June 17, Colombo (LNW): Several spells of showers will occur in Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts, the Department of Meteorology said in its weather forecast today (17).
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 several places in the sea areas off the coast extending from Puttalam to Matara via Colombo and Galle.
Winds:
Winds will be south-westerly and wind speed will be (30-40) kmph. Wind speed can increase up to 60 kmph at times in the sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil. Wind speed can increase up to 50 kmph at times in the sea areas off the coasts extending from Puttalam to Hambantota via Colombo and Galle and from Trincomalee to Kankasanthurai via Mullaitivu.
State of Sea:
The sea areas off the coasts extending from Kankasanthurai to Puttalam via Mannar and from Hambantota to Pottuvil can be rough at times. The sea areas off the coasts extending from Puttalam to Hambantota via Colombo and Galle and from Trincomalee to Kankasanthurai via Mullaitivu can be fairly rough at times. Naval and fishing communities are requested to be attentive in this regard.
June 17, Colombo (LNW): Japan has expressed readiness to restart halted development initiatives in Sri Lanka once the country begins its debt repayment process, Foreign Minister Ali Sabry revealed.
Speaking at a press briefing held at the Presidential Media Centre, Minister Sabry disclosed his upcoming visit to Japan next month for further negotiations.
“Japan has indicated their intention to resume suspended projects upon the commencement of repayments. I am scheduled to travel to Japan in early July at the invitation of the Japanese Foreign Minister, aiming to finalise the restart of these projects prior to my visit,” Minister Sabry stated.
He added that Sri Lanka has received assurances from its longstanding creditor that all projects initiated with Japanese support will recommence once an agreement is reached with bilateral creditors.
June 17, Colombo (LNW): Inspector General of Police (IGP) Deshabandu Tennakoon has issued a directive to revise the incentives for traffic police officers.
According to the Police Media Unit, this adjustment comes after a lapse of 13 years and will be disbursed monthly.
Under the new scheme, Traffic Police Officers in Charge (OICs) and inspectors will receive a reward of Rs. 7,500, an increase from Rs. 2,500 and Rs. 2,000, respectively.
Similarly, police sergeants and constables will now be entitled to a monthly reward of Rs. 6,000, up from the previous amounts of Rs. 1,800 and Rs. 1,600.
Police constable drivers will receive Rs. 4,000, up from Rs. 1,200 previously.
June 17, Colombo (LNW): President Ranil Wickremesinghe announced yesterday (16) during a meeting of the Mannar District Development Committee that pilgrims visiting Madhu will receive full support to undertake their pilgrimage without obstruction.
At the Mannar District Secretariat, he expressed concern over the unfair treatment of pilgrims on their way to revered sites such as Madhu Church and Sri Pada, stressing that arrests and fines are unwarranted.
He instructed that any future arrests of pilgrims be promptly reported to the President’s Office.
During the session, the President directed the Sri Lanka Army to enhance both sides of the existing Madhu Road for the convenience of pilgrims visiting Madhu Church.
He coordinated efforts with representatives from the Bishop of Mannar, the Department of Forest Conservation, the Road Development Authority, and the Sri Lanka Police to ensure these improvements are completed before the forthcoming annual festival of Our Lady of Madhu Church.
The meeting, attended by political representatives and government officials, focused on future development plans for Mannar district, covering key sectors such as health, education, and irrigation. The President addressed several pressing issues directly and committed to immediate solutions.
In response to an urgent request from the hospital director, President Wickremesinghe pledged prompt provision of a CT scan machine for Mannar Hospital.
President Ranil Wickremesinghe affirmed his commitment to restoring developmental momentum in Mannar district, with initiatives set to commence this year.
He underscored the need for Sri Lanka to adapt to evolving weather patterns over the next five decades, anticipating increased rainfall in wet regions and decreased rainfall in dry areas.
Highlighting the district’s potential, especially post-war recovery, President Wickremesinghe outlined opportunities in tourism, fishing, and renewable energy sectors, including discussions with the Indian government on energy production and export.
He proposed leveraging Mannar’s capacity for wind and solar power generation to boost Sri Lanka’s economy through green energy initiatives.
Plans were also outlined for funding a new court complex in Mannar and exploring future road connectivity projects.
The President encouraged the development committee to convene and recommend facilities for a modern agriculture programme.
Measures to safeguard local lakes and secure water resources through the Malwatu Oya project were also prioritised.
President Wickremesinghe concluded by urging collaborative efforts towards making Mannar a significant contributor to the national economy through comprehensive development.
