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Tea Industry Set to Achieve US$ 1.5 Billion in Exports Amidst Revival Efforts

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July 10, Colombo (LNW): The Sri Lanka Tea Research Institute has projected an income of US$ 1.5 billion from tea exports this year. Over the past two years, the country’s tea industry has earned between US$ 1 to 1.2 billion in foreign exchange.

Agriculture and Plantation Industries Minister Mahinda Amaraweera conducted a review meeting on the progress of St. Coombs Tea Factory and the Sri Lanka Tea Research Institute in Talawakelle last Sunday (7).

The ban on chemical fertilizers in 2021 negatively impacted tea cultivation, reducing fertilizer application in 2022 and 2023, which led to a decrease in yield. However, this year, two government-owned fertilizer companies have begun providing fertilizer at concessional prices. These companies now offer three types of tea fertilizers, valued at around Rs. 14,000 in the market, at prices ranging from Rs. 5,500 to Rs. 7,500 per 50 kg bundle, with Rs. 1,200 million allocated by the Sri Lanka Tea Board for this subsidy.

The fertilizer application is being implemented in three stages. In the first phase, 30,000 metric tons of tea fertilizer are to be distributed, with 10,000 metric tons already distributed. Officials indicated that with the application of fertilizer and the planting of saplings in vacant areas, a significant increase in tea yield is expected next year.

This year, the income from tea exports has reached US$ 1.5 billion, with Sri Lankan tea being exported to 150 countries, and 20 of them purchasing in large quantities. Minister Amaraweera emphasized that the current land under tea cultivation is sufficient and no new land will be allocated for tea cultivation. Instead, the focus will be on increasing value-added tea products by applying fertilizers, planting saplings, introducing high-density cultivation systems, and enhancing tea-related products.

The Talawakele Tea Research Institute has introduced 70 new tea varieties, which are in high demand internationally. The progress review meeting was attended by officials from the Tea Research Institute, Agrarian Development Commissioner General A. M. H. L. Abeyratne, and others.

WEATHER FORECAST FOR 10 JULY 2024

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July 10, Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts.

Showers or thundershowers may occur at a few places in Uva province and in Ampara and Batticaloa districts in the evening or night.

Strong winds of about (40-50) kmph can be expected at times over the Western slopes of the central hills, Northern, North-central and North-western provincesand in Trincomalee, Hambantota and Monaragala districts.

General public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

HOPE REMEMBRANCE HEALING TOGETHER

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A special session dedicated to dealing with grief & finding ways to heal as a community, In loving memory of our beloved students Rose and Jivon.

On FRIDAY 12 JULY, 2024

From 2.00 – 04.00 PM

At SRI LANKA MEDICAL ASSOCIATION AUDITORIUM 6, WIJERAMA MW, COL 7

IT and BPM sector appeal the government to reconsider recent tax measures 

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July 09, Colombo (LNW): The IT and BPM sector in Sri Lanka has collectively appealed to the government to reconsider recent tax measures affecting export services. 

Key industry groups, including the Sri Lanka Association of Software and Services Companies (SLASSCOM), the Federation of Information Technology Industry Sri Lanka (FITIS), the BCS Sri Lanka Section (BCS), and the Computer Society of Sri Lanka (CSSL), have issued a joint statement expressing their concerns.

The sector has demonstrated significant resilience and growth despite numerous challenges. In 2023, the industry generated approximately $2 billion in export revenue and employed over 144,000 IT-BPM professionals. Global companies like EY GDS, Virtusa, and HSBC have reaffirmed their commitment to Sri Lanka, significantly contributing to the economy.

The industry is troubled by the prospect of becoming one of the highest-taxed sectors in the region, which could deter growth and expansion plans. High employee costs, particularly due to a 36% personal income tax, already burden companies. This makes retaining top talent and countering brain drain increasingly challenging, leading to higher compensation demands.

The joint statement highlights several potential negative impacts of the new tax measures: includingiIncreased operational costs could stifle innovation and reduce global competitiveness against countries offering tax incentives.

Higher taxes could limit investments in training, affecting employment opportunities, especially for underprivileged groups.

 Additional taxes on the knowledge sector could slow economic recovery and reduce its contribution to the national economy.: Taxing housing could exacerbate the talent exodus, hindering sector growth.

