SRI LANKA NEWS (MAY  2020) – Compiled by Victor Melder

Sri Lanka’s merchandize export earnings fell by 41.9 percent, in March 2020, as the spread of COVID-19, in the country, disrupted the production of merchandise, the Export Development Board said. According to the monthly exports statistics, the year-on-year export earnings fell to US$ 646 million from US$ 1.112 billion, recorded in March 2019. The apparel sector, being the largest contributor, has shown a 41 percent decline during the month of March 2020, compared to the same month, in the previous year. Some of the other sectors that have recorded a significant decline, during the same period, include Tea (-22%), Rubber Products (-15.7%), Coconut products (-14.2%), Spices (-36.5%), fruits and vegetable products (-17.4%), fish and fisheries products (-29%), etc. However, analysis at disaggregate level on Coconut Milk Powder, Defatted Coconut, certain Coconut Kernel Products, Coconut Shell Charcoal, Essential Oils, Oleoresins, Ginger, Lemon, Melon and Papaya, Onions, Sweet Potatoes, Processed Food, Rice, Green Gram, Lentils, Organic Chemicals, Electrical Transformers, Boat Building, Petroleum Products etc. show a positive growth, during March 2020, compared to March 2019. Export Development Board (EDB) Chairman, Prabhash Subasinghe, notes that even though there is a decline in exports, during the month of March 2020, such a decline is expected due to the global economic and trading environment. With the release of March 2020 data, the country’s foreign exchange earnings show an overall decline of 19 percent, during January-March 2020, in comparison to the same period, in 2019, reaching US$ 3.382 billion from US$ 4.176 billion respectively, recording a 32 percent achievement, against the annual revised target of US$ 10.750 billion for the year 2020. Merchandise export earnings have recorded US$ 2.577 billion during Jan- March 2020, compared to 3.116 billion last year. Estimates in the services exports of ICT/ BPM, Construction, Financial services, Logistics and Wellness Tourism sectors show overall revenue of US$ 805 million during the period compared to US$ 1.060 billion last year. When looking at the disaggregate level of products, even though some of the major sectors show a decline in earnings, certain other sectors show a positive growth during the period under consideration. The following graph shows some sectors with negative growth, the EDB said. (Daily Island, 1.5.2020)

Sri Lanka’s inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI), decreased to 5.2% in April 2020 from 5.4% in March 2020, the Department of Census and Statistics reported. The CCPI for all items for the month of April 2020 was 133.6 and it records an increase of 0.2 index points that is 0.14 percentage points compared to the month of March 2020 for which the index was 133.4. This represents an increase of expenditure value by Rs.114.68 in the “Market Basket” Year on Year inflation of Food Group has increased from 12.8% in March 2020 to 13.2% in April 2020 while that of Non-food Group has decreased from 2.5% in March 2020 to 2.1% in April 2020. For the month of April 2020, on year-to-year basis, contribution to inflation by food commodities was 3.71%. The contribution of Non Food items was 1.55%. This was mainly due to increases in value change in groups of ‘Transport’ (0.44%), ‘Housing, Water, Electricity, Gas and Other Fuels’ (0.53%), ‘Education’ (0.36%), ‘Restaurants & Hotels’ (0.20%), ‘Miscellaneous Goods and Services’ (0.14%), ‘Alcoholic Beverages Tobacco and Narcotics’ (0.02%), ‘Clothing and Footwear’(0.15%), and ‘Recreation and Culture’ (0.02%) and decrease in value change was reported for the group ‘Communication’ (0.32%). An insignificant value change was reported in the groups of ‘Health’ and ‘Furnishing Household Equipment’s & Routine Household Maintenance’ (Daily Island, 2.5.2020)

The government revoked plans to lift the prolonged curfew in Colombo and key districts from tomorrow as COVID-19 cases spiked, but unveiled a strategy to ease lock down measures from May 4. Police in a statement announced lifting curfews in the Coronavirus hot spots of Colombo and three other districts from 5.00 am tomorrow, but within hours the President’s Office said the 24-hour curfew will continue for one more week. It was not immediately clear why the government had a change of heart on removing the curfew in Colombo, Gampaha, Kalutara and Puttalam. But, health officials said a sharp increase in the number of Coronavirus cases since Thursday was a key factor. The infection of a sailor at the Welisara navy camp, where at least 65 security personnel have now tested positive for the virus, rattled health authorities who had believed that they had a grip on the situation. With fears of a community spread of the virus, the military authorities have now placed the Welisara camp, home to some 4,000 sailors and their families, under isolation and quarantine. By Saturday evening, the health ministry was reporting 440 infections with almost a quarter of them reported in the past three days underscoring the sharp increase in the rate of transmission. (Sunday Island, 3.5.2020).

