SRI LANKA NEWS
(DECEMBER 2024)
Compiled by Victor Melder
The Government has reversed an earlier decision to provide ruling party Members of Parliament with official vehicles, a senior official said yesterday. Instead of providing them with official vehicles, they would be provided with a fuel quota, he added. The change of decision comes after considering the issue of vehicles that would be in conflict with the policies of the National People’s Power (NPP). Moves to issue vehicles to all government MPs also drew criticism from opposition parliamentarians, with some of them claiming that they would also be demanding similar vehicles if the ruling party MPs were to be issued official vehicles. A cross section of ruling party members had already declared that they would be accepting vehicles provided by the Government, pointing out that vehicles were required for their travel, particularly from their electorates in the provinces. However, Cabinet ministers and deputy ministers will be entitled to official vehicles. Meanwhile, Public Security and Parliamentary Affairs Minister Ananda Wijepala told the Sunday Times the government would not continue with the practice of issuing duty-free vehicle permits for MPs. He said every five years a cabinet paper was submitted to obtain the facility, but his ministry would not be submitting this cabinet paper. He also said they would also not be importing new vehicles for the use of ministers. Minister Wijepala said they would take steps to auction 228 V8 vehicles used by ministers and various ministries while there would be no more import of V8 vehicles for the Government. “Instead we would be importing vehicles that are low cost, high fuel efficiency, and less maintenance cost,” he said. (Sunday Times, 1.12.2024)
Sri Lanka’s average coconut prices were up 9.49 percent, recording the highest price, data from the Coconut Development Authority showed. Average coconut prices were up to 109,615.80 for 1,000 nuts from 99,684.19 at the auction held on November 28. A total of 527,199 coconuts were offered at the auction and 424,157 were sold. At the weekly CDA auction, the highest price for 1,000 nuts was priced at 110 rupees, while the lowest for 1,000 nuts was 96 rupees. Wholesale prices for large nuts were 140-150 and 110-120 rupees for small nuts on November 21. Coconut oil local wholesale price was 750,000.00 to 770,000.00 rupees per metric ton. Coconut shells were 42,000 to 43,000 rupees per metric ton. Farmgate prices in Kurunegala were 100,000 to 105,000 per 1,000 nuts. (Sunday Island, 1.12.2024)
The external sector continued its growth trajectory in October 2024, driven by strong inflows to the current account, resulting in an increase in foreign reserves and an appreciation of the rupee, the Central Bank reported. In its latest external sector report, the CBSL highlighted a 24% year-on-year (YoY) growth in exports for October 2024, surpassing the $ 1 billion threshold, while the trade deficit during the month narrowed boosted by the robust growth in exports. The deficit in the merchandise trade account narrowed to $ 544 million in October 2024 from $ 683 million recorded in October 2023, reflecting the positive impact of higher export earnings. However, the cumulative deficit in the trade account during January to October 2024 widened to $ 4,745 million from $ 4,024 million recorded over the same period in 2023. Earnings from merchandise exports increased to $ 1,158 million in October 2024. This growth was primarily driven by industrial and agricultural exports. The increase in industrial goods exports in October 2024 (YoY) was broad-based, with notable contributions from garments and petroleum products. However, declines were recorded in the categories of gems, diamonds and jewellery, as well as machinery and mechanical appliances. Earnings from exports of agricultural goods increased primarily due to higher volumes and prices of tea, along with increased exports of spices and coconut-based products. Meanwhile, earnings from mineral exports declined in the same period. Expenditure on merchandise imports recorded an increase of 5.7% YoY to $ 1,702 million in October 2024. This increase was driven by higher spending on investment and consumer goods, while imports of intermediate goods declined. Consumer goods imports increased by 10.8% YoY to $ 291.9 million in October 2024 compared to a year earlier, resulting in higher spending on both food (primarily edible oils) and non-food (primarily home appliances) consumer goods. However, expenditure on intermediate goods imports declined by 0.6% YoY to $ 1,079.2 million primarily due to reduced fuel imports which stood at 1.9% YoY to $ 337.3 million, as both the prices and volumes of refined petroleum and crude oil were lower compared to October 2023. Expenditure on investment goods recorded an increase of 27.5% YoY to $ 330.4 million, driven by higher imports of machinery and equipment (mainly cranes and electric motors and generating sets). Total services sector outflows were estimated at $ 284 million in October 2024, in comparison to $ 171 million in October 2023. Major contributors to the recorded outflows from the services sector in October 2024 were overseas travel and sea transport. Foreign investments in the Government securities market recorded a net inflow of $ 39 million in October 2024. This was the first time the Government securities market recorded a net monthly inflow in 2024. However, cumulative foreign investments in the Government securities market recorded a net outflow of $ 218 million during January-October 2024. Meanwhile, foreign flows to the CSE, including both primary and secondary market transactions, recorded a net inflow of $ 3 million in October 2024 and a cumulative net inflow of $ 46 million during January-October 2024. (Financial Times, 2.12.2024)
