its responsibilities:

The cricket board’s chairman also alleged that there was a lack of response from the Sports Ministry, despite the initial communication on August 03, 2023, about securing hosting rights for the ICC World Cup under 19 in Jan 2024

Cricket has been a unifying force and provided respite amid civil war and political and economic crises in Sri Lanka. But it has now become divisive political infighting element bringing hard feelings of once jubilant local cricket fans.

The island nation once again in global headlines following the bashing inflicted on the national cricket team by powerful india pushing Sri lanka mind set to lowest ebb in recent times

Previously Sri Lanka ‘s governance system of the previous regime was making global headlines for all protest campaigns , including crushing debt problems and failing to protect workers’ rights, debt crisis and economic issues.

The Sri Lankan cricket board has been accused of financial misappropriation, heavy unnecessary spending, corruption and favouritism only benefiting its members to lead luxurious lifestyles, cricket critics alleged.

Ahead of the ICC World Cup, leading global gambling apps, including sports betting have dismissed the team’s chances of winning the decoration.

On top of it India’s massive publicity campaign in all print, electronic and social media aimed at lifting the moral of their national team while pushing Sri lanka to lowest level .in some instance Srilankan spectators had not been allowed to carry Sri Lanka national flags inside Indian pavilions, several media reports revealed.

What’s the truth behind accusations against the nation’s biggest, wealthiest, and most prominent sporting body?

Does Sri Lanka have any chance of silencing their many doubters and becoming champions? The pool of problems facing Sri Lankan cricket is deeper than many know.

India and Sri Lanka resume ETCA negotiations.

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By: Staff Writer

Colombo (LNW): The 12th Round of Economic and Technology Cooperation Agreement (ETCA) negotiations between Sri Lanka and India took place from 30 October to 1 November in Colombo.

Sri Lanka›s vision has always been to integrate with the largest economies in Asia and East Asia, emphasizing export diversification while maintaining and nurturing existing major export markets.

The ultimate goal is to connect with key players through the global value chain to boost the country›s economy and improve the living standards of its people.

The discussions during this round of negotiations hold immense promise. The visit of the President of Sri Lanka to New Delhi on 29 July 2023 set the stage for a renewed commitment to the ETCA, which had been on hold since 2018.

Both Heads of State, representing Sri Lanka and India, agreed to comprehensively enhance bilateral trade and investments, especially, in new and priority areas.

During the latest talks, both sides assessed the progress made in the last 11 rounds and engaged in discussions on various chapters including Trade in Goods, Technical Barriers to Trade, Sanitary and Phytosanitary Measures, Trade in Services, Custom Procedure & Trade Facilitation, Rules of Origin, Trade Remedies, Economic & Technology Cooperation and Dispute Settlement.

“During this round, both sides reviewed the progress on implementation and decided to drop 9 issues as being resolved. Issues such as the quota on apparel and pepper and the procurement of pharmaceuticals were also discussed and both sides decided to continue the discussion and explore new options for resolution of the matter.”

The two countries had 11 rounds of bilateral talks from 2016 to 2018. Thereafter the negotiations were paused.

Both South Asian neighbours already have a Free Trade Agreement (FTA) in place with India earning more foreign exchange in the trade.

Former president Mahinda Rajapaksa-led nationalist Sri Lanka Podujana Peramuna (SLPP) party and some of professional bodies backing the party opposed the ETCA when it was scheduled to be signed.

Later, the signing was postponed, but never took place.

President Ranil Wickremesinghe is now backed by the SLPP after mass protests against the party and Rajapaksa family members forced them out of the offices.

Analysts say ETCA was used for political mileage by SLPP, triggering an anti-Indian sentiment when it was the opposition without properly assessing its threats and opportunities.

Sri Lanka President’s Media Division (PMD) in a statement said the island nation’s vision has always been to integrate with the largest economies in Asia and East Asia, emphasizing export diversification while maintaining and nurturing existing major export markets.

18 percent VAT hike strains consumers buying power; Ceylon Chamber.

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By: Staff Writer

Colombo (LNW): The Ceylon Chamber of Commerce, raising concerns about the proposed increase of the Value Added Tax (VAT) to 18%, says the move could lead to a further decline in consumption.

While recognizing the government’s commitment to revenue enhancement in alignment with International Monetary Fund (IMF) obligations, the Ceylon Chamber said it is imperative to evaluate the broader economic ramifications of such a decision.

