SRI LANKA NEWS
(FEBRUARUY 202
Compiled by Victor Melder.
CCPI Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2021=100) increased to It said the Food inflation (Y-o-Y) increased to 3.3% in January 2024 from 0.3% in December 2023, while the Non-Food inflation (Y-o-Y) increased to 7.9% in January 2024 from 5.8% in December 2023. CBSL also said the monthly change of CCPI recorded 2.87% in January 2024 due to the price increases of 1.21% observed in the items of Food category and 1.66% observed in the items of Non-Food category. The core inflation (Y-o-Y), which reflects the underlying inflation in the economy, increased to 2.2% in January 2024 from 0.6% in December 2023.
As expected, inflation accelerated in January 2024 mainly due to tax adjustments implemented at the beginning of the month and weather related disruptions to food supply. A temporary uptick in inflation could be observed in the near term as communicated by the Central Bank. However, such increase in inflation is expected to dissipate over time and inflation is expected to stabilise around the targeted level of 5% over the medium term, supported by well-anchored inflation expectations and appropriate policy measures. (Financial Times, 1.2.2024)
Education Minister of Dr. Susil Premajayantha said that measures will be taken to provide mid- day meals to all 1.6 million children from Grades 1 to 5 in schools from March. The Minister said that Rs. 16 billion has been allocated for the provision of school lunches and according to this, the amount allocated will be increased to Rs.110 per day. The Minister mentioned this while attending the ceremony held at the Education Ministry yesterday (1) for the appointment to the Sri Lanka Teaching Service to 162 graduates recruited to teach foreign languages in National Schools. The Minister said that all the required school textbooks for 2024 have been printed and the textbooks and uniform material will be given to the schoolchildren immediately after the end of the third term. Taking into account the increasing tendency of students to learn foreign languages and global economic trends, as well as the current economic priorities in this country, the objectives are to expand the number of schools teaching foreign languages in the school system and to introduce new foreign languages to schools where language laboratories are currently operating. The appointments were made in accordance with a Cabinet decision regarding the recruitment of qualified graduates as teachers to teach French, Japanese, Chinese, Korean, Hindi and German as subjects in public schools. (Daily News, 2.2.2024)
Former Health Minister Keheliya Rambukwella has been arrested by the Criminal Investigation Department (CID) a short while ago in connection with the importation of substandard Immunoglobulin injections. Rambukwella complied with a court order, arrived at the CID this morning to provide a statement. Maligakanda Magistrate Lochana Abeywickrama had directed Rambukwella to report to the CID at 9 AM on Friday (2) following submissions by Deputy Solicitor General Lakmini Girihagama on behalf of the Attorney General during a court hearing on the controversial human immunoglobulin procurement case. After more than 10 hours of interrogation, the minister was arrested in connection with the matter. (Daily Mirror, 3.2.2024)
President Ranil Wickremesinghe yesterday implied that Sri Lanka is no longer a financially bankrupt country.
In a message to mark Independence Day today, Wickremesinghe recalled that when Sri Lanka commemorated the 75th year of independence, “We encountered the indignity of being labelled a financially bankrupt country.” “Nevertheless, upon the advent of the 76th Independence Day, we have effectively navigated through these challenges, steering the economy toward stability despite numerous impediments and challenges,” said the President. He said that achievements were realised progressively, owing to the steadfast support of citizens who endured hardships in keeping with a comprehensive, long-term national rebuilding program. Throughout this journey, the President assured, challenges will gradually dissipate, life’s burdens will lighten, the economy will fortify and Mother Sri Lanka will undergo a renaissance. He said that upon gaining independence in 1948, global expectations envisioned Sri Lanka evolving into a developed nation in the East, given our favourable background. “Regrettably, we deviated from this course and found ourselves grappling with economic difficulties,” he said. “It is imperative that we obtain insights from past mistakes and avoid their repetition. With the current growth trajectory acknowledged globally, let us collectively resolve on this Independence Day to persist on this path and reinstate prosperity,” said the President and invited all Sri Lankans, at home and abroad, to contribute their utmost energy to the noble mission of rebuilding the nation. (Financial Times, 3.2.2024)
