SRI LANKA NEWS – MARCH 2023 – by Victor Melder.
Sri Lanka’s inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) declined to 50.6 percent in February 2023 from 51.7 percent in January, the Department of Census and Statistics reported Tuesday. The CCPI for all items for the month of February 2023 marginally increased to 189.5 from 188.6 in January. The Year on Year inflation of Food Group decreased to 54.4 percent in February from 60.0 percent in January and the Year on Year inflation of Non Food Group increased to 48.8 percent in February 2023 from 47.9 percent in the previous month. For the month of February 2023, on year‐to‐year basis, contribution to inflation by food commodities was 17.23 percent and the contribution of Non Food items was 33.36 percent. The Department of Census and Statistics (DCS) following internationally accepted guidelines, has revised the base year from 2013=100 to 2021=100 in order to accommodate the changing expenditure patterns and incorporate changes of goods & services available in the market. Accordingly the data with respect to the new base, CCPI (Base 2021=100) will be released monthly commencing from February 2023. DCS emphasizes that index numbers or inflation figures compiled under different base years cannot be compared. (Colombo Page, 1.3.2023
The Cabinet of Ministers at its meeting on Monday has cleared a proposal by President Ranil Wickremesinghe to prepare a law to set up a contributory pension fund for new public sector employees.“The proposed contributory fund will help State workers get a pension without being a burden to the country,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said.Accordingly, the employees will contribute 8% and the Government will contribute 12% to the fund.“Public sector employees who joined after 2016, can also opt to join the scheme voluntarily,” he added. He also recalled that a contributory pension scheme was proposed by the 2001 Government to strengthen the State finances, but was not implemented by the regime elected thereafter.At present Sri Lanka has over 1.5 million public sector employees and the size had doubled over the past 15 years. The State sector workers are paid by tax revenue via an unfunded pension scheme. (Daily Financial Times, 1.3.2023)
The Export Development Board (EDB) said Sri Lanka’s export income is becoming stable and the merchandise export income in January this year has exceeded the US$ 1 billion limit. the total merchandise export income in January is USD 1,000.9, the EDB said. According to the data issued by the Sri Lanka Customs, however, Sri Lanka’s merchandise exports decreased by 8.98 % to US$ 1,001.9 Million in January 2023 compared to January 2022 while it is a 6.97% increase when compared to January 2021 The highest export earnings in January this year was recorded from Apparel and Textiles and the amount is 423.13 million US dollars. Earnings from the Tea is at USD 99.56 million and from the Rubber based Products it is 75.89 million US dollars, the EDB said. (Colombo Page, 4.3.2023)
Sri Lanka is among the countries to collect the least amount of fiscal revenue in the world, with tax revenue to GDP ratio at only 7.3 percent in 2021. According to the IMF, external creditors are not willing to provide financing to fill this gap. Peter Breuer, Senior Mission Chief for Sri Lanka, and Masahiro Nozaki, Mission Chief for SriLanka, IMF said that tax reforms are needed to correct the imbalance. “Only with appropriate tax receipts will the Government will be able to fund essential expenditures, and avoid further slashing of critically important outlays. These reforms will also help regain confidence of creditors,” the IMF said. The two officials said that efforts to increase tax revenues should be pursued in a growth friendly manner while protecting the poor and most vulnerable. “It is however also important that those who can most afford it, make commensurate contributions to the financing of the necessary government expenditures,” the IMF said. The IMF said that the tax package the authorities have introduced, including the new tax rate schedule for the personal income tax, helps to meet these objectives. “The tax rates proposed under the authorities’ programme are also in line with international comparison,” the IMF added. The IMF also said that it understands the hardship people of Sri Lanka are experiencing at this time .“Increases in the cost of living, loss of employmen tand livelihood, and falling real incomes have hit large parts of the population, and particularly the poor and vulnerable whohave no buffers to withstand these hardships,” the IMF said. (Daily Mirror, 4.3.2023)
