SRI LANKA NEWS (SEPTEMBER 2023) Compiled by Victor Melder.
Merchandise trade deficit widened in July 2023 compared to July 2022, due to the combined impact of relatively low export earnings and high import expenditure, the Central Bank of Sri Lanka reported, releasing the External Sector Performance Review for July 2023. The deficit in the merchandise trade account increased in July 2023 to US$ 367 million, compared to US$ 122 million recorded in July 2022. However, the cumulative deficit in the trade account during January to July 2023 narrowed to US$ 2.657 billion from US$ 3.628 billion recorded over the same period in 2022, driven by lower imports. Earnings from merchandise exports declined by 12.4 percent in July 2023, over the corresponding month in 2022, to US$ 1.020 billion. The decline in earnings from industrial exports, including garments, associated with slowing external demand mainly contributed to this contraction in export earnings in July 2023, compared to a year earlier, the Central bank said. Cumulative export earnings during January to July 2023 also declined by 10.3 percent over the same period in the last year, amounting to US$ 6.891 billion. Expenditure on merchandise imports increased by 7.8 per cent to US$ 1.388 billion in July 2023, compared to US$ 1.287 billion in July 2022 and US$ 1.369 billion in June 2023. Meanwhile, cumulative import expenditure during January to July 2023 declined by 15.6 percent to US$ 9.548 billion over the corresponding period in 2022. However, the relaxation of import restrictions, commenced since June 2023, could gradually generate higher import expenditure in the period ahead once demand conditions improve in the economy, the Bank said. Workers’ remittances increased notably to US$ 541 million during July 2023 in comparison to US$ 279 million in July 2022. Earnings from tourism in July 2023 were estimated at US$ 219 million, in comparison to US$ 123 million in the previous month and US$ 85 million in the corresponding month in the previous year. Earnings from tourism during January to July 2023 amounted to US$ 1.094 billion, compared to US$ 765 million in comparable period in 2022. Foreign investments in the government securities market recorded a notable net outflow of US$ 38 million in July 2023, while cumulative net inflow during January to July 2023 amounted to US$ 388 million. Gross official reserves increased to US$ 3.8 billion by end July 2023, compared to US$ 1.8 billion recorded as at end July 2022. This included the swap facility from the People’s Bank of China, equivalent to around US$ 1.3 billion, which is subject to conditionalities on usability. Exchange rate recorded a depreciation during the month of July 2023, reflecting relatively tight liquidity conditions prevailed in the domestic foreign exchange market. However, during the year up to 31 August 2023, the Sri Lanka rupee remained appreciated by 12.5 percent against the US dollar. (Colombo Page, 1.9.2023)
The Export Development Board (EDB) said Sri Lanka’s merchandise exports increased by 2.18 % to US$ 1,027.2 million in July 2023 compared to June 2023 as per the provisional data released by the Sri Lanka Customs. However, it is an 11.79 % decrease when compared to the value recorded in July 2022. This declining of merchandise exports is due to the reduced demand shown in export products especially in Apparel & Textiles, Rubber & Rubber based products and Coconut & Coconut based products. (Colombo Page, 1.9.2023)
Sri Lanka’s inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) declined to 4.0 percent in August 2023 from 6.3 percent in July, the Department of Census and Statistics reported Thursday. The CCPI for all items for the month of August 2023 marginally decreased to 190.1 from 190.2 in July 2023. The Year on Year inflation of Food Group decreased to -4.8 percent in August from -1.4 percent in July and the Year on Year inflation of Non Food Group decreased to 8.7 percent in August 2023 from 10.5 percent in the previous month. For the month of August 2023, on year‐to‐year basis, contribution to inflation by food commodities was -1.70 percent and the contribution of Non Food items was 5.67 percent. (Colombo Page, 1.9.2023)
Sri Lanka’s tourism industry reached a significant milestone surpassing the 900,000 arrivals mark after three years, despite the sudden slowdown in visitors towards the latter part of August. The surpassing of 900,000 arrivals signifies the largest influx of tourists to Sri Lanka since 2019.
