August 21, Colombo (LNW): The National Election Commission announced that polling cards for the upcoming Presidential Election will be handed over to the Department of Posts (Sri Lanka Post) on September 2, 2024. According to Chairman R.M.A.L. Rathnayake, a special day will be designated on September 8, 2024, to ensure the distribution of these polling cards.
The printing process for 17,140,354 polling cards has already begun. These cards will assist voters in verifying their identity at polling stations, making the voting process smoother and more efficient.
Sri Lanka aims to attract 3 million tourist arrivals in 2024, driven by strong performance so far this year and favorable conditions anticipated during the upcoming winter season, according to tourism officials.
As part of this effort, the country will launch its first significant promotional campaign in over two decades starting next month, targeting key markets to boost tourist numbers.
The initial phase of this campaign will focus on five major markets: India, China, the UK, Germany, and France.
This will be executed through a six-month digital marketing campaign and a year-long public relations initiative, backed by an investment of Rs. 1.6 billion (Rs. 1 billion for digital marketing and Rs. 600 million for PR).
In the second phase, slated for next year, Sri Lanka will expand its reach to seven emerging markets, including Russia, Australia, the Middle East, Japan, Korea, Italy, Poland, Scandinavia, and Benelux.
This phase will have an investment of Rs. 1.2 billion (Rs. 750 million for digital marketing and Rs. 450 million for PR).
To implement these campaigns, Sri Lanka has selected several agencies through a competitive tender process, including Ogilvy and Holmes Pollard, along with specialized in-country agencies in markets like China and Russia.
The funding for these campaigns has been sourced from the Tourism Development Levy (TDL) and the Embarkation Levy (EL).
Reflecting on the tourism sector’s resilience Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Chalaka Gajabahu noted that the industry rebounded quickly after the 2022 crisis, thanks to collaborative public-private initiatives.
Notably, the “Check-In” short-term promotion campaign launched in late 2023 and the “Seeing is Believing” PR initiative, which engaged influencers, bloggers, and media outlets, played a key role.
The new tourism branding identity, “Sri Lanka: You will come back for more,” emphasizes the fact that over 30% of tourists to Sri Lanka are repeat visitors.
Nalin Perera, Managing Director of the Sri Lanka Tourism Promotion Bureau (SLTPB), highlighted that over 50 foreign media personnel, including travel influencers and bloggers, generated more than $500 million in media publicity for Sri Lanka.
Additionally, Sri Lanka participated in 16 international travel shows and organized 16 roadshows in key markets such as India, China, Australia, and Turkey, with a strong focus on business-to-business sessions.
SLTPB officials also noted that various initiatives have led to Sri Lanka receiving 15 international endorsements in 2024, including being ranked as the 5th most popular solo travel destination by Forbes magazine and being recognized as the “Best International Tourism Board” at the Global Tourism Awards in New Delhi.
Moreover, the Meetings, Incentives, Conferences, and Exhibitions (MICE) market has seen growth, increasing its share of total arrivals from 4% to 10%.
Major companies like Pfizer, Toyota, Hero, Tata, and KPMG have hosted large MICE events in Sri Lanka. To further expand the MICE offering, SLTPB, in collaboration with the Sri Lanka Conventions Bureau, has been promoting the Northern and Southern provinces, in addition to Colombo
August 21, Colombo (LNW): For the first time since April 2020, Sri Lanka’s Net Foreign Assets (NFAs) in the banking sector have turned positive, reaching Rs. 636.3 billion in the first half of 2024 (1H24), as reported by the Central Bank of Sri Lanka (CBSL).
This improvement is primarily attributed to the accumulation of foreign assets, as outlined in the CBSL’s latest Monetary Policy report.
The report highlights that the NFAs of licensed commercial banks (LCBs) improved due to an increase in foreign assets, coupled with the settlement of foreign currency exposures to non-residents.
The Central Bank’s NFAs also experienced growth, primarily through net purchases of foreign exchange from the domestic market. This increase was bolstered by enhanced performance in the external sector, leading to an improvement in Sri Lanka’s gross official reserves.
In 2023, NFAs saw a significant positive shift of Rs. 1.3 trillion, a sharp contrast to the Rs. 785 billion contraction observed in 2022.
