President’s Secretary E.M.S.B. Ekanayake issues an extraordinary gazette, classifying public transport services as essential: As a result, all passenger and goods transport services, along with the maintenance and provision of facilities for road and rail transport, including roads, bridges, culverts, and railway lines, are now deemed essential services.
The Election Commission directs key institutions like the Government Printing Department, Police Inspector General, and utility boards to prepare for the upcoming Presidential election: Government Printer Gangani Kalpana Liyanage affirms readiness, pending the Election Commission’s official date announcement: Chairman R.M.A.L. Ratnayake aims for a smooth electoral process, following the Commission’s schedule from 14 September to 16 October for the Presidential election.
The Judicial Service Association of Sri Lanka (JSASL) convenes a Special General Meeting in Colombo today to address criticism against the judiciary: District Court Judges and Magistrates gather to discuss the impact of recent remarks on judicial independence, following speeches by the Justice Minister and MPs on 19 June 2024: The Bar Association of Sri Lanka and Lawyers’ Collective advocate for formal complaints, not parliamentary statements, on judiciary matters.
Sri Lanka pledges police gendarmerie and criminal justice experts to the United Nations to combat global security challenges: At UNCOPS 2024, Public Security Minister Tiran Alles affirms Sri Lanka’s readiness, highlighting rising threats like organised crime and gang violence: urges UN deployment of specialised police teams and emphasises Sri Lanka’s commitment to share expertise worldwide, underscoring the nation’s capability at Readiness Level 3.
The Immigration and Emigration Department will extend passports expiring after June 30 by one year, free of charge, ahead of the launch of e-passports in January: The new passports will feature embedded electronic chips: A company has been selected to produce them, aiming to issue around 700,000 annually once operational: Citizens are encouraged to upgrade to the new e-passport format.
The Central Bank reports in June 2024, y-o-y headline inflation in Sri Lanka, as per the CCPI, increased to 1.7% from May’s 0.9%: Food inflation rose to 1.4% from May’s 0.0%, and non-food inflation increased to 1.8% from 1.3%: Month-on-month inflation saw a slight uptick of 0.77% after three consecutive months of decline. Core inflation rose to 4.4% in June from 3.5% in May: Despite these increases, inflation remains comfortably below the 5% target, with CB expecting it to remain so in the near term, aligning with targets over the medium term with appropriate policy measures.
Sri Lanka celebrates welcoming its one millionth tourist of the year, Mr. Paul Roy from Ireland, at Bandaranaike International Airport: Organised by Tourism Sri Lanka and Airport & Aviation Services Sri Lanka Pvt Ltd., the event highlighted the country’s tourism recovery: Tourism Minister Harin Fernando praises the milestone, aiming for 2 million tourists in 2024, noting a 106% increase in 2023 arrivals: Cultural performances showcased Sri Lanka’s rich heritage and hospitality.
Kollupitiya Police imposes a travel ban on Sena Yaddehige, Chairman of Richard Pieris Group, amid allegations of sexual misconduct by a female business analyst: The 39-year-old victim accuses him of abuse at a luxury Kollupitiya hotel on May 07: reports working remotely while he was overseas, and being summoned upon his return: The incident was promptly reported to authorities, with the Chairman reportedly fleeing the country afterward.
Four fishermen from Tangalle die after consuming an ‘unknown substance’ found floating at sea, with two others critically ill and receiving treatment on a Singaporean merchant vessel: The Sri Lanka Navy is investigating the incident, which occurred 320 nautical miles (592.64 km) off the coast: Authorities urge fishermen to exercise caution and avoid consuming unidentified substances.
West Indies women clinch the T20 series 2-1 against Sri Lanka with a thrilling last-over win, chasing down 142 to victory: Hayley Matthews (49) and Stafanie Taylor (33) set the foundation, while Shemaine Campbell’s unbeaten 41 sealed the win: Chamari Athapaththu’s 38 led Sri Lanka to 141/7 earlier, with Matthews named Player of the Series.