The price of coconuts across various areas of the country has reportedly increased, with the cost of a single coconut in the local market exceeding Rs. 200. Reports indicate that in the Matale district, coconut prices range from between Rs. 200 and Rs. 230. According to some retail shops, this price hike is due to a prevailing shortage in the local market. Meanwhile, consumers have expressed concerns over sellers restricting their ability to select coconuts. Customers report being compelled to purchase only the coconuts made available for sale. The price of coconuts across various areas of the country has reportedly increased, with the cost of a single coconut in the local market exceeding Rs. 200. Reports indicate that in the Matale district, coconut prices range from between Rs. 200 and Rs. 230. According to some retail shops, this price hike is due to a prevailing shortage in the local market. Meanwhile, consumers have expressed concerns over sellers restricting their ability to select coconuts. Customers report being compelled to purchase only the coconuts made available for sale. (Daily Mirror, 2.12.2024)
In line with the Central Bank’s near term projections, headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100)1 remained in the negative territory for the third consecutive month, recording a deflation of 2.1% in November 2024 compared to the deflation of 0.8% in October 2024. Non-Food inflation (Y-o-Y) decelerated further to -3.3% in November 2024 from -1.6% in October 2024. Meanwhile, food inflation (Y-o-Y) decelerated to 0.6% in November 2024 from 1.0% October 2024. On a month-on-month basis, the CCPI recorded a decline of 0.25% in November 2024 due to 0.02% reduction in the prices of items in the Food category and 0.23% reduction in the prices of items in the Non-Food category. Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, moderated further to 2.7% in November 2024 from 3.0% in October 2024.Governor Central Bank, D. Nandalal Weerasinghe said that it is expected that headline inflation will remain negative in the next few months, deeper than previously projected, mainly due to larger downward adjustments in energy prices and reduction in volatile food prices. “However, inflation is expected to turn positive thereafter towards mid-year and gradually align with the targeted level of 5% over the medium term, aided by appropriate policy measures.” (Daily News, 2.12.2024)
Sri Lanka’s tourism sector achieved a key milestone, surpassing 1.8 million arrivals in the first 11 months, whilst November recorded the highest number of visitors since July 2024. The country welcomed 184,158 tourists in November, marking a 22% year-on-year (YoY) growth. It also recorded the highest November arrivals in five years. The monthly tally in November represents a 36% increase from October’s 135,907 arrivals, sustained by the resolution of the visa crisis that had dampened mid-year performance. The 218,350 tourists recorded in February remains as the highest monthly arrivals registered in 2024 thus far. Although the November numbers signal continued recovery, it fell short by 13,911 visitors from the projected target of 198,069 for the month set by the Sri Lanka Tourism Development Authority (SLTDA) — extending a trend observed throughout 2024, where monthly targets were consistently missed. It also fell short by 11,424 arrivals from the 195,582 recorded in November 2018. As November propelled to cross 1.8 million year-to-date(YTD) arrivals, edging closer to the revised 2024 target of 2 million visitors, the industry requires another 195,128 visitors within December. However, the YTD performance so far is still down by 23% when compared to the same period in the benchmark year of 2018.The daily tourist arrivals averaged 6,139 — up from 5,050 during the same period a year ago and significantly higher than October’s 4,384 average. India remained Sri Lanka’s largest source market in November, contributing 41,120 visitors or 22% of total arrivals. Russia followed with 29,053, while the UK ranked third with 12,912 visitors. Germany and Australia rounded out the top five with 12,593 and 7,937 arrivals, respectively. Other key contributors included China, France, Poland, the US, and Spain. India’s dominance in YTD figures was also clear, accounting for 364,093 visitors (20%), followed by Russia with 166,652 (9.2%) and the UK with 159,582 (8.8%).
