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India to extend all technical assistance to improve SL Renewable Energy

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By: Staff Writer

March 14, Colombo (LNW): India and Sri Lanka held discussions on the progress of cooperation in the field of Renewable Energy at the Joint Working Group on Renewable Energy inaugural Meeting in Colombo.

The Indian side agreed to extend all possible technical assistance to the Government of Sri Lanka in the areas of solar, wind, biomass and grid connection by offering trainings in premier Indian institutions such as National Institute of Solar Energy, National Institute of Wind Energy and National Institute of Bio Energy

The Joint Working Group (JWG) on Renewable Energy was established under the Memorandum of Understanding (MoU) on Cooperation in the field of Renewable Energy in July 2023, convened in Colombo.

Co-chaired by Shri Bhupinder Singh Bhalla, Secretary of India’s Ministry of New & Renewable Energy, and Dr. Sulakshana Jayawardena, Secretary of Sri Lanka’s Ministry of Power and Energy, the meeting aimed to bolster bilateral collaboration in renewable energy initiatives.

During the meeting, the Indian delegation gave detailed presentation on India’s achievements in the renewable energy sector, citizen-centric schemes offered by the Government of India to encourage investments in the renewable energy sector, the National Green Hydrogen Mission and India’s cross border electricity trade.

The Sri Lankan side highlighted the present status of the power sector in Sri Lanka and the contribution of renewables in the energy mix.

Secretary informed that since the Government of Sri Lanka was working towards achieving an ambitious target of 70% generation through renewable energy by 2030, there existed vast potential for investments by Indian companies.

Meanwhile Power and Energy Minister Kanchana Wijesekera yesterday spearheaded a meeting where 49 shortlisted developers of renewable energy projects convened with the Ceylon Electricity Board (CEB) and the Sri Lanka Sustainable Energy Authority.

As per the Minister, a total of 535 project proposals were received for the EOIs and of that 430 projects were recommended to be shortlisted in 2022. After evaluating the initial requirements in 2022 and 2023, the Ministry identified 49 projects to be evaluated for approval.

On Monday, the Cabinet of Ministers approved a 100 MW Ground Mount Solar Project to be developed in Oddamavadi, Batticaloa. The power purchase agreement (PPA) will be entered with CEB for 20 years. Project development is to commence in 2024 and commissioned in 2025,” the Minister added.

On Tuesday, Minister Wijesekera met with top-level officials from India and the UAE to understand potential opportunities to attract investment into renewable energy projects.

These include meeting with the UAE Ambassador Khaled Nasser AlAmeri and a delegation led by India’s New and Renewable Energy Ministry Secretary Bhupinder Singh Bhalla.

Official exchange rates in SL today (March 14)

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March 14, Colombo (LNW): The Sri Lankan Rupee (LKR) indicates further appreciation against the US Dollar today (14) in comparison to yesterday, as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).

Accordingly, the buying price of the US Dollar has dropped to Rs. 301.01 from Rs. 301.76, and the selling price to Rs. 310.64 from Rs. 311.

The Sri Lankan Rupee has appreciated against several other foreign currencies as well.

China deepens bilateral defence ties with Sri Lanka, Maldives, and Nepal

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By: Staff Writer

March 14, Colombo (LNW): A Chinese military delegation on Wednesday wrapped up a visit to three of India’s closest neighbours – the Maldives, Sri Lanka and Nepal – to boost bilateral defence ties, deepening relations in a region that New Delhi considers its sphere of influence.

Beijing is seeking to build closer ties in South Asia in a push to counter its strategic rival India for influence.

Last week, the Maldives said it had signed a “military assistance” deal with China after ordering Indian troops deployed in the small but strategically-placed archipelago to leave.

And Beijing confirmed Wednesday that a delegation had visited the country and met with pro-China President Mohamed Muizzu during a trip that also took them to Sri Lanka and Nepal from March 4 to 13.

In all three countries, “they exchanged views on military relations and regional security issues of common concern”, the Chinese military said in a statement on its official WeChat account.