The tourism industry has managed to rebound with earnings exceeding $ 330 million in tandem with the boost in arrivals in 2023. The industry hit by multiple challenges post-Easter Sunday was the most vulnerable to COVID-pandemic and then to the adverse publicity of political and economic crises ‒ but it has proven again its resilience with a remarkable resurgence. Tourism earnings in the first two months of 2023 were at $ 331.7 million reflecting a 3.3% increase from the corresponding period of last year, whilst February earnings stood at $ 169.9 million, as per the latest Central Bank data released. “Our attempt is to springboard from resilience to become a more thriving industry by the end of this year,” Tourism Minister Harin Fernando told the Daily FT. He expressed optimism about early indications of a significant recovery, whilst asserting that it was imperative to maintain the current momentum to achieve the set target of 1.55 million arrivals and over $ 2.88 billion in income in 2023. Sri Lanka lost over $ 10 billion in foreign exchange earnings, which generate over $ 4.3 billion annually, due to the pandemic during the past two years. For the first time after 2019, Sri Lanka Tourism recorded over 100,000 tourist arrivals in two consecutive months of 2023.After absorbing the brunt of many COVID waves in 2020 and 2021 and political instability and economic crisis in 2022, Sri Lanka’s tourism industry has made a strong comeback in 2023. As per data released by the Sri Lanka Tourism Development Authority, Russia leads as the top source market in February, reflecting 27% or 29,084 of total arrivals, followed by India with 13% or 13,714, the United Kingdom with 8% or 8,575, Germany with 7% or 7,930, and France with 6% or 6,118. In addition, tourists were also welcomed from Canada, Australia, the US, Israel and the Maldives. The influx of Russians places it to remain strong as the top tourist source market for Sri Lanka YTD with a cumulative number of arrivals at 54,338, followed by India with 27,473, the UK with 17,058, Germany with 16,147 and France with 10,958. “We are excited about 2023, as plans are underway to make Sri Lanka a year-round destination,” Fernando added.(Daily Financial Times, 7.3.2023)
The expiry dates of the tear gas fired by the police in the Galle Face struggle had passed way over 20 years with some manufacturing dates going back to 2000. And 6,000 such canisters had been used in the first four months of the Aragalaya alone compared to 2, 000 rounds fired during the last 10 years, an exclusive report revealed today. The police have purchased about 40, 000 canisters of tear gas in the last ten years since 2012 and over 8, 000 had been used in various protests since then, out of which over 6, 000 had been fired during the height of the Aragalaya from the incident outside ex-President Gotabaya Rajapaksa’s residence in Mirihana in March 20022 to July 2022. An exclusive report released by the investigation team of the Centre for Society and Religion (CSR) led by freelance journalist Tharindu Jayawardena with the backing of the Right to Information Commission disclosed many startling facts about the condition of the tear gas used by the police during the Aragalaya. The report titled ‘Tear Gas – Tears of Twenty Million’ was released to the public at the CSR Auditorium yesterday, that revealed the police have used tear gas in numerous instances, which were supposed to have passed its expiry dates about 10 to 20 years. The expiry period of a canister is usually five years but we have evidence that police used gas purchased in 2000, 2005, 2011, 2012, 2014, 2017 and 2019. This is clear violation of public health as these gases are used to disperse crowds and not to kill them with respiratory and other complications. Whereas about two to three deaths reported during the Aragalaya were owing to complications that rose in tear gas attacks. (Daily Mirror, 7.3.2023)
Sri Lanka’s national carrier, SriLankan Airlines celebrated International Women’s Day today (08) by operating an all-female flight. SriLankan Airlines flight UL131 operated by an all-female crew departed Colombo for Trichy, India this morning and returned today. The flight was piloted by Captain Chamika Rupasingha, First Officer Bimalee Jeewandara accompanied by Chief of Flight Staff Roshani Dissanayake, Cabin Supervisor Upuli Warnakula and flight attendants Lakmini Dissanayake, Jayakalani Kinson and Harshi Walpola Kankanamalaghe. (Colombo Page, 9.3.2023)
The human-elephant conflict has left 14 humans and 74 pachyderms dead so far this year, according to the Department of Wildlife Conservation. The highest number of elephant deaths were reported from Anuradhapura 18, Eastern Region 18 and Polonnaruwa 15. Sri Lanka is said to have the highest density of elephants in the world. Conflict between humans and elephants is an ongoing problem leading to the deaths of 145 people and 433 elephants, last year alone. The Wildlife Department is in the process of giving compensation to people to be evicted from around 16 elephant corridors, countrywide. It is confident that it will be able to clear the 16 corridors this year. (Daily Island, 9.3.2023)
The foreign remittances of Sri Lankan migrant workers have increased to US$ 407.4 million in February 2023 from US$ 204.9 million in February 2022. This is a 98.8% (USD 202.5 million) increase compared to the inflows recorded in February 2022. (Ceylon Today, 11.3.2023)
The government had printed 278 billion rupees in the last few months of 2022 and its claim that there was no money for elections was absurd, Opposition leader, Sajith Premadasa said in Parliament on Thursday. “The government printed Rs 278 billion between October and December 2022. We need only Rs. 10 billion for elections,” he said. “The government has tried to derail the local council elections 22 times,” the Opposition Leader said.(Daily Island, 11.3.2023.