Industry analysts opined achieving the revised annual target will require strong performance in December, typically boosted by high winter season demand. (Financial Times, 3.12.2024)
More than 1,000 new leprosy patients have been identified in the first 10 months of 2024, according to the Anti-Leprosy Campaign. Dr Nirupa Pallewatta, Director of the Anti-Leprosy Campaign, has said 1,084 patients were diagnosed during that period, with approximately 68% of cases being infectious. The highest number of cases was reported from the Colombo District, with 115 patients identified, followed closely by the Gampaha District, which recorded 113 cases. Dr Pallewatta further noted that in 2023, 1,500 leprosy patients had been identified. (Daily Island, 7.12.2024)
A total of 1,802 Sri Lankan workers are set to leave for Israel between December 2024 and January 2025, according to the Sri Lanka Bureau of Foreign Employment. It is reported that 4,531 Sri Lankans were employed in Israel’s construction sector between April 13 and November 30, 2024, as part of a programme established in February 2024. However, the Bureau has uncovered fraudulent activities by individuals and groups exploiting job seekers. These scammers use phone calls, text messages and WhatsApp groups to falsely claim they can secure jobs in Israel’s construction sector, which only accepts workers through an official lottery system. The Bureau reminded the public that giving or receiving money fraudulently is a punishable offense under Sri Lanka’s Bribery Act. Meanwhile, officials have urged aspiring migrant workers to use legal channels and avoid becoming involved in such scams. The Bureau also encourages anyone with information about fraudulent activities to report them through their 1989 hotline to ensure justice and accountability. This initiative aims to provide safe and legitimate job opportunities abroad while protecting the interests of Sri Lankan workers. (Daily Mirror, 10.12.2024)
The government spends Rs. 214 billion annually to address health issues related to alcohol consumption, highlighting the significant social, economic and health challenges posed by alcohol. In Sri Lanka, over 1.5 million adults currently smoke tobacco, with 0.1% of women and 19.7% of men affected by tobacco use. The National Authority on Tobacco and Alcohol, Ruwini Wanninayaka said that alcohol consumption in Sri Lanka is responsible for 60 deaths per day, translating to an annual toll of 20,000 lives.
She stated that compared to previous years, tobacco use has been more effectively controlled, with the rate decreasing from 9.1%. “Tobacco cultivation and cigarette waste harm the environment, affecting children indirectly by reducing access to clean air and water. Cigarette butts, often discarded in public areas, pose a danger to children who might second hand smoke (SHS) causes severe health implications for children, due to the neurotoxic effects of nicotine and other chemicals in tobacco smoke. The government earns Rs. 92.9 billion annually from tobacco taxes. Meanwhile, the incidence of mouth cancer has increased among males due to cigarette smoking, while the public is also affected by inhaling exhaled smoke in the air. Speaking to the Daily Mirror, Steve Tamphin, an Associate Scientist at Johns Hopkins Bloomberg School of Public Health (JHSPH) stressed on the importance of reducing tobacco use in countries with the highest burden of tobacco-related diseases and deaths. He explained that collaboration with the WHO South Asian Tobacco Control Programme, which involves seven countries, aims to enhance leadership capacity to advocate for and promote the enactment of effective policy changes aimed at reducing tobacco use in Sri Lanka. On a global scale, tobacco control laws have saved 35.2 million lives, with 5.6 billion people worldwide now protected by at least one strong tobacco control law. (Daily Mirror, 13.12.2024)
Over 300,000 Sri Lankans have gone abroad for employment this year by Dec. 13, according to Sri Lanka Bureau of Foreign Employment (SLBFE). About 300,162 Sri Lankans have left for foreign employment and among them are 177,804 males and 122,358 females, the SLBFE said. Kuwait is the leading destination for Sri Lankan workers, with 73,995 individuals seeking employment there, followed by the United Arab Emirates, which received 49,499 workers, the SLBFE has said, adding that 7,002 Sri Lankans have gone to South Korea, 9,211 to Israel, 10,274 to Romania, and 8,251 to Japan for employment in 2024.The SLBFE estimates that by the end of 2024, the number of Sri Lankans going abroad for employment will exceed 311,000. In 2022, 310,948 individuals left Sri Lanka for overseas employment. Workers remittances are one of Sri Lanka’s top foreign revenue earners and by the end of Nov. 2024, they had remitted about 6 billion U.S. dollars, according to official data. (Daily Island,14.12.2024).
