March 25, Colombo (LNW): In February of this year, Sri Lanka’s export of coconut water generated an income of Rs. 3,439 million, reported the Coconut Development Authority (CDA).
This marks a notable increase compared to the Rs. 2,705 million earned from coconut water exports in February 2023, according to CDA data.
CDA Chairman Professor Roshan Perera highlighted that there has been a significant rise in export income, amounting to Rs. 734 million, during the pre-spring months of this year in comparison to the previous year.
These figures were discussed during a meeting chaired by Agriculture Minister Mahinda Amaraweera earlier yesterday (25).
Amaraweera emphasised the potential for further income growth, noting that by addressing the annual loss of Rs. 300 million incurred due to wildlife-related damages to coconut trees, additional revenue could be generated.
This, in turn, would contribute to augmenting the income of coconut growers.
March 25, Colombo (LNW): Sri Lanka’s Chief of Defence Staff, General Shavendra Silva, embarked on an official visit to the Defence Headquarters of Kenya in Nairobi on Monday (25), where he was received by Kenya’s Chief of Defence Forces, General Francis Ogolla.
General Silva was greeted with a Half Guard of Honour conducted by Kenya Air Force personnel before engaging in discussions with the CDF, VCDF, Service Commanders, and other senior officers of the Kenyan Defence Forces (KDF).
The meeting encompassed various topics aimed at bolstering bilateral military relations between Kenya and Sri Lanka, including plans for joint military trainings, the enhancement of military capabilities, and potential involvement in Peace Support Operations.
Both military leaders affirmed their dedication to fostering collaboration not only in personnel development but also in modernising operational procedures.
As part of his itinerary, General Silva visited the Uhuru Gardens National Museum and Monument (UGNM&M), where he was welcomed by the Director, Colonel Catherine Lagat.
His visit to Kenya also includes scheduled visits to the National Defence College (NDC) and the International Peace Support Training Centre (IPSTC), further strengthening ties between the defense establishments of the two nations.
March 26, Colombo (LNW): President Ranil Wickremesinghe emphasised the significance of comprehensive education, endorsing a curriculum that integrates academic subjects with nutritional support for children nationwide.
He also stressed the integration of modern technologies like artificial intelligence (AI) into the educational framework, affirming the government’s commitment to reforming school education and examination systems.
These statements were made during the inauguration of the “2024 School Meal Programme” at Sujatha Balika Vidyalaya in Narahenpita, reported the President’s Media Division (PMD).
Led by the Ministry of Education, the initiative aims to provide nutritious meals to all students in grades 1-5 across the country.
Following the president’s directive, breakfast will be served between 7:30 am and 8:30 am, aligning with expert recommendations on optimal nutrition timing.
Under the theme “Healthy Active Generation,” the 2024 school meal programme seeks to address nutritional deficiencies among students, enhance daily attendance rates, instill healthy eating and lifestyle habits, elevate academic performance, and promote local culinary traditions.
This year’s programme benefits 1.6 million students from over 9,000 government schools, with a budget of Rs. 16.6 billion allocated directly to provincial councils, supplemented by sponsorship from organisations like the World Food Programme (WFP) and the United States Department of Agriculture (USDA).
Local suppliers provide the necessary food, contributing to the country’s manufacturing economy by creating new jobs directly and indirectly.
The initiative is supported by a transparent financial oversight mechanism to ensure accountability and reporting for all programme aspects.
The Ministry of Education, particularly its Health and Nutrition Branch, oversees and monitors programme management activities to ensure vigilant implementation.
March 25, Colombo (LNW): The Committee on Public Accounts (COPA) has directed officials from the Ministry of Finance to promptly escalate the matter of the importation of 102 containers of spoiled fish into the country to the Criminal Investigation Department (CID), deeming it potentially criminal in nature.
During a recent session chaired by MP Lasantha Alagiyawanna, COPA scrutinized the details disclosed by an audit inquiry regarding the arrival of a vessel, originating from Seychelles and en route to Thailand, at the port of Colombo with spoiled fish containers.
Auditor-General W.P.C. Wickramaratne highlighted that despite provisions in the Customs Ordinance prohibiting the importation of unfit items for consumption, including spoiled fish, the decision was made to unload these containers in Sri Lanka.
