July 01, Colombo (LNW): Senior Additional Solicitor General Parinda Ranasinghe has been sworn in as the Acting Attorney General before the Chief Justice.
Recently, a proposal to extend the term of the current Attorney General, Sanjay Rajaratnam, by another six months was rejected for the second time at a Constitutional Council meeting.
The proposal, put forward by President Ranil Wickremesinghe, was defeated with five votes against and three in favour.
Rajaratnam’s current term is due to conclude at the end of this month, and the President had sought to extend it by six months.
However, the extension required the approval of the Constitutional Council, which rejected the proposal twice.
As a result, Senior Additional Solicitor General Parinda Ranasinghe, the son of former Chief Justice K. A. Parinda Ranasinghe, has been appointed as the Acting Attorney General.
July 01, 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, with showers or thundershowers being expected to occur at a few places in Uva province and in Ampara and Batticaloa districts in the evening or night, the Department of Meteorology said in its daily weather forecast today (01).
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 will occur at several 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 Mullaitivu, 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 Mullaitivu, Kankasanthurai and Mannar and from Hambantota to Pottuvil can be rough at times. The other sea areas around the island can be moderate.
July 01, Colombo (LNW): Sri Lanka’s leading apparel-tech conglomerate, MAS Holdings, has secured Cabinet approval to establish the MAS Athlete Training Academy, marking the country’s first large-scale Public-Private Partnership (PPP) aimed at developing future Olympians.
The academy, set to officially launch on July 8, involves an investment exceeding Rs. 550 million over eight years. It is designed to nurture and support young athletes with the goal of representing Sri Lanka at the 2028 Los Angeles Olympics and the 2032 Brisbane Olympics.
The programme includes specialised training, world-class athletic gear, international exposure, nutritional and educational support, as well as direct funding and equipment for athletes and their coaches.
The MAS Athlete Training Academy is a collaborative initiative that involves the Ministry of Education, Ministry of Sports, National Olympic Committee, Sri Lanka Athletics Association, and the Sri Lanka Olympian Association.
The academy will conduct specialised testing and selection camps to identify and develop talented athletes from schools nationwide.
“Given Sri Lanka’s history of Olympic success in athletics and the considerable potential of athletes from rural areas, we felt it was time to make a substantial investment to harness their talent and prepare them for international success,” said MAS Holdings Co-Founder & Chairman Mahesh Amalean.
Following a comprehensive evaluation process at the all-island school games in May 2024, the initial group of 56 athletes, consisting of 24 girls and 32 boys, has been selected from nine provinces.
These athletes will compete in various track and field events, including short, mid, and long-distance races. Their performance and training metrics will be monitored using a state-of-the-art digital app.
“Our aim is to provide a well-rounded development environment for these young athletes. By integrating top-tier training, international exposure, educational and nutritional support, we aim to elevate grassroots talent to the global stage, ushering in a new era of athletic excellence in Sri Lanka,” said Isuru Gunaratne, General Manager – Strategic Planning, MAS Holdings.
July 01, Colombo (LNW): The Teachers and Principals Alliance has resolved to hold protests outside schools today (01), in response to the President’s threats rather than addressing issues in the education system, according to Ceylon Teachers’ Union (CTU) General Secretary Joseph Stalin.
Speaking to the media, Stalin mentioned that teachers and principals had conducted a sick leave campaign and a protest at Colombo Fort on June 26.
“Regrettably, the government attacked us. Consequently, we continued our sick leave campaign on June 27.
“Now, we have decided to display black banners and flags outside every school to demonstrate our opposition to the government,” Stalin said.
Another protest is planned for Tuesday after school hours to challenge the President’s statement, demand solutions for issues affecting teachers and principals, and oppose the government’s decision to transfer the financial burden of school education to parents.
“Next Friday (05), the Teachers and Principals Alliance will hold a joint discussion with all government and private trade unions regarding the President’s threats. This government’s actions must be stopped,” Stalin noted.
He went on: “We denounce the methods employed by Zonal Education Directors and Governors to suppress the strikes by teachers and principals. Regardless of what happens, we will persist until our demands are met. The President’s statements hold no significance for us”.
July 01, Colombo (LNW): President Ranil Wickremesinghe has emphasised the importance of unity and prioritising the nation’s interests over individual or party concerns in order to progress collectively.
Speaking at the inaugural rally of the “Victory through Unity” series, organised by Minister of Power and Energy Kanchana Wijesekara at Matara Fort Ground today (30th), the President highlighted the significant efforts made by his administration over the past two years.
He underscored the necessity for a united commitment to safeguard and advance the country’s political journey for the benefit of all citizens.
In his address, President Wickremesinghe declared that today marks the beginning of a new political journey.
He stressed the unity of a coalition dedicated to the nation’s interests, regardless of political affiliations, and the importance of maintaining and advancing this collective effort for the country’s success.
