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Sri Lanka’s only digital company PickMe completes an outstanding 10th year

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By: Staff Writer

July 04, Colombo (LNW): Sri Lanka’s leading digital company, PickMe, has achieved a remarkable performance in FY24 as it marks its 10th anniversary.

The company saw its user base reach a new high, with the gross transaction value facilitated by the app increasing by 118% to Rs. 39 billion, reflecting the economic value generated for independent third-party drivers and merchants. Revenue doubled to Rs. 3.9 billion, driven by the growing adoption of PickMe Flash for on-demand delivery and PickMe bikes, showcasing significant interest and growth potential.

The company’s rigorous cost management coupled with strong top-line trends resulted in a pre-tax profit surge to Rs. 993 million from Rs. 69 million. Cash reserves exceeded Rs. 1 billion, with plans for strategic allocation to fuel future growth and ensure long-term shareholder returns. PickMe Chairman Ajit Gunewardene highlighted the company’s achievement of strong, profitable growth at scale, marking a pivotal inflection point.

Platform movements increased by 164% to 58 million in FY24, driven by a larger user base and higher engagement. Despite inflation, the platform’s innovative technology reduced average ride-hailing fares per kilometer by 11% year-over-year (YoY). Gunewardene attributed these efficiency gains to optimized resource allocation and streamlined experiences for both drivers and consumers.

Independent third-party driver utilization rates increased by 14% YoY, and average wait times for consumers decreased by 9% due to enhanced matching algorithms and optimized route planning. The logistics and parcel delivery segment also saw a 115% YoY growth, enhancing operational efficiency for small and medium businesses in Sri Lanka.

Playing a significant role in the nation’s economic recovery, PickMe’s two-wheeler trips grew from 0.7% to 5% of ride-hailing volume, becoming the fastest-growing segment and offering cost-effective mobility and earnings opportunities for bike owners.

Founder and CEO Jiffry Zulfer emphasized the central role of innovation, technology, and engineering excellence in PickMe’s mission to revolutionize mobility and delivery. As the digital ecosystem grows in importance, PickMe is positioned at the forefront of Sri Lanka’s digital economy, with plans to capitalize on mobility sector opportunities to ensure optimal stakeholder returns.

Chairman Gunewardene expressed confidence in the sustainability and profitability of last year’s momentum, supported by macroeconomic stability and the need for efficient resource allocation. The company is committed to continuous investment in innovation, maintaining agility, relevance, and technological advancement as its core strengths.

PickMe’s future is seen as integral to Sri Lanka’s digital progress, leveraging digitization to drive national development and ensuring the company’s people, engineering capabilities, and intellectual property remain unparalleled. The company aims to seize future opportunities and play a key role in the country’s digital transformation.

Sri Lanka Strikes Restructuring Agreement With Bondholders

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By: Staff Writer

July 04, Colombo (LNW): Sri Lanka struck a deal to restructure $12.6 billion of bonds with its creditors, bringing the South Asian nation closer to completing its debt overhaul two years after it defaulted.

Investors agreed to take a 28% nominal reduction on the bonds, according to a statement released Wednesday at the conclusion of the second round of talks. The deal included the issuance of notes whose payouts are linked to economic growth and a governance-linked bond.

Sri Lanka has secured a deal to move forward on restructuring about $12.5 billion of international bonds, finance ministry said adding that this was a major step in the island nation’s fragile recovery from a severe financial crisis.

The deal with selected bondholders, who cover about 50% of Sri Lanka’s bonds, is contingent on confirmation by the Official Creditor Committee (OCC) made up of bilateral creditors and the IMF to ensure it is in line with the global lender’s debt sustainability analysis for the country.

The latest agreement comes after Sri Lanka held a second round of formal talks with bondholders this week.

“Sri Lanka … looks forward to further constructive interaction to finalise the ISB (International Sovereign Bonds) restructuring,” the government said in a regulatory statement.

The framework proposes a 28% haircut on face value and 11% reduction on past interest with payments on the interest component to start from September.