The notable slowdown in arrivals during the latter half of August has cast doubt on the feasibility of reaching the monthly target of 149,075 arrivals. “It is projected that the month will end with around 11,000 fewer arrivals than initially anticipated,” Sri Lanka Tourism Development Authority Chairman Priantha Fernando said. The daily average of visitors, which had exceeded 5,000 during the earlier weeks of August, has now dipped below 4,500. During the first 30 days of August, a total of 132,795 tourists arrived, contributing to a cumulative year-to-date arrivals figure of 900,708. In terms of source markets, India maintains its position as the primary contributor to August influx of tourists and retains its status as the leading source market YTD. Meanwhile, the UK, China, Germany, and Russia emerged as the top source markets during August. China’s progress on a year-to-date basis stands out, reflecting the increasing appeal of Sri Lanka’s offerings among Chinese travelers. Sri Lanka is targeting to end year with over 1.55 million tourists this year. (Daily Financial Times, 1.9.2023)
Drought-hit tea plantations have witnessed a significant drop in production between-50-80 per cent as smallholders and factories note a decline in teas made available. In fact a new trend has been started in that the auctions are now allowing for smaller quantities to be accumulated. Planters Association spokesman Dr. Roshan Rajadurai noted that while this week’s auction quantities is a reflection of the drought impact recently, however, they believe that with the rains coming back the conditions will improve and production will increase. He noted that today the concern is the affordability of the fertiliser in the market due to the high prices. Dr. Rajadurai explained that compared to the past the fertiliser is used at a lower level although it is today available. And despite the availability of a number of sellers the prices remain high and smallholders and RPCs both are impacted by the increased costs. Galle Kalutara Tea Smallholders Association President Ushan Samarasinghe told the Business time that a reduction in output was evident ranging between 50-80 per cent depending on the different areas. He noted that in areas like Balangoda a drop of 70-80 per cent was noted while other areas observed a drop of 50 per cent in production. Meanwhile the auctions are also feeling the impact of the drop in output as smaller quantities of teas than normal have been permitted and only about 5 million kg per auction have been on offer. (Sunday Times, 3.9.2023)
Over 200,000 Sri Lankans left the country for foreign jobs so far this year. The Sri Lanka Bureau of Foreign Employment (SLBFE) reported that 200,026 individuals had registered and departed for foreign employment. The year 2022 marked a historic milestone as it witnessed the highest-ever number of people departing for foreign employment, with a total of 311,000 individuals going abroad amidst the ongoing economic crisis. The SLBFE said it is expected that nearly 300,000 would register with the bureau, in search of foreign employment this year. (Daily Financial Times, 4.9.2023)
Sri Lanka has over Rs.1.1 trillion worth of currency notes and over 67% of them are among public and are not in circulation, said General Manager, Chief Executive Officer of LankaClear, Channa De Silva. He said that according to the Central Bank Q 3 figures out of Sri Lanka’s total currency notes, only Rs. 281.4 billion are banked. “A staggering Rs. 828.7 billion is not in circulation and is being kept by people in either safety boxes or in their personal care.” “As per regional statics, ‘cash costs’ for printing money accounts to around 1.5% of GDP to an economy,” he said at a special event held to create awareness to the entire financial sector towards countering social engineering attacks and financial scams with a nation level public awareness campaign. This was done on the direction of the National Payment Council of the Central Bank and Sri Lanka’s National Payment Network, (LankaClear) partnering with Sri Lanka’s Banks’ Association, SL CERT, FinCSIRT and the initiative funded by the International Finance Corporation and the campaign will be carried out island wide. He said that digital transactions among people have increased steadily. He said that in 2022 and 2023 up to now Rs. 24.1 trillion and USD 922 million transactions were facilitated via connecting 30 banks and 27 Non Banking financial institutions. Real time payments to government institutions amounted to Rs. 591.53 billion. “In addition 32.5 million cheques to the value of Rs. 9.9 million were cleared. Over Rs. 89 million interbank ATM transitions amounting to Rs. 1.08 Trillion in value were facilitated. He said that there are also few incidents where hackers and fraudsters have taken money from users and on average around 130 takers are reported each month. (Daily News, 7.9.2023)