Gross official reserves (GOR) improved to USD 4.4 billion by end December 2023. This included the swap facility from the People’s Bank of China (PBOC) equivalent to around USD 1.4 billion which is subject to conditionality on usability. Workers’ remittances amounted to USD 570 million in December 2023, in comparison to USD 537 million in November 2023 and USD 476 million in December 2022 Central Bank said releasing their ‘External Sector Performance for December 2023’. Exchange rate continued to remain stable during December 2023 and recorded an appreciation of 12.1% during 2023. This appreciation trend continued since then and the Sri Lanka rupee appreciated by 2.1% against the US dollar in January 2024. Foreign investments in the government securities market recorded net inflows of US dollars 210 million in 2023 despite a net outflow of US dollars 23 million in December 2023. Meanwhile, based on the provisional data on departures for foreign employment, departures in December 2023 and departures in 2023 amounted to 22,743 and 297,656, in comparison to the departures of 311,056 recorded in 2022. Earnings from tourism in December 2023 were estimated at US dollars 269 million, in comparison to the estimates of US dollars 205 million in the previous month and US dollars 127 million in December 2022. (Sunday Observer, 4.2.2024)
A team led by Dr. Amila Sasanka Ratnayake, a specialist surgeon at the National Hospital, Kandy successfully replanted the right arm of a thirty-five-year-old woman from Anuradhapura. The patient had faced the mishap while cleaning a coir grinding machine, resulting in the separation of her right hand from below the elbow. The complex six-hour operation, carried out at the Kandy Hospital, involved a team of medical professionals, including plastic surgeon Dr. Udaya Kiridena, plastic surgeon Chamila Jayaratne, orthopedic surgeon Dr. Satira Premaratne, senior registrar Udara Ratnayake, anesthetist Dr. Uduwela, and Dr. Kasun and Dr. Senaka. (Daily Mirror, 4.2.2024)
The Colombo Port achieved a 27.7% increase in trans-shipment volume in January compared to January 2023.The Port is receiving a bigger container volume as major shipping lines are rerouting their ships in view of the Houthi attacks on vessels in the Red Sea. Tran-shipment traffic has increased by 89,778 Twenty-foot equivalent units (TEUs) to 236,571 TEUs at the Jaya Container Terminal. There has also been an increase of 13,437 TEUs at the South Asia Gateway Terminal, whose total volume now is 141,971 TEUs. The Colombo International Container Terminal is currently handling 306,664 TEUs; there has been an increase of 45,545 TEUs in its volume. The total increase in volumes at the Colombo Port has reached 685,206 TEUs, with about 203 vessels calling at the port. The TEU volume at the Hambantota International Port (HIP) too has increased by 26 percent compared to 2022 figures. Earlier, Sri Lanka Port Authority (SLPA) Chairman Keith Bernard said the Port of Colombo was targeting around 7 million Twenty-foot equivalent units (TEUs) of containers in 2024. (Daily Island, 5.2.2024)
Minister Keheliya Rambukwella who is in prison has tendered his resignation from the position of Environment Minister to President Ranil Wickremesinghe. The Daily Mirror learns that the letter has been forwarded to the President’s Secretary Saman Ekanayake and President Ranil Wickremesinghe has accepted the letter. Accordingly the Ministry of Environment will be placed under the President. Keheliya Rambukwella was remanded until the 15th of February over the controversial human immunoglobulin procurement scandal and is currently admitted in the Prison Hospital. (Daily Mirror, 6.2.2024)
The Government has earmarked Rs. 10 billion to cover the expenses of the upcoming Presidential and General elections scheduled for this year. “The funds required for conducting Provincial Council elections and Local Government elections in 2025 are covered by the Budget allocated for that fiscal year owing to the limited financial situation,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting media briefing yesterday. Highlighting the financial limitations, he described that the total revenue of the Government is not sufficient to cover the recurrent expenses. “Balancing the revenue and expenses of a fiscal year is the most daunting task of the Government. We are in the process of finding mechanisms to address the long-term budget deficits incurred and amidst that we have managed to allocate Rs. 10 billion to conduct the Presidential and General elections this year,” Gunawardena explained. In addition to the allocation of funds, the Cabinet has decided to introduce revisions to applicable election laws. These revisions will be made subject to amendments in Parliament, if necessary, based on the recommendations scheduled to be presented by the test commission. The test commission was established under the authority of the Test Commissions Act (Authority 393) No. 17 of 1948, as declared by the Extraordinary Gazette notification No. 2354/06 dated 16.10.2023. (Financial Times, 7.2.2024)