Dec 2019 quarter earnings declined by 4.7%YoY for 266 companies: December quarter earnings dip by 4.7%YoY to LKR 66.6Bn primarily owing to sluggish performance in Food, Beverage and Tobacco (-35%YoY), Insurance (-41%YoY), Capital Goods (-23%YoY) sectors. However, earnings upside was witnessed in Banks (+17%YoY), Telecommunication (+259%YoY), Materials (+101%YoY) and Diversified Financials (+3%YoY) negating the negative performance in the above mentioned sectors. Food, Beverage and Tobacco, Insurance and Capital Goods sectors weakened the quarterly earnings: Lackluster performance in Food, Beverage and Tobacco, Insurance and Capital Goods sectors was mainly owing to the lower consumer spending stemmed from subdued economic growth. Profit dip in CTC was due to successive tax hikes affecting volumes which resulted the -24%YoY in earnings, while BIL recorded a dip of -195%YoY mainly due to rise in cost of production and administration. MELS earnings declined by -20%YoY in line with the dip in finance income and NEST dipped by -17%YoY along with the weakened consumer demand and rise in cost of sales. Accordingly, mainly led by the above counters, sector recorded a decline of 35%YoY. Dip of 41%YoY in Insurance sector earnings was primarily driven by CINS by -15%YoY and JINS by -98%YoY (due to rise in benefits, claims and expenses), in addition, HASU recorded a decline of 66%YoY (due to the previous year recording a tax reversal). JKH recorded a downturn in earnings of -50%YoY primarily due to the leisure sector still harboring the impact of Easter Sunday attacks, exchange losses on its foreign currency denominated cash holdings compared to the previous year and lower finance income as a result of the deployment of cash in new investments leading to a -23%YoY decline in Capital Goods sector earnings. Banks, Telecommunication, Materials and Diversified Financials presented signs of recovery: Banking sector witnessed a profit growth of 17%YoY to record LKR 23.0Bn primarily driven by HNB (+28%YoY) and SAMP (+29%YoY). HNB and SAMP profits were boosted due to the fall in impairments by 48%YoY and 21%YoY, respectively. Telecommunication sector recorded a growth of 259%YoY mainly due to DIAL recording an earnings growth of 2538%YoY primarily driven by the foreign exchange gain compared to the heavy exchange loss incurred in the previous year. Material sector presented a growth of 101%YoY in profits as a result of TKYO which posted earnings of LKR 257.0Mn relative to LKR 174.5Mn loss posted in Dec 2018 and improved performance in LLUB led by strong top line growth of 15%YoY. Diversified Financials sector posted a growth of 3%YoY with LOLC, LFIN and PLC posting earnings growth of 13%YoY, 27%YoY and 6%YoY, respectively, while earnings were supported by the strong net interest margin (NIMs). (Daily Island, 6.5.2020)

President Gotabaya Rajapaksa’s name has appeared in the March publication of US federal register of individuals who have chosen to renounce their American citizenship. The list containing the names of the individuals who have renounced their citizenship was published on the official website of the US Federal Register yesterday. (Daily Island, 9.5.2020)

Three more persons have tested positive for COVID-19 increasing the total number of cases to 847, the health ministry said. Meanwhile, all Covid-19 infected patients, detected yesterday (11 cases) and today (9 cases), were from Sri Lanka Navy. A total of 260 Covid-19 patients were discharged from hospitals. 578 active cases are currently under medical care at several hospitals in the country. (Daily Mirror Online, 10.5.2020)