Taxpayers of this country spend around Rs. 4 million to produce a doctor in Sri Lanka, State Minister of Finance Ranjith Siyambalapitiya said today. He told Parliament that people have to spend some Rs. 4,092,915 for a medical student to complete his or her studies of five years in the university. “This amounts to Rs. 68,215 per month,” he said while speaking during the debate on the no-confidence motion on Health Minister Keheliya Rambukwella. He said taxpayers also spend some Rs. 2.1 million for an engineering student, Rs. 1 million for a management student and Rs. 1.3 million for an arts student. The Minister said this while referring to the incident where medical officers in the Kegalle Hospital were leaving the country. (Daily Mirror, 7.9.2023)
Sri Lanka remains the largest revenue owner of tea in the world, second only to China, said Ganesh Deivanayagam who was re-elected for his second tenure as the Chairman of the Tea Exporters Association (TEA) at their 24th Annual General Meeting (AGM) in Colombo. “Sri Lanka specializes in unique tea blends, helping it excel in the marketplace. The average FOB price for Sri Lankan tea is US Dollars 5.10 per kg, compared to India’s $3.58 and Kenya’s $2.60. Sri Lanka has achieved this feat through relentless pursuit, breaking global barriers, innovating, and taking risks.” He also emphasized that Sri Lanka’s tea blending, packaging, flavouring and value addition are significantly ahead of its competitors. Over what has been a challenging few years, both domestically and externally, including difficulties in importing raw materials and a high-tax environment, Sri Lanka has sustained its tea export revenues and continues to lead, as a direct result of positive action, stakeholder symbiosis and prudent decision-making. “This now gives us a stable platform on which to continue to build our resilient industry.” Sri Lanka tea industry must focus on producing more healthy tea products to the world market as it could fetch high prices, said FAO Resident Representative Vimalendra Sharan who was the chief guest at the AGM. Sri Lanka should look after the welfare of tea smallholder farmers and other tea workers at the end of the tea value chain as globally, smallholder farmers produce more tea than the large plantation companies. Meanwhile Chairman of the Sri Lanka Tea Board Niraj De Mel said their target is to touch at least 265 million kilos of tea production this year. “Sri Lanka produces 3.9% of the global tea supply, with China and India being the other major producers,” De Mel said. The statistics for January to July 2023 indicate promising growth in tea production, with a total of 155.82 million Kg, an increase of 2.59 million Kg compared to the same period in 2022. The application of fertilizer after a lapse of about two years has been a key factor in this increase. In terms of exports, despite facing global challenges, Sri Lanka’s tea exports showed resilience and tea export revenue for the first half of 2023 reached USD 635.5 million, an impressive 10% increase. (Daily News, 8.9.2023)
Sri Lanka’s official foreign reserve assets have reduced by 4.4 percent to USD 3.598 billion at the end of August, the Central Bank of Sri Lanka (CBSL) says. According to the Central Bank reserve assets stood at USD 3,765 billion in July 2023. The current official reserve assets include a of USD 1.4 billion swap facility from the People’s Bank of China, which is subject to conditionalities on usability, the CBSL said. The foreign reserve assets reduced after Sri Lanka paid back USD 150 million of the US$200 million loan from Bangladesh in 2021.By the end of July 2022, the country’s gross official reserve was as low as $1.8 billion. (Colombo Page, 9.9.2023)
Fitch Ratings, on Friday, reaffirmed Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating at ‘Restricted Default’, or RD.Fitch said that the country’s reserves levels will influence the rating only once they have moved it out of ‘RD’.” Despite an increase in reserves over the last nine months to around 3.8 billion U.S dollars in July 2023, they remain well below the 7.3 billion dollar average over 2014-2019,” Fitch said in a statement. Reserve dynamics among Asia Pacific countries appear to be diverging, with potential implications for their credit profiles, Fitch Ratings said. “Some central banks have been able to accumulate reserves on current account improvements or investment inflows, while others still see their currencies under pressure from US Fed tightening prospects,” it said. The rating agency said that official reserves among Fitch-rated countries in Asia Pacific increased by almost 170 billion dollars in the first half of 2023, mostly driven by growth among those with already large reserve buffers, including China (A+/Stable), Singapore (AAA/Stable), India (BBB-/Stable), Japan (A/Stable) and Taiwan (AA/Stable). (Daily Island, 9.9.2023)