Sri Lanka has announced an increase in monthly allowances for disabled individuals, kidney patients, and elderly citizens, effective January 2024, Finance State Minister Shehan Semasinghe said. Under the revised scheme, monthly allowances for kidney patients and disabled persons will see a notable raise from Rs. 5,000 to Rs. 7,500, while elderly citizens’ allowances will increase from Rs. 2,000 to Rs. 3,000. Beneficiaries enrolled in the ‘Aswesuma’ welfare program, eligible for these allowances, can anticipate the increased payments, which will be implemented retrospectively from January 2024. The disbursement of these enhanced allowances is scheduled to commence on April 01, offering much-needed relief to recipients across the country. Furthermore, the government has extended the validity period for the ‘vulnerable’ and ‘transitional’ social groups until December 31. As part of this extension, the existing categories will be merged, consolidating approximately 800,000 families under the ‘vulnerable’ classification. These families will receive a monthly allowance of Rs. 5,000 until the end of December, replacing the previous allowance of Rs. 2,500 for the ‘transitional’ group.(Daily Mirror, 8.2.2024)
In a recent analysis comparing electricity charges across South Asian countries, Sri Lanka emerges with the highest household electricity costs, prompting concerns among the public regarding the burden on consumers. The analysis, conducted for December 2023 by the Verité Research, sheds light on the stark disparities in electricity charges between Sri Lanka and its regional counterparts. The analysis, which examined tariff revisions and cost structures in February, July, and October 2023, highlights two significant findings that underscore the gravity of the situation: Highest Household Electricity Cost: Sri Lanka stands out with the highest household electricity costs among South Asian countries. Comparisons against the highest cost areas of supply in other countries revealed that Sri Lanka consistently maintains the top position in terms of electricity charges. Disproportionate Burden on Sri Lankan Households: Sri Lankan households are bearing a disproportionate burden, paying approximately 2.5 to 3 times more for electricity compared to their counterparts in other South Asian nations. The analysis, based on households consuming between 100 to 300 units of electricity per month on single-phase lines, excludes any government taxation on electricity. The analysis reveals stark figures. For instance, consuming 100 units in Sri Lanka costs LKR 5,280, while the South Asian average stands at LKR 2,078. Similarly, consuming 300 units in Sri Lanka amounts to LKR 21,860, significantly higher than the South Asian average of LKR 7,340. Despite the planned tariff decrease slated for February 2024, which is expected to result in a marginal reduction of around 4% or less in electricity bills, it falls short of addressing the core issue. Sri Lanka continues to maintain its position of paying the highest prices for electricity in the region, with costs ranging from 2.5 to 3 times higher than those incurred by households in other South Asian countries. The revisions in electricity charges throughout 2023, aimed at recovering the full cost of providing electricity, have sparked public concern and debate regarding the affordability and sustainability of the current electricity pricing structure in Sri Lanka. As households await the implementation of the new tariff structure, questions linger regarding the long-term strategies needed to ensure equitable and affordable access to electricity for all citizens. (Daily Mirror, 8.2.2024)
Labour and Foreign Employment Minister Manusha Nanayakkara today claimed that worker remittances for January have recorded an increase of 11.4 per cent compared to last year. He mentioned this by posting a message today on X, formerly known as Twitter. Accordingly, the worker remittances for January 2024 were recorded at 487.6 USD. (Daily Mirror, 10.2.2024 Health experts in Sri Lanka have sounded the alarm over a noticeable uptick in asthma cases among children, sparking concerns among parents. Dr. Deepal Perera, a Paediatrician at the Lady Ridgeway Children’s Hospital in Colombo, attributed this concerning surge to the prevailing extreme heat. “As schools gear up for sports meets, where children engage in numerous outdoor activities amidst the scorching weather, they become more vulnerable to asthma triggers,” Dr. Perera warned, urging parents to remain vigilant about their children’s health. Furthermore, Dr. Perera emphasized the importance of keeping children away from smoking areas, as exposure to smoke can exacerbate respiratory complications, particularly in those with asthma. “Common symptoms of childhood asthma include shortness of breath, difficulty in breathing and persistent coughing,” he cautioned (Daily Mirror, 10.2.2024)
