By: Staff Writer

March 10, Colombo (LNW): The International Monetary Fund (IMF) has reaffirmed its commitment to supporting Sri Lanka’s economic agenda while emphasizing the importance of adhering to reform benchmarks and conditions.

While the IMF Managing Director Kristalina Georgieva praised the government’s progress in economic reforms, concerns remain over potential risks if agreed-upon targets are not met.

 Failure to comply with the IMF’s conditions could jeopardize future financial assistance, impacting Sri Lanka’s long-term economic stability. The government must balance its reform agenda with public expectations while ensuring that critical IMF conditions, such as debt restructuring and governance improvements, are not violated.

IMF Managing Director Kristalina Georgieva commended Sri Lanka’s efforts in implementing key reforms and reaffirmed the IMF’s continued support. She stressed the need to strengthen macroeconomic fundamentals within a robust governance framework, especially in light of slowing global growth, rising debt levels, and increasing uncertainties in the global economy.

On Friday, the IMF congratulated President Anura Kumara Dissanayake on his progressive economic policies and reiterated its commitment to assisting Sri Lanka. During a virtual meeting with President Dissanayake,

Georgieva acknowledged Sri Lanka’s progress in achieving macroeconomic stability and discussed future measures needed to address current and emerging economic challenges.

The discussion also covered the ongoing partnership between Sri Lanka and the IMF as the country reached the halfway mark of its 48-month Extended Fund Facility (EFF) program, which commenced in March 2023.

Georgieva praised the government’s success in maintaining stability, completing the third review of the EFF, and making significant progress in the bond exchange and debt restructuring processes.

However, she emphasized the importance of maintaining the reform agenda to ensure Sri Lanka’s path toward sustainable and equitable growth. She noted that despite the achievements, significant challenges remain due to the rapid evolution of global economic conditions, technological advancements, and geopolitical shifts.

Reiterating the IMF’s role as a reliable partner, Georgieva assured Sri Lanka of continued support in fostering inclusive growth, alleviating poverty, and improving the quality of life for its people.

President Dissanayake highlighted the government’s achievements in implementing economic reforms, stabilizing the macroeconomic environment, protecting vulnerable populations, and improving governance.

He expressed gratitude for the IMF’s support, particularly in the debt restructuring process, and underscored the importance of continued cooperation to navigate ongoing economic uncertainties.

He reaffirmed his commitment to advancing the IMF program while ensuring that reform targets align with the aspirations of the Sri Lankan people. He emphasized the government’s focus on social welfare expenditures, enhancing governance in state-owned enterprises, and implementing cost-recovery pricing mechanisms, including in the energy sector.

 Additionally, President Dissanayake highlighted the significance of attracting foreign direct investment and securing multilateral support to reduce debt vulnerabilities while fostering sustainable growth. He reassured the IMF of the government’s commitment to completing the remaining EFF reviews successfully.Both the President and the IMF Managing Director agreed on the necessity of ongoing collaboration and dialogue to achieve long-term economic stability. The meeting concluded with a shared commitment to ensuring Sri Lanka’s sustained economic progress and prosperity.

By: Staff Writer

March 10, Colombo (LNW): The Solar Industries Association (SIA) has urged the Sri Lankan Government to halt further reductions in rooftop solar tariffs, warning that continued cuts could severely impact the sector and slow the country’s transition to renewable energy.

SIA representatives highlighted the negative effects of tariff reductions, with President Javid Kamil stressing that the industry cannot thrive under unpredictable and unstable policies.

“Our appeal to the Government is to implement a just and consistent policy. The industry brings significant investments and growth opportunities. Six months ago, tariffs were reduced from Rs. 37 to Rs. 27—a 40% drop. Now, another reduction is being considered, which could completely cripple the industry,” Kamil stated.

