Sri Lanka News in Brief-July 2018 Compiled-BY Victor Melder

SRI LANKA NEWS IN BRIEF–

JULY 2018 COMPILED

BY VICTOR MELDER

Sri Lanka’s leading ornamental fish exporter Aquamarines International (Pvt) Ltd., was established in 1963 and operates as a BOI enterprise. The company specializes in breeding of ornamental fish particularly varieties of tropical sea fish and invertebrates targeting Exports markets in the United States, Europe and Far East. The Chairman and founder of the Company of the Company is Mr. Ananda Pathirana. Mr. Pathirana stated that throughout the Company’s existence, BOI had always been supportive and fostered the growth of this industry. The main facility is at Ratmalana but the hatchery is located at Ja-Ela. The company has currently about 80 employees. The most remarkable aspect of this company is the fact that they are the only company that breeds sea horses and pipe fish in Sri Lanka. The fish bred at Ja-Ela are imported varieties. For example sea horses are originally from Brazil while the pipe fish originate from Indonesia. The Ja-Ela facility is built on five acres of land and includes many breeding tanks for the fish and marine invertebrates such as cleaner shrimp. Another popular variety bred by the company are cleaner shrimp which are a local variety of brightly coloured invertebrates. Most of the tanks are devoted to the breeding of sea horses which include several containing tiny hatchling sea horses which are barely half cm in length, to other tanks holding fully grown adult sea horses. The breeding of sea horses is complex as it is the male fish that carries the eggs and a total of 300 to 400 are born alive. The company also breeds about 200 varieties of brightly coloured clown fish which are the mainstay of Aquamarines International (Pvt) Ltd. Mr. Perera stated that the export demand for Clown fish is in fact a little higher than that for sea horses. Several of these Clown fish varieties are rare including the variety known as “Platinum” which fetches high prices because it is difficult to breed. Sri Lanka is a major exporter of ornamental fish with markets in the USA, Japan and the European Union. There are about 40 regular companies in Sri Lanka of which several are BOI enterprises that engaged in breeding and exporting these ornamental fish. The market is divided into several components that include marine, freshwater, and brackish water fishes and marine invertebrates. Marine fish and invertebrates are collected by experienced scuba divers from waters around the island. More important is the freshwater fish industry where the fish are commercially bred. Most freshwater fish exported from Sri Lanka are freshwater varieties such as Guppies Swordtails, Platies, Tetras, Angels, Gouramis and Catfish. Of these the single biggest category are fancy Guppies which constitute about 60 – 70% of the market of freshwater fish exported from the Island. It is estimated that Sri Lanka’s Aquarium Fish industry grows at approximately 4.7% annually. Sri Lanka’s market share is 2.7% of an estimated world market valued at around US$412 million. In the future the focus will be on high value marine ornamental fish of which many are rare or endemic to Sri Lankathat will be bred by local exporters of ornamental fish. (BOI news release) (Sunday Island, 1.7.2018.)

Expenditure incurred on Sri Lankans’ tobacco and cigarette consumption surpasses the annual cost for milk powder imports and relatively, the annual export revenue from EU GSP Plus, Industry and Commerce Minister Rishad Bathiudeen said. He said, ‘Reports say that Sri Lankan consumers spend more than Rs 200 million per day for cigarettes. According to the World Health organization in 2015 the direct and indirect cost of tobacco use in Sri Lanka was estimated at Rs.89 billion or US$ 662 million’. ‘In that, we annually spend more than $ 660 million for tobacco use and resulting expenses. When we compare this $ 660 million with some other important values we can understand the huge cost for the economy from tobacco use’, he said. Elaborating on study’s made on tobacco and cigarette expenditure the Minister said, “For example, we spend US$ 400 million a year to import milk powder to be used by our households and hotels.  The $660 million we spend for tobacco use is 55% higher than our annual bill for the milk powder imports’. .Furthermore, the Minister said, ‘The other example is that Sri Lanka’s annual expenditure on tobacco use is even higher than the additional export income from EU GSP plus which is around $480 million. In that, our annual tobacco and cigarette expenditure is 37% higher than our annual GSP Plus income alone’.  ‘Another example is that this annual tobacco cost is equal to total flood and landslide damages incurred by Sri Lanka in both 2015 and 2016’ he said. ‘These simple examples show the huge cost to our economy from tobacco use’.  ‘As for tobacco production it is reported that more than 3300 metric tonnes of tobacco are produced in Sri Lanka. When it comes to cultivation only a very small percentage of lands are used at 0.07 percent of all agricultural lands only taken by tobacco’. Tobacco expert panel indicated that Tobacco is considered as an Industrial Crop, more than a commercial crop and since the bulk of the harvest is used for nicotine products, it immediately ends up in industrial/machine processing, unlike many other commercial crops. Among all types of full time farmers in Sri Lanka, tobacco farmers are one of the most profitable, earning regular margins of 20% or higher. The ban on tobacco cultivation in Sri Lanka is scheduled to start from 2020. Importation of cigarettes and tobacco also will be banned from 2020, the Minister said. (Daily  News 6.7.2018)