A research team in Sri Lanka was successful in identifying two new species of geckos that are endemic to Sri Lanka in the isolated Misty Mountains. The new gecko species have been named Jayaweera’s Day Gecko (Cnemaspis jayaweerai) and Nanayakkara’s Day Gecko (Cnemaspis nanayakkarai). “Sri Lanka is a hotspot for Cnemaspis Day Geckos, with 40 currently known species with 100% endemism,” one researcher said. These gecko species are reported from Galgiriya Mountain, in the Kurunegala District, Ampara District, and Ethagala Mountain, in the Ampara District. “These new species were recorded from granite caves within forested areas in isolated mountains in the dry bioclimatic zone (Point-endemics). Both new species are microhabitat specialists with narrow niches limited to humid, cool, canopy-shaded granite caves and old buildings associated with granite caves, where they are camouflaged by their cryptic morphology and body colouration,” a report by the researchers said. Both species are classified as “critically endangered” (CR) under the IUCN Red List criteria. The Jayaweera’s day gecko has been identified by researchers in the vicinity of the Ethagala Kanda forest reserve in the Ampara district by a senior member and former president of the Young Zoologists’ Association (YZA) of Sri Lanka, Shanthasiri Jayaweera. The species named Nanayakkara’s day gecko was identified from the Galgiriya Forest Reserve in the intermediate climate zone of Kurunegala District by a senior instructor of the reptile study group. The major threats for these new species are habitat loss due to the expansion of commercial-scale agriculture, illicit forest encroachments, and forest fires. “We recommend that authorities take immediate conservation action to ensure the protection of these forest areas and their buffer zones soon,” the researchers said. (Daily Mirror, 16.3.2023)
Many trade unions in Sri Lanka have launched a general strike today based on several demands such as withdrawal of the government’s new tax policy, reduction of electricity bills, and reduction of bank interest rates. More than 40 trade unions attached to several sectors join the strike, organized by the trade unions of professionals, and many other state and semi-state trade unions will also support this strike. Trade Unions collective said since they have not received favorable responses from authorities for their demands, they are staging a mass strike today. Due to the strike, services have already been disrupted in many sectors including health, post, and railways while workers of other sectors including Education, port, power, water supply, petroleum, road development and banking services are also joining the trade union action. Meanwhile, private bus operators, several unions attached to Sri Lanka Railways and certain health sector unions have indicated that they will not join the planned strike. All trade unions of Ceylon Electricity Board have decided to report sick leave today. Only power plants and essential services will continue to operate as normal, Ranjan Jayalal, General Secretary of the Ceylon Electricity Workers’ Union said. Mr. Thisara Amarananda, President of the Sri Lanka Air Traffic Controllers Association, said that air traffic controllers have also decided to engage in a “working to the letter” trade union action today from 12.00 noon to 02.00 pm in support of the ongoing strike. (Colombo Page, 16.3.2023)
The economic output of Sri Lanka as measured by Gross Domestic Product (GDP) for the year 2022 recorded as 7.8 percent of negative growth year-on-year, the data released by the Census and Statistics Department showed. The Department of Census and Statistics (DCS) Sri Lanka, has released the estimated Gross Domestic Product (GDP) at current price and at constant (2015) price in Production approach and the other macroeconomic indicators for the fourth quarter (October 1st to December 31st) of 2022 and for the year (January 1st to December 31st) of 2022. The GDP for the year of 2022 at constant price (2015) has declined to Rs. 12,017,849 million from Rs. 13,037,934 million which recorded in the year of 2021. The year on year GDP growth rate for the year 2022 has been reported as 7.8 percent of negative growth rate. The overall Agriculture, Industry and Services activities declined by 4.6 percent, 16.0 percent and 2.0 percent respectively, in the year 2022. The Gross Domestic Product for Sri Lanka for the fourth quarter of year 2022 at constant price (2015) has declined to Rs. 2,917,721 million from Rs. 3,331,073 million recorded in year 2021, registering a negative growth rate of 12.4 percent. The DCS report attributed contraction of the whole economy to the deepening of the economic crisis and youth and social unrest began in early part of the year 2022. In addition, frequent power disruptions, shortages in fuel, raw materials, foreign currency which affected in making supply chain disruptions, amidst price escalations in both domestic and global markets, affected adversely to the whole production process of agriculture, industry and services, according to the Department of Census and Statistics. (Colombo Page, 16.3.2023)