The Workers’ Remittances in the first eight months of 2023 increased 74% to nearly USD 4 billion compared to the same period last year, the Ministry of Labor and Foreign Employment noted. According to the latest data from the Central Bank of Sri Lanka (CBSL), in August 2023, workers’ remittances surged to USD 499.2 million from the USD 325.4 million received in August 2022. Cumulatively, the figure for the first eight months from January to August 2023 stood at an impressive USD 3,862.7 million compared to the USD 2,214.8 billion in the same period in 2022. This is an increase of 74.4%. “This isn’t just a statistic; it’s a testament to the dedication, hard work, and perseverance of our Sri Lankan expatriates,” the Minister of Labor and Foreign Employment, Manusha Nanayakkara said commenting on the latest data. “Our global workforce, spread across the world, has not only weathered the challenges brought about by the pandemic but has thrived and excelled. They have supported families, communities, and our nation’s economy through their tireless efforts,” he added. “Let’s take a moment to appreciate their unwavering commitment and the sacrifices they make to uplift their loved ones and our country. Their remittances go beyond numbers; they are a lifeline, a beacon of hope, and a source of pride for Sri Lanka. Together, we look forward to a brighter future, knowing that the global Sri Lankan community plays a pivotal role in our nation’s progress. As we celebrate these remarkable achievements, let’s continue to support and honor the dedication of our global workforce,” the Minister further said. (Colombo Page, 10.9.2023)
Sri Lanka’s tourism earnings surpassed over $ 1.3 billion in the first eight months of 2023, in tandem with over 930,000 visitors Sri Lanka welcomed from January to date. Tourism earnings in the first eight months of 2023 were over $ 1.3 billion, reflecting a 56.7% increase from the corresponding period of last year, whilst August earnings stood at $ 210.5 million, the latest Central Bank data released showed. In a month-to-month comparison, August earnings experienced a 3.88% decrease compared to July, primarily due to August falling short of its monthly arrivals target, whereas July exceeded its projected figures. This makes the $ 219 million generated in July the highest monthly earnings achieved in 2023 thus far. Despite facing a series of challenges stemming from the Easter Sunday attacks in 2019, the industry has not only weathered these storms but emerged stronger. The resurgence is further underscored by the surge in arrivals, which totaled an impressive 904,318 in the first eight months of 2023, a stark contrast to the crisis-ridden 37,760 seen in 2022. However, when compared to the benchmark year of 2018, the industry still faces a 43% deficit. Analysts attribute the upward trend as welcomed news for a tourism industry that grappled with a series of challenges for the past three years. Anticipation runs high for the winter season, as the tourism sector sets its sights on welcoming 1.55 million visitors and over $ 3 billion in income by year-end, marking a significant milestone in the industry’s path to recovery. (Daily Financial Times, 11.9.2023)
Domino’s Pizza, this week achieved a historic milestone when it opened its 50th store in Panadura, becoming the fastest QSR to reach this mark. Since its launch in 2011, Domino’s Pizza has rapidly expanded its presence, serving customers across the island with its diverse menu and unique offerings tailored to cater to local tastes and preferences. Turning 50 outlets strong showcases Domino’s unwavering commitment towards the country and signifies a monumental effort to delight pizza enthusiasts nationwide. This remarkable achievement stands as a testament to Dominos dedication in serving great-tasting pizzas with unmatched speed and convenience, making it a cherished part of Sri Lanka’s culinary landscape.
With a diverse menu designed to cater to various tastes and preferences, the company offers options such as the budget-friendly Pizza Mania range as well as the traditional hand-tossed pizzas. For those who adore cheese, Domino’s goes the extra mile with their delightful Cheese Burst and Cheese Float pizzas. While pizzas undoubtedly hold the spotlight, the Domino’s menu presents a selection of signature sides and desserts that have garnered an unmatched fan following. As Domino’s Pizza Sri Lanka joyfully celebrates the opening of its 50th store, it reiterated its commitment to the local community. In the spirit of giving back, Domino’s announced 5,000 meals to Child Action Lanka, a centre dedicated to empowering and sheltering underprivileged kids and women, to mark this milestone. (Daily Financial Times, 11.9.2023)