In felicitation of Mr Merril Fernando founderr’ Dilmah’ teas, who reently celebrated his ninetieth birthday, the .scientific community   named a new species of skink as Lankascincus merrill (with the suggested vernacular names being Merrillgé lak-hikanala in Sinhala; Merrillavin arené in Tamil; and Merrill’s Lanka-skink in English). Discovered by renowned herpetologist and taxonomist L.J. Mendis Wickramasinghe in Rakwana, the tiny skink (about 32.8-34.9 mm snout to tail) has been named as a tribute to Merrill for his commitment to the preservation of Sri Lanka’s biodiversity. Sporting a prominent dark-brown band from snout to mid-tail, it has a unique scale pattern specifically around the eye region. (Sunday Times, 17.5.2020)

On a cumulative basis, the trade deficit widened to US dollars 1,304 million during the first two months of 2020 compared to US dollars 1,069 million in the corresponding period of 2019, latest external performance data released by the Central Bank showed. “The deficit in the trade account widened in February 2020 to US dollars 574 million, from US dollars 451 million in February 2019, as the increase in imports surpassed the increase in exports. However, on a month on month basis, the trade deficit in February 2020 recorded a contraction”, the report said. “On a cumulative basis, worker remittances grew by 6.0 percent to US$ 1,108 million during the first two months of 2020 in comparison to the corresponding period of 2019”. The earnings from merchandise exports edged up by mere 0.7 percent year-on-year (YoY) to US$ 988 million in February while imports rose 9.1 percent YoY to US$ 1, 562 million. Sri Lanka’s export income is set to take a beating from March as lockdowns imposed during the latter part of that month to control the spreading of COVID-19 virus hampered factory production. (Daily Island, 18.5.2020)

The marginal growth in exports in February was led by the increase in industrial exports though agricultural and mineral exports declined in comparison to February 2019. Textile and garments exports edged up 0.5 percent YoY to US$ 468.1 million while rubber products exports rose 2.6 percent YoY to US$ 71.5 million.Petroleum products exports by way of supplying bunkering services rose 50 percent YoY in February to US$ 57.8 million. Agricultural exports during February fell by over 6 percent YoY as both tea and spice exports fell 2.5 percent YoY to US$ 107.8 million and 34.7 percent YoY to US$ 18.7 million respectively.  Expenditure on merchandise imports increased notably, on YoY basis, in February 2020 for the third consecutive month, though recorded a decline on month-on-month basis. Imports were driven by higher consumer and intermediate goods imports partly due to the lower base recorded in February 2019. However, expenditure on non-fuel imports declined, indicating that the increase in import expenditure was driven by fuel imports. Personal vehicle imports in February rose 11. 3 percent YoY to Rs.53.6 million. Sri Lanka’s fuel bill in February rose 48.6 percent YoY to US$ 418.7 million. Importation of textile and textile articles in the month also fell 14.2 percent YoY to US$ 182 million.  With government imposing restrictions on non-essential imports following the COVID-19 outbreak in a bid to defend the rupee against the US dollar, the expenditure on imports is expected to decline from March onwards. Personal vehicle imports and the oil bill are expected to witness significant declines. Meanwhile, earnings from tourism were provisionally estimated to have declined to US$ 391 million in February 2020, in comparison to US$ 475 million in February 2019, with cumulative earnings amounting to US$ 822million during the first two months of 2020. (Daily Island, 18.5.2020)