The President also invited the opposition to prioritise national interests over partisan politics and join this initiative.
He promised an opportunity to learn how to unite and build the country for everyone’s benefit.
July 01, Colombo (LNW): Former leader of the Tamil National Alliance (TNA) and ex-Opposition Leader, R. Sampanthan, has died at the age of 91.
Reports indicate that Sampanthan passed away while receiving medical care at a private hospital in Colombo.
A prominent Tamil politician and significant member of Ilankai Tamil Arasu Kadchi (ITAK), Sampanthan’s political journey spanned six decades, with his initial entry into the Sri Lankan parliament dating back to 1977.
Sampanthan was the serving MP for Trincomalee District and had been a member of five different parliaments since 1977.
A lawyer by profession, he led the Tamil National Alliance from 2001 onwards. He was continuously an MP from 2001 until his passing in 2024, having previously served from 1977 to 1983 and from 1997 to 2000.
He held the position of Leader of the Opposition from September 2015 to December 2018.
Earlier this year in April, Parliament granted the former TNA leader and Trincomalee District MP a three-month leave from sessions due to his medical treatment.
Former President Mahinda Rajapaksa, MP Field Marshal Sarath Fonseka, and TNA MP M.A. Sumanthiran expressed their condolences on ‘X’ (formerly known as Twitter) upon learning of his death.
“We announce with deep regret the passing of Hon. R Sampanthan, Leader of the TNA and MP for Trincomalee. Funeral arrangements will be notified later,” stated Sumanthiran via the TNA media unit.
“My deepest condolences on the passing of TNA Leader R. Sampanthan. He was an old friend and colleague, and we shared many days discussing various issues. His demise is a loss to Sri Lanka’s political fraternity, and may his family and friends overcome this sad loss,” posted the SLPP leader on ‘X’.
In addition, former army chief Fonseka said: “I express my deepest condolences. Hon. R. Sampanthan was a very senior politician. His loss will be greatly felt.”
July 01, Colombo (LNW): The Ceylon Petroleum Corporation (CEYPETCO) has revealed new fuel prices that will be effective from midnight yesterday (30).
The cost of Petrol 92 Octane has been lowered by Rs. 11, bringing the price down to Rs. 344 per litre. Petrol 95 Octane sees a significant reduction of Rs. 41, now priced at Rs. 379 per litre.
Super Diesel has also seen a decrease, with a reduction of Rs. 22, setting the new price at Rs. 355 per litre.
Meanwhile, the prices for Auto Diesel and Kerosene will remain unchanged, according to the CPC.
June 30, Colombo (LNW): The Sri Lanka Bank’s Association (SLBA) has strongly rebutted recent criticisms leveled against banks by two senior lawmakers, describing their remarks as misguided and detrimental.
The SLBA’s response follows statements by Ministers Ramesh Pathirana and Wijeyadasa Rajapakshe at an MSME awareness conference, alleging banks misuse lending based on personal and political ties, abuse parate laws, and exploit customers.
The SLBA asserts these claims are unfounded, stressing that loans are rigorously managed and debts recovered responsibly.
Citing the Finance Ministry’s Annual Report, which highlights substantial lending to SMEs in 2023 amounting to Rs. 704 billion, the SLBA assures depositors that loan recovery safeguards their funds.
They argue that while some borrowers struggle with unproductive ventures, banks work to resolve these issues through cooperative reviews, not lobbying. They emphasize their commitment to repay depositors as promised and support viable businesses, especially amid external crises like COVID-19 and economic downturns.
The SLBA acknowledges a small but vocal minority of borrowers resisting necessary business reviews, potentially risking depositors’ security.
They emphasize that banking practices adhere to strict regulatory standards, crucial for economic stability and growth. The association underscores banks’ pivotal role in national economic support, including investment in government securities and facilitating essential imports.
The Association pointed out that banks have helped and continue to help borrowers including MSMEs that got into difficulty due to their exposure to external risks such as the COVID-19 pandemic, the Easter Sunday attacks of 2019, and the economic crisis, and that many of these borrowers have overcome those difficulties.
“The banking sector though much maligned, also supported the Government as well as the country’s economy with US Dollar and Rupee investments in Government securities, and providing foreign currency when there was need to fund essential imports,” the Association said.
“The reality however, is that some businesses have gone beyond the resolution stage and need to be exited by the owners. Such businesses must understand that depositors’ funds cannot be misused to support a desire to continue failed businesses with the backing of non-banking sector lobbyists. This is dangerously misleading,” the SLBA said.
“We wish to emphasise,” the SLBA concluded, “that banking is a regulated industry with the highest standards of compliance, and a stable and progressive banking system is the bedrock of future economic growth. Making sweeping generalisations and unfounded accusations about banking practices is therefore extremely ill-advised.