Tea prices have dipped at all elevations signaling a crisis, with brokers’ reports indicating an overall 2018 average of Rs. 543.85 (USD 3.44) in comparison to the 2017 average of Rs. 597.16, recording a Rs. 53.76 minus factor. The loss factor was based on assessments being the Net Sales Average (NSA) for all teas sold. The elevation averages also had no good news. High growns were Rs. 531.45 during the same period in 2017, but dropped to Rs. 495.04 in 2018. The explanation was that Kenya, Rwanda, Vietnam, China, India and some other African countries increased their black tea production. Availability of teas in larger quantities affected Colombo, reflecting adversely on the Ceylon Tea Brand. These countries increasing their black tea production will lead to a crisis in Colombo, brokers warned. Although, this year high growns were priced lower, they maintained their ‘good tea’ brand image. But such comment had to be looked at in the context of Japan’s Maximum Residue Level (MRL) problem not yet closed, with Tokyo not resuming their purchasing levels of early last year, they said. Low growns were recorded at levels of Rs. 670 in 2017. But June levels in 2018, as already remarked, dropped to around Rs. 580. The variance was quite substantial, brokers said. Tea production increased this year to about 136 million kilos, up 5.6 million kilos from a year earlier. India, Vietnam, China, Malawi and Tanzania were named as other countries recording increased production. (Sunday Island, 8.7.2018).

The latest round of the Census of Public and Semi Government Sector Employment was conducted by the DCS between 9.30am and 11.30am on 17 November 2016 and it is the eighth in the series of such censuses. The findings presented here, are based on data gathered through questionnaires personally completed by more than 1 million employees in these two sectors. This census did not cover the uniformed staff of the three forces: Army, Navy and Air Force. The total number of employees in the Public and Semi Government sectors excluding uniformed staff of the three forces: Army, Navy and air Force, as at 17th November 2016 was enumerated as 1,109,475. Of the total employees, 55.1 percent are males; 44.9 percent are females. In any employment census, it is usual to determine the employees as a percentage of the total population and as a percentage of employees of all sectors (including all other sectors). Total number of employees is estimated quarterly as well as annually through Sri Lanka Labour Force Survey conducted by the DCS. Public and semi government sector employees constitute five percent of the population in the country. The proportion is the same across provinces, with the exception of North Central and Uva Provinces where it is six percent and the Western Province where it is four percent. As a proportion of all employees i.e. in all sectors, public and semi government employees are 14 percent. This proportion is highest (18 percent) in the Eastern Province and lowest (11 percent) in North Western and Sabaragamuwa provinces. The majority of employees (65.3%) are attached to institutions coming under the central government – 43.8 percent public sector and 21.6 percent in semi government. The remaining 34.7% provincial employees. Of them almost all (34.3%) are public sector employees. Only 0.4% are in the provincial semi-government sector. (Daily Island, 10.7.2018)

Nearly one third (31.1%) of prison officers were found to be suffering from state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress known in medical parlance by the term burnout, Dr Nimali Wijegoonewardene said. Dr Wijegoonewardene of the Ministry of Health, who conducted a research on 1,803 prisons officers, has found that more than one third (37.8%) of them are suffering from a sense of reduced personal accomplishment. The research titled ‘Burnout among Correctional and Rehabilitation Officers working in Sri Lankan prisons: Prevalence, Correlates, Association with Health-related and Organizational Outcomes and adopted coping strategies’ found that married officers were less burned out. “Feeling overburdened by housework and feeling that family life was adversely affecting work life, were found to be associated with higher burnout? Those who were working in Closed Prisons, Remand Prisons and Work Camps were more burned out.” Dr Wijegoonewardene said that feeling of perceived difficulty of shiftwork and feeling of perceived difficulty of taking leave were associated with higher burnout. “Burnout is a state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress. It occurs when you feel overwhelmed, emotionally drained, and unable to meet constant demands,” she said. “Work overload has been identified as an important associate for burnout. Those who found the welfare facilities to be poor and work environment to be poor were more burned out. Not having a clear idea about their duty was associated with higher burnout while poor relationship with colleagues was one of the most significant associates for higher burnout, she said. She has observed that the prisons officers who perceived poor respect from inmates are more susceptible to burnout. Job dissatisfaction was significantly associated with higher burnout. Sleep difficulties, dissatisfaction with life, poor organizational commitment, higher intent for turnover and short-term absenteeism were found to be predicted by burnout. Prison officers practiced various types of coping strategies, both adaptive and maladaptive, she said. (Daily Island, 10.7.2018)

