April 02, Colombo (LNW): In the fiscal year 2022/23 (April to March), the Sri Lankan government reported a total of Rs. 978 billion in foregone revenue due to tax concessions, as disclosed on March 31, 2024.
This amount represents 56 per cent of the total tax revenue collected by the government during 2022.
The information was brought to light by PublicFinance.lk, a leading economic insights platform in Sri Lanka managed by Verité Research.
The data originates from a document titled “Tax Expenditure Statement,” released by the Ministry of Finance of Sri Lanka.
The purpose of this disclosure is to enhance transparency in Sri Lanka’s financial reporting, aligning with international best practices.
Additionally, the government has committed to the International Monetary Fund (IMF) programme to semi-annually publish a comprehensive list of all firms benefiting from tax exemptions through the Board of Investment and the Strategic Development Projects Act (SDP), along with an estimation of the value of these tax exemptions.
April 02, Colombo (LNW): India has affirmed its commitment to uphold the agreement transferring sovereignty of the Katchatheevu Island to Sri Lanka, despite recent political discourse within India, largely attributed to domestic considerations amidst the approaching Lok Sabha elections, Daily Mirror claimed citing sources.
Prime Minister Narendra Modi targeted the DMK party on Monday regarding the Katchatheevu island matter, accusing the ruling party of Tamil Nadu of neglecting the state’s interests.
Modi’s remarks shed light on the DMK’s purported inconsistency concerning the issue, as reported by X.
It is evident that the current ruling Bharatiya Janata Party (BJP) in India does not align with the stance adopted by the previous Indian National Congress government. Nevertheless, with the agreement having been formalised, insiders revealed that the ongoing debate within India does not directly involve Sri Lanka.
Indian External Affairs Minister S. Jaishankar reiterated yesterday that India and Sri Lanka reached an agreement in June 1974, delineating the maritime boundary and designating Katchatheevu under Sri Lankan sovereignty.
The 1974 agreement encompassed three additional clauses.
Firstly, it affirmed the sovereignty and exclusive jurisdiction of each nation over the adjacent waters.
Secondly, Article 5 guaranteed Indian fishermen continued access to Katchatheevu without the need for travel documentation.
Lastly, it ensured reciprocal rights for Indian and Sri Lankan vessels within each other’s maritime territories, consistent with historical practices.
Furthermore, an exchange of letters between India and Sri Lanka established mutual recognition of sovereign rights over living and non-living resources within their respective exclusive economic zones.
Jaishankar highlighted that over the past two decades, Sri Lankan authorities have detained 6,184 Indian fishermen and seized 1,175 Indian fishing vessels.
April 02, Colombo (LNW): Sri Lanka is yet to ascertain the nature of hazardous materials aboard the Singapore cargo ship Dali, chartered by Maersk, which collided with the Baltimore bridge on March 26, revealed an official statement.
The available information suggests that among the cargo are 57 containers containing materials falling under the International Maritime Dangerous Goods Code, comprising mainly corrosives, flammables, miscellaneous hazardous substances, and Class-9 hazardous materials, including explosives and lithium-ion batteries, contained within 56 containers.
However, the US National Transportation Safety Board is still analysing the ship’s manifest to determine the contents of its other 4,644 containers.
Before reaching Baltimore, the Dali made stops at New York and Norfolk, Virginia, the location of the world’s largest naval base.
Its next scheduled destination was Colombo, following a route around South Africa’s Cape of Good Hope, with an estimated travel duration of 27 days, anticipated to arrive shortly after the Sri Lankan New Year.
In response to queries regarding this matter, Keith Bernard, Chairman of the Sri Lanka Ports Authority (SLPA), emphasised that ships are required to declare container contents 72 hours before arriving at the Colombo Port.
“The vessel is expected to arrive here on April 21, 2024. This implies that they should notify us by April 17 or thereabouts. Sufficient time is available.
Should hazardous items be declared within containers, we will implement protocols to isolate them accordingly.