Several people on social media now comment negatively about how the current President handled the 2022 political and economic crisis.
None of them can deny that we were in a dire economic and political crisis, and we desperately looked to the world for relief to meet even our basic needs.
Without India’s and others help, Sri Lanka would have certainly become another Lebanon. Several countries around the world are still struggling to come out of their crisis. Many young people ran away in hordes from the country, anticipating a run on several fronts, the biggest among them a banking run. The heavy burden heaped on the population as a result of mismanagement and corruption is inescapable and cannot be heaped on the President.
Those responsible must be held accountable. The bankruptcy that was declared without proper consideration virtually brought our economy to a grinding halt. Forex Reserves were down to a few thousands.
Somebody had to restart it? Gotabaya Rajapakse looked to Ranil Wickremesinghe. He rose up to the challenge. That is what the President has done in the last 15 months. He has provided steady and consistent leadership through a historic reset of Sri Lanka. The challenging upheaval of the Aragalaya and the outbreak of international conflicts have all impacted Sri Lanka.
Mistakes were made, such as pushing lending rates by over 100 percent and declaring bankruptcy. Some of them were decisions of the former President. Going to the IMF for relief was the last resort. Some people now even claim we have mortgaged our future to the IMF and given up our sovereignty. In the IMF deal there are bitter pills to swallow. We could have been more sensible in the negotiations.
However, People’s sovereignty is protected when the rule of law is respected. When politicians instigate the public to suit their narrow political goals, it is certainly not a triumph for people’s sovereignty or democracy. It is misguided patriotism. What we need is a vision for our country that is not second to any in the region, that is intellectually rigorous, accessible, internationally engaged, innovative and efficient to enable all Sri Lankans to be part of a productive society with a broader economic and industrial base. That is what educated young people like us want from our leaders.
What lies ahead
As a country, Sri Lanka would have to prepare for further downside risks in 2025 with the growing debt problems and, the growth problems in Europe and the slowdown in Asia. Slower growth is already visible in weakening global trade and commodity prices. The key to improving our market competitiveness lies in raising our country’s capabilities; that is, to make appropriate investments in education through higher education and professional training to be more efficient in generating and managing new technologies. Young people in our country want jobs. Lessons learned from other successful countries in attracting FDI indicate that the ability to create a skilled human resource base is crucial for multinational companies to relocate firms and for world-class high-tech plants to enter new markets. In Sri Lanka, unfortunately, the education system in the country is not delivering the volume and quality desired, and to make things difficult, we are losing our trained talent to other developed markets. The areas of growth for the Lankan economy in the future would be the services sector. Therefore, it is the knowledge and training of the people that would finally matter to move us beyond our current bankruptcy. Therefore, we need leaders who understand this opportunity as a country irrespective of party color. They must come together for a common purpose because politics has to be about service.
Presidential Election
The late John F. Kennedy described politics as a “noble adventure, an adventure in which one joins hands with the masses for the service of man”. Not that the Kennedys didn’t play “politricks” in their heyday. But playing “politricks” with a nation’s well-being and her people’s vulnerable mindset is an unforgivable sin. Sri Lanka’s presidential election, scheduled for October 2024, looks set to defy many predictions and be a true competition, as the surveys suggest. As such, the polls threaten risks and promises to the entire community. For the country in general, there is an opportunity for long-term economic stability and reconciliation. The country certainly wants and needs capable leadership that can provide a vision for the country in which everyone could see themselves involved in its final recovery. Most mainstream parties unlike in the past must not play to the Sinhala Heartland, fuelling and fermenting further the disappointment, frustration, resentment and anger in Tamil and Muslim communities. Restructuring Sri Lanka’s debt, particularly with significant creditors such as India and China, still remains to be concluded. Sri Lanka’s strategic importance to China and India is growing, particularly concerning its trade and infrastructure connectivity in the Indian Ocean region under the Belt and Road Initiative. This entails navigating a delicate path between satisfying international creditors, balancing geopolitical interests between India and China, and implementing inclusive economic policies to reduce poverty and stimulate growth. Therefore, to steer the country through all this, we need a leader with competence, compassion, principles and resolve, young people no longer believe their values or interests carry the respect of those in parliament.
(The writer teaches Accounting and Finance at a UK University)
The International Monetary Fund (IMF) has granted access to US$ 330 million from its Extended Fund Facility and the government’s putting the country’s economy on a firm footing as Sri Lanka is nearning on finalising in-principle agreement with bondholders and the completion of such an agreement with China.