The current economic landscape, characterized by escalating income taxes, elevated electricity tariffs, and rise in fuel prices, suggests that an additional VAT increment will further strain consumers purchasing power, the Ceylon Chamber noted in a statement issued today (Nov. 03).

“As consumer spending plays a pivotal role in our GDP growth, there’s a significant risk that this tax increase could lead to a further decline in consumption. Household consumption expenditure growth has been contracting since the end of 2021.”

The Ceylon Chamber pointed out that at a time when Sri Lanka’s focus should be on reviving economic growth through reform measures, such hikes stands to inadvertently lead to further economic contraction, potentially offsetting the intended revenue gains.

On that account, the Ceylon Chamber has recommended that the government explore alternative fiscal strategies, such as expenditure rationalization.

By refining budgetary practices and reducing undue borrowing, a more balanced and sustainable fiscal path can be charted, the statement read further, adding that the pressing need to modernize the revenue collection mechanisms is evident.

““Challenges, such as the Inland Revenue Department (IRD) issuing tax default notices spanning several decades, highlight the inefficiencies of our current system.

The Revenue Administration Management Information System (RAMIS) demands further enhancement for maximum efficacy. A thorough digital transformation, leveraging systems like RAMIS, is crucial for streamlining processes and optimizing revenue collection.

The Ceylon Chamber assured that it remains committed to constructive dialogue with the government on these crucial matters, aiming to achieve a fiscal approach that ensures robust and sustainable economic growth for the entire nation.

Govt’s hope for Indian firms EOIs for SriLankan Airlines shattered.

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By: Staff Writer

Colombo (LNW): Sri Lanka’s hope for Indian firms to take over the national carrier has become dim following the denial of prospective Indian bidders earmarked by the authorities, Indian news agency reports revealed.

“Interest is being shown by both aviation and non-aviation companies. They are based in many countries, including India,” Suresh Shah, Director General of Sri Lanka’s state-owned enterprise restructuring unit said

Tata Sons, Adani group and Emirates have been cited as possible suitors for SriLankan Airlines.

However Air India’s Managing Director and CEO Campbell Wilson denied that the airline is looking at buying SriLankan Airlines, the Hindu Business Line reported.

The Adani group too has denied interest in its emailed reply. InterGlobe Enterprises which owns IndiGo did not respond to a query, it added.

The Government has called for Expression of Interest (EOI) for the proposed divestiture of SriLankan Airlines three days ago as the island nation looks for at least U$ 500 million capital injection to make the airline viable, Aviation Minister Nimal SIripla De Silva said.

A prospective financial institution must have available investible funds and/or capital of at least US$ 300 million.

Subject to satisfying the stated criteria, the government invites body corporates, companies, firms, and any other legal entity or consortiums to apply.

SriLankan Airlines has 23 Airbus aircraft and flies to 39 destinations globally. It flies 77 weekly flights to nine cities in India.

Sri Lanka government has highlighted the access to the rapidly growing Indian aviation market to attract investors.

An investment opportunity teaser accompanying the bid document details the airline’s strengths such as its diversified network and dominant position in Lanka’s international traffic.

It pitches the Indian aviation growth story. Investment in SriLankan Airlines would give its owner’s access to India which is the third largest domestic aviation market in the world. It also highlights the potential of Sri Lanka as a hub for connecting India with South East Asia and Australia.

“A SriLankan Airlines hub could be established in Colombo airport to serve this purpose.

The development of this hub would be feasible based on the already existing critical mass of origin and destination traffic to and from Sri Lanka, which could cross-subsidise lower-yield connecting traffic.

The airline could be able to achieve larger economies of scale, which in turn would reduce its operating costs per passenger,” the teaser said.

“The air services agreement between Sri Lanka and India is highly liberal, allowing Sri Lankan designated carriers’ unrestricted frequencies to the majority of Indian cities, including metros, along with fifth freedom traffic rights connecting SAARC countries,” it said.

India is the largest source market for Sri Lankan tourism. Over two lakh Indians have visited the island nation till September accounting for 20 per cent of overall tourist arrivals, the Hindu Business Line claimed.

President Wickremesinghe inaugurates INFOTEL Exhibition to drive Sri Lanka’s Digital Transformation

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The ‘INFOTEL Information Technology Exhibition,’ organized by the Federation of Information Technology Industry Sri Lanka (FITIS), kicked off at the Bandaranaike International Conference Hall (BMICH) yesterday (03).