As a major transshipment hub, we have established procedures for handling such containers. It is probable that these containers are intended for transshipment,” he explained.
When inquired about the protocol for containers intended for entry into the country, Bernard stated that clearance from the Defence Ministry and other relevant authorities would be sought.
However, Ajith Wijesundara, Deputy Director of the Central Environment Authority (CEA), indicated that it remains uncertain whether the ship carried containers containing hazardous waste or toxic substances.
He noted that, according to the Basel Convention, such wastes would not be permitted entry into the country.
The Basel Convention, concerning the Control of Transboundary Movements of Hazardous Wastes and their Disposal, was adopted on March 22, 1989, and entered into force on May 5, 1992.
Wijesundara emphasised that toxic substances imported as raw materials are subject to guidelines and regulations.
April 02, Colombo (LNW): Five prominent export associations have jointly urged the authorities to address the significant challenges arising from the recent appreciation of the Sri Lankan rupee against the US dollar.
Highlighting key concerns, including restrictions on foreign currency movement among commercial banks and mandatory conversion of export earnings into local currency, the Exporters Association of Sri Lanka, Joint Apparel Association Forum of Sri Lanka, National Chamber of Exporters, Tea Exporters Association, and Sri Lanka Association of Manufacturers and Exporters of Rubber Products issued a collective statement to the media.
“The appreciation of the rupee has rendered our exports more expensive for international buyers, directly impacting our competitiveness in the global market.
This situation has escalated operational costs, necessitating adjustments in line with the country’s heightened inflation,” the associations emphasised.
Expressing concern over the rapid appreciation of the rupee, which has fallen below Rs. 300 per US dollar since March 19, the associations underscored the threat to business sustainability and employee livelihoods.
Despite the rupee’s appreciation, the associations noted that the high cost of living persists, putting continued pressure on worker wages.
Furthermore, they pointed out that the timing of the rupee’s strengthening coincides with weak global demand for merchandise exports and stiff competition from other countries.
The associations raised objections to the Central Bank of Sri Lanka’s policy, enacted through Gazette No.2251/42 on October 28, 2021, mandating the conversion of foreign exchange receipts into rupees within a specified timeframe.
They argued that this policy restricts exporters’ flexibility in planning currency conversions, often resulting in conversion at an overvalued exchange rate and placing additional strain on export operations.
In light of the evolving economic landscape and positive foreign exchange reserves, the associations deemed the continued enforcement of the mandatory conversion policy counterproductive.
They stressed the urgent need for the Central Bank to reconsider and revoke the aforementioned gazette to create an environment conducive to the growth and competitiveness of Sri Lanka’s exports.
“Addressing these policy concerns is essential to laying the foundation for sustainable economic development, ensuring employment security for citizens, and fostering the continued prosperity of our nation,” the associations concluded.
April 02, Colombo (LNW): Laugfs Gas PLC announced a substantial reduction in the prices of its Laugfs-branded domestic liquefied petroleum gas (LPG) effective midnight yesterday.
Effective immediately, the price of a 12.5kg domestic cylinder, under the Laugfs brand, will be reduced by Rs. 625, bringing the MRP to Rs. 4,115 within the Colombo district.
Prices in other areas and pack sizes will be adjusted accordingly.
In a statement, Laugfs Gas attributed this significant price revision to several positive developments and factors contributing to the favourable economic climate.
The company acknowledged supportive government policies, including the appreciating value of the Sri Lankan rupee against the US dollar, reduction in interest rates, and availability of ample foreign exchange facilitating the opening of letters of credit.
Since the expiration of the trade monopoly held by multinational Shell Gas in 2000, Laugfs Gas PLC has emerged as the sole private sector player in Sri Lanka’s dynamic LPG industry.
Operating one of the largest LPG import and export terminals in the Indian Ocean region at the Hambantota Port, capable of handling 30,000 m/tonne shipments, Laugfs Gas leverages this strategic advantage to optimise LPG costs, facilitating the substantial price reduction.