The issue with external bondholders on debt restructuring proposal will also be resolved soon following the latest meeting with the country’s Official Creditor Committee next week.
State Finance Minister Shehan Semasinghe announced that the Government is focusing on finalising an in-principle agreement with bondholders and is nearing the completion of such an agreement with the China Exim Bank.
Addressing a media briefing, Semasinghe indicated that while a specific timeline cannot be outlined, both parties are eager to finalise an agreement.
“We are very hopeful of reaching consensus with bilateral creditors soon, possibly by the end of this month,” he stressed.
Having encountered “some setbacks in the first round of sovereign bond restructuring talks in LondonIn April , the Steering Committee” of the Ad Hoc Group of Bondholders and the Sri Lankan official negotiators will continue dialogue to arrive at a consensusnext week , finance ministry sources confirmed.
The IMF supported program explicitly assists Sri Lanka’s efforts to restore macroeconomic stability and debt sustainability, safeguard financial stability, and enhance growth-oriented structural reforms.
Moreover, the nation’s impending presidential election exerts pressure on the government to fast-track the negotiation process, raising concerns about the sustainability of any deal struck with bond holders hastily under such circumstances.
In this context, there is a possibility of reaching an adverse agreement for the country he said adding that if t happens the debt repayments agreed may become a difficult task for Sri Lanka in the coming years which could lead to a second default.
However Krishna Srinivasan, Director of the Asia and Pacific Department at the International Monetary Fund, has expressed optimism regarding the prospect of a deal with Sri Lanka’s sovereign bond holders following further discussions.
The first round of direct discussions in London has ended in a dead lock, he confirmed disclosing that the Sri Lanka government has expressed willingness to explore bonds linked to economic performance.
Bondholders have submitted a proposal for governance-linked bonds as an alternative for defaulted bonds towards finding mutually beneficial solutions, he disclosed.
Sri Lanka has proposed a 28 percent haircut with a 1.8 percent upfront fee, aligned with the IMF baseline, with alterations based on economic performance a former treasury secretary divulged
He said that bond holder’s proposal of governance-linked bonds would be an issuance of cash coupons commencing from 2028 with interest rates ranging between 8 and 9.5 percent, conditional on the maturity.
According to indicative term sheet for Macro-Linked Bonds put forward by the bond holder’s side private creditors will get a high interest rate if the country is gained high GDP growth during the period of 2025-2027.
This is because of the interest rate is proportionate to the GDP, a former treasury secretary disclosed pointing out that Sri Lanka side rejected it as debt restructuring process is aimed at reducing the interest rates paid to creditors.
Under this set up the steering committee did not agree to an extension of the restricted discussions upon expiration of the current restricted period finance ministry sources said.
June 13, Colombo (LNW): The government has taken a multi-sectoral approach to reduce the risks and impacts of floods experienced in the country as a result of stormy monsoon rains affecting thousands of families and killing at least 30 people recently.
According to Sri Lanka’s Disaster Management Centre (DMC) over 253,500 persons from more than 66,900 families had been affected. More than 40 houses were completely destroyed and over 4,000 partially damaged.
The Western, Sabaragamuwa and North Western provinces, and the Galle, Matara districts in the south, were hit by heavy rain, resulting in a number of major rivers the Kalu, Gin, Nilwala and Kelani overflowing.
Several villages and paddy fields were inundated in the Southern Province, compelling people to take shelter in schools and temples.
Sri Lanka incurs Rs 50 billion (US$313 million) in annual disaster losses related to housing, infrastructure, agriculture, official data shows.
Of this amount damages from floods was around Rs 32 billion, cyclones and high winds Rs 11 while droughts and landslides caused Rs. 5.2 billion and Rs.1.8 billion in damages respectively.
The frantic situation facing flood affected people is a direct result of the failure of successive governments to tackle basic infrastructure issues and implement long term sustainable flood management programs, policies and legislations, former finance minister Ravi Karunanayake said.
Citing an example he noted that he has introduced a natural disaster insurance scheme via national insurance trust fund board with foreign reinsurer allocating Rs 330 million from 2016 budget with the consent of the then Prime Minister Ranil Wickremasinghe
It had been able to pay Rs15.8 billion as natural disaster compensation in 2016 and Rs17 billion by allocating Rs. 590 million from 2017 budget without burdening the treasury, he claimed.
He disclosed that a new tax called the Crop Insurance Levy has been charged from banks, finance and insurance companies with a view to covering damages suffered by the farmers due to a series of natural disasters at that time.