At least 12,000 people die in accidents in Sri Lanka annually, with a quarter of these deaths, which is around 3,000 being attributed to road accidents, Police said. Director of the Traffic Administration and Road Safety Division DIG Indika Hapugoda said the statistics indicate an average of 7-8 fatalities daily due to road accidents. Data from the Police Traffic Headquarters reveals that from January 1st to August 31st, 2023, there have been 1,427 fatal road accidents resulting in the loss of 1,500 lives. “Motorcycle accidents account for about one-third of these road accidents leading to death. From January to August 31 this year, a total of 630 motorcyclists have lost their lives in 612 accidents,” DIG Hapugoda said. In 2020, there were 2,370 fatalities in 2,250 road accidents, while in 2021, 2,565 lives were lost in 2,455 accidents. In 2022, there were 2,518 deaths in 2,418 road accidents. The majority of the reported deaths from road accidents involve motorcycles, DIG Hapugoda said. He further said the number of vehicles registered with the Department of Motor Traffic has increased from 3.8 million in 2013 to 8.3 million in 2023. Among these, 4.1 million vehicles are motorcycles, and 1,185,000 are three-wheelers. Highlighting the issue of reckless driving and failure to wear helmets as the leading causes of motorcycle accidents, the DIG mentioned that in 2021 at least 218,928 individuals were fined for not wearing helmets, and in 2022, the number was 206,730. “People riding motorcycles often carry their helmets in their hands and only put them on when they see the police,” he said. Furthermore, there were 47 accidents involving school children reported in 2020, 41 accidents in 2021, and 171 accidents in 2022. In accidents during last year, four children had lost their lives, 28 were seriously injured, and 15 were left permanently disabled. (Daily Mirror, 13.9.2023)
Sri Lanka has been listed as one of the 50 best islands in the world for travel for 2023 by Big 7 Travel. The island nation was ranked 13 in the annual round up of the world’s best islands. “Sri Lanka has been off the tourism radar for a few years now due to protests, economic crises and the pandemic, but its doors are now wide open. “There are a thousand reasons to visit the beguiling island, not least its friendly people, flavourful food, endless beaches and timeless ruins. Loop around the island and you’ll tick off tea plantations, elephantfilled wildlife parks, thousand-year-old ruins and endless strips of golden sand,” said Big 7 in its description of Sri Lanka. The top 50 island by Big 7 features a diverse list. While Sri Lanka is placed between La Palma, Canary Islands, Spain, and São Jorge, the Azores Islands, Portugal, topping the list is The Bahamas. To compile the list, Big 7 has used aggregated scores from our social audience and editorial contributions. It has also considered major 2023 events, hot new hotel and restaurant openings and special initiatives that are bound to make a trip to each destination even more special in 2023. (Daily Mirror, 15.9.2023)
With the migration of medical professionals from Sri Lanka reaching an alarming level, exacerbated by the low salaries offered to specialists, the health authorities are now admitting that the situation is beyond their control. According to a top source of the Health Ministry, the Ministry is disappointed with the lack of support from relevant stakeholders such as Medical Colleges, Public Service Commission, and the Ministry of Public Administration in addressing this issue. “Immediate actions to tackle the exodus of doctors, particularly specialists, have become increasingly difficult,” the source said. Furthermore, a total of 274 specialists have migrated since last year with an additional 160 leaving the country without the ministry’s permission. Moreover, 785 specialists are set to go overseas for training, while approximately 600 doctors are expected to retire next year. Commenting on the matter, Dr Ashoka Gunaratne, the media spokesman for the Association of Medical Specialists (AMS), highlighted the significant role played by low salaries in the rising number of doctors migrating. He explained that the current salaries offered to medical specialists are insufficient to meet their critical needs, especially considering new taxation and a higher cost of living. In contrast, foreign countries offer higher salaries and better accommodations, making them more attractive to Sri Lankan doctors. Meanwhile, informed sources reveal that Sri Lankan medical specialists receive an average salary of Rs 3.37 million in the UK, Rs 2.71 million in Australia, and Rs 1.6 million Oman and Rs 3.36 million in the UAE. In stark contrast, the salaries of medical specialists in Sri Lanka are alarmingly low. A senior specialist earns a monthly income of only Rs 201,000 after all deductions, while a junior specialist is paid a mere Rs 128,500. (Daily News, 14.9.2023)
Sri Lanka has been listed as one of the 50 best islands in the world for travel for 2023 by Big 7 Travel. The island nation was ranked 13 in the annual round up of the world’s best islands. “Sri Lanka has been off the tourism radar for a few years now due to protests, economic crises and the pandemic, but its doors are now wide open. “There are a thousand reasons to visit the beguiling island, not least its friendly people, flavourful food, endless beaches and timeless ruins. Loop around the island and you’ll tick off tea plantations, elephantfilled wildlife parks, thousand-year-old ruins and endless strips of golden sand,” said Big 7 in its description of Sri Lanka. The top 50 island by Big 7 features a diverse list. While Sri Lanka is placed between La Palma, Canary Islands, Spain, and São Jorge, the Azores Islands, Portugal, topping the list is The Bahamas. To compile the list, Big 7 has used aggregated scores from our social audience and editorial contributions. It has also considered major 2023 events, hot new hotel and restaurant openings and special initiatives that are bound to make a trip to each destination even more special in 2023. (Daily Mirror, 15.9.2023)