Additionally, credit extended to the private sector grew by approximately Rs. 146 billion during 1H24, marking a 6.2% year-on-year increase by the end of June 2024.
While much of this credit expansion was consumption-driven, there was also notable growth in credit provided to other sectors of the economy.
On the government front, net credit to the government (NCG) by the banking system contracted by Rs. 196 billion during 1H24.
This contraction was primarily due to a decrease in NCG by the Central Bank, driven by the maturity of treasury bills and a reduction in the use of the standing lending facility (SLF) by LCBs.
However, NCG by LCBs saw an increase, reflecting their growing investments in government securities.
Furthermore, credit extended to state-owned business enterprises (SOBEs) by LCBs contracted by Rs. 60.4 billion in 1H24. This reduction was largely due to net repayments by major SOBEs and the valuation impact of the rupee’s appreciation during this period.
Over the past two years, leading up to April 2024, Sri Lanka’s banking system has accumulated reserves or repaid debt amounting to 6.2 billion US dollars. This accumulation followed measures to curb inflationary pressures by halting money printing and preventing artificially low-interest rates.
In April 2022, Sri Lanka defaulted on its debt, ceasing repayments on bilateral and private loans. The savings from these deferred repayments, from April 2022 to March 2024, amount to 5.8 billion US dollars.
However, the Central Bank continued to borrow from the Reserve Bank of India and printed money to manage interventions, delaying a swift balance of payments correction.
Despite these challenges, the Central Bank has since adopted a deflationary policy, rebuilding reserves while private credit contracted. By April 2022, negative reserves had ballooned to 4.8 billion US dollars.
The International Monetary Fund has asked for a recapitalization plan for the central bank after an extension of maturities of central bank held Treasuries to meet the lender’s gross financing need (GFN) targets led to valuation losses.
“After assessing the impact of the DDO on the CBSL’s balance sheets, done in close consultation with external auditors and IMF staff and by applying good accounting standards and valuation frameworks, the government should stand ready to inject capital into the CBSL, as soon as fiscal buffers allow it, so as to reach positive equity from 2025, which would increase to 2 percent of GDP by 2031.”
Based on longstanding principles before inflation and peacetime currency collapses became routine from the last century with the defeat of sound money by state-run central banks running on Anglo-American post-Keynesian inflationist doctrine, note-issue banks typically bought 90 to 95 day bills, generally known as the ‘bills only policy’, analysts say.
During a special media briefing, Cabinet Spokesman and Minister Bandula Gunawardena addressed misconceptions regarding the Government’s recent decisions, particularly about the International Monetary Fund (IMF) agreement and the upcoming Budget. The briefing aimed to clear up public misunderstandings about the country’s financial commitments and constraints.
The Minister explained that under the Extended Fund Facility with the IMF, the Government has secured funds to support the Budget through 2025-2027, and the salary proposals will not be revised within this period. Gunawardena stressed that any future government must adhere to these agreements.
Despite economic challenges, the Government has already granted a Rs. 10,000 allowance to public servants, with further relief promised as the economy recovers. A special committee was appointed by President Ranil Wickremesinghe to address wage disparities among public sector employees, and its recommendations will be implemented in the 2025 Budget.
This includes a 24% to 35% salary increase for all public sector employees starting January 2025, and an increase in the cost-of-living allowance to Rs. 25,000 for three years, with the minimum monthly salary for the lowest-ranking Government employee expected to reach Rs. 55,000.
The Government faces a Budget deficit estimated at $5.018 billion for the coming year. To address this, the IMF will provide $700 million, with additional support from the World Bank ($400 million) and the Asian Development Bank ($300 million). The total projected debt relief amounts to $3.655 billion.
As preparations for the 2025 Budget continue, the Government seeks input from other political parties on their economic plans for governing the country from January 2025.
Gunawardena underscored the importance of this year’s Budget process, especially with the upcoming Presidential election on September 21, and noted that financial provisions must be allocated within 100 days as required by the Constitution.