The delegation of officials from the military’s international military cooperation department focused on “in-depth consultations on promoting bilateral defence cooperation”.

“A series of consensus was reached to further enriched defence cooperation between the PLA and the relevant countries,” it added, referring to the Chinese military by its official acronym.

India is suspicious of China’s growing presence in the Indian Ocean and its influence in the Maldives, a chain of 1,192 tiny coral islands stretching around 800 kilometres (500 miles) across the equator, as well as in neighbouring Sri Lanka.

Both South Asian island nations are strategically placed halfway along key east-west international shipping routes.

Beijing also enjoys close ties with Nepal, led by Prime Minister Pushpa Kamal Dahal, an ex-Maoist guerrilla known by his nom de guerre Prachanda.

Ties between Beijing and New Delhi have grown tenser in recent months, strained by disputes over how their borders should be drawn to the passage of Chinese survey vessels in the Indian Ocean. In 2020, relations nosedived after 20 Indian and four Chinese soldiers were killed during a border skirmish.

 On Tuesday, India rejected Chinese objections to Prime Minister Narendra Modi’s weekend visit to Arunachal Pradesh in the eastern Himalayas, which China claims to be a part of southern Tibet.

Adding to India’s unease, China has been trying to boost ties with nations in the Indian Ocean since the world’s second-biggest economy reopened its borders after three years of self-imposed pandemic curbs.

China this year elevated ties with the Maldives when its newly elected President Mohamed Muizzu pivoted from India and paid his first state visit to Beijing after winning on on “India Out” campaign platform, vowing to remove a small Indian military presence of about 75 personnel from the island nation.

China would provide it with “military assistance”, a media report cited the Maldivian defence ministry as saying earlier this month.Beijing’s interest in the Indian Ocean is also commercial.Half of its oil imports pass through the region.

Sri Lanka to benefit from vein graphite crucial for EV battery manufacturing

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By: Staff Writer

March 14, Colombo (LNW): Sri Lanka is poised to benefit from the global trend towards electric vehicles (EVs), leveraging its top-quality vein graphite crucial for EV battery manufacturing.

The country’s commitment to sustainability and quality standards places it strategically in the non-China graphite export market, boosted by US industrial policies favouring domestic assembly and non-China sources.

A new IPS study highlights Sri Lanka’s opportunity to become part of the EV battery supply chain. It suggests focusing on upstream activities including exporting battery-grade graphite and anodes, and strengthening Research and Development to enhance its strategic position in the non-China graphite export sector, thus attracting investment and ensuring sustainability.

Sri Lanka, renowned for its high-quality vein graphite, is poised to benefit from the increasing demand for ‘non-China origin’ graphite driven by the global push towards electro-mobility and the US Green Industrial Policy.

A new publication by the Institute of Policy Studies of Sri Lanka (IPS) titled “Trade Wars in Electric Vehicle Supply Chains: A Win for Sri Lanka’s Graphite Industry?” by IPS researchers Dr. Asanka Wijesinghe, Malisha Weerasinghe and Chaya Dissanayake explore the potential for Sri Lanka to join the supply chain for Electric Vehicles (EV) battery manufacturing.

The US’s strategic move to adopt a proactive green industrial policy; driven by the imperative to achieve net-zero emissions, and national security concerns presents fresh opportunities for graphite producers outside of China.

The recently enforced Inflation Reduction Act (IRA) plays a key role in reshaping the global EV battery supply value chain by excluding China and promoting domestic assembly and manufacturing of EV components.

Key findings from the IPS study reveal that as a result of these developments, the demand for graphite, a critical component of Lithium Ion Batteries (LIBs), is set to surge. ‘Non-China’ graphite exporters, including Madagascar, Mozambique, and particularly Sri Lanka, are positioned to benefit from the re-alignment of the supply chain.