The COPA session revealed discrepancies in the import process, with discussions highlighting fraudulent practices, including the presentation of non-imported containers as imports. Additionally, concerns were raised regarding the date discrepancies on invoices, indicating potential irregularities.
The Import and Export Control General informed COPA that permission was granted for the importation of the fish for organic fertilizer production, based on recommendations from the Central Environment Authority and in compliance with relevant regulations.
Of the 102 containers, four were destroyed, 43 used for fertilizer production, 40 re-exported, and 15 remained in Sri Lanka. Physical inspections in July 2023 revealed the remaining containers were emitting odors of rotten fish, prompting further concerns.
The COPA chair expressed dismay over delays in appointing a committee to investigate the incident and criticized perceived favorable treatment by customs officials.
State Ministers and Members of Parliament, along with officials from various government departments and law enforcement agencies, attended the COPA session to address the matter.
March 26, Colombo (LNW): The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) has announced a reduction in the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 50 basis points (bps) each, to 8.50 per cent and 9.50 per cent, respectively.
This decision, made during its meeting on March 25, 2024, follows a comprehensive assessment of both domestic and international economic conditions.
The primary objective is to maintain inflation at the targeted level of 5 per cent over the medium term while fostering economic growth.
In its deliberations, the Board considered several factors, including subdued aggregate demand, the limited impact of recent tax changes on inflation, favourable near-term inflation dynamics due to adjustments in electricity tariffs, stable inflation expectations, and manageable external sector pressures.
The Board also noted the importance of continuing the downward trend in market interest rates.
While acknowledging potential near-term inflation risks, the Board believes that these would not significantly alter the medium-term inflation outlook, given the anticipated prolonged period of below-par economic activity.
Furthermore, the Board emphasised the imperative of ensuring the effective transmission of monetary easing measures to market interest rates, particularly lending rates, by financial institutions.
It urged swift action to reduce lending rates, thereby facilitating the normalisation of market interest rates in the foreseeable future.
Additionally, the Board highlighted improvements in domestic money market activity and liquidity conditions.
Consequently, it has decided to lift the remaining restrictions on the usage of the Central Bank’s Standing Deposit Facility (SDF) starting April 1, 2024.
This move aims to enhance the market-based transmission of monetary policy adjustments.
In conclusion, the Monetary Policy Board urged all financial institutions to promptly implement measures to lower market lending interest rates.
This concerted effort is crucial to ensure that the benefits of the monetary policy easing measures are effectively passed on to businesses and households, thus supporting economic recovery and growth.
March 26, Colombo (LNW): Several spells of showers will occur in Eastern and Uva provinces and in Polonnaruwa district, with showers or thundershowers being expected at several places in Western, Sabaragamuwa, Southern and Central provinces during the afternoon or night.
Heavy showers above100 mm are likely at some places in Southern province and in Ampara and Monaragala districts.
Misty conditions can be expected at some places in Central, Sabaragamuwa and Uva provinces and in Kalutara, Galle and Matara districts during the morning.
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 times in the sea areas off the coast extending from Trincomalee to Galle via Batticaloa and Hambantota. Showers or thundershowers may occur at a few places in the sea areas off the coast extending from Colombo to Galle during the afternoon or night.
Winds:
Winds will be north-easterly and wind speed will be (20-30)kmph. Wind speed may increase up to 40 kmph at times in the sea areas off the coasts extending from Puttalam to Kankasanthurai via Mannar.
State of Sea:
The sea areas off the coasts extending from Puttalam to Kankasanthurai via Mannar can be moderate. Other sea areas around the island will be slight. Temporarily strong gusty winds and very rough seas can be expected during thundershowers.
March 25, Colombo (LNW): The Government is widening the tax net via mandating sharing of information quarterly and monthly by multiple institutions and individuals with the Commissioner General of Inland Revenue (CGIR) from next month.
The Gazette bearing the number 2376/25 and dated 21 March was issued by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister to enhance tax compliance and administration in the country.
Effective 1 April 2024, several institutions and select public sector personnel must provide specified information outlined in Schedule I of the notice to the CGIR.
The information will be incorporated into the Revenue Administration Management Information System (RAMIS) of the Inland Revenue Department to manage tax risks effectively.