August 21, Colombo (LNW): More than three years after being detained in Sri Lanka following the fire and sinking of the container ship X-Press Pearl, Captain Vitaly Tyutkalo remains unable to return home, according to Seatrade Maritime News.
The X-Press Pearl, newly delivered from China in early 2021, caught fire in May 2021 due to leaking dangerous cargo and eventually sank off the coast of Sri Lanka despite the crew’s efforts to save it.
Captain Vitaly was arrested after the incident, released on bail, but his passport was confiscated, preventing him from leaving the country.
His health has deteriorated during his prolonged stay in Sri Lanka, including suffering a heart attack.
Captain Vitaly has appealed directly to Sri Lankan Prime Minister Dinesh Gunawardena, asking for assistance in returning home to his family, expressing his anguish over missing significant family events.
X-Press Feeders, the captain’s employer, has continued to support him with legal assistance, salary, accommodation, and a car.
However, the slow legal process has left Captain Vitaly in limbo, with no clear resolution in sight.
Despite the support from his employer, the uncertainty surrounding his case has taken a significant emotional toll on him
He describes the support he has received from his employers as “unbelievable” and says that his lawyer has been extremely involved in his case, Sea Trade Maritime news reported.
“But unfortunately, they have no control over how slow the court process is, they have no control over my case, or who has my passport.”
The Sri Lankan government has received Rs 3,068 million in compensation from the London P&I Club for the X-Press Pearl disaster, but this amount is deemed insufficient for the affected fishermen.
The insurance company has limited compensation to £19.8 million. In response, the Sri Lankan government has filed three separate lawsuits in Sri Lanka, Singapore, and the UK seeking additional compensation.
The disaster occurred on May 19, 2021, when the X-Press Pearl, carrying hazardous materials, caught fire near Colombo, leading to a significant environmental disaster.
The incident resulted in widespread contamination and damage to marine life, severely impacting local fishermen and coastal communities.
Despite the initial compensation, many fishermen and those involved in the fishing industry have yet to receive adequate compensation.
The disaster has also caused long-term economic and environmental damage, including reduced fish populations and tourism.
Fishermen continue to face challenges in their livelihoods, with ongoing fears about unexploded containers and further environmental harm.
Seventeen former Kurunegala Pradeshiya Sabha members of the Sri Lanka Podujana Peramuna (SLPP) have extended their support to President Ranil Wickremesinghe in the upcoming presidential election. This decision follows a meeting with the UNP Assistant Leader, Akila Viraj Kariyawasam.
The Disaster Management Center reports that heavy rains have affected 3,243 people from 929 families across the Kalutara, Puttalam, and Ratnapura districts. The adverse weather has resulted in two injuries and partial damage to 27 houses. The Disaster Management Center has also issued red notices for several divisional secretariats in Kalutara and Ratnapura districts due to the ongoing landslide risk.
The Colombo District Court has scheduled a hearing for January 21 in a defamation case filed by National People’s Power presidential candidate Anura Kumara Dissanayake against two members of the Sri Lanka Podujana Peramuna (SLPP), including MP Janaka Tissa Kutti Arachchi. Dissanayake is seeking Rs. 10 billion in compensation for alleged defamatory remarks made against him.
Four suspects who had circulated offensive and detrimental information on Facebook about Parliamentarian Kavinda Jayawardena have been remanded till August 29, it was reported. The suspects were arrested by the Colpetty Police and produced before the Colombo Chief Magistrate.
Former President Maithripala Sirisena has completed the payments of compensation of Rs. 100 million to the victims of the Easter Sunday terror attacks as ordered by the Supreme Court. Accordingly, it is reported that the former President has paid the remaining amount of Rs. 12 million on August 16, thereby completing the total compensation payment ordered by the court.
The ‘Sarvajana Balaya’ presidential candidate, entrepreneur Dilith Jayaweera has formally accepted the invitation to take part in the historic debate that the ‘March 12 Movement’ is hoping to organize between six candidates contesting the 2024 Presidential Election.
Tamil Progressive Alliance (TPA) MPs Palani Digambaram and Velu Kumar have been caught on camera engaging in a brawl while participating in a debate on local television. Video footage of the incident shows the two MPs speaking to each other in a derogatory manner leading to a physical brawl.
