SRI LANKA NEWS – SEPTEMBER 2021
A team of research scientists have discovered an unusually large gecko species at Kalthota, Sri Lanka. This new gecko species was named as Hemidactylus kimbulae. Due to its large body size, and so far only found in the environs ofthe Duvili Ella area, the team thought it was better to name it as “kimbulae”, said lead scientist Dr. Thasun Amarasinghe. The research team comprises Dr. Thasun Amarasinghe from the University of Indonesia, Suranjan Karunarathna from Nature Explorations & Education Team Sri Lanka, Dr. Patrick Cambel from Natural History Museum London, Majintha Madawala from Victorian Herpetological Society Australia, and the Father of Sri Lanka’s herpetology, Dr. Anslem de Silva from Amphibia and Reptile Research Organisation of Sri Lanka. Dr. Amarasinghe told The Island that the newly discovered gecko species, almost one foot long, was found only on the walls and in crevices inside rock caves within the patchy forested areas in the savanna type ecosystem. However, he said that no rock caves were observed in the grassland habitat; it has also never been observed on rock walls outside the caves. Researcher Suranjan Karunarathna says that also for its closest relative, another giant gecko species found in Eastern Sri Lankan savannah forests, Himidactylus hunae is commonly known as “kimbul hunae” or “maha gal-hoona”. Although this species found within a protected area, the Duvili Ella Forest Reserve, the area outside this protected range is highly threatened by pegmatite exploitation for industrial use, probably for the production of glass and ceramics, according to Dr. De Silva. (Daily Island, 6.9.2021)
Sri Lankan government has lost a total revenue of Rs 1,600 billion this year due to COVID-19 pandemic, Finance Minister Basil Rajapaksa told Parliament. Speaking during the debate on regulations imposed under the Financial Bill and Export Import Control Bill the Minister said 70% of indirect tax revenue has been recorded since the current lockdown was imposed. “The revenue received from the Inland Revenue Department, Customs and Excise Department had gone down drastically because of the lock down,” Mr. Rajapaksa said. “Total revenue has dropped drastically compared to expenditure. This is not totally due to the pandemic as Sri Lanka’s state expenditure has exceeded the revenue for centuries,” he said at the same time. “ We have decided to use foreign assistance with utmost diligence and will only work with institutions such as the World Bank and Asian Development Bank and will only for concessionary loan schemes. Sri Lanka will not agree to political based conditions any doner would impose when it comes to external borrowings,” the Minister added. “Government is not prepared to face the crisis situation and is prepared to work with the opposition in dealing with is financial crisis,” he also said (Daily Mirror Online, 7.9.2021)
Basil Rajapaksa, in his first speech in Parliament as Finance Minister, painted a bleak picture of the economy and said that, amid the foreign exchange crisis, the country had lost around Rs. 1.6 trillion in Government revenue due to the COVID pandemic. “The country is facing a serious foreign exchange crisis. Similarly, revenue has come down drastically. We don’t expect to overcome a crisis of this magnitude on our own but hope well-wishers and the Opposition will cooperate to solve this crisis,” Rajapaksa said. Speaking during the debate on several finance Bills, Rajapaksa said that while the COVID-19 pandemic had aggravated the country’s economic woes, it was the poor economic management over previous decades which had led to this situation. “We know that our expenditure has always been higher than revenue. There has also been waste, corruption and unnecessary expenditure over the years. We are making a sincere effort to address these issues,” the Minister said. He said the loss of revenue for far this year was around Rs. 1,500-1,600 billion – more than that was estimated. He said incomes from the three main sources – the Customs, Excise and Inland Revenue Departments – have plummeted. “A large portion of Customs duties came from taxes on vehicles but for more than a year and half there was a ban on vehicle imports due to a lack of foreign exchange. Hence income from customs duties is almost nil. Excise income too has dropped due to lockdowns, during which sales were zero, while the collapse of tourism means excise duties from that sector too have dropped. Rajapaksa said income tax revenue too has dropped drastically. “Whether we like it or not, the reality is that the bulk of tax money from taxes such as VAT comes from indirect taxes. During the lockdown, 75-80% of VAT revenue is lost per day.” The Minister also said that while revenue is dropping, expenditure is on the rise. “We have had to pay for 80% of the vaccines we imported. Similarly, lockdown or not, we have to pay those in the public sector, which we have done without reducing a single cent. In some sectors we have given additional allowances too.” Rajapaksa also said the country’s income from tourism, which was between $ 4-5 billion, was almost nil since the onset of the pandemic in March last year. Workers’ remittances, which increased last year, have begun to fall in the past three to four months by 20-30%. The relevant ministers have been asked to look into this and see what measures can be taken to increase foreign remittances.” He said that thanks to resilient exports the country had got some foreign exchange and that they hope to build on this. “We are trying to limit the loans, and imports will be limited to essential needs and only for projects that have a return. We have to pay back loans that have been taken over the years by successive Governments. We have managed to lessen the debts we owe. Our goal is to make the country debt free.” Rajapaksa said the Government would take loans from the World Bank, Asian Development Bank or other lending institutions, but not from those which attach conditions that impact the country’s sovereignty. “We have decided to use foreign assistance with utmost diligence.” (Daily Financial Times, 8.9.2021)