Sri Lanka’s garment exports touched the USD 4 billion revenue mark in the first week of November 2024. Sri Lanka’s garment exports rose by 5.7% from January to October totaling USD 3.8 billion and in the first week this touched the USD 4 billion mark. One of the main contributors for this was the exports of Apparel & Textile to the USA and UK increasing by 23.28 % and 23.26% respectively in October 2024 compared to October 2023. The total combined exports of textiles and garments significantly contributed to Sri Lanka’s merchandise export performance in October 2024. The total value of apparel exports in 2023 was USD 4,848.55 million while the best year for apparel exports was in 2022 where the country earned USD 5,933.52 million. (Daily News, 14.12.2024)
Sri Lanka’s tea exports value during the first 11 months of this year has crossed the $ 1.3 billion mark, whilst quantity-wise, November has seen a 6% drop year-on-year (YoY) to 20 million kilograms. The November figure is also slightly lower from October exports, which stood at 20.7 Asia Siyaka Commodities PLC, quoting provisional Customs data, noted that Sri Lanka exported 223 million kilos during the first 11 months, nominally ahead of last year’s figure of 221 million kilos. “The country earned around $ 1.3 billion ($ 1,304 million) on a volume of 223 million kilos. This converts to a high FOB value per kilo of $ 5.84 compared with $ 5.43 the year before. In Sri Lankan Rupees, the value of exports amounted to Rs. 395 billion compared with Rs. 391 billion the year before,” it said, adding that this figure could have been much higher if the Sri Lankan Rupee had not strengthened against the dollar over the past five months. They opined that the Rupee appreciation has had a negative impact on the auction prices as well and reduced returns to tea producers across the board. Separately, Forbes and Walker Research said tea exports for the month of November 2024 totalled 20.07 million, showing a negative variance of 1.38 million kilos compared to 21.46 million of November 2023.
“All categories show negative variances except for Tea Packets, which registered a marginal gain in comparison with the corresponding month of the previous year. FOB value in November 2024 was at Rs. 1,718.88, a decline of Rs. 6.89 YoY compared to Rs. 1,725.77 of November 2023,” it added. It also noted that the Tea in Bulk, Tea Bags, and Green Tea categories have shown positive variances against the same period of the previous year, although Tea Packets and Instant Tea categories have recorded negative variances during the first 11 months. Asia Siyaka Research said a review of the different segments that make up tea exports show value added shipments accounting for 55% of the total compared with 57% the year before. “This has come primarily from tea exports in Packets (92%) which declined to 41% of the national total against 45% (98 million kilos) in 2023,” it added. They also said this 7% loss has shifted to the Bulk Tea category, which now accounts for 45% of all exports this year. Shipments of Tea Bags, an important component of the value-added segment, have increased 10% YoY to 23 million kilos. Instant Tea and Green Tea exports have remained steady. Forbes and Walker Research also said the FOB value from January-November 2024 stood at Rs. 1,769.93, a decrease of Rs. 2.48 (increase of $ 0.45) vis-à-vis Rs. 1,772.41 of January-November 2023. It also added that all categories except for Tea in Bulk and Tea Packets showed negative variances in LKR terms in FOB value, whilst gains were recorded in US dollar terms in all categories when compared to the corresponding period in 2023. Of the Major destinations for Sri Lanka tea exports, Asia Siyaka Research said Iraq maintained its top slot with a volume of 30 million kilos, similar to the year before, whilst Russia followed with a 12% gain to 22.8 million kilos. The UAE is ranked third with quantities increasing 20% from 16.3 million kilos to 19.6 million kilos. It added that Turkey continues to slide down the order with quantities declining a sharp 42% from 28.2 million kilos to 16.3 million kilos this year. China follows with a quantity of 10.6 million kilos down 6% on last year. Following Sri Lanka’s trade deal with Iran tea exports to this destination have risen sharply to 9.5 million kilos from 5.2 million kilos a year ago. Azerbaijan has absorbed a similar quantity with a 12% YoY gain. Shipments to Libya have dropped to 8.5 million kilos from 9.9 million kilos during the period January-November 2023. Saudi Arabia’s high value market has shown a very positive trend and grew 27% from 6.4 to 8.1 million kilos. Chile follows with 7.8 million kilos and Syria 7 million kilos. The US has sharply increased its volumes by 23% from 4.9 million kilos to 6 million kilos this year. (Financial Times, 19.12.2024)