Additionally, Laugfs Gas PLC maintains a fleet of LPG vessels, solidifying its position as the only Sri Lankan LPG ship-owning company.
Leveraging its robust infrastructure and logistic capabilities, the company has emerged as a leading LPG trader in the Asian region.
Looking ahead, Laugfs Gas PLC reaffirmed its commitment to passing on these advantages to Sri Lankan LPG consumers.
April 02, Colombo (LNW): Finance State Minister Ranjith Siyambalapitiya has issued directives to transfer all officers of the Excise Department’s Narcotics Prevention Unit following the arrest of four excise officers in possession of a significant quantity of cannabis.
In a statement released by the State Minister’s media unit, it was confirmed that the four officers from the Excise Department, apprehended while transporting Kerala cannabis, have been suspended from duty pending further investigation.
Additionally, a thorough probe into the incident has been initiated.
Furthermore, Siyambalapitiya has ordered the immediate transfer of all officers associated with the Narcotics Prevention Unit within the Excise Department.
The State Minister emphasised a strict adherence to the law, asserting that all individuals implicated in illicit activities will face legal consequences regardless of their positions within the department.
Earlier reports indicated that the Police Narcotics Bureau (PNB) had detained eight individuals, including four Excise Department officers, in Negombo and Chilaw areas.
Alongside the arrests, authorities seized 45 kilograms of Kerala cannabis.
Additionally, a van belonging to the Excise Department, used by the apprehended officers, has been impounded by the police.
April 02, Colombo (LNW): Sri Lanka’s Tamil political parties are strategising to nominate a candidate from the minority community for the upcoming presidential election, aiming to present a credible and acceptable political solution, said a senior community leader.
Scheduled for the last quarter of 2024, Sri Lanka anticipates the presidential election, with the new president elected by mid-November at the latest.
During a press briefing at his residence in Trincomalee’s eastern district on Sunday, R. Sampanthan, a prominent Tamil leader, emphasised the importance of supporting a candidate committed to resolving all issues concerning the Tamil minority through an agreeable political solution.
Sampanthan highlighted that the Tamil National Alliance (TNA) member parties have proposed fielding a Tamil candidate.
However, he acknowledged the potential limitations in garnering widespread support for such a candidate, urging the parties to strategise accordingly.
Emphasising the significance of a candidate advocating for a credible political solution, Sampanthan emphassed the importance of addressing issues such as the merger of the north and east provinces.
Responding to inquiries about potential support for incumbent Ranil Wickremesinghe if he were to contest, Sampanthan indicated that such decisions would be contingent upon discussions following the submission of Wickremesinghe’s nomination papers.
Throughout Sri Lanka’s presidential election history since 1982, Tamil candidates have participated in the elections, often aligning with opposition front-runners against the incumbent in most instances.
April 02, Colombo (LNW): Finance State Minister Shehan Semasinghe underscored President Ranil Wickremesinghe’s leadership in managing the country’s economic crisis effectively during a press briefing at the Presidential Media Centre.
He emphasised the necessity of continued leadership under President Wickremesinghe, highlighting his unique expertise for the task.
The State Minister announces plans to conduct a follow-up survey following the distribution of relief benefits to 2.4 million “Aswesuma” recipients.
Semasinghe elaborated on the plans for the second phase of “Aswesuma,” anticipating around 400,000 submissions.
The State Minister further emphasised the importance of revaluation surveys for previous applicants and comprehensive surveys for new submissions to ensure appropriate beneficiary selection.
The State Minister outlined plans for a post-selection survey on the utilisation and impact of “Aswesuma” funds.
He acknowledged the positive economic turnaround, attributing it to collaborative efforts between President Wickremesinghe’s administration and financial institutions like the International Monetary Fund (IMF).
Semasinghe highlighted a decrease in inflation and stabilisation of prices, indicating progress towards economic balance.