This priceless gemstone containing a pure water bubble (enhydro crystal) was found in a gem mine in the Eheliyagoda area, recently. A priceless gemstone containing a pure water bubble (enhydro crystal), uncontaminated by industrialization, has been found in a gem mine in the Eheliyagoda area. The National Gem and Jewellery Authority has estimated that this extremely ancient and priceless gem is as large as 110,000 carats. The owner of the gem mentioned that by examining this gemstone, historical facts Sri Lanka can be uncovered. There is something magical about getting crystals with a water bubble inside. Since ancient times, wealthy people have purchased these enhydro crystals to improve their health. People who are interested in these gemstones often keep them in a museum or an antique exhibition site where it can be seen by a large number of people around the world, rather than being used by individuals. Many people believe that rays that are beneficial to the human body are reflected, amplified and focused and energy is transmitted by enhydro crystals. People of bygone ages believed that looking at an enhydro crystal can increase emotional and mental well-being and cure illness. An enhydro crystal is also said to be a catalyst for keeping love and relationships bright. It is also believed that they purify one’s emotional thoughts to act with wisdom and truthfulness. Accordingly, this is known as an ideal charm to be displayed in a public place to promote prosperity, love and health of society. (Daily News, 10.2.2024)
The tourism industry is off to a strong start in 2024 as earnings exceed $ 340 million in tandem with the boost in arrivals. Tourism earnings in January were at $ 341.8 million, reflecting a 122.7% increase from the corresponding period of last year, as per the latest Central Bank data released. Even in a month-on-month comparison, January earnings are 27% higher than December 2023.
It is the highest earnings registered in January since the Easter Sunday attacks in 2019.“Our goal is to build upon the resilience and transform it into a thriving industry by the end of this year. I am confident the arrivals and earnings this year are going to be remarkable,” Tourism Minister Harin Fernando told the Daily FT. Tourism remains an important source of net foreign currency earnings for the country, as the foreign currency outflows on account of inputs are minimal. According to the Central Bank data, between 2014 and 2019, tourism contributed to about 14% of total foreign currency earnings during this period. Unfortunately, Sri Lanka lost around $ 15 billion amidst multiple challenges during the past four years from tourism sector earnings. The Minister expressed optimism about early indications of a significant performance, whilst asserting that it was imperative to maintain the current momentum to achieve the set targets by the year end. “Our effort is to springboard from resilience to make 2024 one of the most successful years in Sri Lanka’s tourism history,” Fernando added. After absorbing the brunt of several Covid19 waves in 2020 and 2021, followed by the crisis-ridden 2022 with adverse global publicity of political instability and economic crux, Sri Lanka’s tourism industry proved its resilience and made a strong comeback in 2023. Sri Lanka Tourism is poised to achieve the ambitious 2.3 million visitors and over $ 4 billion in income by year-end. With anticipation running high for a remarkable winter season, in the first eight days of February, Sri Lanka welcomed 60,122 tourists, with 52,361 arriving in the first week alone. The surge in arrivals has also propelled the year-to-date (YTD) figure to 268,375 raising the confidence of the industry stakeholders. The surge in tourist influx is accompanied by the daily arrival average reaching a new milestone, from 6,718 in January to 7,515 in February so far. Russia (8,755), India (8,369) and UK (5,613) emerged as the top source markets in February so far. India maintains its position as the top tourist source market for Sri Lanka YTD with a cumulative total of 42,768 arrivals, followed by Russia with 39,914, UK with 22,278, Germany with 18,016 and China with 15,778 arrivals. Industry analysts view this upward trend as a welcome development for a sector that has navigated manifold crises over the past few years. “Despite setbacks, Sri Lanka Tourism is now cautiously optimistic and actively working to stimulate the sector, aiming to reclaim pre-crisis levels of activity in the coming years,” they stated. (Financial Times, 12.2.2024)