The total number of confirmed COVID-19 cases rose to 1,047 with the identification of 19 new cases yesterday. A statement issued by the Department of Government Information said that two patients were Navy personnel who were being quarantined in Mullaitivu while the rest were overseas arrivals from Dubai, who were being quarantined in Giragama. The total number of COVID-19 patients identified among overseas arrivals at quarantine centres has thus risen to 65, while 68 persons among local communities at quarantine centres and 587 navy personnel have also tested positive. Of the 19 COVID-19 patients identified yesterday, information about the final two individuals who were diagnosed has yet to be revealed. The number of patients under medical care is currently 432. This includes 126 at the Navy Hospital, 85 at the National Institute of Infectious Diseases (NIID), 52 at the Colombo East Base Hospital, 48 at the Minuwangoda Base Hospital, 37 at the Homagama Base Hospital, 34 at the Welikanda Base Hospital, 28 at the Kattankudy Base Hospital, and five at the Iranawila Hospital. Twenty persons recovered yesterday, including seven from the Homagama Base Hospital, six from the NIID, four from the Colombo East Base Hospital, and three from the Welikanda Base Hospital. The new recoveries bring the total number of COVID-19 recoveries to 604. In addition to this, 139 suspect patients, including 50 at the Navy Hospital, 14 at the Sri Jayewardenepura Hospital, and 10 at the Kalutara District General Hospital, are under observation. Ten persons also left the Boossa Quarantine Centre yesterday, having completed the quarantine process. All 10 persons were engaged in security duties aboard international ships, the Navy stated on their website “As of now, 168 persons as 22 groups have left the Boossa Naval quarantine centre after successful completion of their quarantine process,” the statement said, adding that 84 Sri Lankans are currently undergoing the quarantine process at this centre. A Garuda Indonesia flight had also brought down 110 Sri Lankans from Indonesia yesterday, and the Defence Ministry stated on their website that all returnees were disinfected by Air Force personnel prior to their departure for the 14-day quarantine process. (Daily Financial Times, 22.5.2020)

The death of the rare black leopard yesterday, after being snared early this week has forced environmentalists to resort to legal action against the Department of Wildlife and the Police Department for alleged negligent handling. Environmentalists yesterday criticized the handling of animals and particularly leopards that often resulted in premature or untimely deaths of the prime predator here in Sri Lanka. When contacted for a comment, Head of the Centre for Environmental Justice (CEJ) Hemantha Withanage told The Island that they had also filed action over the mysterious deaths of seven elephants in Habarana last year. He said that the Department often boasted about inquiries and reports to be submitted after post mortems but nothing came out finally. He also stressed that the income generated by the Wildlife Department should be used for  animal welfare and for betterment of its officers not for the whims and fancies of politicians. “Department officials are untrained to attend to most of the situations. Training is of paramount importance for the animal welfare,” he stressed.   Researcher and animal rights activist Nayanaka Ranwella told The Island that the Department handled the animal in a very unprofessional way. “Pulling thrice from the tail of the injured and tranquilized animal, handling it without gloves…taking to the wrong location for treatment show the inept conduct of the Department,” he added. He questioned the wording used by the Department after taking charge of the injured animal saying no serious wounds or damages. “How come the animal died?” he asked. He also said that the Department also failed to weigh/measure the animal prior to the treatment.    The black leopard wounded in a snare at Nallathanniya on Tuesday died while being treated at the Elephant Transit Home in the Udawalawa National Park. The Department said a post-mortem examination would be conducted shortly. The eight-year-old fully grown male was about eight feet in length and four feet in height. (Daily Island, 30.5.2020)

The total number of Covid-19 cases in Sri Lanka has increased to 1,558, the Epidemiology Unit said.

It said 28 people tested positive for Covid-19 on Friday. Among them, 17 are Navy personnel and 11 are returnees from foreign countries. (Daily Mirror, 30.5.2020)

Sri Lankan agricultural authorities have been placed on alert for the possible threat from crop-eating  Desert Locusts which have started invading South Asian countries, including India, a senior official said. Agriculture Director General W.M.W. Weerakoon told the Sunday Times that they had alerted the relevant government institutes that there could be possible locust invasion in Sri Lanka. He said large swarms of locusts had invaded the northern parts of India and had made their way towards Pakistan. “Even though the locust have not yet spread towards the southern parts of India, with the change of wind patterns the swarms of locusts could make their way towards Sri Lanka,” he warned. Dr Weerakoon said the Agriculture  Ministry, the Department and other stake holders were on high alert and had appointed a task force to come up with an action plan to deal with the threat. He said the task force comprising entomologists, crop experts and regional agricultural directors of were making farmers aware and advising them to inform the authorities if they found locusts in their fields. The task force was also advised to identify pesticides and chemicals which are needed to control the  possible locust invasion. They would also seek assistance from the security forces if the need arose. (Sunday Time, 31.5. 2020)