While praising President Wickremesinghe’s leadership amidst economic discussions and criticisms, Semasinghe refuted the notion that anyone could effectively govern the nation.
He added the importance of staying the course with current economic strategies to achieve a projected 2 per cent economic growth rate in 2024.
Semasinghe addressed public concerns about reduced prices not reflecting in retail prices due to unregulated black market prices.
He also announced plans for a weekly notification system for wholesale prices to enhance transparency and aid public understanding of retail prices.
Moreover, he noted progress in the debt restructuring programme, with the second review with the IMF approved at the staff-level. However, Semasinghe acknowledged challenges in obtaining the third instalment.
April 02, Colombo (LNW): Showers or thundershowers will occur at several places in Western, Sabaragamuwa, Central, North-western, Southern, North-central and Uva provinces after 2.00 p.m., with fairly heavy showers above 75 mm being expected at some places in Western, Sabaragamuwa, North-western and Southern provinces and in Anuradhapura and Monaragala districts, the Department of Meteorology said in its daily weather forecast today (02).
Misty conditions can be expected at some places in Western, Central, Sabaragamuwa and Uva provinces and in Galle and Matara districts during the morning, the statement added.
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 may occur at several places in the sea areas off the coast extending from Puttalam to Hambantota via Colombo and Galle during the afternoon or night.
Winds:
Winds will be variable and wind speed will be (15-25)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 expected to increase up to ‘Caution level’ at some places in Northern, North-Central, Eastern, Western, Sabaragamuwa, North-western and Southern, provinces and Monaragala district.
The public is urged 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, and wear lightweight and white or light-colored clothing.
April 01, Colombo (LNW): Sri Lankan ports are witnessing a remarkable surge in bunker demand, driven by ongoing global navigation challenges, particularly in the Red Sea region.
This uptick in demand comes as ships reroute their voyages to avoid affected areas, with Sri Lanka emerging as a key refuelling and restocking destination amidst the uncertainties.
Recent data from Bunkerworld reveals a significant 33 percent increase in bunker sales volume at Colombo, one of Sri Lanka’s major ports, reaching an impressive 40,000 metric tons per month.
This surge underscores the growing importance of Sri Lankan ports in supporting international maritime operations amid evolving geopolitical tensions and navigation disruptions.
As shipowners and charters continue to take longer voyages to avoid Red Sea, bunker demand across ports on India’s west coast has risen and VLSFO supplies at the ports of Kochi and Mumbai remain disrupted.
Despite the increased demand, price movements were mixed as of March 28. Platts, part of S&P Global Commodity Insights, assessed 0.5 percent marine fuel oil delivered to Kochi at US $ 700/mt CFR, up US $ 20/mt on the week, while in Mumbai, prices fell to US $ 698/mt, down US $ 8/mt.
In Sri Lanka, prices at Colombo were assessed at US $ 700/mt, down US $ 7/mt on the week, according to S&P Global data.
“Demand has substantially increased, almost by 30 percent across Mumbai, Kochi and Gujrat ports. Long haul vessels are calling more often now. The volumes that were being lifted at King Abdullah port, Yanbu, Djibouti and Suez Canal have now shifted to Indian and Sri Lankan ports,” a Gujarat-based trader told S&P Global.
“Longer voyages coupled with a shortage of VLSFO at some Indian ports has increased demand at Kandla and Mundra,” said a Kandla-based supplier.
The unavailability of product at the Indian port of Kochi has raised demand at Sri Lankan ports of Colombo and Hambantota.
Supply shortages at Indian ports have also prompted India-based traders to divert their queries to Sri Lanka.
“Demand has almost doubled since January. Tightness across Indian markets during the first few weeks also helped us to capture the demand. Interestingly, we’re seeing a considerable number of inquiries for HSFO. There are three active high sulfur fuel oil suppliers in the market now,” a Colombo-based trader told S&P Global.