A total sum of Rs 20 billion is needed for the presidential and general elections, Director General Election commission Saman Sri Ratnayake said. Ratnayake told journalists that he had already informed this matter to Parliament and to the finance ministry. The Presidential election is due this year while the term of the present Parliament would end in 2025. However there are constitutional provisions for the President to dissolve Parliament any time after it completes four and a half years of its term as per the 21st amendment to the constitution. The government had pledged that the presidential election would be held this year while the opposition had alleged that there is a sinister move to abolish the Executive presidency without holding the presidential poll. (Daily Mirror, 12.2.2024)
Florists from various areas from the country yesterday claimed that they had received more customers to buy roses for Valentine’s Day and they used to receive more income. The shop owners claimed that the prices of fresh flowers have come down in comparison to the past year. Last year, the price of a single red rose was Rs. 600. Meanwhile, florists at Ven. Baddegama Wimalawansa Mawatha in Colombo, claimed that a single fresh red rose cost Rs.300. A single red rose wrapped costs Rs.350, while a bouquet of red roses costs Rs. 6,000. Certain bouquets with several roses cost more than Rs. 2,000,” the sellers said. Flower sellers claimed that they had a brisk sales during Valentine’s Day and that more people visited their shops. (Daily Mirror, 14.2.2024)
Sri Lanka has been recognized as one of the seven UN World Restoration Flagships for its ambitious initiative to restore and expand mangrove cover by over 50 percent. The award for the Sri Lanka Mangrove Regeneration initiative was announced by UNEP Advocate for Life Under Water and actor, Jason Momoa. According to the UN Decade on Ecosystem Restoration, Mangrove forests thrive along the border between land and sea and are the first line of defence for coastlines, reducing erosion from storm surges, currents, waves, and tides. Their intricate root system makes them attractive to fish and other organisms seeking nurseries, food, and shelter. This need for the ecosystem’s mitigating effect was dramatically stressed during the 2004 tsunami, which killed more than 30,000 people in Sri Lanka. Following the tsunami, Sri Lanka led a mass-drive to plant mangroves. However, noticing that only approximately three per cent of the planted saplings survived, the country changed tactics: from planting mangroves to nurturing them. By creating the right conditions for mangroves to thrive, the plants started regenerating naturally. Ecosystem restoration on the island is now science-driven, co-led by local communities, and focused on restoring the natural balance in the ecosystem. Thanks to the country’s partnership with the Australian and UK governments, the focus on ensuring growth has already resulted in 500 hectares of newly restored mangroves since the initiative was founded in 2015. Today, this resilient and biodiverse ecosystem provides natural protection against climate change – including cyclones, floods, sea level rise, wave action and coastal erosion –as well as medicine, fish, and other food, especially in poorer communities. In 2015, Sri Lanka became the first nation to legally protect all its mangrove forests and established the National Expert Committee on Mangrove Conservation and Sustainable Use, spurring several actions to protect and manage mangroves including new declarations under the legislations. “Mangroves are one of the planet’s most productive ecosystems. Sri Lanka’s unwavering commitment to their restoration is one of the best possible bargains to be made with nature,” said Inger Andersen, Executive Director of UNEP. “The country’s relentless work on perfecting the planting of mangroves shows how restoration must be a long-term investment. Sri Lanka’s experience is one which many other nations would do well to draw from.” (Daily Mirror, 14.2.2024)
Sri Lanka Tourism Promotion Bureau (SLTPB) is gearing up to introduce a fresh tourism brand — the Buddhist Trail, to tap into the rich cultural and religious heritage of the country. The initiative aims to highlight Sri Lanka’s deep-rooted Buddhist heritage and promote it as a prominent pilgrimage destination in a global scale. “Sri Lanka, as a Buddhist country, holds immense potential to establish a unique tourism brand that resonates globally,” SLTPB Chairman Chalaka Gajabahu told journalists yesterday. At the developmental stage, the Buddhist Trail project aims to emulate the success of similar initiatives like India’s Buddhist tourism circuit and the Ramayana Trail.
“With rich heritage, breath-taking landscapes and profound spiritual significance, Sri Lanka can emerge as a leading destination for Buddhist pilgrimages and cultural exploration on the global tourism map,” he added. Noting that countries such as India, Japan, South Korea, Indonesia, Malaysia, Thailand, Vietnam, China and Cambodia are among the primary target markets due to their historical and cultural ties with Buddhism, he underscored promoting the Buddhist Trail, which extends beyond Asia to include traditional source markets in Europe, US and Australia.