A Memorandum of Understanding (MOU) was signed between LTL Holdings Limited of Sri Lanka and Petronet LNG Limited of India, for the development of infrastructure for the storage, regasification and supply of Liquefied Natural Gas (LNG) for the “Sobadhanavi” Combined Cycle Power Plant in Kerawalapitiya.
The world’s longest stamp, measuring 205 mm and symbolizing the historic Sri Dalada Perahera in Kandy, was released by the Postal Department of Sri Lanka
Matthew Potts and Dan Lawrence were included for England while Milan Rathnayake is poised for Sri Lanka debut in the first match of the crucial ICC World Test Championship series.
August 21, Colombo (LNW): Showers or thundershowers will occur at times in Western, Sabaragamuwa, Southern and North-western provinces and in Kandy and Nuwara-Eliya districts. Fairly heavy showers above 75 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.
Showers or thundershowers will occur at several places in Eastern, Uva and North-Central Provinces during the evening or night.
Fairly strong winds about (30-40) kmph can be expected at times over Western slopes of the central hills and in Northern, North-central and North-western provinces and in Hambantota district.
The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.
August 20, Colombo (LNW): Sri Lanka’s insurance sector is anticipated to benefit significantly from the ongoing recovery in economic activity, according to Central Bank Governor Nandalal Weerasinghe.
With improving business conditions, lower inflation, and reduced interest rates in traditional financial products, there is likely to be an overall increase in demand for insurance services.
The insurance market in Sri Lanka is expected to reach a gross written premium of approximately $1.66 billion by 2024, with the non-life insurance segment leading with an estimated market volume of $1.13 billion. The average insurance spending per capita is projected to be around $75.54 in the same year.
However, Weerasinghe cautioned that the sector’s substantial exposure to government securities might have resulted in lower returns due to the currently low yields compared to those during the crisis period.
The total Gross Written Premium (GWP) for the insurance industry, covering both Long-Term and General Insurance businesses, amounted to Rs. 78,589 million as of March 31, 2024, representing a 7.39% growth from the same period in 2023. This growth reflects an increase of Rs. 5,411 million year-on-year.
Speaking at the Sri Lanka International Insurance Summit 2024 in Colombo, the Central Bank Governor highlighted that although the Sri Lankan insurance industry is relatively smaller than those of some peer economies, it holds significant growth potential.
The total assets of insurance companies reached Rs. 1,098,988 million by the end of the first quarter of 2024, a 10.88% increase from Rs. 991,126 million at the end of the first quarter in 2023.
As of March 31, 2024, there were 29 insurance companies operating in Sri Lanka, with 15 engaged in Long-Term (Life) Insurance, 13 in General Insurance, and one operating as a composite company. Additionally, 78 insurance brokering companies were registered, with their total assets growing by 27.92% to Rs. 13,243 million by the end of the first quarter of 2024.
Despite the sector contributing 0.8% to the GDP in 2023, the penetration rate has remained below 2% over the past decade. Sri Lanka’s insurance industry has room for expansion, especially as the economy continues to recover.
Central Bank Governor stressed the insurance sector’s crucial role in fostering economic growth by managing risks associated with new ventures and technological advancements, supporting lenders, and providing protection in the wake of natural disasters.
Furthermore, he underscored the need for the insurance sector to enhance its role in social protection. With around 58% of Sri Lanka’s employed population working in the informal sector, there is an urgent need to develop insurance products tailored to this significant demographic
The industry must also address challenges related to a rapidly aging population, rising health expenses, and increasing non-communicable diseases to ensure adequate coverage and reduce reliance on the limited fiscal sector.
Central Bank Chief Weerasinghe concluded by acknowledging that while Sri Lanka’s macroeconomic environment is expected to remain stable, uncertainties persist due to geopolitical risks, commodity price fluctuations, and slow recovery in key global markets.
August 20, Colombo (LNW): The travel and tourism industry in Sri Lanka has urgently called on President Ranil Wickremesinghe to address ongoing issues with the prior-visa processing system, which they believe are critical to the national interest and the economy.