The levy amounting to one per cent of these institutions’ after-tax profit has been remitted to an account maintained and administered by the NITF. All these pragmatic measures and the natural disaster insurance scheme are now not in existence he added.
Sri Lanka is facing the catastrophic consequences due to non-implementation of strategic city development projects and river diversion irrigation and flood control schemes initiated during 2015 and 2019 periods.
Mr. Karunaayake who was spear headed in flood relief campaign in the Western province specially in Colombo and suburbs voluntarily, noted that the impact on flood was most heavily on the poor and those people were suffering because of not continuing flood management initiatives launched in 2015- 2016 by the then government subsequent to heavy flooding.
He emphasised the need of pragmatic plans that cover the whole country, particularly the flood prone areas for the benefit of long-suffering people living there and these plans should be implemented by enacting laws to make it everlasting and sustainable.
The government machinery comprising agencies connected to disaster management, meteorology, irrigation and other relevant institutions should be revamped making officials more efficient and duty conscious providing intensives for them while taking disciplinary action against saboteurs, he emphasised.
The government will initiate sustainable relief program to alleviate the sufferings an mitigate the impact of floods by helping 87,000 poverty-stricken families living shanties or small houses at 1,360 settlements with 55,865 homes without basic facilities in Colombo to lead comfortable lives with self-reliance on the directions of President Ranil Wickreamasinghe.
The President also detected relevant authorities not to allow new construction along the banks of the Kelani River, immediately remove all illegal constructions, suspend all ongoing landfilling activities, and to repair and restore the drainage systems.
Mr Karunanayake said that one of the major issues for not providing government relief for flood affected people was the acts of sabotage by few officials with political agendas adding that there were complaints of distributing unhygienic food parcels to people living in makeshift camps.
A plan was devised in 2019-2020 to upgrade the existing pumping stations and build new stations under a US $320 million project aimed at setting up an efficient flood protection system for the Colombo city while improving roads and solid waste disposal.
President Ranil Wickremesinghe symbolically awards 442 out of the allotted 5,000 land deeds to the people of Mannar district under the ‘Urumaya’ national programme, the President’ Media Division (PMD) said.
Water Supply and Estate Infrastructure Development Minister Jeevan Thondaman says the Ceylon Workers Congress (CWC) will extend its support to President Ranil Wickremesinghe in the upcoming Presidential Polls: asserts the decision comes in as Wickremesinghe is a leader who listens to the requirements of the people of the Plantation Community.
NPP Leader Anura Kumara Dissanayake says the Provincial Council system will remain unchanged under their government until a new system fostering harmony among Sinhala, Tamil, and Muslim communities is established: emphasises while the NPP views the Provincial Council system as inadequate for resolving national issues, it recognises its significance to Tamil and Muslim communities: affirms their policy to maintain the current Provincial Council system temporarily until a more permanent solution is determined.
Pivithuru Hela Urumaya Leader Udaya Gammanpila says President Ranil Wickremesinghe is currently in third place among presidential contenders and is actively working to improve his position: highlights efforts such as distributing lands, increasing wages, offering concessions, and attempting to gain support from opposition members while aiming to remove the Rajapaksas from government: mentions plans for a July survey to assess Wickremesinghe’s standing, indicating that if he remains in third place, Wickremesinghe may decide not to contest the presidency to avoid leaving office with the lowest vote percentage in history: also cautions that the race dynamics could shift if the current frontrunner, Sajith Premadasa, makes strategic errors, potentially altering the election landscape.
Recent whitefly infestations severely impact king coconut plantations across Sri Lanka, leading to a 36% drop in exports: In response to worsening conditions exacerbated by dry weather, a government initiative in 2023 invested Rs. 80 million in Margosa oil treatments, successfully curbing crop losses: Improved rainfall this year has aided in reducing whitefly populations, though a shortage of ripe king coconuts persists, affecting local farmers reliant on export revenue: Agriculture Minister Mahinda Amaraweera instructs collaboration between the Coconut Development Board and the Cultivation Board to establish district-based initiatives for cultivating king coconut seedlings, part of broader efforts to create 160 youth Agri-entrepreneurship villages nationwide.
The government forms two special committees to gradually ease vehicle imports and develop guidelines: The first committee, led by Bri Ponnambalam of Alliance Agencies PLC, formulated a new vehicle policy to consider foreign exchange outflow and demand for automobiles: This report guided a roadmap presented to the IMF: Recently, State Minister Ranjith Siyambalapitiya announced another committee to plan future vehicle import activities, focusing initially on public transport vehicles: The committees include stakeholders from finance, trade, motor traffic, and vehicle sectors: Plans include lifting restrictions on small cars first, with a broader policy expected soon.