”The decision to include Europe, US and Australia stems from the growing interest in Buddhist philosophy and spirituality among Western tourists. By capitalising on this trend, Sri Lanka Tourism aims to diversify our offerings and attract a broader spectrum of visitors seeking spiritual enlightenment and cultural immersion,” he explained. (Financial Times, 15.2.2024)
The number of children diagnosed with cancer averaged 1,000 a year, Dr. Suraj Perera, Consultant Community Physician of the National Cancer Control Programme said yesterday addressing the media at the Health Promotion Bureau.Dr. Perera said that 37,553 cancer patients had been reported in 2021. ” Of that 2 to 5 percent were children. During the past 17 years, we have witnessed a rise in paediatric cancer. About 17 years ago, there were only about 500 cases annually,” Perera said, adding that 224 children had died of cancer in 2019. Out of them 118 were boys and 106 girls, he said. Consultant Paediatric and Adolescent Oncologist, Dr. Sanjeeva Gunasekera said that out of that number between 250 and 300 patients died. “We can completely cure about 75 percent of children with leukemia. Most paediatric cancers are curable. There are hardly an long term effects of treatments,” he said. (Island, 16.2.2024)
The death toll of wild elephants has increased in a large proportion, much to the anxiety of the wildlife conservators. Director of Wildlife Conservation Department (Protected Area Management) Manjula Amararathe said the death of 470 wild elephants had been reported for 2023 and that 200 of them, including tuskers, had died due to human activities. He said 83 wild elephants had been shot dead: 47 killed by laying the explosive device “Hakka Patas,” 66 by laying electric traps, and another four by poisoning. The official said 70 wild elephants had died of illnesses, natural causes or met with accidents. It included 23 wild elephants that had been run over by train. He said eleven wild elephants had been run over by train and shot dead on September 27, which was the highest ever reported on a day. (Daily Mirror, 17.02.2024)
There were 2,557 deaths resulting from 2,200 fatal traffic accidents in the country in 2023, according to Police Media Spokesman, DIG Nihal Thalduwa. He said that in 2022 there had been 2,515 deaths from 2,395 fatal accidents, and 2,513 deaths from 2,414 fatal accidents in 2021. According to the Police Spokesman, in 2020, there were 2,242 fatal road accidents, resulting in 2,829 deaths. In 2019, there were 2,641 fatal accidents and 3,097 deaths. SSP Thalduwa said that in 2023, pedestrians had accounted for the highest number of fatalities in road accidents, with 740 deaths, and 707 motorcyclists had also lost their lives.The Police Spokesman said the lowest number of fatal accidents, among vehicle categories, occurred involving buses owned by the Sri Lanka Transport Board (SLTB) and container trucks. Thalduwa reported that there had been 75 fatal accidents involving SLTB buses and 14 such accidents involving container trucks. (Daily Island, 20.2.2024)
The Tea industry has begun 2024 with a dip in crop in January. Forbes and Walker Tea Brokers said tea production in January was 18.73 million kilos, down by 2% or 0.4 million kilos from a year earlier. All elevations except for the medium grown elevation have shown a decrease in comparison with the corresponding period of 2023. Compared to 22.87 million kilos of crop in January 2022, the production in January 2024 is down by 4.14 million kilos or 18%. Tea crop in 2023 improved marginally reflecting the struggle for recovery after detrimental policy decisions and climate change. The production in 2023 was 256.04 million kilos, registering an increase of 4.20 million kilos compared with 251.84 million kilos in 2022. December crop was up 0.51% YoY to 19.81 million kilos. (Financial Times, 21.2.2024)
Sri Lanka is poised to develop the country’s offshore wind potential in stages through private sector investments, with the goal of achieving economies of scale. Following a comprehensive feasibility study conducted by World Bank consultants, the Cabinet of Ministers at its meeting on Monday approved increasing the contribution of large-scale renewable energy in Sri Lanka. The study identified the North, West and South-East regions of the country as prime locations with high potential for generating electricity through large-scale offshore wind power plants. “The decision marks a significant step forward in Sri Lanka’s efforts to diversify its energy sources and reduce its reliance on fossil fuels. By tapping into offshore wind power, the country aims to enhance its renewable energy capacity and contribute to global efforts to combat climate change,” the Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post Cabinet meeting media briefing yesterday. He said the decision to pursue offshore wind power aligns with Sri Lanka’s broader commitment to transitioning towards a greener and more sustainable energy sector. The proposal to this effect submitted by the Power and Energy Minister Kanchana Wijesekera was approved by the Cabinet of Ministers. (Financial Times, 21.2.2024)