He further explained that Sri Lanka’s rooftop solar sector has expanded significantly in recent years, supporting over 40,000 workers and 1,000 small and medium-sized enterprises (SMEs). The industry plays a crucial role in achieving the country’s renewable energy goals.

 However, recent and proposed tariff cuts have created uncertainty among investors and jeopardized around 100,000 solar projects, many owned by middle-class households relying on these investments for energy savings.

“We are at a crucial juncture. If another tariff revision happens within six months, it will damage investor confidence. A stable market is essential,” Kamil emphasized.

 Currently, the rooftop solar industry contributes 600MW to Sri Lanka’s national grid, fulfilling approximately 5% of the country’s total energy demand. Despite its cost-effectiveness and reliance on local funding, the sector has not received the recognition it deserves.

SIA has called for a structured and predictable policy framework that ensures fair compensation for solar energy producers. Kamil argued that tariff adjustments should not be treated as mere calculations but should factor in the broader economic and social benefits.

“This is a long-term, 20-year investment. If policy changes are necessary, they should be made annually with clear timelines to avoid abrupt disruptions,” he suggested.

Additionally, SIA dismissed claims that the rooftop solar industry was causing financial losses in the power sector. The association urged the Government to conduct an independent and transparent investigation into the recent power failures.

Meanwhile, Power Minister Kumara Jayakody revealed that Sri Lanka is progressing with 1,358MW of solar power projects as part of its commitment to achieving 70% renewable energy by 2030. Several projects are underway, with some expected to be operational by 2026.

A 100MW solar plant, awarded to the Winforce consortium, is set to commence in 2026. Additional projects include 150MW and 100MW plants in Hambantota, a 50MW phase in Sampur, and two 100MW plants in Valachchenai. Other planned developments include a 60MW project in Embilipitiya, a 70MW plant in Puttalam, and a 108MW group plant in Moneragala.

With these developments, Sri Lanka aims to strengthen its renewable energy sector, but industry leaders stress that policy stability is essential for sustained growth.

By: Staff Writer

March 10, Colombo (LNW): The Sri Lankan government has designated the Eastern Container Terminal (ECT) at Colombo Port as a special project, following approval from the Cabinet of Ministers on March 21 2024.

This decision aligns with a 2021 Cabinet resolution to develop the terminal in phases under the complete ownership of the Sri Lanka Ports Authority (SLPA). The construction contract has already been awarded, and work is currently in progress.

The procurement process for acquiring cranes has been successfully completed, ensuring that the necessary infrastructure is in place to enhance the terminal’s operational capacity. Additionally, various tax incentives granted to private terminal operators and service providers under the Strategic Development Act and Board of Investment Law will be extended to ECT.

Once completed, the terminal will feature a 1,400-meter-long jetty, enabling the simultaneous berthing of three large vessels.

A total of $585 million has been allocated for the terminal’s development, with China Engineering and Access Engineering appointed as construction contractors.

 ECT will be equipped with 12 gantry cranes and 40 transfer cranes, spanning a container yard of approximately 75 hectares. The terminal is designed to handle up to three million containers annually and will operate as a semi-automated facility incorporating digital technology.

Despite government commitments to commence operations by July, delays persist. Shipping lines and ship agents have raised concerns about inefficiencies at the port, particularly regarding inter-terminal trucking delays during peak hours.

This congestion has led to operational slowdowns, with approximately 30,000 containers currently awaiting transfer between terminals.

 If these delays are not addressed, shipping companies may opt for alternative routes, incurring additional costs due to extended waiting times.

The Chairman of the Ceylon Association of Shipping Agents (CASA), Shano Sabar, has emphasized the need for immediate intervention to improve port efficiency.

Infrastructure and Equipment Challenges

A significant contributing factor to delays is the deteriorating road conditions leading to the container yard. The port’s container movement rate has dropped to fewer than 20 moves per hour—well below the optimal 30 moves per hour.

 Addressing these infrastructure challenges is crucial for attracting higher shipping volumes to Colombo.