Accordingly, financial institutions including banks and non-banking financial institutions regulated by the Central Bank of Sri Lanka and Colombo Stock Exchange are required to submit information quarterly, no later than the 20th day of the month following the end of each quarter. If any information is not currently maintained by individuals or institutions, they must commence record-keeping by 1 July 2024 and comply with the notification accordingly.
Banks and leasing companies are mandated to supply Current Account holders’ balances, loans and advances, leasing contracts and all information shared with Credit Information Bureau (CRIB).
The CSE is required to submit information of investors’ shareholding and value among other details.
The Registrar General’s Department is to supply information on land and property deals. The Registrar General of Companies and Department of Motor Traffic are also among mandated institutions.
Public sector personnel in charge of granting contracts for supply of goods, work or consulting are required to furnish monthly information.
The CGIR will notify individuals and Government institutions of the commencement date for furnishing information under Schedule I through written or public notices.
Meanwhile the government will enact new tax administration act in addition to existing statutes clearing complications in some sections of these acts in the recovery of tax dues and imposing penalties,.
The new act has been devised in accordance with the International Monetary Fund’s governance assessment. Directives.
The existing Inland Revenue Department (IRD) Act and the Default Taxes Special Provisions Act have stipulated conditions under which company officers, including directors, CEOs, and CFOs, can be personally held liable for the company’s tax defaults.
However the new tax administration act that applies to all taxes containing provisions that effectively deter corruption by imposing stricter penalties (including criminal charges) on habitual tax dodgers as well as on tax officials for taking bribes or aiding tax avoidance.
March 25, Colombo (LNW): As Sri Lanka battles it’s worst economic crisis in 70 years, the jobless rate climbed stoking massive social and political concerns. The latest official data showed the island nation’s unemployment rate rose to 5 per cent by the end of September last year, during which the economy contracted by 12 per cent.
Since the economy hit rock bottom last year, the majority of the people in the country are struggling to survive while those who committed the worst economic crimes are enjoying a life of comfort with little repentance for their mistakes that has placed the burden on the general public.
It has always been the public who are asked to tighten the belt in the time of an economic downturn but those in the ruling class and their cronies never seem to practice what they preach.
Sri Lanka’s official unemployment rate slipped to 4.3 percent in the final quarter of last year from 4.7 percent in the quarter before as the economy expanded in the final three months of the year.
This is roughly thrice the pace of the third quarter growth, data released by the Census and Statistics Department showed.
Sri Lanka’s Gross Domestic Product (GDP), the value of total products by an economy, expanded by 4.5 percent in the fourth quarter of last year from 1.6 percent in the third quarter as the country was recovering from the shortage of foreign currency which reached a breaking point in early 2022.
As now the country generates US$ 825 million from both remittances and tourism every month, the worst of the crisis in the economy appears to be behind and the people who remained in the sidelines for a very long time..
Many companies until recently either had laid off staff or froze their hiring due to the effects of the recent crises stated above and are now beginning to rehire as the economy shows signs of recovery.
But, in the last two years Sri Lanka saw mass migration, particularly in the categories of professionals which wasn’t that intense before the economic crisis in 2022.
As companies begin to rehire, they might find shortage of talent in the economy. An official jobless rate of 4.3 percent reflects near full employment and thus point to tight labour market conditions too.
Meanwhile, the Labour Force Participation Rate (LFPR) or the section of people both employed and unemployed but looking for work as a share of the working age population further shrank to 47.1 percent by the end of fourth quarter last year from 48.8 percent in the third quarter and 49.8 percent in 2022.
In the Organisation for Economic Co-operation and Development , the Labour Force Participation Rate (LFPR) stands above 60 percent.
March 25, Colombo (LNW): A Dubai based company which was awarded a contract to supply coal for the Lakwijaya Power Station in Sri Lanka is to face consequences of violating international best trading practices as result of the deal with a UAE based company sanctioned by US government
”According to information now in the public domain, a company called Black Sands Commodities FZ LLC based in the UAE was given the deal to supply 4.5 million tonnes of coal from Vanino Port, Russia. The Company is now counting the coal supply at a base rate of 295.22 US dollars and 33 dollars a tonne for freight
The deal was supposed to be for seasons 2022-2023, 2023-2024 and 2024-2025. Critics have said the price was too high
Black Sand Commodities FZ LLC, has been supplying coal to Lanka Coal Ltd., a state-owned enterprise of the Government of Sri Lanka.