The outline proposes to swap four existing dollar-denominated bonds for a bundle of three fixed income instruments.

One is a standard or so-called “plain vanilla” bond that has a coupon of 4% and matures in 2028. The second is a series of macro-linked bonds, where payouts and principal will be adjusted according to the country’s economic performance – downwards in case the economy fails to hit the IMF baseline projections, and upwards if the economy outperforms.

A third instrument would be a so-called governance linked bond. While the statement did not detail the parameters to which the payout was linked, a source familiar with the situation said the country would have to pay investors less if it managed to achieve reforms demanded by the IMF and hit tax revenue targets.

Sri Lankan sovereign dollar bonds were marginally up in price on Wednesday, still trading around 57 or 58 cents on the dollar. The bonds were up nearly 15% year to date at the index level up to Tuesday’s close, according to JPMorgan data.

Sri Lanka signed in late June an agreement with creditor nations including Japan, India and China to restructure about $10 billion in bilateral debt.

Sri Lanka now needs to present the proposal to all its bondholders who need to agree to the deal for the restructuring to be finalised.

The country, whose total external debt is $37 billion, also has to finalise arrangements with China Development Bank to restructure debt of $2.2 billion, according to the latest finance ministry data.

Sri Lanka Ports Authority and Virginia Ports Authority, USA enter into historic MOC

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By: Staff Writer

July 04, Colombo (LNW): Sri Lanka Ports Authority (SLPA)  is poised to improve its operations with cutting edge technology while entering into an agreement with Virginia Ports Authority (VPA) in the United States of America for the first time in history.

The two sides have agreed to enter into a cooperative agreement for the mutual exchange of expertise and technical collaboration between the two US and Sri Lanka ports.

It is anticipated that the large-scale current development projects, such as the operations of the Colombo West International Terminal (CWIT) and the East Container Terminal (ECT), will raise the bar for operations using cutting-edge technology and improve the index’s ratings in the medium term.

SLPA achieved a 35 percent increase in container volumes in the first four months of 2024, compared to the same period of 2023.

The numbers increased to 837,052 TEUs in the first four months of 2024, compared to 619,934 TEUs in the same period of 2023 due to various factors, including the Red Sea crisis and its ramifications.

SLPA officials travelled to the United States as part of the Port of Colombo Capacity Building Project, supported by the US Embassy in Sri Lanka and implemented by The Colombo Plan.

The Port of Colombo operates under SLPA, which is the primary transshipment hub for South Asia. Additionally, the Port of Virginia, under VPA, is one of the largest ports on the East Coast of the United States and runs an automated SMART port, which is a major international gateway for US trade bound for overseas markets.

The Memoredum of Cooperations (MOC) was agreed upon on 15 May in Portsmouth, VA when the SLPA delegation visited the United States on a study tour through The Colombo Plan.

The MOC came into effect with the approval by the Cabinet of Ministers in Sri Lanka on 19 June. Minister of Ports, Shipping and Aviation Nimal Siripala De Silva submitted the details to cabinet under the Sri Lankan Government’s “Ports prosperity expertise development” theme.

It covers the subject areas through 10 articles consisting of  information and knowledge sharing, exchange visits, sharing best practices, cooperation on general logistics, exchange of technical expertise, supporting initiatives in maritime security, liaising between parties, dispute settlement and entry into force, validity and renewal, and termination.

This MOC has a validity period of five years. SLPA Chairman Keith Bernard, and VPA General Council Sarah J. McCoy signed the MOC on behalf of each organisation while Ministry of Ports, Shipping and Aviation Sri Lanka Secretary K.D.S.  Ruwanchandra,

US Ambassador to Sri Lanka Julie Chung lauded the historic port agreement between Sri Lanka and Virginia ports authorities, noting, “Sri Lanka has a vital role to play in facilitating global trade and ensuring the world’s cargo efficiently traverses the Indian Ocean.

This agreement is a testament to the shared vision of both our nations to bolster maritime security, enhance logistical efficiency, and drive economic growth. The United States recognises the importance of a robust and resilient maritime sector in Sri Lanka and is dedicated to providing ongoing support and cooperation.”