The Partial Equilibrium modelling results indicate that Sri Lanka holds a strategic advantage in the emerging market. Sri Lanka’s vein graphite, known for its purity, flawless crystal structure, and strong electrical conductivity, stands out as an ideal choice for the growing global demand. Despite facing challenges in terms of cost competitiveness, Sri Lanka’s focus on sustainable practices, minimal environmental impact, and compliance with acceptable labour standards positions it as a key player in the evolving landscape of ‘non-China’ graphite exports.

Dollar rate against LKR at banks today (March 14)

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March 14, Colombo (LNW): The Sri Lankan Rupee indicates appreciation against the US Dollar to the point in which some banks reveal dropping of the value below Rs. 300.

At Peoples Bank, the buying and selling prices of the US Dollar are at Rs. 300.08 and Rs. 310.54, respectively.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 299.91 from Rs. 300.41, and the selling price to Rs. 309.25 from Rs. 309.75.

At Sampath Bank, the buying and selling prices of the US Dollar remain at Rs. 301 and Rs. 310, respectively.

Sri Lanka Original Narrative Summary: 14/03

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  1. President Ranil Wickremesinghe addresses the United Youth Union, stressing the need for realistic economic policies and collective efforts for the nation’s future: warns against unsustainable promises, highlighting the importance of building a self-sufficient economy: engages in dialogue on various issues and receives a commemorative gift in recognition of his participation, fostering discussions for national progress.
  2. High Commissioner of India to Sri Lanka meets former Finance Minister and Sri Lanka Podujana Peramuna (SLPP) national organiser Basil Rajapaksa: During the discussion, the two exchange views on bilateral relations, political developments and other subjects of mutual interest.
  3. Member of the NPP Economic Council and former JVP MP Sunil Handunnetti urges foreign investors bidding for state-owned enterprises to refrain from buying the country’s government institutions: warns that they will have to deal with an NPP government later, should they continue to do so: laments these deals are being made under the current regime led by Ranil Wickremesinghe who has no people’s mandate.
  4. The Postal Department warns the public about a scam involving fraudulent SMS messages claiming recipients need to pay for parcel clearance using bank cards: Scammers impersonate the department and request sensitive bank information: The department clarifies it never asks for bank details via SMS and advises people to avoid sharing such information in response to these deceptive messages.
  5. The CID arrests Dr. A.T. Sudarshana, the Deputy Director of the Supplies Division at the Health Ministry, in connection with the substandard human immunoglobulin importation scandal: Concerns over the quality of medical supplies procured by the Health Ministry are increasing.
  6. In response to the tragic murder of a Sri Lankan family in Ottawa, allegedly by a Sri Lankan student, Canadian authorities plan to enhance mental health support for students: The accused faces severe charges, and Canada views the incident as isolated, with no changes to visa policies expected: Efforts to strengthen support for students abroad are underway: Legal experts emphasise Canada’s commitment to fair legal processes, with potential life sentences for the accused if convicted.
  7. Data from the Institute of Health Policy (IHP) shows consumer confidence in Sri Lanka saw a modest rise in February, driven by improved expectations for the future and better buying conditions: All three Consumer Confidence indices, including perceptions of personal finances and the national economy, showed increases: Despite this, confidence remains overall pessimistic: The data, based on over 15,000 interviews, reflects a cautious optimism among consumers.
  8. SriLankan Airlines and Korean Air launch a codeshare partnership, effective March 15, 2024, offering more travel options between Colombo and Seoul: Passengers can now enjoy seamless connections via Singapore, expanding SriLankan Airlines’ reach to Korea and Korean Air’s access to India and the Maldives: The collaboration enhances flight choices, connectivity, and travel experience for passengers of both airlines.
  9. Loan defaulters are requesting a three-year extension to the moratorium on parate rights suspension, following a recent temporary halt until Dec 15: The Sri Lanka United National Businesses Alliance (SLUNBA) expresses gratitude but stresses the need for a longer relief period: urges for comprehensive measures to aid recovery: Previously, the Sri Lanka Banks’ Association (SLBA) criticised the unilateral decision to suspend parate rights, defending its use as necessary for debt recovery and banking stability, calling for collaborative solutions to address economic challenges.
  10. Bangladesh clinched an impressive six-wicket victory over Sri Lanka in their first ODI with Skipper Najmul Hossain Shanto’s unbeaten 122 and Musfiqur Rahim’s 73 securing a vital fifth-wicket partnership: Despite Sri Lanka’s promising start, their batting faltered, leading to a total of 255 runs: Kusal Mendis and Janith Liyanage provided notable contributions, but Bangladesh bowlers, including Shoriful Islam, Taskin Ahmed, and Tanzim Hasan, restricted Sri Lanka effectively: The second ODI scheduled for the 15th at Chattogram.