Prominent fashion retailer Fashion Bug with 14 flagship stores nationwide, has been recognised among the Top 10 Most-Loved Brands in the Retail Lifestyle category by LMD readers in their 2024 Annual Ranking: This accolade underscores Fashion Bug’s dedication to delivering excellent customer experiences and staying ahead in fashion trends: Director Shabier Subain attributed the honour to their team’s commitment and vowed to continue offering high-quality, affordable fashion that resonates with Sri Lankan tastes.
458 recruits from the Sri Lanka Navy’s 254th intake complete training at SLNS Nipuna, Boossa. Rear Admiral Nalindra Jayasinghe oversaw the ceremony, honouring 355 Regular Force and 103 Volunteer Force recruits: Outstanding performers received awards, including Best Recruit EAMLS Jayasinghe and Highest Aggregate achiever Woman Recruit PAPM Peramuna: Recruit WMPKM Dissanayake was recognised as Best Marksman: The ‘Sagara’ Division was praised as the best. Rear Admiral Jayasinghe stressed discipline and national security in his address.
Severe recent floods in Sri Lanka, caused by monsoon rains, have affected over 253,500 people from 66,900 families, with 30 fatalities: Western, Sabaragamuwa, and North Western provinces, along with Galle and Matara districts, were worst hit: Major rivers overflowed, inundating villages and paddy fields: Annual flood-related losses total Rs. 32 bn, part of Sri Lanka’s Rs. 50 bn disaster loss yearly: Ex finance minister Ravi Karunanayake criticised past governments for inadequate infrastructure and urged sustainable flood management reforms.
Vidyartha College defeats St Joseph’s College 27-22 in a thrilling opening match of the Dialog ‘A’ Division Schools League Rugby Tournament at Havelock Park: The teams were tied 17-17 at halftime: Vidyartha scored three goals and two penalties, with Rusith Thamodya named Player of the Match.
June 16, Colombo (LNW): The World Bank has projected a notable upswing in Sri Lanka’s economic growth, forecasting a robust 3% expansion by 2026.
This optimistic outlook is contingent upon the successful execution of key initiatives, including debt restructuring negotiations and the implementation of structural reforms aimed at mitigating the adverse impacts of planned fiscal consolidation.
Based on the statement by the World Bank, it has been earlier reported that Sri Lanka is likely to witness a modest growth of 2.2 percent in 2024.
The 2.2 percent growth in 2024, marks a 0.5-percentage-point upward adjustment from January’s estimates.
Furthermore, the World Bank noted that the growth momentum in the South Asian Region surged to 6.6 percent in 2023, largely propelled by robust expansion in India.
Early 2024 continued to witness strong activity in India, albeit with private sector activity still subdued in several countries, including Pakistan and Sri Lanka.
In the case of Sri Lanka, following a contraction in 2023, economic activity has rebounded, supported by the recovery of tourism and remittances, albeit remaining below pre-pandemic levels.
Sri Lanka’s economy is projected to see moderate growth of 2.2 percent in 2024, showing signs of stabilization, following the severe economic downturn of 2022., the country still faces elevated poverty levels, income inequality, and labor market concerns, says the World Bank’s latest bi-annual update.
WB highlights that Sri Lanka saw declining inflation, higher revenues on the back of the implementation of new fiscal policies, and a current account surplus for the first time in nearly five decades, buoyed by increased remittances and a rebound in tourism.
However, poverty rates continued to rise for the fourth year in a row, with an estimated 25.9% of Sri Lankans living below the poverty line in 2023.
Labor force participation has also seen a decline, particularly among women and in urban areas, exacerbated by the closure of micro, small, and medium-sized enterprises (MSMEs).
Households are grappling with multiple pressures from high prices, income losses, and under employment. This has led to households taking on debt to meet food requirements and maintain spending on health and education.
“Sri Lanka’s economy is on the road to recovery, but sustained efforts to mitigate the impact of the economic crisis on the poor and vulnerable are critical, alongside a continuation of the path of robust and credible structural reforms,” emphasized Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka.
“This involves a two-pronged strategy: first, to maintain reforms that contribute to macroeconomic stability and second, to accelerate reforms to stimulate private investment and capital inflows, which are crucial for economic growth and poverty reduction.”
June 16, Colombo (LNW): President Ranil Wickremesinghe ceremonially distributed 442 land deeds to residents of Mannar district as part of the ‘Urumaya’ national programme.
This announcement was made by the President’s Media Division (PMD).