June 30, Colombo (LNW): The Sri Lanka Navy has confirmed that the death toll has risen to four following a tragic incident involving fishermen who consumed what reports claimed as ‘an unknown substance’ found floating in the sea.
This unfortunate event has left the small fishing community of Tangalle in mourning as they come to terms with the loss of their fellow fishermen.
The incident took place yesterday (29), approximately 320 nautical miles (592.64 kilometres) off the coast of Sri Lanka.
Six members of a fishing crew from Tangalle discovered a bottle floating in the water and, believing it to contain alcohol, consumed its contents.
Shortly after, they began experiencing severe symptoms.
Four of the six fishermen have since died from the speculated unknown substance, with the Sri Lanka Navy confirming their deaths.
The remaining two crew members are in critical condition and have been receiving emergency treatment aboard a Singaporean merchant vessel that was in the vicinity.
The Sri Lanka Navy responded swiftly to the situation, coordinating with the merchant vessel to ensure that the critically ill fishermen received immediate medical attention.
The Navy has also initiated an investigation to determine the nature of the substance and how it ended up in the sea.
Navy spokesperson, Captain Indika De Silva, expressed his condolences to the families of the deceased fishermen and emphasised the importance of exercising caution when encountering unknown substances.
“This is a tragic reminder of the dangers that our fishermen face every day. We urge all fishing communities to be vigilant and report any suspicious objects or substances they come across while at sea,” he said.
The incident has sparked concern among local fishing communities and authorities alike. The Ministry of Fisheries has announced that it will collaborate with the Sri Lanka Navy and other relevant agencies to conduct a thorough probe.
In the meantime, the Ministry has issued a warning to all fishermen to avoid consuming any unidentified substances they may find while fishing.
This tragedy has highlighted the need for increased awareness and safety measures within the fishing industry.
As the probe continues, authorities hope to uncover the source of the harmful substance and prevent similar incidents from occurring in the future.
With Social Media widely providing platform for conspiracy theorists to speculate what was discovered at sea calling it an elaborate attempt to spread an engineered contagion, authorities urge the public to stick to the facts until the true nature of the containment of the bottle is revealed.
Two leading Ministers Dr. Ramesh Pathirana and Dr. Wijeyadasa Rajapakshe on Sunday lambasted the banking sector for half-hearted support to the struggling Micro, Small and Medium Entrepreneurs (MSMEs) thereby endangering a quicker recovery in the economy following multiple crises. Industries and Health Minister Dr. Ramesh Pathirana on Sunday urged enterprises to take a stand against unfair banking practices and to continue lobbying for their interests regardless of political affiliations.
Speaking at an awareness conference organised by the Ceylon Federation of MSMEs on ’Business debt and finance management’ on the side-lines of the Industry Expo 2024, Pathirana insisted the need for businesses to create conversations and pressure policymakers to address their concerns. Dr. Pathirana warned that banks might channel most of the funds from international credit lines to their wealthy clients, calling for vigilance and protest against such practices. “We learn that banks are trying to push most of the funding facilities to their already rich clients from the loans extended by the international agencies like the World Bank and the Asian Deve-lopment Bank,” the Industries Minister alleged.
He also pointed out that promoting fair banking practices are essential to drive economic development in Sri Lanka. Separately at the same conference, in a scathing critique of the banking system, Justice Minister Dr. Wijeyadasa Rajapakshe criticised the policymakers for their failure to establish a credible economic policy to support enterprises and entrepreneurs. In practice no bank can survive if it alienates its customers. As with all business, it’s a balancing act. In general Government policies have been designed to limit bank failures and the panic they can ignite. Therefore the safety and soundness of banks is paramount, growing all banks to such levels of safety and soundness should be the deliverable, not just a handful of systemically important banks. The recent pronouncements on a development bank in Sri Lanka limited to serving the needs of the MSMEs, should be pursued with vigour.