President advocates pragmatism in economic policies

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March 14, Colombo (LNW): President Ranil Wickremesinghe emphasised the repercussions of political promises made without a comprehensive understanding of the country’s economy, noting the resultant hardships faced by citizens.

Speaking at a convivial gathering organised by the United Youth Union titled “Future of the Youth,” held at Thaprobane Entertainment, he highlighted the importance of facing reality and collectively working towards a positive future for the nation.

Addressing concerns regarding increasing prices of mobile phones and internet service charges, President Wickremesinghe attributed the collapse of the country’s economy to unsustainable practices of providing free services, leading to economic instability.

He stressed the government’s commitment to implementing measures aimed at creating an economy fostering self-sufficiency and financial resilience, cautioning against the temptation to offer free services, which could exacerbate economic challenges.

President Wickremesinghe underscored the need to transition swiftly to an export-oriented economy as a key aspect of economic development.

He acknowledged the challenges faced by various sectors and engaged in constructive dialogue with attendees, offering insights and solutions to pertinent issues raised.

In recognition of the President’s participation, Mr. Neomal Perera, advisor to the United Youth Union, presented a commemorative gift, marking the significance of his presence at the event.

The exchange of questions and answers encompassed various topics concerning the country’s future trajectory and challenges ahead, reflecting a concerted effort towards national progress and prosperity.

SriLankan Airlines and Korean Air forge Codeshare Partnership

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March 14, Colombo (LNW): SriLankan Airlines and Korean Air have officially inaugurated a new codeshare partnership, effective March 15, 2024, aimed at offering expanded travel options and connectivity for passengers traveling between Colombo and Seoul.

Richard Nuttall, Chief Executive Officer of SriLankan Airlines, expressed enthusiasm about the collaboration, stating, “We are thrilled to establish our inaugural codeshare partnership with Korean Air, enhancing connectivity between Colombo and Seoul. The passenger traffic on this route has consistently exceeded our expectations, and this partnership will further strengthen our presence while providing customers with more reasons to choose SriLankan Airlines.”

Under the new agreement, SriLankan Airlines will codeshare on Korean Air’s flights operating between Singapore and Seoul Incheon, allowing passengers to seamlessly travel on a single ticket between Colombo and Incheon via Singapore.

Simultaneously, Korean Air will codeshare on SriLankan Airlines’ flights between Colombo and Seoul Incheon, Singapore, Chennai in India, and Male in the Maldives.

Presently, SriLankan Airlines operates a twice-weekly direct service between Colombo and Incheon.

Through the codeshare collaboration with Korean Air, SriLankan Airlines passengers now have access to daily flights between Colombo and Seoul via Singapore, tapping into Korean Air’s extensive Far Eastern network.

Moreover, Korean Air passengers gain access to SriLankan Airlines’ robust network in the Indian Subcontinent, covering India and the Maldives comprehensively.

SriLankan Airlines operates nearly 100 flights per week across nine Indian cities and 23 flights per week to the Maldives, including triple daily flights between Colombo and Chennai and Male.

Tickets for codeshare flights are available for purchase through the online reservation systems and sales offices of both SriLankan Airlines and Korean Air, as well as external travel agencies.

Passengers of both airlines can enjoy multiple flight options and seamless connections facilitated by single-ticket multi-sector journeys, which include through check-in and baggage transfer services.