The Government will implement measures allowing the use of the English language in select Courts related to matters on international trade and commerce to streamline activities and reduce the time and cost associated with translating legal documents. The move comes in response to challenges faced by entrepreneurs in settling commercial disputes, which have contributed to Sri Lanka’s lower ranking in the Ease of Doing Business ratings. “Currently, the translation of international trade and commerce content into the State language —Sinhala entails significant time and expense. This process has resulted in prolonged periods for resolving commercial disputes, placing entrepreneurs at a disadvantage and hindering the environment for business and investment in Sri Lanka,” the Cabinet Co-Spokesman and Minister Bandula Gunawardena said. Speaking at the post-Cabinet media briefing yesterday he noted that the measure is taken in line with the provisions of the Constitution to expedite legal processes and enhance the ease of conducting enterprises in the country. “By embracing the use of English language in commerce-related matters, the country aims to enhance its competitiveness and attractiveness as a destination for business and investment,” he added. The proposal to this effect submitted by Justice, Prison Affairs and Constitutional Reforms Minister Dr. Wijeyadasa Rajapakshe was approved by the Cabinet of Ministers at its meeting on Monday. (Financial Times, 21.2.2024)
Minister of Labour and Foreign Employment Manusha Nanayakkara has informed the top management of the Sri Lanka Foreign Employment Bureau (SLBFE) and the Association of Licenced Foreign Employment Agencies (ALFEA) yesterday to submit proposals and plans immediately to completely stop sending Sri Lankan women overseas to work as domestic aides. Minister Nanayakkara taking to his X account (formerly Twitter) has emphasised the importance of stopping unskilled workers as domestic aides and encouraging skilled workers for job opportunities where they can get higher salaries. Therefore, the Minister during yesterday’s discussion has informed ALFEA to get in touch with all relevant parties involved in the sector to submit this proposal to him to completely stop the sending of domestic workers for foreign jobs within the next ten years. (Ceylon Today, 22.2.2024)
Sri Lanka’s inflation expanded by 6.5 percent year-on-year in January, as the prices rose across almost all categories from the one-off impact from the higher Value Added Tax and supply chain disruptions caused by the weather-related conditions. On a monthly basis, as measured by the National Consumer Price Index, the prices rose by 3.0 percent in January, from 1.4 percent a month ago, reaching the highest increase recorded in more than a year The prices measured by the broader consumer price index followed the closely watched Colombo Consumer Price Index released three weeks ago, which also had a reading of 6.4 percent for January, from 4.0 percent in December. The recent price pressures aren’t surprising, as the authorities were expecting the price gauges to reach in the neighbourhood of 7.0 percent in both January and February. Meanwhile, the so-called core national prices, measured stripping out the food, energy and transport categories, which are considered as often volatile, rose by 2.2 percent in the 12 months to January, from 0.9 percent through December 2023. Meanwhile, the food prices rose by 4.1 percent in January, sharply accelerating from 1.6 percent from December, while the prices measured on a monthly basis rose by 2.6 percent, decelerating from 3.6 percent in December. The prices in almost all commodities in the food basket rose during January, from December levels, except in just four types. Non-food inflation, which mainly captures the energy and services in the economy, logged an 8.5 percent increase, from 6.3 percent in December, on an annual basis. On a monthly basis too, the prices rose sharply by 3.2 percent, flipping from a decline of 0.3 percent in December. Almost all categories in non-food inflation registered price increases in January over the December levels, led by the increase in housing rent, prices of petrol and L.P. gas. As people are beginning to venture out more often for recreational activities, there is more pressure on non-food prices, as seen from the index, because what people spend at restaurants and hotels continues to rise. Outlays on education had a considerable bearing on parents’ pocketbooks in recent times, as tuition fees had risen sharply in January. (Daily Mirror, 22.2.2024)