Sri Lanka’s tea exports declined for the second consecutive month in February. The provisional data from Sri Lanka Customs showed that the tea exports for the month of February totalled 18.55 MnKgs, a decline of 13 percent when compared with the corresponding period of the previous year. The analysis by Forbes & Walker Tea Brokers showed that the main categories of bulk tea and packeted tea have shown a decrease, while tea bags have recorded a marginal increase when compared to the corresponding month in 2022. Accordingly, the cumulative exports for the January-February 2023 period totalled 36.11 MnKgs, down by 4.42 MnKgs when compared with the corresponding period of the previous year. A brief analysis of the tea exports for the first two months of the year showed that the main categories of bulk tea and packeted tea have recorded a decline. Tea bags recorded a marginal increase when compared to the corresponding period in 2022. .Earnings from tea exports in 2022 fell 5 percent YoY to US $ 1.25 billion and Sri Lanka earned US $ 99.6 million from tea exports in January 2023, up 9.1 percent YoY. (Daily Mirror, 16.3.2023)
At least 50% of the population is estimated to be suffering from some form of mouth disease, Deputy Director General Dental Services Dr. Ananda Jayalal said. Addressing the media he said the majority of people used to consult dentists after suffering from toothache, swallowing difficulties, or being unable to eat food. Especially, tooth decay, oral cancer, and gum disease were considered the most common mouth diseases in society. Oral cancer is considered the number one cancer in Sri Lanka and it is spreading faster among people. The main cause of the spread of oral cancer is chewing betels mixed with arecanuts and tobacco and the Health Promotions Bureau is taking measures to discourage chewing betels, as well as a program for the early detection of such oral diseases. Also, measures had been taken to promote toothpastes with fluoride. Therefore. “We recommend the public consult a dentist every six months and brush their teeth after every meal,” he said. (Daily Mirror, 17.3.2023)
A new orchid species has been discovered by researchers in the Walankanda Forest Reserve and the discovery published recently in a peer-reviewed scientific journal, Dilmah Tea announced. The announcement said that the orchid was found in Dilmah’s Endana Nature Corridor, a landmark project aimed at linking two fragmented forest reserves running through an abandoned tea land that is in the vicinity of biodiversity-rich single rainforest of Sri Lanka, the Sinharaja Forest Complex in Ratnapura District. The name of the orchid refers to the yellow sapphire known locally as Pushparaga with the yellow flower having a red tint like the yellow sapphire, Dilmah said. “The species are not known to be threatened but due to the small population size can be classified as threatened as per IUCN guidelines,” the news release said.. “Since its inception much research related to biodiversity has been carried out in the research site of the Endana Nature Corridor establishing it as an area rich in biodiversity. However, its most celebrated research finding up to date is the discovery of a new species of orchid found in part of the Endana Nature Corridor project site: Walankanda Forest Reserve.” The discovery was made during one of the project’s mandated research work in 2021 by a team that included Dilmah Conservation Centre Coordinator, Amila Perera, along with other research team members including Bathiya Gopallawa, Indrakeela Madola, Deepthi Yakandawala, Pankaj Kumar, Harsha Jayawickrama, and Mark Chase. The Endana Nature Corridor along running project to establish a 3 Km-long forested pathway was initiated by Dilmah Tea Founder Merrill J. Fernando who wanted to rewild a portion of one of Dilmah’s Tea Estates. The tea garden lying between two fragmented forest reserves made establishing a nature corridor a strategic choice. The corridor is spread across 60 acres taken from the Endana Tea Estate, 2.1 acres taken from active tea plantations and a few more acres of abandoned tea lands in the area..(Sunday Island, 19.3.2023)