The commencement of the codeshare partnership between SriLankan Airlines and Korean Air signifies a significant milestone in enhancing connectivity between Sri Lanka and South Korea.

With an expanded range of flight choices, streamlined connections, and enhanced market presence, both airlines aim to deliver an enriched travel experience while strengthening bilateral ties between the two nations.

Consumer confidence in Sri Lanka shows incremental improvement in February

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March 14, Colombo (LNW): In February, consumer confidence in Sri Lanka experienced a modest uptick, driven primarily by a resurgence in public expectations regarding the country’s future trajectory over the next 12 months, alongside an improvement in perceived buying conditions.

Data released by the Institute for Health Policy (IHP) revealed positive shifts across all three of its Consumer Confidence indices, derived from the Sri Lanka Opinion Tracker Survey (SLOTS).

The Index of Consumer Sentiment (ICS), a comprehensive gauge reflecting individuals’ perceptions of their personal economic status and the national economy, recorded a six-point increase to reach 22 points.

Likewise, the Index of Consumer Expectations (ICE), which tracks future outlooks, saw a seven-point rise, reaching 28 points.

Additionally, the Index of Current Conditions (ICC), measuring sentiments about present circumstances, climbed by four points to attain 13 points.

Despite these gains, the IHP cautioned that consumer confidence remains in net pessimistic territory, given that all indices fall below the threshold of 50, indicating a prevailing sense of negativity.

The recovery in public expectations for the country’s future prospects, with a notable 14-point surge to 26 points, and the uptick in perceived current buying conditions by seven points to 13 points, were significant contributors to the overall improvement.

Furthermore, expectations regarding the country’s long-term outlook (over the next five years) registered a five-point increase to reach 30 points.

However, the Personal Financial Situation index remained relatively stable, with a marginal one-point gain to 14 points, while expectations for personal financial situations in the next 12 months improved modestly by three points, reaching 29 points.

The Consumer Confidence Index (CCI) estimates were derived from a substantial sample size of 15,469 interviews conducted between October 21, 2021, and March 7, 2024, including 579 interviews conducted in February 2024.

The survey ensured representation across various demographic factors such as gender, age, ethnicity, and income level.

Notably, the survey’s funding sources include the IHP Public Interest Research Fund and other stakeholders, following previous support from entities such as the Neelan Tiruchelvam Trust, UK National Institute for Health and Care Research, and the Asia Foundation in Sri Lanka, among others.

Loan defaulters seek three-year extension on parate rights suspension

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March 14, Colombo (LNW): Following the recent suspension of parate rights, loan defaulters have petitioned authorities for a three-year extension to the moratorium, citing the need for additional time to recover from financial losses.

The Sri Lanka United National Businesses Alliance (SLUNBA) expressed gratitude for the temporary suspension of parate rights until December 15 of this year but emphasised the necessity for an extended relief period.

These sentiments were delivered during a press conference led by SLUNBA Chairperson Tania Abeysundara.

Abeysundara underscored that the 10-month suspension represents a short-term solution, asserting the need for a permanent resolution to address economic challenges.

She attributed business setbacks not to the actions of entrepreneurs but to unfavorable governmental policies, particularly those governing the banking sector.

Highlighting the role of the Central Bank in exacerbating economic woes, Abeysundara called for comprehensive measures to facilitate business recovery, stressing the importance of a supportive environment during the concessionary period.

Representing small and medium enterprises, Abeysundara urged the government to extend the suspension of parate rights for at least three years, providing businesses with adequate time to recuperate.

In contrast, the Sri Lanka Banks’ Association (SLBA) expressed discontent over the unilateral decision to suspend parate execution rights, emphasising the absence of consultation with the Central Bank, a key stakeholder in the banking and financial sector.

In a media statement, the SLBA defended the use of parate laws as a last-resort option for expediting debt recovery, aimed at safeguarding the stability of the banking system and protecting depositor interests.

The SLBA cautioned against unilateral interventions that could undermine the banking sector’s ability to contribute to the country’s economic recovery, advocating for collaborative measures to address systemic challenges.

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