The new tax measures could undermine Sri Lanka’s Digital Economy Strategy 2030, which aims to position the country as a leading digital economy in the region. The IT and BPM sectors are pivotal for innovation and growth, and increased taxes could hinder these industries, leading to missed opportunities and reduced global competitiveness.

The industry groups propose continuing the current tax exemption until 2026 to allow the sector to recover and ensure sustainability. 

They suggest a phased implementation of new tax measures with provisions to offset training and internship costs to mitigate the impact. Additionally, they recommend establishing continuous consultation with industry representatives to develop sustainable tax policies.

SLASSCOM, FITIS, BCS Sri Lanka Chapter, and CSSL remain dedicated to supporting the growth and development of Sri Lanka’s knowledge and innovation sector. They believe that careful policy adjustments can balance economic stability with fostering a thriving, innovative industry.

By addressing these concerns and adopting the proposed measures, the government can help ensure the continued growth and success of the IT and BPM sectors, contributing significantly to the country’s economy and global standing.

SLTransport and Highways sector gains significant progress during past 2 years

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SLTransport and Highways sector gains significant progress during past 2 years

Sri Lanka’s Transport and Highways sector has made significant progress over the past two years, despite the economic crisis from 2021 to 2022. Ministry secretary Eng. Ranjith Ganganath Rubasinghe noted that the government allocated Rs.390 billion for road development, with Rs.300 billion paid to contractors and Rs.90 billion for debt repayment.

Phase 1 of the Central Expressway is under discussion, and Phases 2 and 3, the Ruwanpura Expressway, and the Athurugiriya elevated highways project are expected to start soon through public-private partnerships.

 An electronic toll payment system for highways will be implemented within months, and preliminary discussions with Japan for the Light Railway Project (LRT) are ongoing. Negotiations with China, India, and Japan are also in progress for new projects. The sector aims to grow by 10%-15% over the next five years.

Director General of the Road Development Authority (RDA), S.P.M. Suriya Bandara, announced the completion of the second phase of the Kompannavidiya flyover and the Kohuwala flyover next week, with the harbor entrance runway expected to be completed by September.

 The RDA is implementing thousands of projects nationwide, including 320 km of rural roads under a 1,000 km project, set to be completed by August.

Acting General Manager of Railways, Sanjaya Mudalige, stated that the railway department is offering land leases for its 12,000 acres, with legal action planned against non-registrants. 

The Mahawa-Omanthai railway line modernization will finish in August, and a freight train service from Beliatta to Colombo will commence on the 15th. Plans are underway to develop coastal railway stations into multipurpose projects with the private sector, and India has agreed to donate 20 train engines, with the first batch arriving in two months.

National Transport Commission Chairman, Shashi Welgama, mentioned that amendments to the National Transport Commission Act will allow regulation of three-wheelers, school and office transport, and taxis. 

The ‘Sisu Sariya’ program provides transport for 110,000 children across 5,000 schools, and the ‘Gami Sariya’ program aims to improve living standards in remote rural areas by offering transport facilities. Inter-provincial bus schedules are being prepared, and the public can contact customer care for assistance and complaints.

Chairman of Ceylon Transport Board, Lalith de Alwis, highlighted that 1.2 million passengers use their buses daily, with 5,500 trips serving the public. The board is focusing on digitization to reduce revenue losses, having refurbished 400 buses last year with plans for another 400 this year. 

Approval for 1,000 new buses has been granted, with immediate procurement of 400 buses. Subsidized bus fares are available for school and technical college students, with 811 buses for school routes and 890 for other services daily. Future initiatives include introducing electric buses, enhancing fleet operations, and improving passenger information services, alongside existing online seat reservations and service timetables

Government Officials Summoned to Discuss Presidential Election

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July 09, Colombo (LNW): The Government Printer, Inspector General of Police, and the Postmaster General have been summoned before the National Election Commission today (9) to discuss matters related to the upcoming presidential election.

Chairman of the Elections Commission, R. M. A. L. Ratnayake, stated that the discussion will focus on future procedures for conducting the presidential election.

According to the constitution, the National Election Commission will have the authority to announce the presidential election after 17th July. Chairman Ratnayake highlighted that steps will be taken to announce the date of the presidential election before the end of this month.

In related news, the National Elections Commission has certified the 2024 electoral register. Chairman R. M. A. L. Ratnayake mentioned that the certified electoral register will be officially published before the end of this week.