Sri Lanka is to have a third International Airport that will be constructed in Hingurakgoda as per the master plan that had been drawn up for the development of Trincomalee, which was launched in Colombo. The Hingurakgoda International Airport is in line with the vision highlighted in the plan to develop Trincomalee as the Eastern Gateway to Sri Lanka by the year 2050. “Trincomalee would be re-positioned as the ‘Eastern Tourism Hub with increased regional connectivity realized through the Colombo-Trincomalee economic corridor development and the proposed Hingurakgoda International Airport,” the vision framework of the plan said. Prime Minister Ranil Wickremesinghe said the roadmap to develop Sri Lanka as the hub of the Indian Ocean will be completed with this master plan. “When Sri Lanka was a hub in the Indian Ocean in the old days there were several ports. Today we have focused on the Colombo Port and Hambantota. Colombo will be important with the development of the Western part of India as well as the development taking place in Iran. Ships which use the Suez Canal to get to countries such as Singapore go past Hambantota which thus makes developing the Southern Port even more important. Countries in the Bay of Bengal region will develop greatly within the next 20 years. Populations in that region will reach three billion by 2050. Therefore, we will have to develop Trincomalee as the Eastern gate,” he said. He said what was left now was for the government to come up with a development plan for Jaffna. (Daily Mirror, 12.7.2018)

Cabinet approval was granted this week to establish an Elephant Retention Centre in Dippin Estate, Kalawana, Ratnapura for the two elephants living in the Sinharaja Reserve. The Wildlife and Sustainable Development and Regional Development Ministry had proposed that 36 hectares of land be acquired for this purpose. The land will be in the Parugala area (Dolekanda Grama Niladhari Division) in the Dippin Estate. This land currently belongs to the Hapugastota Estate and the government would pay a sum dictated by the Government Valuation Department to take it over. There was wide public protest including opposition from UNESCO who had declared Sinharaja as a World Heritage Site, when the Ministry had proposed moving the two elephants to the Wildlife Retention Centre in Horowpathana. In 1940, there were 18 elephants in the Sinharaja area but by 1980 this number had gradually decreased to three. One of them disappeared in 2007. Both natural and human causes have led to this decline.Since1998, 15 persons had been killed as a result of elephant attacks in the areas closer to Sinharaja, with 20 vehicles damaged. Daily News, 12.7.2018)

Enhanced fines for motor traffic offences come into effect from today (July 15). Ten new offences have been included in fines that have been increased. The existing 23 traffic offences have been pushed up to 33 with provision for spot fines, according to Director of Traffic Administration and Road Safety SP Indika Hapugoda. he said the. Traffic fines for additional offences have been amended to Rs.1,000 as a minimum fine and a maximum of Rs.3,000. The fine for breaking speed limits has been increased to Rs. 3,000 from Rs.1,000. The fine for high speed will have to be paid within 14 days after which the offender will have to pay double,” SP Hapugoda said. The fines applicable to the carriage of persons in excess of authorized number in private coaches and of goods other than personal luggage in motor cars or private coaches, carriage of persons or passengers in excess, authorized number of goods other than personal luggage in omnibuses, carriage on lorry or motor-tricycle van of goods in excess of the maximum load or maximum axle load, exceeding the number of persons carried in a lorry and failure to carry the emission certificate or fitness certificate of a vehicle have been revised to Rs. 500. (Sunday Island, 15.7.2018)