A hill country leopard, frequently seen in the shrub jungle adjacent to Fordyce Estate in Hatton, was killed, and its head and limbs were cut off and taken away. Police said the leopard was killed by a wire trap. Wildlife officers from Nallathanniya visited the location following information from the Hatton police and initiated an investigation. They said that the well-grown leopard was about ten years old, and its carcass, minus the head and legs, would be referred to the Randenigala Wildlife Veterinary Unit for a postmortem examination. Wildlife officers are conducting their investigation with the help of the Hatton police. (Daily Mirror, 19.12.2024)
A total of 2,243 people have died in road accidents this year, police said. They reported that 22,967 road accidents, including 2,141 fatal accidents, occurred between January 1 and December 13, 2024. Police said 6,500 serious accidents and 9,127 minor accidents were reported during this period. Meanwhile, at least 13 people were killed in accidents reported in the past 24 hours across several areas of the country.These accidents were reported yesterda (21) in Hatton, Marawila, Ambalantota, Gampola, Hettiipola, Batticaloa, Mirihana, Kebithigollewa, and Seeduwa. Three of the victims died when a bus plunged into a precipice in Maliappuwa, Hatton, leaving 46 people injured. Two people were killed in an accident on the Southern Expressway between Baddegama and Pinnaduwa, and six others were injured in a collision between a van and a lorry. Police urged the public to take necessary precautions to reduce accidents, especially during the festive season. (Daily Mirror, 22.12.2024)
The Ceylon Electricity Board (CEB) statistics show that approximately 50 elephants have died due to unauthorised connection of the CEB’s electricity supply to fences or wires so far in 2024. Therefore, the CEB has taken measures to introduce a new phone number 0112 118 767 seeking public assistance to arrest wild elephant deaths due to electrocution. As the death rate of the pachyderm was alarming due to the electrocution, the CEB has taken measures to protect the wild elephant resources that the country is losing while putting an end to the unauthorised use of electricity supply. In a media release by the CEB, it said that the wild elephants, a symbol of our country’s biodiversity, are increasingly under threat of extinction due to human activities. It further said, the CEB has already taken various appropriate measures regarding this illegal act, and we also expect public support to protect the wild elephant resources of our country. Accordingly, if there is any information regarding unauthorised connections of electricity supply to fences or wires, I kindly request you to inform the CEB immediately via 0112 118 767 or as well as with our Hotline Number 1987 The CEB invited all to join with them in preserving the wild elephant resource, which has religious and cultural significance since ancient times, attracts and loved by local and foreign tourists, and contributes to strengthening the economy of the country. (Ceylon Today, 24.12.2024)
In a special operation targeting drunk drivers and other traffic offenders during the festive season, 251 individuals were arrested for drunk-driving offences on Tuesday (24) alone, according to the Police Legal action had been initiated against 8,742 individuals for various traffic violations on the same day. The operation was conducted under the direction of Manoj Ranagala, Director of the Colombo Traffic and Road Safety Unit. The offences recorded included 251 cases of drunk-driving, 81 instances of reckless or dangerous driving, 128 speeding violations, 1,368 breaches of general traffic laws, 615 licence-related violations, and 630 other offences. (Daily Island, 26. 12. 2024)