Over Rs. 25 million have been paid as compensation to the people of the Northwestern Province for damages by wild elephants in the last eight months. In the 8 months from January to August 2023, there were 14 human deaths due to wild elephants in Kurunegala district and Rs. 17,319,178 have been paid as compensation for the deaths and property damage. Meanwhile, in Puttalam district there were five human deaths and Rs. 8,793,095 have been paid for the deaths and property damage during the last eight months. During a discussion held on the wildlife problems and sustainable solutions held Thursday at the Northwestern Provincial Council, It was revealed that an amount of Rs. 26,112,273 have been paid for the damages caused by wild elephants in the Northwestern Province alone, According to the information revealed, 14 human deaths and 180 property damages were reported in the Kurunegala district in the last eight months. In 2022, 45 human deaths and 150 property damages were reported and around 1.3 million rupees in damages have been paid. Presenting facts in this regard, Mr. Shantha Weerasinghe, Assistant Director of Kurunegala District Wildlife Department, said that more damage is caused by wild elephants moving to populated areas than in previous years. Short-term, medium-term and long-term solutions to reduce elephant-human conflict and for wildlife conservation were presented at the discussion and the Minister of Forest Conservation and Wildlife Pavithra Wanniarachchi and the Governor said that they will take necessary steps to implement those solutions soon.(Colombo Page, 16.9.2023)
The economic output of Sri Lanka as measured by Gross Domestic Product (GDP) for the second quarter (Q2) of 2023 recorded as 3.1 percent of negative growth percent year-on-year, the data released by the Census and Statistics Department on Friday showed. Further, the Gross Domestic Product for Sri Lanka for the second quarter of year 2023 at constant price (2015) has declined to Rs. 2,597,441 million from Rs. 2,680,074 million recorded in the second quarter of year 2022. In the second quarter of 2023, the overall Industry and Services activities declined by 11.5 percent and 0.8 percent respectively while overall agriculture activities grew by 3.6 percent. The three major economic activities of the economy; ‘Agriculture’, ‘Industry’ and ‘Services’ have contributed their share to the GDP at current prices by 10.4 percent, 27.0 percent and 56.8 percent respectively, while ‘Taxes less subsidies on products’ component has contributed 5.8 percent of share to the GDP in the second quarter of year 2023. (Colombo Page, 16.9.2023)
Over 15,000 children aged under 5 years are reportedly suffering from severe acute malnutrition, according to the ‘Nutrition Month’ report published by the Family Health Bureau of the Ministry of Health for the year 2023. The report indicates that 15,763 children across the island are currently experiencing severe acute malnutrition. However, this figure is lower than the total of SAM cases recorded in 2022, which stood at 18,420. Meanwhile, the percentage of children aged under 5 who are underweight has increased from 15.3% in 2022 to 17.1% in 2023, with Nuwara Eliya recording the highest underweight percentage at 26.4%. The report highlights that, compared to the nutrition data from 2022, all districts except Vavuniya have shown an increase in underweight percentages. In 2023, the percentages of children under 5 years experiencing growth faltering, underweight issues, and stunting have increased compared to 2022, while a slight reduction is observed in wasting and overweight/obesity. This trend is observed in all age categories (infant, 1-2 years, 2-5 years) and in all three sectors (urban, rural, and estate). The report states, ‘In children under 5 years, from 2020 to 2023, it was observed that underweight and stunting have increased, whereas wasting and overweight have reduced from 2022 to 2023. Compared to 2022, indicators on maternal nutrition (low BMI, anemia, and LBW) have increased slightly over the year. (Sunday Island, 17.9.2023)