Reportage of traumatic incidents pertaining to children

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Letter sent to President Ranil Wickremesinghe on 05 July 2024

The members of the Council and the Child Protection Committee of the Sri Lanka College of Paediatricians, together with the membership of the college, wish to submit a statement expressing our gravest concerns regarding the media (print and electronic) handling of incidents pertaining to children in the country.

The recent incident that took place on July 2, 2024, which led to the most unfortunate deaths of two young children, compels us to make this statement now and to appeal to all media organisations to refrain from sensationalising such acts. We note with utter dismay the detailed and sensationalised reporting of the said incident using CCTV coverage. The two children are easily identified in the clips shown. In trying to dramatise the incident, the rights of the children have been brutally violated and the basic principle of respecting the dead has been sadly and totally forgotten.

Children watching such incidents are known to be traumatised. We as Paediatricians, have had to help children who have presented with behaviour changes and psychosomatic symptoms following the exposure of these young minds to detailed traumatic experiences on TV and other forms of media in the past.

Frequent and detailed reports of such acts can induce children to consider such incidents as “normal” behaviour in the young and undeveloped minds of individuals watching such reports. This is especially so in adolescents in whom impulse control is still immature. Adolescents are especially vulnerable to such influences and the tendency to imitate such behaviour is higher amongst them. For example, an association between sensationalised media reportage and subsequent increase in suicidal behaviour is well documented in the medical literature.

In addition, does the media have a right to disrespect the next of kin who are trying to grapple with a huge problem? Should their emotions and feelings not be considered? Two children from two families are dead. There are grieving parents, siblings, friends, teachers, etc. who are exposed to the details of the last few moments of the lives of these children on earth. What impact would this detailed reportage have on such individuals? Details of where the children lived are also being shown and highlighted. Such incidents of insensitive media reporting keep happening at regular intervals in the country. Media personnel should be more sensitive to such issues in future.

We implore you, as the Minister of Women and Child Affairs to look into this matter and take urgent remedial action for the future welfare of the children of our country.

Dr Kosala Karunaratne Dr Asvini D. Fernando
President Chairperson
Sri Lanka College of Paediatricians Child Protection Committee of SLCP

Copies to:

Minister of Mass media

Minister of health

State Minister for Women and Child Affairs

Chairperson National Child Protection Authority

THE ISLAND

Nationwide Public Sector Sick Leave Strike Cripples Services

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July 09, Colombo (LNW): More than 250 Trade Unions in Sri Lanka’s Public Sector are on sick leave today (9), potentially crippling public services nationwide. This widespread action includes Public Management, Development Officers, Drivers, and Office Staff among other organizations.

The primary demand of these unions is an increased allowance of Rs. 25,000, similar to what is given to executive officers. This trade union action caused significant disruptions to the operations of government departments and ministries yesterday.

Meanwhile, the General Secretary of the Ceylon Teachers’ Union, Joseph Starling, announced that teachers and principals will also participate in a sick leave protest today. Additionally, General Secretary of the University Non-Academic Employee’s Union, Ajith K. Thilakarathne, confirmed that their members would join the sick leave protest. The strike by non-academic university staff marks its 70th day today, with demands including an increase in monthly allowances and a reversal of a 15% salary anomaly.

Postal workers continue their strike for the second day, demanding recruitment for vacancies at the Department of Posts, permanent positions for non-permanent staff, and addressing several other issues. Over 20,000 postal workers across Sri Lanka’s 4,700 post offices and sub-offices are participating in this trade union action. The United Postal Trade Union Front claims that this strike has resulted in the closure of 90% of post offices across the island. Co-Convener of the United Postal Trade Union Front, H. A. R Nihal, warned that they will resort to a continuous strike if their demands are not met.