Most of the males and females active in the labour force in Sri Lanka were in their 40s, according to the Labour Force Survey (LFS) valid for the second quarter 2024, conducted by the Census and Statistics Department of the Central Bank of Sri Lanka. The unemployment problem in Sri Lanka is more acute for educated females than educated males, the survey bulleting stated referring to its consistent observation over the past years. The survey was based on the data collected in April, May and June in 2024 covering the whole country. It was also based on the quarterly sample of 6,440 housing units. It covered persons living in housing units only and it excluded the institutional population. Considering the distribution of Labour Force Participation Rate (LFPR) by age group and by gender depicts high male participation compared to female in all age groups. The highest participation rate for male is reported from age group 45 – 49 years (96.3%), while that for female is reported from 40 – 44 age group (46.5%). During second quarter of 2024, the total number of employed persons in Sri Lanka was estimated as 8 million. Of which, about 48.5 percent engaged in the service sector, 26.5 percent in industry sector and 25.0 percent in agriculture sector. In the second quarter of 2024, there were increases in employed persons in service and industry sectors compared to the second quarter of 2023. The majority of the workforce are private sector employees followed by own account workers. Non agriculture sector covered 75.0 percent of employed population in Sri Lanka, employees and own account workers were highly constraining in that sector. The highest employment share was in service sector and this was true for both male and female, while the lowest shares were for agriculture sector. Among employed females 22.1 percent was in agriculture sector while this share was 26.5 percent for males. The overall unemployment rate reported for female was 7.0 percent and it was 3.6 percent for male. Youth unemployment rate (age 15 – 24 years) corresponding to the second quarter 2024 was 25.4 percent. The survey results further revealed that the unemployment among females was higher than that of males, in all age groups. Youth and female unemployment contribute more to the overall unemployment of the country. The number of unemployed persons was estimated as 397,855 during the second quarter 2024. The unemployment rate for the second quarter 2024 was 4.7 percent. The highest unemployment rate was reported from the G.C.E.(A/L) and above group which is 7.8 percent. Corresponding percentages were 5.8 percent and 10.0 percent for males and females respectively. Female unemployment rates were higher than those of males in all levels of education. Survey results further showed that the problem of unemployment was more acute in the case of educated females than educated males, which was observed consistently over the results of previous survey rounds as well. (Daily Island, 27, 12. 2024)
Sri Lanka has recorded a staggering 375 elephant deaths in the past eleven and a half months due to a multitude of causes, according to the Department of Wildlife Conservation. The deaths include 74 from gunshots, 53 from electrocution, 49 from hakka patas (explosive devices hidden in food), seven from poisoning, 10 from train accidents, three from a road accident, and six by drowning. It makes such diabolical reading! “The causes of other deaths are due to natural causes or causes that could not be identified. Most of the elephants that died were young,” the official said. Meanwhile, the human-elephant conflict has also taken a toll on people, with 149 human deaths reported this year. Accordingly, human-elephant conflict has resulted in 524 deaths of both elephants and humans in 2024. In 2023, a total of 488 elephants and 184 people have died consequent to the conflict, according to Wildlife Department statistics. Given the fact that Sri Lanka boasts of 29.9% of the country declared as protected forests, Sri Lanka is a haven for nature lovers. Boasting 26 national parks, 10 nature reserves including 3 strict nature reserves, and 61 sanctuaries, the national parks in Sri Lanka offer an incredible variety of wildlife experiences. (Daily Island, 27.12.2024)