Another pressing issue is the shortage of essential equipment. The ECT, originally slated to be operational by mid-2024, has faced setbacks due to delays in acquiring necessary machinery. Previously awarded tenders were canceled by the current administration, further complicating the process.

One critical requirement for smooth operations is the use of straddle carriers, which transport containers between the quay and yard efficiently. Although tenders had been issued for twin-lift straddle carriers capable of handling two twenty-foot equivalent units (TEUs) simultaneously, they were later revoked.

Industry experts warn that alternative solutions, such as relying solely on prime movers instead of straddle carriers, may not be feasible and could result in severe logistical challenges. Authorities are now exploring cost-effective alternatives, including new procurement processes.

However, if the government proceeds with re-tendering and ordering straddle carriers now, it could take up to 14 months for them to be manufactured and delivered, potentially causing further delays.

The ongoing challenges in bringing ECT online pose a significant risk to Sri Lanka’s position as a key maritime hub. 

If the commissioning of the terminal is delayed further, international shipping lines may divert to competing ports, such as the Vizhinjam Port in southern India, which is managed by Adani Ports and also oversees the West Container International Terminal (WCIT).

Addressing these issues promptly is essential to ensure the successful completion and operation of the ECT, reinforcing Colombo’s status as a strategic port in the region.

By: Staff Writer

March 10, Colombo (LNW): Sri Lankan cricket legend, one of the greatest spinners in the history Muttiah Muralitharan’s, Ceylon Beverage pulls out of Rs 1,650 crore investment in Jammu and Kashmir After waiting for some time, Muralitharan decided to shift the plant to Pune. He applied for backing out of the investment proposal on March 6, officials said.

After waiting for some time, Muralitharan decided to shift the plant to Pune. He applied for backing out of the investment proposal on March 6, officials said.

A day after the allotment of “free land” to former Sri Lankan cricketer Muttiah Muralitharan’s M/s Ceylon Beverage sparked controversy in Jammu and Kashmir, it was revealed that the company has pulled out from an over Rs 1,650 crore investment in Kat…

The withdrawal was due to the expiration of incentives under the 2021 National Sector Industrial Policy, which ended in September last year. On Saturday, opposition lawmakers in the J&K Assembly raised concerns over the 26-acre land allotment for Muralitharan’s beverage company in Kathua, questioning why land was given “free of cost” to outsiders when locals were denied land for housing under the Prime Minister’s Awas Yojana (PMAY).

Land has to be allotted as per the laid norms to any person whosoever apply for land for commercial purposes,” he said and alleged that no money had been charged from the cricketer’s company for the allotment.

However, official records show that the land was allotted at ₹64 lakh per acre, with an annual lease of ₹60,000 for the establishment of M/s Ceylon Beverage Can Pvt. Ltd, which is registered in Chennai and already operates a unit in Mysore.

Sri Lankan beverages company Ceylon Beverage Can Pvt Ltd, promoted by Muttiah Muralitharan, will set up a full-fledged plant in Mummigatti off Dharwad in Karnataka, Deccan Herald (DH) reported in 2023 .

The Karnataka Industrial Area Development Board (KIADB) has allotted 16.70 acres of land at plot no 157, 2.64 acres on plot no 156 and 6.15 acres on plot no 158. Clearance has also been accorded for providing 3,000 kVA power by Hescom and 20 lakh litres of water per day.

The Sri Lankan company currently manufactures eight different sizes of slim, sleek and standard cans with a range of customer labels. It is setting up a plant in India owing to huge demand from this region.

In May 2023, Ceylon Beverage tied up with Reliance Consumer Products to manufacture the cans for Campa   soft drink.

Ceylon Beverages was established in 2020 and partners with several companies making mineral water, energy drinks, soft drinks and flavoured milk in cans. It has an hourly output of over 48,000 cans and 34,000 bottles. The company’s plant is equipped to fill 300 million cans per year.