Sri Lanka Original Narrative Summary: 09/07

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  1. President Ranil Wickremesinghe emphasized the profound connection between Buddhism and the modern scientific and technological world, highlighting that the teachings of Buddha offer insights to win future global challenges. The President said that he is discussing the establishment of a new institution in the country where Buddhist philosophy including the Thripitaka can be studied, the history, civilization and the spread of Buddhism in the world and where knowledge of Pali, culture and other languages can be developed. He also expressed that its objective is to revive the legacy of the Anuradhapura Maha Vihara.
  2. Opposition Leader MP Sajith Premadasa states under a Samagi Jana Balawegaya (SJB) government, development programs in the Northern and East would be advanced and that an international donor conference, which has not received leadership until now, would be convened Many lives were lost in the war-torn northern and eastern provinces and development was not focussed in these districts after the war, he said.
  3. State Minister of Finance Ranjith Siyambalapitiya stated that the government intends to collect taxes from 14 previously untaxed sectors that have been overlooked until now and to ensure tax compliance from them. The State Minister said that no one has been given an opportunity to evade tax payments and that there has previously never been such a time when such special attention was paid to the paying of taxes.
  4. The fundamental rights (FR) petition filed by businessman C.D. Lenawa seeking an order preventing the calling of a Presidential Election until the Supreme Court delivers its interpretation on the date of the presidential poll, has been dismissed by a five-member Supreme Court judge bench headed by the Chief Justice.
  5. Former Speaker of the Parliament of Sri Lanka, Karu Jayasuriya has been unanimously appointed as the Chair of the Former Parliamentarians’ Caucus. According to a Parliament statement, the appointment was made during the first meeting of the Former Parliamentarians’ Caucus held at Parliament recently under the Chairmanship of Speaker Mahinda Yapa Abeywardana.
  6. The Secretary to the Treasury Mahinda Siriwardana stated that granting the salary increase demanded by striking public servants would necessitate raising the current Value Added Tax (VAT) rate from 18% to between 20% and 21%.
  7. The Government of Sri Lanka (GoSL) acting through the Ministry of Finance, Economic Stabilization and National Policies, called for Expressions of Interest (EOI) from potential investors for the divestiture of its shares in Litro Gas Lanka Limited and Litro Terminals (Private) Limited on the 16th January 2024. The deadline for thes ubmission of EOIs ended at 2.00pm on Friday 15th March 2024.
  8. More than 250 Trade Unions in Sri Lanka’s Public Sector will be on sick leave today (9), potentially crippling public services nationwide. These include Public Management, Development Officers, Drivers, and Office Staff among other organizations. Their primary demand is to receive an increased allowance of Rs. 25,000, as given to executive officers.
  9. Foreign Affairs Minister Ali Sabry, PC is on an official visit to Singapore. Minister said that he had a productive discussion with Minister Balakrishnan on enhancing bilateral relations, recognizing shared opportunities and challenges.
  10. Sri Lanka Cricket announces the appointment of Sanath Jayasuriya as the ‘Interim Head Coach’ of the National Team. He will function in the position until the completion of Sri Lanka’s tour of England in September 2024. Jayasuriya is currently serving as the full-time ‘Cricket Consultant’ of Sri Lanka Cricket.

Treasury Secretary Warns of VAT Increase if Public Servants’ Salary Demands Are Met

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July 09, Colombo (LNW): Secretary to the Treasury, Mr. Mahinda Siriwardana, announced that fulfilling the salary increase demanded by striking public servants would require raising the current VAT from 18% to between 20% and 21%. He stressed that such an increase would be an undue burden on the public. Mr. Siriwardana made these comments during a discussion at the Presidential Secretariat today (08), chaired by President Ranil Wickremesinghe, regarding the demands of public service trade unions.

The discussion addressed the trade union actions taken by several public service unions and explored potential solutions to their demands. It was noted that while a salary increase is not feasible this year, there are plans to revise public service salaries in the 2025 budget, based on recommendations from an expert committee investigating salary disparities.

The Treasury Secretary highlighted that a salary increase of Rs. 10,000 for government employees would require an additional Rs. 140 billion annually, and an increase of Rs. 20,000 would necessitate an additional Rs. 280 billion.

To generate the required income, even with optimal management of current revenues, additional tax increases would be necessary. Specifically, he noted that to raise salaries by Rs. 10,000, the VAT would need to be increased by 2%. To meet the wage demands of the trade unions, the VAT would need to be raised by more than 3%. He emphasized that this is not feasible at this time, as the VAT is already at a maximum rate of 18%.

Mr. Siriwardana also explained that, due to the government’s efforts to stabilize the country’s economy, the Central Bank can no longer print money as it did before. Doing so would jeopardize the program with the International Monetary Fund.

Senior Advisor to the President on Economic Affairs, Dr. R.H.S. Samaratunga, remarked that while increasing public servants’ salaries again this year is challenging, the President has committed to allocating funds for this in next year’s budget. He also mentioned that a separate expert committee has been appointed to study and report on salary discrepancies.

The discussion included President’s Secretary Mr. Saman Ekanayake and a group of senior government officials.