The Monetary Board of the Central Bank of Sri Lanka imposed a 100% cash margin deposit against the import of selected goods of non-essential or non-urgent nature category including mobile phones, televisions, watches, refrigerators, fruits, air conditioners, wine and beer Issuing a statement the CBSL said yesterday that the decision had been taken at a meeting held on Wednesday (08). Imports mentioned above, made under Letters of Credit and Documents against Acceptance terms with Licensed Commercial Banks and National Savings Bank, will be affected with immediate effect. “The decision to impose the cash margin deposit requirement is expected to support the ongoing efforts to preserve the stability of the exchange rate and foreign currency market liquidity, particularly by discouraging excessive imports of speculative nature,” the CBSL said.A summary of product categories that are subjected to cash margin deposit requirements are: Telecommunication devices (such as mobile telephones and fixed telephones), home appliances (such as fans, TVs, refrigerators, washing machines, digital cameras, hair clips, heaters, lamps, ovens), clothing and accessories (such as babies’ garments, hosiery, jerseys, nightdresses and pyjamas, overcoats, shirts and blouses, suits, track suits and swimwear, T-shirts, underwear, footwear, watches, sunglasses, other accessories), household and furniture items (such as furniture, lamp and lighting fittings, ornamental products, tableware and kitchenware, bed linen), rubber tyres, air conditioners, fruits (such as fresh apples, grapes, oranges and dried fruits, fruit juices), cosmetics and toiletries (such as perfumes, makeup preparations), beverages (such as beer, wine, mineral water and other beverages), other food and beverages (such as cereal preparations, starches, chocolates, malt, fish fillets, cheese, butter) and other non-food consumables (such as musical instruments, tobacco products, toys, stationery). The total import cost of these items in 2019 was USD 1.05 billion in 2019, USD 871.2 million in 2020 and USD 753.4 million between January and July 2021. (Daily Island, 10.9.2021)
Ajith Nivard Cabraal–who is due next week to take over as Central Bank (CB) Governor for a second time–will receive a pension with arrears for his former eight-year term while qualifying for another pension at the end of his second stint under a new scheme recently approved by the Monetary Board (MB). The second pension will be calculated on the basis of his new, higher salary. Meanwhile, W. D. Lakshman, who is retiring to make way for the new appointee, leaves with a lifetime pension having served just two years at the Central Bank. The Sunday Times reported last week that the MB had approved pensions with arrears for several former and the incumbent Governor irrespective of the lengths of their tenures. The MB is headed by the Governor. The CB’s Secretariat Department is implementing the decision and working out the arrears payments.
Under the new scheme, all Governors will be eligible for pensions regardless of their service periods, despite other public sector employees requiring at least 10 years of service to qualify. The only exception is Members of Parliament who receive a pension after five years. The MB took up the matter after Mr Cabraal, State Minister of Finance, Capital Markets and State Enterprise Reforms, made requests for a pension for himself. This week, Media Secretary of the Ministry issued a statement saying Mr Cabraal had been Governor from July 1, 2006 to January 8, 2015, and that his appointment letter had provided for a pension. But after requests from public sector trade unions, all Government employees were again made eligible for pension. This was not, however, extended to State bank or CBSL workers. The State banks later introduced a contributory pension scheme for new employees. In 2015, under Governor Arjuna Mahendran, CBSL introduced a similar arrangement for employees recruited after 1998. But this did not apply to Governors as it was deemed unethical for the MB—which is led by the Governor—to approve pensions for its own Chair. Everyone who held that position after A. S Jayawardena (who was Governor from 1998 to 2004) was deemed ineligible. (Sunday Times, 12.9.2021)