Crop damage caused by animals, such as wild boars, porcupines, and monkeys, caused a loss of of 55.3 billion rupees in 2022 and 2023, according to Anuradha Tennakoon, Chairman of the National Farmers’ Federation.Tennakoon said wild animals had destroyed approximately 86.7 million coconuts, valued at 5.2 billion rupees, affecting 17.5% of the nation’s total coconut yield across 140,450 hectares. The destruction of crops by wild animals are as follows: 25% of rice, 11% of maize, and 7% of vegetables. Wild boars and monkeys alone have destroyed 131 million kilos of rice, 169 million kils of bananas, and 6.8 million kilos of maize, causing losses to the tune of Rs 13.2 billion, Rs 22.1 billion, and Rs 10.3 billion, respectively. They also destroyed 59.7 million kilos of vegetables, amounting to a loss of Rs 4.5 billion. The Uva Province was the worst affected, with 45,000 hectares of crops being destroyed. Tennakoon said the government had to adopt modern technology to address the issue of depredation, which he attributed to huge increases in wildlife in the agricultural areas. (Daily Island, 28.12.2024)
Sri Lankan exporters have shipped coconut and products based on coconuts worth US$782.32 million (Rs 228.84 billion) in the 11 months to November amid a severe domestic shortage, a sharp drop in production this year, and a substantial retail price increase of nuts as well as that of coconut oil. Data from the Export Development Board show that export earnings of coconut and products based on coconut shot up at a high double-digit rate from January to November. In November, exports of coconut oil, desiccated coconut, coconut milk powder, coconut cream, liquid coconut milk, as well as coco peat, and activated carbon all recorded high double-digit increases. Earnings from coco peat, fiber pith and moulded products were US$13.56m (Rs 3.96b) in November. This category of coconut fibre products is identified as the largest contributor. While container loads go often at free on board prices, Sri Lankans are yet again paying prices of up to Rs 170 for coconuts due to a lingering, unresolved, and predictable shortage that surfaces every year. Citing data from Coconut Development Authority, Department of Census and Statistics, World Bank, the agriculture bulletin for November by the Central Bank of Sri Lanka, shows a 17.8% year-on-year drop in September coconut production. Other data show that monthly coconut production has dropped from a peak of 280m nuts in March this year to 220m nuts in September. From January to September, yield has fallen to 2.28 billion nuts, a drop of 4% from the same period a year ago. Coconut oil production has also shrunk by 33.2% on-year to 23,789 metric tonnes. A domestically made 500ml ‘white’ coconut oil bottle sells for up to Rs 850 at retail. In 2023, monthly coconut production tumbled from a peak of less than 280m nuts in February-March to below 260m nuts in December. In 2022, production plunged to well below 280m nuts in December from a peak of 380m nuts in June. Four years ago in September, then coconut minister Arundika Fernando climbed a tree in Dankotuwa using a pricey, Rs 19,000 mechanical contraption during a shortage and high prices. He promised to “boost the industry’’ while suspended on the tree. He spoke of a shortage of 700m nuts and insisted that even fallow land will be cultivated. Coconuts will be turned into the “biggest” export earner he boasted. At the time, coconuts were being graded by measuring tape to determine prices — a nut with a circumference of more than 13 inches was priced at Rs. 70, between 12’’ and 13’’ at Rs. 62, and below 12’’ at Rs 60. The Coconut Development Authority noted then a shortage of 250 million nuts, citing low yield. Production last year was 3.17b nuts. A year after Mr Fernando’s much-derided tree stunt, the price of a coconut had surged by more than 41% from Rs 60 to Rs 85 on average at retail. And, in September 2022, nuts were selling at Rs 90 at the Pettah market and Rs 96 in Narahenpita. Then, in 2023 September, a nut cost Rs 120 on average. The price had rocketed by 100% in three years. In October 2023, monthly nut production had dropped to 268.1m from the year before. It was a 4.3% fall on-year. The production slide continued. In December 2023, production had shrunk to 254.1m nuts, a 6.4% fall on-year. By this past September, a coconut on average cost Rs 130 in the Pettah market. At Narahenpita Economic Centre a nut changed hands at Rs 135. These do not reflect the actual price homemakers pay for a nut. In July 2024, nut production had edged up to 272.7m versus 265m the year before. And yet, a coconut costs relatively less than a kilo of kolikuttu at prices between Rs 400 and Rs 600, compared with Rs 200 per kilo in 2020. A large The price of coconut oil changes in tandem with that of coconuts. Production has fallen by more than 33% from 35,589 MT in January to September 2023 to 23,789 MT in January to September this year. On 26 December, ‘white’ coconut oil traded between Rs 990,000 and Rs 1.05m for a metric tonne. (Sunday Times, 29.12.2024)