This event, aptly themed ‘Fuelling the Digital Economy,’ aligns with President Ranil Wickremesinghe’s visionary initiative to modernize Sri Lanka through digitization. It is being conducted under the auspices of the State Ministry of Technology and will be held till November 05th.

Acknowledging that the shift to the digital economy was a necessity rather than a choice, President Ranil Wickremesinghe outlined two key areas of focus. Firstly, he highlighted the need for enhancing human resources, especially in the education sector. He called on all stakeholders to address these challenges, particularly in the areas of education and market strategy, recognizing that time is of the essence to prevent technology from overtaking the nation’s progress. Mainly collaborative efforts are needed to supplement the school system and improve teacher training, implementing a crash program to address immediate educational needs. Secondly, the President stressed the importance of post-school training at both technical and graduate levels. He suggested that the industry should play a role in offering training programs, whether for-profit or not-for-profit. He encouraged the establishment of institutions that could help meet the growing demand for skilled professionals.

The President also urged the industry to devise a strategy for market penetration, recognizing the importance of reaching a $16 billion market goal. He stressed that achieving market penetration required a well-thought-out plan and called upon industry associations to collaborate in formulating such a strategy.

President Wickremesinghe outlined the significance of the Aadhaar system, the world’s largest biometric ID system and its integration into the Sri Lankan digital landscape. He stressed the need to streamline the distribution of government funds to beneficiaries, mentioning on-going discussions with India to adopt the entire Aadhaar system.

During the event, FITIS Chairman, Indika De Zoysa, presented a commemorative memento to the President, while in turn, conferred awards to recognize the innovative contributions made by schoolchildren.

The distinguished gathering included the presence of the Minister of Education, Susil Premajayath, State Minister for Technology Kanaka Herath, Secretary to the Prime Minister Anura Dissanayake, Secretary to the Ministry of Technology Prof. N. D. Gunawardxhena and prominent leaders from the IT industry.

President appoints Commission to amend the electoral laws to suit the present needs

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President Ranil Wickremesinghe issued a gazette notification,Nov- (02) appointing a 10-member commission of inquiry headed by retired CJ Priyasath Dep PC to obtain and submit information, investigate, inquire into and examine all existing election laws and regulations and make necessary recommendations for the amendment of election laws.

President Ranil Wickremesinghe issued the Gazette notification to establish a commission with the mandate to propose revisions to electoral laws that align with contemporary requirements and uphold the integrity of political parties. This commission operates in accordance with the stipulations outlined in Sections 2 and 3 of the Commission of Inquiry Act No. 17 of 1948 and is chaired by the retired Chief Justice, President’s Advocate Vevage Priyasath Gerard Depp. The other commissioners serving on this commission include Sundaram Arumanayagam Senanayakesa Alindralage, President’s Advocate Nalin Jayantha Abeysekera, Rajitha Naveen Christopher Senaratne, Ahmed Lebbe Mohammed Salim, Sagarika Delgoda, Esther Sriani Nimalka Fernando, and Vitarana’s Deepani Samantha Rodrigo.

The primary tasks of this commission encompass a thorough examination of existing election laws and the formulation of recommendations for their improvement. These recommendations extend to guidelines on the responsible utilization of media by political parties and independent groups. Furthermore, the commission is entrusted with gathering information, conducting investigations and delivering recommendations regarding the implementation of a code of conduct that governs the conduct of political parties, enhancing the regulations concerning party registration and ensuring their actions are transparent and accountable to the public.

In addition to these responsibilities, the commission is also tasked with addressing several critical issues. These include augmenting the representation of women and youth in political processes, reducing the time between the announcement of an election and the release of results and exploring the possibility of electronic voting using modern technology as an alternative to traditional paper ballots. Finally, the commission is called upon to provide recommendations related to the proposed constitution.

Furthermore, in recognition of the imperative to establish and uphold mutual trust between Sri Lankan voters and political parties, various globally renowned organizations, including the Inter-Parliamentary Union, have diligently focused on delineating criteria for enhancing the transparency and accountability of political parties.

This heightened scrutiny stems from the notable escalation in the financial expenses associated with election campaigns, encompassing elections. The role of financial resources in shaping political landscapes and the potential for undue influence on policy decisions have garnered considerable concern. Additionally, there has been a growing awareness of individuals with criminal backgrounds infiltrating political parties, supplanting stable political organizations with short-term political entities, consequently contributing to political instability. These issues have been of particular concern.

Further, the commission is expected to produce its report within a timeframe of six months.