Concerns mount over quality of popular mango variety

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July 04, Colombo (LNW): Currently, the TEJC mango variety is widely cultivated domestically and abroad, but its quality is being compromised by unregulated and informal farming practices.

The proliferation of TEJC mango cultivation for local consumption in large quantities has led to a decline in cultivation standards, resulting in mangoes appearing in markets without the characteristic bright yellow hue, often with a mouldy black appearance on the surface.

While this does not pose immediate health risks, adhering to proper standards is crucial for export purposes.

Minister of Agriculture and Plantation Industry Mahinda Amaraweera, expressed concerns that continued neglect of quality standards could jeopardise future sales of this mango variety.

In response, the Minister has directed the Department of Agriculture to draft an expansion plan that prioritises improving the cultivation practices of TEJC mangoes, particularly for export purposes.

This directive came during a recent ministry meeting held two days ago (02).

Sri Lanka Original Narrative Summary: 04/07

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  1. President Ranil Wickremesinghe supports a five-year presidential term and backs the Election Commission’s 2024 election decision: An entrepreneur filed a fundamental rights petition to delay the Presidential Election date pending a Supreme Court interpretation: Wickremesinghe expresses surprise, stating he and his legal team were unaware of the petition before its submission.
  2. TPA Leader MP Mano Ganeshan alleges that the government postponed a parliamentary debate on recent debt agreements due to issues with private bondholders, not because of the demise of R. Sampanthan: cites difficulties in providing Memorandum of Understanding copies to Parliament: criticises pressures on the opposition, highlighting efforts to signal support for debt restructuring to bilateral creditors.
  3. NPP MP Vijitha Herath says the late TNA former Leader R. Sampanthan was a “fearless leader” who spent his entire life raising voice for the rights of the people of the North and East: asserts Sampanthan valued democracy in his fight for justice for the people of the North and East, both on and off Parliament: adds he set a precedent for the people of Sri Lanka in reclaiming rights in a democratic manner, and his departure is a great loss to the nation.
  4. Power and Energy Minister Kanchana Wijesekera introduces a revised payment system for new rooftop solar panels and other renewable energy projects starting from July 1: Projects initiated before this date retain their current payment methods: The updated tariff offers Rs.27.06 per unit for rooftop solar installations up to 500 kW and Rs.23.18 for larger ones, with ground-mounted solar panels at Rs.25.48 per unit over 20 years: Small hydro, wind, and biomass projects receive Rs.30.53, Rs.29.86, and Rs.52.77 per unit respectively: The changes reflect adjustments based on economic conditions and stakeholder input from the CEB.
  5. Ports, Shipping, and Aviation Minister Nimal Siripala de Silva confirms SriLankan Airlines will undergo restructuring, not sale, citing regulations allowing up to 49% share transfer without a suitable investor: says President Wickremesinghe’s address on debt restructuring was hailed despite opposition scepticism, aiming for national recovery: adds IMF involvement ensures adherence to legal frameworks: Budget provisions include social benefits, independent of elections: reiterates focus on restructuring SriLankan Airlines amidst limited international interest, highlighting ongoing developments in infrastructure projects with Japan and India.
  6. The Asian Development Bank (ADB) encourages Sri Lanka to ramp up growth efforts amidst climate change challenges, highlighting green bonds as a crucial tool to meet financial needs: ADB Country Director Takafumi Kadono stresses the importance of private finance mobilisation through sustainable bonds, underscoring their potential to attract investment in climate mitigation and adaptation: praises Sri Lanka’s initiatives but urged further development of the sustainable capital market, asserting that green bonds can drive economic recovery, resilience, and inclusive growth.
  7. The Police announce the ongoing ‘Yukthiya’ nationwide operation to eradicate illegal activities will be reinvigorated from today (07): Spokesman DIG Nihal Thalduwa announces the operation will also enlist the support of the Sri Lanka Army: further indicates that the operation, already active in several regions around Colombo, will soon be extended to cover the entire island.
  8. Sri Lankan health officials express alarm over a surge in kidney disease cases linked to the widespread use of skin whitening creams, surpassing cancer rates: Dr. Indira Kahawita, a Consultant Dermatologist, highlighted the issue during a Health Promotion Bureau briefing, citing mercury in these creams as a major concern: notes immediate health impacts like kidney failure and observed rising cases of skin discolouration and other symptoms among patients, underscoring urgent health risks associated with these products.
  9. Sri Lanka’s Fisheries Ministry reports Rs. 700 mn in damages to local fishing gear caused by Indian bottom trawlers, escalating bilateral tensions: Indian trawlers illegally fish in biodiverse areas like the Palk Bay and Gulf of Mannar, affecting marine species crucial to Sri Lanka’s economy: Over 1,000 trawlers from Tamil Nadu frequently cross into Sri Lankan waters, using heavy metal panels that damage seabeds and discourage local fishermen: Sri Lanka seeks dialogue to resolve ongoing fishing disputes.
  10. In a thrilling LPL cricket match, Jaffna Kings secures a dramatic last-ball victory over Dambulla Sixes, chasing down 192 runs with Skipper Charith Asalanka (50) and Avishka Fernando (80) leading the charge with a crucial 134-run partnership: Despite Kusal Janith Perera’s impressive century for Dambulla, Jaffna’s strong batting display stood out, with Fernando awarded Man of the Match for his explosive innings.

