By: Staff Writer

July 08, Colombo (LNW): Five leading Sri Lankan maritime service providers recently showcased the nation’s maritime capabilities at Posidonia 2024, the world’s largest shipping exhibition, which was held in Athens, Greece, in June 2024.

This biennial event attracts global industry leaders, and this year, Sri Lanka made a presence with its comprehensive display of maritime services, reinforcing its status as “the maritime hub of South Asia”.

The Sri Lankan delegation, featuring Lanka Marine Services, Prudential Shipping, Colombo Dockyard, Master Divers, and Deep Ocean, showcased the nation’s maritime expertise.

Lanka Marine Services highlighted its bunkering services, while Prudential Shipping for port agency services emphasized smooth port operations.

Colombo Dockyard demonstrated its shipbuilding and repair capabilities. Master Divers presented its range of underwater services, essential for vessel maintenance. Deep Ocean showcased its ship chandling services, providing essential provisions and technical items to ships.

Posidonia 2024, hosted at the Metropolitan Expo in Athens, attracted companies from 138 countries, drawing 32,527 visitors and featuring 2,038 exhibitors.

The event offered a prime platform for Sri Lankan companies to network with a diverse array of industry leaders and explore new business opportunities.

The Sri Lanka stand at the event received endorsements from key government entities in Sri Lanka, including the Ministry of Ports, Shipping and Aviation, the Director General of Merchant Shipping, Sri Lanka Ports Authority (SLPA), Hambantota International Ports Group (HIPG), the Board of Investment (BOI), Sri Lanka Tourism Promotion Bureau (SLTPB), and the Export Development Board (EDB).

These endorsements promoted the significance of Sri Lanka’s participation in the event for the nation’s maritime sector. Additionally, the Greek Consulate recognized the Sri Lankan delegation’s efforts, commending their contribution to the event and the global maritime industry.

The Sri Lankan delegation’s participation at Posidonia 2024 not only highlighted the nation’s diverse maritime services but also emphasised the strategic importance of Sri Lanka in global maritime trade.

As the maritime industry continues to evolve, Sri Lanka remains poised to play a pivotal role, leveraging its strategic location, skilled workforce, and robust infrastructure. The successful participation at Posidonia 2024 marks another milestone in Sri Lanka’s journey towards becoming a leading maritime hub in the world.

By: Staff Writer

July 08, Colombo (LNW): Standard Chartered Bank’s global research in its latest credit alert, says that Sri Lanka finally sees light at the end of the tunnel following last week’s breakthrough with commercial creditors.

It said Sri Lanka’s authorities and the ‘steering committee’, comprising 10 major bondholders, reached an agreement on the core financial terms of the restructuring of International Sovereign Bonds (ISBs).

The terms broadly follow the bondholders’ April proposal, with key differences including downward adjustments to the coupon and a change in principal reinstatement, which narrows the range of recovery values across the six restructuring scenarios.

SCB sees probability-adjusted recovery value of 64 at 11% exit yield; remains ‘Market weight’ on Sri Lanka

Expects gradual and modest LKR depreciation versus the USD, and projects USD-LKR at 390 as of end-2027; projects 2024 GDP in $ 89-91 b range and nominal GDP above $ 96 b as of end-2027.

Estimates real cumulative GDP growth from 2024-27 at 3% in 2024 and at 3.5-4% over 2025-27 if reform measures continue; cumulative real GDP growth of 14% over 2024-27.

Importantly, the parties agreed on a dual test on GDP for adjustments to the Macro-Linked Bonds (MLBs), based on Sri Lanka’s (1) average 2025-27 nominal GDP in USD terms (each GDP bucket has been adjusted upwards by c.5% compared to the April proposal), and (2) cumulative real GDP growth from 2024-27 versus IMF’s baseline growth assumption (11.1%). The dual test will not only account for real growth performance, but also for the FX impact on GDP in USD terms.

“Based on our assigned probabilities for the 12 GDP scenarios, we estimate probability-adjusted recovery values in the range of 57-71 at exit yields of 9%-13%. In our base case, we see a probability-adjusted recovery value of 64 at an exit yield of 11%,” SCB global research said.

“We remain Market weight on Sri Lanka while awaiting confirmation from the Official Creditor Committee (OCC) on comparability of treatment and from the IMF on consistency with the EFF’s debt sustainability objective,” it added. The Joint Working Framework remains to be confirmed by the OCC to ensure comparability of treatment, as well as by IMF staff to ensure consistency with the parameters and debt sustainability objectives of Sri Lanka’s IMF EFF program.

By: Staff Writer

July 08, Colombo (LNW): The government has embarked on an educational reform initiative with the aim of introducing an advanced education system combined with modern technology to move the country forward with a new economy.

Thus far, Artificial Intelligence (AI) clubs have been set up in schools To ensure the sustainability of our newly launched AI program this year, it is essential for teachers to undergo comprehensive training.