With the stabilization of Sri Lanka’s Economy which is the key to take the country out of the abyss and the economy moving in the right direction in a focused manner, economic indicators too are showing positive sentiments. Sri Lanka’s Official Reserve Assets as at end November 2024 further increased and stood at 6,462 USD million according to the Central Bank. On-year-on-year basis, National Consumer Price Index (NCPI) (2021=100) based headline inflation remained in the negative territory for the third consecutive month, recording a deflation of 1.7% in November 2024 compared to the deflation of 0.7% in October2024. Prices of the items in the Food category, on a year-on-year basis, remained unchanged in November 2024. Meanwhile, the Non-Food category recorded a deflation of 3.1 per cent in November 2024. Governor Central Bank Dr. Nandalal Weerasinghe earlier said that inflation towards mid 2025 would settle around the projected 4 to 5% range. By December 27, 2024, the All Share Price Index (ASPI) increased by 4.89% to 15,535.60 points creating an all-time record and the S&P SL 20 Index increased by 5.56% to 4,666.65 points, compared to the index values of the last week. During the period from January to October 2024, overall budget deficit decreased to Rs. 1,060.7 billion compared to Rs. 1,547.0 billion recorded in the corresponding period of 2023. During the year up to December 27, 2024, the Sri Lanka rupee appreciated against the US dollar by 10.1%. The earnings from worker remittances which was at USD 5,399.8 billion in November also saw a 10.1% increase as and with monthly revenue averaging around USD 530.1 million is expected to end the year passing the USD 6 billion mark. Sri Lanka’s total exports for November 2024, including both merchandise and services, were recorded at USD 1,269.33 million, reflecting a marginal increase of 0.04% compared to the same period in 2023. Services exports for the month of November 2024 were estimated at USD 326.23 million, reflecting a 20.89 % increase over the corresponding period of 2023. However, the merchandise export performance in November 2024 amounted to US$ 943.1 million, reflecting a 5.6% decline compared to November 2023. While Sri Lanka passed the 2 million tourism arrival mark the country also touched the USD 3 billion revenue mark from the industry. Total revenue from tourism till end November stood at USD 2,806.5 million and with the country averaging around USD 270 million plus each month the total tourism earnings will surpass the USD 3 billion mark. In 2023 January to November revenue stood at USD 1,798.7 million indicating a 56% increase. With the country averaging over 10,000 daily arrivals per day Sri Lanka is expected to have over 2.1 million arrivals for 2024. (Daily News, 30.12.2024)
The Ferry service between Nagapattinam and Kankesanthurai in Sri Lanka, which was suspended in view of the monsoon, would resume on January 2 next year. Ticket bookings will go live after December 25, the ferry operator announced on Tuesday. The ferry service between India and Sri Lanka was relaunched after a gap of four decades on October 14, 2023. IndSri Ferry Services Limited, a subsidiary of Subham Group of Companies, which operated the passenger ferry, ‘Sivagangai’ between Nagapattinam of India and Kankesanthurai in Sri Lanka, announced the recommencement of the service from January 2 ,2025. The service which operated from August 16, 2024, was suspended on November 5 citing the monsoon. Ticket bookings have already commenced on www.sailsubham.com and we are increasing the service to six days a week and the fare too has been reduced to under Rs. 35,000 per round trip to attract passengers,” said the chairperson of Subham Group, Sundararaj Ponnusamy. “We will operate the ferry service daily except Wednesday.” (Daily News, 30.12.2024)