The United States Government has placed Black Sand Commodities FZ LLC under sanctions enforced by the Office of Foreign Assets Control (OFAC), a move that carries significant legal and economic implications.
Despite these sanctions, trade between Lanka Coal Ltd. and Black Sand Commodities FZ LLC has continued.
This ongoing engagement not only breaches international sanctions but also risks exposing the Government of Sri Lanka to potential global disrepute.
The situation has escalated with two vessels from Black Sand currently detained at the Colombo port, and an additional six vessels are end route, highlighting the immediacy and seriousness of the violation.
In an attempt to circumvent the sanctions, there are reports that Black Sand Commodities FZ LLC is seeking to transfer its contractual obligations to another entity, Potencia FZ LLC.
Such maneuvers, if realized, would represent a deliberate effort to bypass international legal frameworks, further complicating the situation for all parties involved.
This unfolding scenario raises several concerns, notably the potential for global disrepute and the possible implications for the Sri Lankan government, given its ownership of Lanka Coal Ltd.
The continuation of these trades under the shadow of sanctions poses a complex challenge that could affect Sri Lanka’s diplomatic relations and its standing in the international community.
Furthermore, the involvement of financial institutions in these transactions introduces an additional layer of risk.
Banks facilitating these trades face the threat of sanctions, which could have far-reaching consequences not only for the institutions themselves but also for their customers, potentially jeopardizing the financial stability of countless depositors.
The situation underscores the intricate web of international regulations and the critical importance of adherence to global sanctions.
It serves as a reminder of the far-reaching consequences that can arise from violations, affecting not just the immediate parties involved but potentially impacting the broader economic and diplomatic relations of a nation.
As this situation evolves, it highlights the need for rigorous compliance with international sanctions and the importance of maintaining transparent and lawful international trade practices.
The resolution of this issue will be closely watched by both local and international observers, as it carries significant implications for Sri Lanka’s international relations and economic stability.
March 25, Colombo (LNW): President Ranil Wickremesinghe underscored the necessity of a new economic reform program for the country’s economic recovery.
He made a clarion call from from all citizens to extend collective support to prevent the next generation from inheriting the hardships of past economic crises
The President reminisced about inheriting a country others were reluctant to lead, highlighting that while some focused on their political aspirations, his concerns were committed towards the welfare of the nation’s future.
President Ranil Wickremesinghe made these observations while participating in a friendly discussion organized by the ‘United Youth Union’ on the theme ‘Future of our Youth’. The event took place yesterday in Polonnaruwa recenty.
Additionally, the government is dedicated to rural development through an agricultural modernization initiative.
This initiative aims to facilitate agricultural exports by enhancing rural infrastructure. The Agriculture ministry will be introducing new crop varieties and collaborating with the Thai government to explore ‘Durian’ cultivation opportunities.
By increasing crop productivity, we envisage substantial improvements in the rural economy hs said.
With abundant solar and wind resources in our country, transitioning to wind and solar energy production could yield tenfold the required energy, with surplus electricity exportable to India.
Moreover, a thousand-acre investment zone in Trincomalee is underway, supported by India. Plans also include the development of the Mahaweli A and B zones to establish modern agricultural practices.
Efforts have been underway to establish new investment zones in Bingiriya and the North, with the requisite land already earmarked for this purpose. These initiatives are slated for implementation within the next five years
President Ranil Wickremesinghe engaged in discussions with the youth, focusing on the future and vision of the country. The President addressed various issues raised by the youth and provided solutions during the session.
During the event, President Ranil Wickramasinghe asserted that the populace would reap the rewards of the government’s on-going economic reform endeavours within a few years.
Urgent economic restructuring is imperative, transitioning from an import-dependent to an export-driven economy. This requires comprehensive economic development across urban and rural areas alike, coupled with stringent budgetary controls.
By implementing these governmental reforms, we can envisage a shift to an export-oriented economy by 2035, paving the way for sustained economic growth thereafter.
Furthermore, the government aims to double the annual tourist arrivals to Sri Lanka from 2.5 million to 5 million. Efforts will also be made to attract high-spending tourists to the country.