The government is actively developing training programs and infrastructure to bolster this initiative. There is also a plan to elevate existing Central Colleges and National Schools into specialized institutions focusing on artificial intelligence.

This was disclosed by President Ranil Wickremesinghe when he addressed a ceremony organized in connection with the launching of an educational modernization programme by providing 200 Smart Classrooms and 2000 Tabs to 200 schools in the Southern Province recently.

The same initiative was launched in 2018 when the Present President was holding the Premiership of this country and it was halted amidst opposition and protests of the political parties at that time and the change of government.

In response to changing skills requirements, new and effective forms of e-learning are being adopted worldwide.

Sri Lanka has developed smart classrooms (SCs) in several schools across the country during the 2018-2019 period.

SCs consist of technology-related, educational components that facilitate interactive and stimulating learning environments in schools – moving away from the traditional method of teaching – including smart interactive whiteboards, classroom and multimedia control centres, computers and tablet personal computers (PCs), audio/video elements, and classroom management systems

A programme led by Sri Lanka’s Ministry of Education provided five desktop computers, five laptops, and one interactive smart board in each school, to be used among Grade 12 students. According to information provided by the Ministry’s Education for All branch, such equipment has been provided to 197 schools as of 2018, covering a similar share of schools from all provinces

If this initiative is allowed to continue, there will not be any space of any one to go around the country distributing smart boards to schools in rural areas trying to take undue political advantage, several senior education officers said.

They noted that the credit of introducing smart boards to schools should go to none other than President Ranil Wickremasighe.

Following a request by the Minister of Health and Industry, Dr. Ramesh Pathirana, the Government of India allocated RS. 300 million to the Southern Provincial Council for this new project.

Of the 200 schools selected schools, 150 are in the Galle district, while the remaining 50 schools are in the Hambantota and Matara districts.Additionally, 2000 Tabs were distributed, with each of the 200 classrooms receiving 10 tabs.

Moving forward, the schools will undergo digitization, with 1250 schools already being connected.President Wickremasinghe said.  

Over the next three years, we aim to digitize 10,026 schools and provide necessary teacher training. Graduates with technical expertise from our universities enjoy 93% employment opportunities in the job market. We must seize the opportunity to lead globally through modern technology, he added…

Indian High Commissioner to Sri Lanka,. Santosh Jha said that as India’s neighbour, we consistently extend support to Sri Lanka. Sri Lanka holds a crucial position in our foreign policy. India remains steadfast in its commitment to providing essential infrastructure and technical knowledge support to Sri Lanka.

July 08, Colombo (LNW): Sri Lanka’s construction industry is on the brink of a major revival, spurred by ongoing efforts to restructure external debt, C. Joshua, Executive Vice Chairman of Access Engineering PLC disclosed.

Previously stalled projects, which were partially funded through bilateral agreements, are set to resume following the successful completion of the debt restructuring process, he noted.

Joshua underscored the importance of this restructuring in rejuvenating the sector. He highlighted that the completion of debt restructuring, particularly with bilateral partners, is vital for restarting halted projects.

“The bilateral debt restructuring is expected to inject nearly $2.5 billion into the market, potentially boosting GDP by 3%,” Joshua emphasised.

This financial influx is anticipated to provide essential liquidity, allowing large-scale infrastructure projects to proceed and stimulating economic growth.

Contrary to rumours, Joshua mentioned that condominium projects in Colombo and surrounding areas are performing well, with many projects such as Trizen and Havelock City nearing full occupancy.

During a panel discussion hosted by CAL Sri Lanka on July 3, Joshua confirmed that all pending government payments to contractors had been settled.

Jan Kunigk, CEO of INSEE Cement, highlighted the importance of lower interest rates resulting from improved credit ratings to attract private investments.

He cited the commencement of significant projects, including a large warehouse for Michelin, even amid economic challenges.

“We are witnessing positive investment trends in sectors like petroleum and renewable energy,” Kunigk added, showcasing the private sector’s resilience.

Mahesh Amarasiri, CFO of ACL Cables PLC, discussed the burgeoning renewable energy sector, which has become a focal point for investment.

He noted the increasing demand for solar energy projects and related products, driven by electricity sector reforms.

“The renewable energy sector is a new market for us, with rising demand for solar cables and related products,” he said, emphasizing ACL Cables’ readiness to meet this demand.

Despite the promising outlook, the panellists acknowledged several challenges. The brain drain and shortage of skilled labour were highlighted as significant obstacles.

Companies like Access Engineering and INSEE Cement are addressing this issue through comprehensive training programmes and technological advancements to improve productivity and efficiency.

Concerns were also raised about the potential impact of upcoming elections on policy consistency.

The panellists stressed the need for stable and consistent policies to foster investor confidence and ensure long-term growth.