In conclusion, the SLBA urges against sweeping criticisms of banking practices, asserting the industry’s adherence to high compliance standards and its indispensable role in fostering economic resilience. They caution that unsubstantiated allegations undermine public trust and the stability of the banking sector, advocating for informed dialogue over sensational claims.
June 30, Colombo (LNW): The Sri Lankan government has reported that during a ban on vehicle imports, 44,430 vehicles entered the market, resulting in potential tax losses amounting to Rs. 100 billion.
This revelation came after discussions with local vehicle assembly companies. Of these vehicles, 38,144 were motorcycles and 6,286 were motorcars.
Vehicle assembly in Sri Lanka dates back to the 1980s with the establishment of the Upali Fiat car assembly, pioneered by Upali Wijewardene.
A formal vehicle assembly factory was set up in 2002. Despite restrictions on importing used vehicles older than three years, imports continued by dismantling vehicles before shipping. These vehicles were often older, having been used for 5-6 years.
Since 2004, Sri Lanka has had a local vehicle manufacturing facility producing vans and cars, assigning vehicle identification numbers according to local standards. The first locally assembled vehicle was launched around 2006.
Taxes on vehicle production are governed by the Excise (Special Provisions) Act No. 13 of 1989, allowing for exemptions and levies as amended through gazette notifications, the latest being gazette No. 2364/36-2023 issued on December 31, 2023.
The Act outlines five methods for tax deductions, including provisions for foreign ambassadors, presidential concessions, duty-free shop purchases, and ministerial gazette notices aimed at economic conditions.
This situation underscores ongoing issues in tax compliance and regulation within Sri Lanka’s vehicle industry amidst efforts to balance economic development and revenue collection.
Around 2006, Sri Lanka’s first locally assembled vehicle was released to the market. Taxes were also levied on the production of these vehicles under the Excise (Special Provisions) Act No. 13 of 1989. According to this act, taxes were both imposed and exempted.
The act clearly outlines the procedures for collecting such charges and granting exemptions. Specifically, Section 3(i) of the Part 2 of the act explains the manner of taxation and tax concessions.
The minister has the authority to levy and set taxes, and a gazette is issued for this purpose. This gazette has been amended from time to time, with the latest amendment being gazette No. 2364/36-2023, issued on December 31, 2023.
According to the Excise Act, five methods of deducting tax on vehicles or any other products have been discussed. One method is for foreign ambassadors and those at the United Nations, and the criteria which can be used to exempt their taxes is clearly stated in the act. The second method allows the President of the country to grant tax concessions on imported goods. The third method of tax exemption permits tax relief for items purchased from a customs duty-free shop. The fourth method allows the minister to grant tax concessions through a gazette notice, considering the state of the country’s economy.
June 30, Colombo (LNW): Sri Lanka experienced a significant boost in foreign exchange revenue from remittances and gross services totalled 2,016 million dollars, according to the central bank.
This surge in revenue accompanied a substantial rise in tourist arrivals, has also had a positive impact on the country’s imports and merchandise trade deficit, gradually mitigating it as tourism earnings increased and individuals within the sector spent their wages and other earnings.
Sri Lanka’s current foreign exchange earnings from exports, remittances and gross services totalled 2,016 million dollars, exceeding imports of 1,404 million dollars by 611 million US dollars in May 2024, official data showed.
Sri Lanka’s exports were 1,011 million dollars in May, remittances were 460.1 million dollars and gross services inflows including from tourism was 460.1 million dollars.
The net services account surplus, after deducting outward like tourism, sea and air transport of 229.8 million US dollars was 230.3 million dollars.
Total inflows from exports, remittances and net services were 1,786 million dollars, which exceeded merchandise imports by 318.4 million US dollars.
When people get money from tourism or remittances, they will use them for food, fuel or for other imports driving imports and triggering a trade deficit.
Private credit will also drive imports as savings of the people are turned into investments in buildings, vehicles or machinery.
There is no pressure on the currency as the balance of payments is not in deficit.Sri Lanka has posted a balance of payments surplus of 1,364 million dollars up to May 2024, slightly lower than 1,597 million dollars in 2023.
Pressure on the currency is triggered only when money is printed under flexible inflation targeting, (a type of real interest rate doctrine based on historical 12-month inflation) or inflationary policy is deployed to target potential output (overt macro-economic policy).
The resulting monetary instability is then based on artfully blamed on ‘deficits’ or imports by inflationists and other Mercantilists though a banking system is not a sentient being to distinguish between private and official credit, analysts say.
When reserve collecting central banks without a clean float engages in such activity, currencies collapse, governments get ousted amid social unrest and countries eventually default.
Sri Lanka is currently running deflationary policy but the rupee is under some pressure due to earlier excess liquidity from dollar purchases (strong side pegging) which boomerang on the exchange rate, when left unsterilized or weak side pegging is not deployed.