In a move to bolster Sri Lanka’s position as a leading exporter of king coconuts, exporters have agreed to uphold prices at 2000 rupees per fruit, announced Minister of Agriculture and Plantation Industry, Mahinda Amaraweera. The decision came amidst plans to expand king coconut cultivation, with the inauguration of the second king coconut cultivation village near Murutawela Raluwa village. The inauguration ceremony, presided over by Minister Mahinda Amaraweera, marked the establishment of the second king coconut cultivation village, following the success of the first village in Pahala Muruthawela last year. The initiative aims to meet the growing demand for Sri Lankan king coconuts, particularly in the United Arab Emirates and other international markets. With approximately 252,000 king coconuts exported to the UAE weekly, the industry generated an impressive income of two billion rupees in 2022, with expectations soaring to six billion rupees in 2023. Sri Lanka’s monopoly in the world market for king coconuts remains unchallenged due to the unparalleled taste and quality of its produce. (Daily Mirror, 26.2.2024)
Sri Lanka has been added to the list of 22 heavily indebted countries facing controversial surcharges imposed by the International Monetary Fund (IMF) from recently. These additional payments, aimed at countries whose outstanding credit to the IMF’s main account exceeds 187.5 percent of their quota, have stirred debate and concern. A recent report by the United States-based think tank, Center for Economic and Policy Research (CEPR) highlighted that Sri Lanka is among the latest additions to this list, joining countries such as Benin, Côte d’Ivoire, Kenya, Moldova, North Macedonia, and Senegal. Sri Lanka’s inclusion underscores the financial challenges faced by these nations. Accordingly, the island nation is subjected to surcharges following the disbursement of two tranches amounting to US$ 670 million out of the US$ 3 billion Extended Fund Facility (EFF) approved by the IMF. The facility is 395 percent of Sri Lanka’s SDR quota with the IMF. As per the Fund’s recently unveiled Query Tool, Sri Lanka is liable to pay US$ 1.06 million (SDRE 803,360) in GRA Level Based Surcharges from this February to the end of this year alone for funds disbursed so far. The IMF’s surcharges come in two forms: level-based and time-based. Level-based surcharges are imposed when a country’s outstanding credit exceeds the specified threshold, while time-based surcharges are levied on debt outstanding for three or more years. These measures vary depending on the lending facility, reflecting IMF’s efforts to manage and mitigate risks associated with high debt levels. IMF’s Surcharge policy which has been in effect since 1997 has been under heavy criticism from global leaders – economists to civil organisations. Given its pro cyclical nature, CEPR elaborated that surcharges effectively punish countries facing severe liquidity constraints, increase the risk of debt distress, and divert scarce resources that could otherwise be used to fund health care, climate action, or other social and development needs. While surcharges were aimed at disincentivising overreliance and supporting maintaining its precautionary balances, CEPR pointed out that both arguments do not hold any validity as shown by IMF’s data. “..the net increase of six surcharge-paying countries in less than a year, and the significant growth in total surcharge payments, indicate that this burden is only growing. These payments are unnecessary for the IMF to maintain its precautionary balances well above target levels,” it added. (Daily Mirror, 23.2.2024)
Plastic wastes account for about 10 percent of the waste collected by local authorities, out of which about 70 percent is packaging plastic such as single-use plastic (SUP) shopping bags (40%) and lunch sheets (10%), according to a survey conducted by the Japan International Cooperation Agency (JICA). JICA conducted a survey through “Project for Strengthening Plastic Management Capacity” launched in September 2023 on the current situation of plastic waste management, which was not grasped in the past. The main findings of the survey so far are summarized as below, while the survey will continue with more samples to improve its accuracy. The 49 recycling facilities surveyed nationwide have overall capacity to recycle 152 tons of plastic per day; however, the actual amount recycled is only around 100 tons per day. In addition to PET, PP (polypropylene, such as plastic chairs, sorted e-waste, household items, etc.) and PE (polyethylene, such as HDPE bottles, polysacks, LDPE household containers, plastic bags, etc.) are largely recycled. The survey of public opinion on SUP in the Western Province revealed that, except for shopping bags and lunch sheets, more than half of the respondents believe that SUPs are replaceable and unnecessary. Based on these results, actions to improve plastics management will be discussed furthermore. For this purpose, a JICA team visited the Faculty of Applied Sciences of Sri Jayewardenepura University, the only faculty in Sri Lanka with a Polymer Science Department, to discuss the collaboration. In lectures given by JICA officer and experts, both lecturers and students showed great interest in the findings on plastics management, which was unprecedented in the past. Collaboration among industry, government, and academia is crucial to solve the problem, and JICA will continue proactive dialogues with various stakeholders. (Daily Mirror, 27.2.2024)