The Government is to invest more than US$300 million (Rs.47.8 billion) to reclaim land for a new beachfront from Kollupitiya to Dehiwela. The Cabinet has given approval for the project, Under the ambitious project, some 85 hectares of beach land will be reclaimed through landfill. The National Aquatic Resources Research and Development Agency (NARA) has been given six months to prepare a feasibility report before the project is started. An Environment Impact Assessment (EIA) study also is underway. The Coast Conservation Department and the Finance Ministry’s National Planning Department have granted approval for the project. The beach will be developed as a Public Private Partnership (PPP) with an estimated investment for the reclamation work alone costing more than US$ 300 million. “This artificial beach will complement the port city project. This will create a world class beach with numerous leisure activities and is expected to attract thousands of visitors,” Project Director D.E.C.Jayakody said. According to Rear Admiral Jayakody, the landfill will begin at Kollupitiya with the beach being extended some 80 metres towards the sea. The width will be increased to around 200 metres when it reaches Dehiwela. He said there would be special breakwater systems so that throughout the year the water levels could be controlled and the sea made safe for visitors, particularly sea bathers. Read Admiral Jayakody said that of the 85 hectares to be developed, around 20 hectares would be for commercial development by the company selected for this project. “We plan to go for a lease agreement of 30-40 years. The developer company can build both commercial and residential buildings on the land allocated to it,” he said. Among the envisaged attractions of the artificial beach are a world-class aquarium, a sea plane operation unit, water sports and wreck diving to see shipwrecks around the coast. A safe sea bathing area will be demarcated for the visitors. “The entire area will be able to accommodate up to 50,000 people at any time and will include a park for 3,000 vehicles,” he added.. Once the feasibility study is completed, international bids will be called by January next year to develop the artificial beach. “We hope to have the landfill completed within one and half years,” the Rear Admiral said. (Sunday Times, 15.7.2018)

The military is handing back to the original owners another 522 acres of private land under its control in the Jaffna Peninsula, a senior army officer told the Sunday Times. The military is still occupying 3,100 acres of private land in the peninsula. According to Military Spokesman Sumith Atapattu, the military has already given back 3,800 acres of land to the owners. “We have received part of the money from the Ministry of Rehabilitation to relocate our military camps and as soon as we receive the balance, we will be able to release most of the remaining lands to their owners,” he said. The military has asked the Rehabilitation and Resettlement Ministry for Rs. 880 million to relocate military installations in privately owned lands. Brig. Atapattu said that in Valikamam North there were some lands that the military needed for national security reasons and this could not be compromised. Jaffna’s Additional District Secretary (Lands) K. Maheswaran said that though the military had released 3,800 acres of privately owned lands back to their owners, many could not return to their lands because there were no houses for them “The Rehabilitation Ministry needs to construct another 28,000 houses to enable them to be resettled in their original lands,” he said.
Last month, in Thelippalai, Karachchi and Maritimepattu, the military released 120 acres to their original owners. Since 1990, 27,000 acres of private lands had been occupied by the military in the north. However, with the end of the war in 2009, the government started to return such lands to the original owners. (Sunday Times, 15.7.2018)

China has offered 2 bn yuan as a grant for him to invest in a project of his choice. President Sirisena has decided to utilize the Chinese outright gift (Rs 48 bn) to launch a countrywide housing programme. Addressing a gathering at Polonnaruwa on Saturday (July 21) at the launch of the construction of a specialized 200-bed hospital to treat kidney patients’ courtesy China, President Sirisena revealed how the Chinese leader Xi Jinping offered 2 bn Yuan for a project of his choice. A smiling President said that Colombo-based Chinese Ambassador Cheng Xueyuan about had visited him at his official residence where the offer was made, about two weeks back, during talks to finalize the launch of the hospital project. President Sirisena quoted Ambassador Xueyuan as having told him that China wanted a project proposal within one week. The President said that he decided to utilize the entire grant to build houses in all administrative districts. The President said that the project proposal would be handed over to China this week. He said that Rs 1 mn would be spent on each house. The latest Chinese grant has come in the wake of an allegation that China funded former President Mahinda Rajapaksa’s 2015 re-election bid. (Daily Island, 23.7.2018)

Government plans to fix meters to tube wells and wells exceeding 12ft in diameter to safeguard the groundwater table and reduce excessive use of water by industries, State Minister of Irrigation and Water Resources and Disaster Management Palitha Range Bandara told Parliament yesterday.  With the recent drought, people drilling tube-wells have threatened the water table. However, the measures proposed by the Government will enable the Water Supply and Drainage Board to remotely monitor the use of water. The State Minister, responding to Chief Opposition Whip JVP MP Anura Dissanayake, explained: “A tube-well needs to be drilled exceeding 800 – 1,000ft in Chennai to reach the water table. This is due to the overuse of groundwater. In certain areas of Sri Lanka, the groundwater tables are affected due to uncontrolled tube-wells and large wells. Fixing of meters will control the use of tube-wells and the consumption. However, these meters are intended for large scale industry players, and we will bring in cheaper meters for others. We have no intention of charging for the usage, but will monitor the usage for future purposes and to get ready for adverse weather patterns.”The extraordinary Gazette notification 2010/23 of 17 March 2016 has specified the rule of water use and the fixing of meters. Agreeing with the Minister on the efforts taken to safeguard the water table, MP Dissanayake highlighted that farmers will find it difficult to pay Rs. 250,000 per water meter, and also may put a concrete cover over the well to cover the unauthorised use. (Daily Financial Times, 23.7.2018)