As many as 62,141 acres of cultivated lands, mostly rice, have been destroyed mainly due to the dry spell and heavy rains that followed triggering concerns about food security in case the upcoming Maha season fails, an official said. According to the statistics compiled by the Agriculture Ministry by last Saturday, 61,682 acres of rice fields were destroyed either due to the dry spell in some areas and the floods in others. Sri Lanka experienced heavy rain such as Southern, Sabaragamuwa, Western and Central Provinces after a prolonged dry spell. Ministry Secretary Gunadasa Samarasinghe told Daily Mirror that the rice stocks available in the country would be sufficient till January, next year, and therefore the harvest of the upcoming Maha season was crucial. “The total requirement is 2.45 tonnes. The current stocks are sufficient enough till January, next year. The Maha season is very important, “he said. (Daily Mirror, 23.9.2023)
Gunmen have claimed the lives of 44 Sri Lankans so far in 2023, Police Spokesperson SSP Nihal Thalduwa said. He said those attacks had been carried out by organised criminal gangs. SDIG, Western Province Deshabandu Tennakoon said public cooperation was vital to ongoing operations to neutralise the underworld. Drug addiction led to various crimes, said SDIG Tennakoon. Earlier, the Commandant of the Police Special Task Force (STF), DIG Waruna Jayasundara said the incidence of crime was higher in the Western and Southern provinces. Jayasundara added that most of the STF personnel were stationed in those two provinces. Seventeen organised active criminal gangs operated in the two provinces, with the WP accounting for 12 of them, the STF Chief said. (Daily Island, 23.9.2023)
The Treasury has received an amount of 890,000 US dollars as an interim payment related to the damage caused by the ill-fated X-Press Pearl containership which sank in the seas off Colombo in June 2021 after a massive fire onboard. Justice Minister Wijeyadasa Rajapakshe said in addition to this interim payment, an amount of 16 million rupees has also been received by the Treasury. This amount has been given by the insurance company of the X-Press Pearl as an interim allowance for fishermen affected by the disaster and the costs incurred by the Maritime Environment Protection Authority for the cleaning up of the coastline of the country after the fire of the ship. The Singapore-registered MV X-Press Pearl container ship carrying a hazardous chemical cargo caught fire on 20 May 2021 while at anchorage 9.5 nm off Colombo Harbor due to a chemical leak in a container and burned for 13 days before the fire was put out on 2nd June. The ship along with its hazardous cargo sank afterwards. (Colombo Page, 25.9.2023)
Sri Lanka’s tea exports in August saw both incremental growth and some declines compared to the previous years. The export volumes increased marginally, whilst value dipped, industry sources said. Forbes & Walker Research said tea exports in August 2023 reached a total of 23.33 million kilograms, marking a steady increase of 0.33 million kilograms compared to August 2022. Interestingly, instant tea and green tea stood as exceptions, demonstrating growth, while all other categories experienced declines in comparison to the corresponding month in 2022. The Free on Board (FOB) value for August 2023 was recorded at Rs. 1,648.85, reflecting a noteworthy decrease of Rs. 302.97 compared to August 2022’s Rs. 1,951.82. This decrease is apparent across all main categories when denominated in US dollars, a trend that is highlighted in the accompanying table. The cumulative exports for the period spanning January to August 2023 totalled 158.32 million kilograms. This figure represents a decline of 12.74 million kilograms in contrast to the 171.06 million kilograms recorded in the same period of 2022. The categories of tea in bulk and packeted tea continued to exhibit negative variances, while the remaining product categories experienced marginal increases. During the first eight months, the FOB value stood at Rs. 1,801.24, showcasing an encouraging increase of Rs. 330.70 when compared to the Rs. 1,470.54 recorded in the corresponding period of 2022. Iraq secured the top position in August 2023, importing a total of 14.73 million kilograms of tea. Türkiye followed closely in second place with 13.33 million kilograms. Russia claimed the third position, displaying an impressive growth rate of over 14% compared to the previous year. The U.A.E (7.49 million kilograms) and China (5.77 million kilograms) secured the fourth and fifth spots, respectively. Noteworthy importers also included Azerbaijan, Libya, Saudi Arabia, Syria, and Germany. (Daily Financial Times, 25.9.2023)