The government debt has risen to 115.2 percent of gross domestic product by end 2022 from 104.5 percent a year earlier based on the latest national account estimates by the island’s statistics office. Sri Lanka’s central bank’s gross debt was about 4.66 percent of gross domestic product. The central bank has also spent special drawing rights, on which it has to pay interest. However, the central bank holds government rupee Treasury bills which can be sold for dollars to rebuild reserves and repay the external debt as long as domestic credit is moderate and forex problems are not re-started under flexible inflation targeting, as credit recovers.The government was also responsible for another 5.62 percent of guaranteed debt in state enterprises, taking the total to 125.7 percent of GDP. Sri Lanka’s nominal GDP exploded 16.8 trillion rupees in 2021 to 24.1 trillion rupees in 2022 in a classic Latin America style ‘inflationary blow off’ boosting nominal tax revenues and reducing the rupee debt to GDP ratio. Central government rupee debt fell from 66 percent in 2021 to 55 percent in 2022 as a result, in a High Inflation and Financial Repression (IFR) haircut, despite new debt being raised to cover deficits. Sri Lanka’s domestic interest rates are around 20 to 30 percent amid fears of a domestic debt re-structure as there is no cut-off date for domestic debt re-structure under the IMF debt resolution framework. Remarkably, domestic creditors are expected to keep financing the government as ‘senior creditors’ despite the threat of default. Central government foreign debt meanwhile rose from 39 percent to 61 percent of GDP as the rupee fell, despite most new disbursements being halted. When year-end debt is valued at 337 to the US dollar, the spot market value on March 16, government, government guaranteed debt was 118.7 percent of GDP with central bank’s foreign debt also counted.(Sunday Island, 19.3.2023)
The Colombo rubber auction‘s lots were completely unsold this week for the first time ever. Brokers stated that plantation businesses reduced their volumes at this week’s rubber auction as a result of sharply falling pricing. This week, there were 202,846 Kg of rubber on offer, all of which went unquoted. “Exporters now face uncertainty as the Sri Lankan currency appreciates. As a result, many buyers chose not to place bids, and some offered lower rates in the hope that the currency would strengthen even more “Damitha Perera, Director at Forbes & Walker Commodities Dealers, stated. (News Cutter, March 20.3.2023)
The Executive Board of the International Monetary Fund (IMF) approved today a 48‑month extended arrangement under the Extended Fund Facility (EFF) with an amount of SDR 2.286 billion (395 percent of quota or about US$3 billion). In a press release, the IMF said Sri Lanka has been hit hard by a catastrophic economic and humanitarian crisis. The economy is facing significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead up to the crisis, further aggravated by a series of external shocks. The EFF-supported program aims to restore Sri Lanka’s macroeconomic stability and debt sustainability, mitigate the economic impact on the poor and vulnerable, safeguard financial sector stability, and strengthen governance and growth potential. The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 254 million (about US$333 million) and catalyze financial support from other development partners. (Colombo Page,
CBSL Treasury bill holdings increased by Rs. 121 billion on 15 March as a result of the settlements of domestic and external debt payments due on that date.The T-bond settlement fell due on 15 March was partially settled out of the printed money as the T-Bond auction was undersubscribed and CBSL only managed to reissue only Rs. 110 billion to the market at the respective primary auction. However, CBSL was able to raise an additional Rs. 30 billion issued via T-Bill auction on 17 March to reduce the money printing from Rs. 121 billion to Rs. 98 billion. (Ceylon Today, 21.3.2023)
The population of wet zone hill country leopards (Panthera Pardus Kotiya) has been increasing in large proportions, environmentalists say. Environmental organisations pointed out that the increase in leopard population had resulted in the expansion of their roaming grounds posing a threat to humans. A representative of Knuckles Ape Environmental Organisation Saminda Vidanage said that the death rate of hill country leopards had also increased due to the increase in their population. “Most of them die in wire traps,” he said. “Altogether 15 leopards in 2020, eight in 2021, and seven in 2022 had died due to human activities,” he said. He said two leopards in the Nuwara Eliya and Bulathkohupitiya areas had died in wire traps late last year The environmentalist said leopards that roam into human habitats to prey on dogs and other domestic animals are also being killed. Environmentalist Vidanage pointed out that the roaming grounds of hill country leopards expanded over a vast range of jungles in Sri Pada forest reserve, Hatton, Nawalapitiya, Ginigathena, Yatiyantota, Dolosbage, Dedugala, Ihalauduwa, Dampelgoda, Bogawanthalawa, Balangoda, Kotagala, Thalawakele, Bopatthalawa, Nuwara Eliya, Haggala, Pussellawa, Hewaheta, Delthota, Galaha, Peradeniya, and Gampola areas. Even though there are about 800 leopards in the hill country jungles, formal statistics are not available to confirm it. The hill country leopards identified as Panthara Padus Kotiya are also on the verge of extinction, he said. (Daily Mirror, 22.3.2023)