Former MP Hirunika Premachandra’s bail hearing postponed

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July 04, Colombo (LNW): The bail application hearing for former MP Hirunika Premachandra has been rescheduled to 11th July 2024, following a decision by the Colombo High Court today (04).

This adjournment came after the Attorney General informed the court of their intention to file objections against the bail application and requested time to submit these objections in writing.

Colombo High Court Judge Amal Ranaraja granted the request for additional time, thereby delaying the hearing of Premachandra’s bail application.

In a separate legal matter, the Colombo High Court had previously sentenced the former MP to three years of rigorous imprisonment for her involvement in the abduction and assault of a youth using a Defender vehicle in Dematagoda back in 2015.

The court issued this verdict after considering the case brought by the victim, Amila Priyankara, who alleged he was abducted and assaulted by a group arriving in a black Defender jeep on December 21, 2015.

During the trial proceedings, Premachandra made a statement from the dock asserting her innocence, claiming she was attending an event at the time of the incident.

She also stated that one of the accused, who had pleaded guilty, had taken her Defender vehicle without her consent and used it in the alleged crime.

Dollar rate against LKR at SL banks today (July 04)

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July 04, Colombo (LNW): The Sri Lankan Rupee (LKR) happens to be steady against the US Dollar today (04) in comparison to yesterday, as per leading commercial banks in the country.

At Peoples Bank, the buying price of the US Dollar has decreased to Rs. 298.76 from Rs. 298.95, and the selling rate has increased to Rs. 309.48 from Rs. 309.08.

At Commercial Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 298.62 and Rs. 308.50.

At Sampath Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 300 and Rs. 309, respectively.

Govt accused of postponing debt debate due to issues with private bondholders

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July 04, Colombo (LNW): The government postponed the scheduled parliamentary debate on recent debt agreements with bilateral creditors due to complications with private bondholders.

This allegation was levelled by Tamil Progressive Alliance (TPA) Leader MP Mano Ganesan.

In a statement, Ganesan refuted the government’s claim that the debate was postponed due to the death of Tamil National Alliance (TNA) MP R. Sampanthan.

He asserted that the real reason was the government’s difficulties in negotiations with private bondholders, which prevented it from providing Memorandum of Understanding (MoU) copies to the parliamentary finance committee.

“There were no MoU copies and no debate; hence, the debt restructuring process remains incomplete,” Ganesan stated.

He highlighted that the opposition had sought the debate to address these issues but was pressured to oppose the MoUs in parliament.