Sri Lankan Foreign Minister Ali Sabry on Monday said that Colombo has not given permission to a Chinese vessel to dock adding that Indian security concerns are “important” for Sri Lanka, ANI reported. When asked about reports regarding a Chinese research vessel named Shi Yan 6 scheduled to be docked in Sri Lanka in October and India’s concerns regarding it, Minister Ali Sabry has said that they have a standard operating procedure (SOP) and they have consulted many friends, including India. “That’s a conversation going on for some period of time. India has expressed its concerns for a long period of time, but we have now come out with the SOP standard operating procedure. When we were making that, we consulted many of our friends, including India. So, as long as it complies with the SOP, we have no problem. But if it doesn’t comply with the SOP, we have a problem,” Ali Sabry told ANI. He said that Sri Lanka has not given permission for the Chinese vessel Shi Yan 6 to dock during the month of October, adding that negotiations are going on. “So, therefore, as far as I know, we have not given permission to come to Sri Lanka during the month of October. So, there are negotiations going on. But, Indian security concerns, which are legitimate, are very, very important for us. We have always told that because we want to keep our region as a zone of peace,” he added. (Colombo Page, 26.9.2023)
Sri Lanka’s merchandise exports increased by 6.98 % to US$ 1,091.6 Million in August 2023 compared to July 2023 as per the provisional data released by the Sri Lanka Customs. However, it is a 10.91 % decrease when compared to the value recorded in August 2022, the Export Development Board (EDB) said in its monthly report released Tuesday. The decline in merchandise exports is due to decreased demand for export products, particularly in sectors such as Apparel & Textiles, Rubber & Rubber-based products, and Coconut & Coconut-based products. (Colombo Page, 27.9.2023)
Three elephants have died after a herd of wild elephants collided with the night mail train traveling from Kankasanthurai to Colombo. It is reported that the three wild elephants collided with the train near Galgamuwa at around 11.50 last night. The accident has happened about one kilometer away from Galgamuwa railway station. Part of the engine of the train has also been damaged due to the collision with the elephants. However, the train resumed its journey about an hour delay after the collision. (Colombo Page, 28.9.2023)
Sri Lanka’s inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) declined to 1.3 percent in September 2023 from 4.0 percent in August, the Department of Census and Statistics reported Wednesday. The CCPI for all items for the month of September 2023 increased to 191.8 from 190.1 in August 2023. The Year on Year inflation of Food Group decreased to -5.2 percent in September from -4.8 percent in August and the Year on Year inflation of Non Food Group decreased to 4.7 percent in September 2023 from 8.7 percent in the previous month. For the month of September 2023, on year‐to‐year basis, contribution to inflation by food commodities was -1.78 percent and the contribution of Non Food items was 3.10 percent. (Colombo Page, 28.9.2023)
Shereen Balasingham, a community medicine expert at the Directorate of Non-Communicable Diseases Division of the Health Ministry, said that the number of deaths and hospitalizations due to heart failure has increased significantly. She stated that 52 percent of deaths in government hospitals in 2020 were due to heart attacks and that both men and women between the ages of 18 and 28 as well as between 29 to 39 years of age suffer from heart attacks. She made these comments on Wednesday (27) while attending a press conference held at the Health Promotion Bureau. Dr. Anidu Pathirana, a consultant cardiologist at the Colombo National Hospital, said that noise pollution is one of the main causes of heart disease. He also stated that if there are no laws to reduce noise pollution, new laws should be made or noise pollution should be prevented. He said that people suffer from heart attacks due to social and mental stress and the symptoms of pain in the body, difficulty in breathing and chest fatigue (wheezing) are symptoms of a heart attack. (Daily News, 29.9.2023)
Fitch Ratings has upgraded Sri Lanka’s Long-Term Local-Currency Issuer Default Rating (IDR) to ‘CCC-’ from ‘RD’ (Restricted Default). Fitch typically does not assign Outlooks to sovereigns with a rating of ‘CCC+’ or below. The Long-Term Foreign-Currency IDR has been affirmed at ‘RD’ and the Country Ceiling at ‘B-’. The Short-Term Local-Currency IDR has been downgraded to ‘RD’ from ‘C’ following the exchange of treasury bills held by the central bank and subsequently upgraded to ‘C’ in line with the Sovereign Rating Criteria, as we believe the local-currency debt exchange has now been completed. KEY RATING DRIVERS: Local-Currency Debt Exchange Completed: The upgrade of Sri Lanka’s Long-Term Local-Currency IDR to ‘CCC-’ reflects the completion of the local-currency portion of Sri Lanka’s domestic debt optimisation (DDO) plan, launched in July 2023, following the exchange of the Central Bank of Sri Lanka’s (CBSL) treasury bills and provisional advance into new treasury bonds and bills on 21 September 2023. We assume the debt restructuring will lower Sri Lanka’s gross financing needs over the medium term, in line with the targets under the IMF’s Extended Fund Facility, and support an improvement in the country’s debt metrics over time. Local-currency restructuring could accelerate progress towards the restructuring of external debt. (Colombo Page, 29.9.2023)