An Extraordinary Gazette Notification has been issued by President Ranil Wickremesinghe calling upon the Armed Forces to maintain public order across the country with effect from March 22. The President issued the Notice by virtue of the powers vested in him by Section 12 of the Public Security Ordinance (Chapter 40). Accordingly, the Army, Navy and the Air Force have been called out for the maintenance of public order in the Administrative Districts of Colombo, Gampaha, Kalutara, Galle, Matara, Hambantota, Jaffna, Mannar, Mullaithivu, Batticaloa, Ampara, Trincomalee, Puttalam and the territorial waters adjacent to such Districts, Administrative Districts of Kandy, Matale, Nuwara Eliya, Kilinochchi, Vavuniya, Kurunegala, Anuradhapura, Polonnaruwa, Badulla, Moneragala, Ratnapura and Kegalle. (Daily Mirror, 23.3.2023)
Sri Lanka has used part of the USD 330 million received from the International Monetary Fund (IMF) as the first tranche of the Extended Fund Facility (EFF) to pay off an installment of the Indian loan scheme, State Minister of Finance Ranjith Siyambalapitiya said. Accordingly, the Minister of State said the relevant installment of USD 121 million was paid Thursday. Such loans offered by the International Monetary Fund are usually credited to the Central Bank account. However, this time since the relevant loan amount has been credited to the account of the Deputy Secretary of Treasury, it can be used for debt stabilization, the State Minister said. (Colombo Page, 25.3.2023)
Sri Lanka’s export sector saw the earnings cross the US $ 1 billion mark for the year 2023, with the month of February fetching a revenue of US $ 1.0052 billion for merchandise exports. The data released shows that when compared with the corresponding month of the previous year, the revenue contracted by 8.06 percent but is a 5.62 percent increase when compared to February 2021. This brings Sri Lanka’s cumulative export earnings for the first two months of 2023 to US $ 1.98 billion. When compared with January-February 2022, the revenue has contracted by 9.68 percent year-on-year (YoY). In January 2023, the earnings from merchandise exports declined by 11.3 percent YoY to US $ 978 million. The apparel sector remains the largest export earnings generator, bringing in US $ 485 million for February 2023. However, its revenue contracted by 2.32 percent YoY when compared with February 2022. Meanwhile, the US, UK and India emerged as the largest contributors to Sri Lanka’s export revenue, though their performance dipped by 20.94 percent, 15.77 percent and 9.22 percent. Out of the top 15 export markets, Italy, Canada, the UAE and Bangladesh recorded a positive performance in February 2023.During the period of January to February 2023, the top five EU markets that accounted for 80 percent of Sri Lanka’s total exports to the EU were Germany – US $ 98.61 million (-18.44 percent), Italy – US $ 100.28 million (-2.56 percent), the Netherlands – US $ 54.1 million (-24.6 percent), Belgium – US $ 37.36 million (-21.28 percent) and France – US $ 35.22 million (-18.15 percent). Daily Mirror, 25.3.2023
The ferry service between Karaikal Port in Pondicherry, India and Kankesanthurai (KKS), scheduled to commence from April 29, 2023, Ports, Shipping and Aviation Minister Nimal Siripala de Silva said. He said the first cruiser line of the new ferry service will call on April 29 at the Port of KKS from Karaikal Port in Pondicherry. The Minister said this during a discussion with the stake holders of this new ferry service held recently at the Ministry. According to the ferry service owners, US$50 will be charged per passenger for one way trip and a baggage of 100 kg will be allowed. A ferry would carry 150 passengers at a time and will sail around 4 hours from Karaikal Port to KKS and only day time operations will be conducted during the first phase of the operations. The Minister said that since the ferry service has been open, any entrepreneur from Sri Lanka and India can join the opportunity. The Minister also said that the expansion activities of the port of KKS would be expedited. “Since the credit grant facility by India for these constructions at present is insufficient, an addition credit facility of US$ 16 million has been requested from the Indian Exim Bank”, the Minister said. (Daily Mirror, 26.3.2023)