“We, the United People’s Alliance, acted responsibly as the prime opposition and decided not to vote against it but to abstain from voting if the debate had occurred. We wanted to send positive signals to our bilateral debtors, the Official Creditor Committee (OCC) and China, showing our support for restructuring,” he wrote on his official X wing.

Ganesan also praised India’s significant role as a co-chair of the OCC alongside France and Japan, acknowledging India’s $4 billion contribution to stabilise Sri Lanka’s economy.

This aid helped end shortages and brought the country back to near-normalcy, facilitating progress towards the International Monetary Fund (IMF).

He criticised the government’s unsuccessful attempt to align the debt restructuring process with its local electoral calendar, emphasising the opposition and bilateral creditors’ responsibility towards Sri Lanka’s interests.

On June 26, Sri Lanka signed agreements with China and other creditor nations to restructure about $10 billion in bilateral debt, marking a step towards concluding a restructuring process initiated in September 2022 after the country’s reserves plummeted, forcing it to default on foreign debt.

Sri Lankan officials in Paris signed the agreement with the OCC, co-chaired by Japan, India, and France, and a separate deal with China EXIM Bank to rework $4.2 billion of debt.

SL estimates Rs. 700 mn damage to fishing gear by Indian trawlers

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July 04, Colombo (LNW): Sri Lanka’s Fisheries Ministry has reported an estimated Rs. 700 million in damages to local fishing gear caused by Indian bottom trawlers.

This estimate has been communicated to Indian authorities, including External Affairs Minister Dr. S. Jaishankar.

The issue of Indian bottom trawlers engaging in Illegal, Unreported, and Unregulated (IUU) fishing has strained relations between the two nations.

The trawlers frequently poach in the Palk Bay and Gulf of Mannar, areas known for their rich biodiversity and economically significant marine species such as shrimp, sea cucumber, conch, and pearl oyster.

A previous communication to the Indian Minister highlighted that over 1,000 Indian trawlers, primarily from Tamil Nadu regions like Ramanathapuram, Puthukodai, Nagapatnam, and Karaikal, cross the International Maritime Boundary Line (IMBL) to fish in Sri Lankan waters, sometimes venturing as close as 200 meters from the shoreline.

Bottom trawling involves using heavy metal panels to scrape the seabed, causing extensive bycatch of juvenile fish and crustaceans.

This practice discourages Sri Lankan fishermen from venturing into the sea due to the risk of damage to their nets and boats, and threats to their safety.

Sri Lankan fishermen typically use small, traditional vessels with 8-40 horsepower engines, making them unable to compete with the much larger 400-horsepower Indian trawlers.

The Fisheries (Regulation of Foreign Fishing Boats) Amendment Act No. 1 of 2018 grants the Sri Lanka Navy and Coast Guard the authority to arrest foreign boats and empowers Magistrates to detain these vessels and issue suspended sentences to first-time offenders.

Fisheries Minister Douglas Devananda previously proposed the creation of a Palk Bay and Gulf of Mannar Joint Marine Fisheries Resources Management Authority.

The proposal was presented to Indian Prime Minister Narendra Modi in 2020, but the pandemic hindered further action.

Under the 1976 agreement, Sri Lankan fishermen are prohibited from fishing in Indian waters, and vice versa.

The India-Sri Lanka Ministerial Meeting on Fisheries and the Joint Working Group (JWG) have met multiple times, but Sri Lanka is now calling for these meetings to be reconvened to address the ongoing issues.

President backs Election Commission’s 2024 Presidential Election schedule

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July 04, Colombo (LNW): President Ranil Wickremesinghe has expressed his strong belief that the President’s term should be five years and supports the Election Commission’s decision to hold the Presidential Election in 2024, according to the President’s Media Division (PMD).

Yesterday (03), entrepreneur C.D. Lenaw filed a fundamental rights petition seeking to prevent the announcement of a Presidential Election date until the Supreme Court provides an interpretation on the matter.

The petition calls for an interim order to halt the election from being conducted as currently scheduled until the court clarifies the date for the next Presidential Election.

In response, President Wickremesinghe asserted that neither he nor his legal team were consulted or informed about the petition before its submission.