In a joint letter, several key industry bodies—including the Sri Lanka Association of Inbound Tour Operators (SLAITO), The Hotels Association (THASL), and others—highlighted the adverse effects of the current visa-on-arrival system, which is the only option available for tourists.
These organizations stress that travelers, especially groups, prefer obtaining visas online before their trip to reduce uncertainty and liability.
Due to delays in activating the Mobitel online visa platform, as mandated by the Supreme Court, many tour groups and individual travelers have canceled their trips to Sri Lanka. With the peak season approaching, the industry fears significant booking losses to other destinations that offer more streamlined and cost-effective visa processes.
The letter emphasizes that Sri Lanka’s tourism industry, still recovering from years of downturns, cannot afford another setback, particularly with high-season bookings at risk. The industry is concerned that the projected arrival numbers and revenue targets for the rest of 2024 will be unachievable if the situation persists.
The letter further explains that there are no technical barriers to activating the Mobitel ETA system. This has been confirmed by Mobitel, which has been ready to implement the Supreme Court’s order since early August 2024.
However, the necessary backend links required to make the system operational have not yet been activated by the Department of Immigration and Emigration. The industry has urged the President to instruct the Controller General to immediately activate these links.
The urgency of this request is underscored by the fact that tourist arrivals in the first 11 days of August reached 73,373, with a year-to-date total of 1.27 million. The industry insists that resolving this issue promptly is essential for sustaining and growing these numbers, which are vital to Sri Lanka’s economic recovery.
With competing destinations offering streamlined processes and zero cost, many potential Sri Lanka bookings are likely to be diverted due to the immigration delay,” the industry emphasised.
The industry said it understands that there’s no technical impediment whatsoever for the Mobitel ETA system to be activated with immediate effect. This fact has been confirmed by Mobitel in a letter to the Department of Immigration and Emigration Controller General dated 7 August 2024 and 13 August 2024 stating its readiness to give effect to the interim order of the Supreme Court.
August 20, Colombo (LNW): In a move aimed at enhancing professional standards and increasing accessibility in the capital market industry, the Securities and Exchange Commission (SEC) has issued a Directive that provides new entry requirements and exemptions for its certification programs.
This Directive which came into effect from 1 August contains new entry requirements designed to better serve aspiring and current investment advisors by aligning educational and professional requirements with industry best practices and emerging market trends.
The SEC develops and administers professional education and Continuous Professional Development (CPD) programs as a part of Sri Lanka’s capital market licensing framework. The licensing processes is crucial to uphold high standards of professionalism and trust in the financial advisory sector, thereby protecting investors’ interests and enhancing the stability of financial markets.
The SEC administers the Certificate in Capital Markets (CCM) program, which is the only pathway to obtaining the Registered Investment Advisor (RIA) Qualification and is designed to provide comprehensive education and training for professionals in Sri Lanka’s capital market.
Relaxation of the entry requirements for CCM is expected to make it easier for a wider range of candidates to participate in this crucial program.
Previously, candidates seeking to register for the CCM were required to hold either 3 passes for Advanced Level (A/L), a completed degree or a completed professional qualification in any discipline.
The new entry criteria now recognises a broader range of academic and professional qualifications allowing more individuals to pursue the certification program.
Additionally, to accommodate various professional backgrounds and prior learning experiences, the SEC has broadened the exemption policy for CCM.
Previously, the SEC only granted exemptions for candidates who had passed Level 2 of Chartered Financial Analyst. However presently, candidates who are passed finalists of Chartered Institute of Management Accountants (CIMA),
Association of Chartered Certified Accountants (ACCA), Institute of Chartered Accountants of Sri Lanka (CA) and candidates who have completed a Bachelor’s or a Master’s Degree in a finance related discipline can apply for exemptions as well.
Moreover, the eased minimum entry requirements and updated exemption policy apply to single asset class certification programs as well.
The first batch of the CCM program, featuring the revised entry requirements and exemptions, is set to begin on 31 August.
Comprehensive details are available on the SEC website www.sec.gov.lk. This launch represents a significant step forward in offering accessible, high-quality certification opportunities for capital markets professionals.
These revisions are designed to elevate the standards of the industry while making it more inclusive and supportive of ongoing professional growth.