True role of banks
Banks play a pivotal role serving as the backbone that the entire financial system rests on. Its primary role is to safeguard depositors and to disburse loans. Banks however as the primary supplier of credit as the Minister highlighted have a crucial role in stabilising the economy and supporting their customers. Banks in general accept deposits and provide loans, and derive a profit from the difference in the interest rates paid and charged to depositors and borrowers respectively. This process performed by banks of taking in funds from a depositor and then lending them out to a borrower is known as financial intermediation.
Through financial intermediation, certain assets are transformed into different assets or liabilities. As such, financial intermediaries channel funds from people who have extra money or surplus savings (savers), and then lend to those who do not have enough money to carry out a desired activity (borrowers). Banking thrives on the financial intermediation abilities of financial institutions that allow them to lend money and receive money on deposit. The bank is the most important financial intermediary in the economy as it connects surplus and deficit economic agents.
Way forward
Banks are vital institutions in any society as they significantly contribute to the development of an economy through facilitation of business. Banks also create money and facilitate the growth of savings in the economy, and are instruments of the Government’s monetary strategy, among many others. The most important service provided by a bank is the provision of credit. Credit fuels economic activity by allowing businesses to invest beyond their cash on hand, households to purchase homes without saving the entire investment in advance, and enables governments to smooth out their spending by mitigating the cyclical pattern of tax revenues, and to invest in huge public infrastructure projects. Therefore, the key role for a financial institution is to facilitate investment and employment to sustain the long-term economic growth of the country.
What Sri Lanka needs is four strong banks with an asset base exceeding Rs. 2 trillion each by 2025, to get us to an over-$ 100 billion GDP economy. Therefore, the Government should push for bank consolidation keeping in view synergies and the benefits of mergers, with the Government role purely as that of a facilitator. However in certain institutions there is certainly a need to get rid of board toxicity and the management capacity deterioration, and investigate the vested lending.
Therefore, in the final analysis, the President, as the Minister of Finance (which supervises the Central Bank and the Securities and Exchange Commission [SEC]), has a great opportunity to drive the financial sector reforms agenda, thereby giving a very strong signal to the financial markets that the Government is ready to support genuine investor appetite and provide competitive businesses the freedom to create wealth and growth. Whilst the banks need to ensure that they demonstrate to their clients that they have their best interests at heart.
June 30, Colombo (LNW): In a momentous occasion, Sri Lanka today welcomed its one millionth tourist of the year.
Mr. Paul Roy, hailing from Ireland, arrived with his wife on flight UL 504 and was honoured at a grand ceremony held at Bandaranaike International Airport.
The event was organised by Tourism Sri Lanka in collaboration with Airport & Aviation Services Sri Lanka Private Ltd.
Tourism Minister Harin Fernando expressed his delight at the milestone, highlighting the Ministry’s ambitious target of attracting 2 million tourists in 2024.
The Minister also noted the impressive growth in tourism numbers, with over 1.4 million visitors recorded in 2023—a substantial increase of 106 per cent compared to the previous year.
The special event at the airport featured cultural performances and traditional Sri Lankan hospitality, showcasing the island’s vibrant heritage and warm welcome to international visitors.
The Tourism Minister emphasised that this achievement is a testament to the resilience and recovery of Sri Lanka’s tourism sector, which has been working diligently to regain its position as a premier travel destination.
As Mr. Roy and his wife were greeted with garlands and smiles, it became evident that Sri Lanka is not only on track to meet its tourism goals but also to provide unforgettable experiences for all its visitors.
June 30, Colombo (LNW): A Gazette notification was issued yesterday, classifying public transport services as essential.
The notification was released by E.M.S.B. Ekanayake, the Secretary to the President.
As a result, all passenger and goods transport services, along with the maintenance and provision of facilities for road and rail transport, including roads, bridges, culverts, and railway lines, are now deemed essential services.
June 30, Colombo (LNW): The Kollupitiya Police have secured a travel ban against Sena Yaddehige, Chairman of Richard Pieris Group, following allegations of sexual misconduct involving a woman business analyst from the company.
The 39-year-old victim, a resident of Colombo, filed a complaint last month, alleging she was sexually abused by the Chairman on 7th May at a luxury hotel in Kollupitiya, Daily Mirror reported citing police sources.