Landmark USD 15 million grant strengthens Buddhist ties between India and Sri Lanka

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In a significant event held in Colombo, the exchange of bilateral documents took centre stage, marking the initiation of projects supported by a generous USD 15 million grant from the Government of India.

This grant is specifically allocated to bolster the longstanding Buddhist connections between India and Sri Lanka, underscoring the deep historical and cultural ties that bind these two nations together.

The signing of the bilateral agreements took place at the President’s House in Colombo, Nov- (02). President Wickremesinghe and Hon Finance Minister of India Ms Nirmala Sitaraman engaged in lengthy bilateral discussions during this event.

Indian Prime Minister Narendra Modi’s announcement of this substantial grant underscores the significance of strengthening Buddhist linkages between the two countries. The grant could be allocated towards various initiatives, including the construction and renovation of Buddhist monasteries, capacity development, cultural exchange, archaeological cooperation, reciprocal exhibition of relics and other areas of mutual interest.

In recognition of the evolving economic landscape in Sri Lanka, both countries have agreed to recalibrate the grant amount from Sri Lankan Rupees to Indian Rupees, aligning it with the prevailing market conditions. This adjustment is being formalized through diplomatic Letters of Exchange and Acceptance, signifying a shared commitment to further enhancing these ties.

High Commissioner of India, Gopal Baglay and Secretary of the Ministry of Buddhasasana, Religious and Cultural Affairs, Somaratne Vidanapathirana, played pivotal roles in exchanging these documents, and this momentous occasion was witnessed by President Ranil Wickremesinghe and the Hon Finance Minister of India Ms Nirmala Sitaraman.
The first project to be initiated under the USD 15 million grant is the solar electrification of religious sites across Sri Lanka, with an allocation of USD 10 million. The Memorandum of Understanding (MOU) for this significant project was jointly finalized by the governments of India and Sri Lanka.

This historic moment was captured with a photograph featuring all distinguished participants, celebrating a significant milestone in the bilateral relations of India and Sri Lanka.

This event was graced by the presence of Minister of Foreign Affairs Ali Sabry, Minister of Buddhasasana, Religious and Cultural Affairs Vidura Wickramanayaka, Minister of Water Supply and Estate Infrastructure development Jeewan Thondaman, Indian High Commissioner to Sri Lanka HE Gopal Bhaglay, Senior Advisor to the President on National Security and Chief of Staff to the President Mr. Sagala Ratnayaka, Secretary to the President Mr Saman Ekanayake, Governor of the Central Bank Dr. Nandalal Weerasinghe, Dr. R.H.S. Samaratunga, Senior Economic Advisor to the President, Secretary to the Treasury and the Ministry of Finance Mr. K. M. Mahinda Siriwardana, Secretary to the Ministry of Buddhasasana, Religious and Cultural Affairs Mr. Somaratne Vidanapathirana, Members of the Indian High Commission, members of the visiting Indian delegation, Foreign Ministry officials and High level Government officials.

Resignation of Sri Lanka Cricket Secretary Amidst Backlash Over World Cup Defeat”

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Following the national cricket team’s significant defeat against India in ODI 33 of the ICC Men’s Cricket World Cup, the Secretary of Sri Lanka Cricket (SLC), Mohan de Silva, has tendered his resignation. This decision came in the wake of mounting criticism surrounding the team’s performance.

On November 3rd, Sports Minister Roshan Ranasinghe called upon the Executive Committee (ExCo) of the cricket governing body and the Selection Committee to step down from their positions or face severe consequences in light of the team’s consecutive losses.

In a press release, the lawmaker emphasized that both the cricket board’s ExCo and the Selection Committee should take responsibility for the recent defeats suffered by the national team.

Meanwhile, SLC has demanded an immediate and thorough explanation from the entire coaching staff and selectors after India’s resounding 302-run victory over Sri Lanka in Mumbai on November 2nd. The Sri Lankan team was dismissed for a mere 55 runs, marking the second successive lowest score against India, following a previous 50 all-out in the Asia Cup final leading up to the World Cup.

While acknowledging that losses are part of the sporting journey, SLC expressed deep disappointment with the recent defeats. The organization aims to initiate a constructive dialogue to identify areas for improvement and enhance competitiveness in future matches.

SLC further emphasized its expectation of a swift and comprehensive response from the coaching staff, demonstrating a strong commitment to improving the team’s performance in the remaining matches of the 2023 World Cup and in future competitions.