The complainant reported that she had been working remotely as a business analyst for over a month while the Chairman was abroad.
On 6th May, she received communication from the company indicating that the Chairman had returned to Sri Lanka and wished to meet her on 7th May.
During their meeting at the designated location, the woman claimed that the Chairman sexually abused her.
She immediately reported the incident to the Kollupitiya Police, who subsequently notified the Fort Magistrate.
It has been reported that the Chairman departed the country on the same day the alleged incident took place.
June 30, Colombo (LNW): Train services on the upcountry railway line have been interrupted following the derailment of a night mail train between the Galaboda and Inguru Oya railway stations, according to Sri Lanka Railways (SLR).
The train, travelling from Badulla to Colombo Fort Station, had departed at 6:30 pm yesterday (29th June) when the derailment occurred at approximately 1:15 am today.
As a result, train services on the upcountry line have been affected.
The department has announced the cancellation of two short-distance trains, and efforts to restore the derailed train are currently underway.
June 30, Colombo (LNW): Several spells of light showers will occur in Western, Sabaragamuwa and North-western provinces and in Kandy, Nuwara-Eliya, Galle and Matara districts, the Department of Meteorology said in its daily weather forecast today (30).
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 provinces and in Trincomalee, Hambantota and Monaragala districts.
Marine Weather:
Condition of Rain:
Showers may occur at a few places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be south-westerly in the sea areas around the island. The wind speed will be (30-40) kmph in the sea areas off the coasts extending from Trincomalee to Puttalam via Mullaittivu, Kankasanthurai and Mannar and from Hambantota to Pottuvil. Wind speed can increase up to (50-55) kmph at times in these sea areas. The wind speed will be (25-35) kmph in the other sea areas.
State of Sea:
The sea areas off the coasts extending from Trincomalee to Puttalam via Mullaittivu, Kankasanthurai and Mannar, and from Hambantota to Pottuvil can be rough at times. The other sea areas can be moderate.
June 30, World (LNW): Amid a resurgence of COVID-19 cases in various regions, health authorities are organising an autumn vaccination drive, Associated Press reported.
On Thursday, the Centers for Disease Control and Prevention (CDC) recommended new vaccinations for all Americans this autumn.
While the urgency for vaccinations has decreased compared to previous years due to widespread immunity from prior infections and vaccinations, the need persists due to diminishing immunity, emerging variants, and ongoing COVID-19-related deaths and hospitalisations.
Recent data shows an increase in COVID-19-related emergency visits and hospitalisations, particularly in the southwestern United States, raising concerns about a potential summer surge.
The Food and Drug Administration (FDA) has instructed vaccine manufacturers to target the JN.1 strain of the virus, although there is also consideration for a KP.2 offshoot.
The updated vaccines, recommended for everyone aged six months and older, are expected to be available in August and September.
Despite these efforts, vaccination uptake remains low, with surveys indicating that a significant portion of the population is not planning to get the updated shots.
Furthermore, the CDC’s Bridge Access Program, which has funded vaccines for uninsured adults, will end in August due to a lack of funding.
Since the pandemic began, approximately 1.2 million COVID-related deaths have been reported in the US, with a significant impact on those aged 75 and older.
June 30, Colombo (LNW): Year-on-year (Y-o-Y) headline inflation, based on the Colombo Consumer Price Index (CCPI), rose to 1.7 per cent in June 2024 from 0.9 per cent in May, according to the Central Bank of Sri Lanka (CBSL).
Despite this increase, inflation remains well under the 5 per cent target.
Food inflation increased to 1.4 per cent in June from 0.0 per cent in May, while non-food inflation rose to 1.8 per cent from 1.3 per cent.
Month-on-month inflation also saw a slight rise of 0.77 per cent after three months of decline.
Core inflation, indicating underlying trends, climbed to 4.4 per cent in June from 3.5 per cent in May.
The CBSL anticipates that inflation will stay below the 5 per cent target in the near term and align with the target level over the medium term with appropriate policy measures.