The Government is seeking billions of rupees for extra spending on unforeseen COVID-19 public health care activities coupled with infrastructure development projects outside the budget, and has submitted supplementary estimates for parliamentary approval. The urgent need of extra money for development projects has arisen due to the growing expenditure for mega infrastructure development projects and other construction activities including a cricket stadium, Finance Ministry sources said. After getting parliamentary approval for Rs. 200 billion supplementary estimates on June 23 this year, for the control of the pandemic and other urgent needs, the government has presented another supplementary estimate of Rs. 73.21 billion this week for similar purposes, they said. This will increase the extra spending outside the budget to Rs. 273 billion within a short period of two months further widening the 2021 projected budget deficit to 11.13 of GDP from 9.5 percent of GDP in June. However the Treasury has made provisions to spend an extra Rs.131 billion in recurrent expenditure including due to the coronavirus and capital spending of Rs. 69 billion. The earlier supplementary estimate of Rs. 200 billion, the highest such allocation passed in parliament in history, is being used to purchase COVID-19 vaccines and to provide relief to groups and economic sectors affected by the epidemic. The proposed new supplementary estimate of Rs.73.21 billion will be spent for pandemic-related matters in all 24 districts. Also more funds amounting to Rs. 8.04 billion will be allocated for relief to fishermen and to settle the bills for the extension of the Southern Highway from Matara to Hambantoa through this supplementary estimate. A sum of Rs. 26 million is to be spent on the Sooriyawewa international cricket stadium. (Sunday Times, 12.9.2021)
Tea exports in August have increased by 16% to 25.48 million kilos and cumulative first eight months performance rose by 8% to 187.57 million. Value wise, exports in August was Rs. 23.3 billion, up 22.6% from Rs. 19 billion. Cumulative exports were worth Rs. 174 billion, up 16% as against Rs. 149.5 billion in 2020. In July, tea exports dipped year-on-year (YOY) by 12% to $ 115 million (around Rs. 23 billion). In August, Bulk Tea and Packeted Tea categories had shown an increase, whilst Tea Bags had shown a marginal decrease when compared to the corresponding period of 2020. It said the FOB value of Rs. 917.20 per kilo was an increase of Rs. 52.21 compared to a year ago. “Although total Rupee FOB value has increased in 2021, in USD terms it reflects a decline of 0.09%,” In the first eight months of 2021, all main categories of exports (Bulk Tea, Tea Bags and Packeted Tea) have shown an increase compared to the corresponding period of 2020.FOB value of Rs. 927.21 per kilo records an increase of Rs. 68.96 compared to August last year. Total Rupee FOB value has increased substantially in 2021, while in USD terms it reflects a marginal increase of 0.07%. Tea in bulk FOB value shows a marginal negative variance when compared to the corresponding period of 2020. Iraq had emerged at the No. 1 position as the major importer of Ceylon Tea, followed by Turkey and Russia, with the UAE moving up to the fourth position having increased imports significantly (203% YOY). Iran, which has moved down to sixth position from the fourth position it occupied in 2020, records a fairly significant decrease (18% YOY) in imports during January-August 2021.
(Daily Financial Times, 18.9.2021
Another huge wild elephant had fallen prey to the human-elephant conflict in Galatabendiwewa tank reservation in Nawagathegama in the early hours of last morning. A team of wildlife conservators of the Department of Wildlife under Dr. Isuru Kottegoda Veterinary Surgeon, North Western Zone rushed to the scene and provided treatment to the elephant but to no avail. He said that the jumbo who is believed to be more than 50 years old had been shot dead by poachers. The Veterinary Surgeon said he observed more than five gunshot injuries in the carcass. Wildlife Conservation Department is conducting investigation to arrest the killers. (Daily Mirror, 18.9.2021)
Despite import curbs and the pandemic, Sri Lanka’s (merchandise) import bill in January to July 2021 at US$11.7 billion was higher than $11.3 billion in the same period in 2019 (a normal trading year), Central Bank data showed. It was $8.9 billion in the same period in 2020 In terms of merchandise exports, earnings were $6.8 billion in the same 2021 period, $5.5 billion in 2020 and $7 billion in 2019. The overall balance on trade, which includes worker remittances, tourism earnings and other earnings, was – $2.7 billion in 2021, -$939 million in 2020 and +$1.5 billion in 2019. The increase in the import bill for the first seven months of this year was largely due to increasing fuel prices, according to veteran economic W.A. Wijewardena. Other economists said that some import restrictions were removed earlier this year where exporters needed raw materials for their inputs and this may be another reason for the rise in the import bill. Discussing foreign exchange related issues, Mr. Wijewardena said that Sri Lanka’s repayment liability in the next 12 months is $6.9 billion whereas the existing reserves has only $3.5 billion, adding that an IMF programme will lift the country’s international standing and encourage more inflows and FDI. Meanwhile new Central Bank Governor Ajith Nivard Cabraal said, when he assumed office on Thursday, that a roadmap will be unveiled in early October setting out the policy direction and address all issues including the foreign exchange crisis. (Sunday Times, 19..2021)
Year on year (YoY) food inflation rose to a 11-month high of 11.1% in August, Census and Statistics Department (CSD) data released yesterday showed. An increase higher than this was last recorded in September 2020, when food inflation rose by 12.7%, YoY that month. Last month’s increase in food inflation was helped by the cost of a family’s rice consumption rising by Rs 525.48 YoY on average, vegetables (Rs 339.30), coconut oil (Rs 241.63), coconuts (Rs 186.91), Mysore dhal (Rs 119.45) and big onions (Rs 83.08), resulting in the cost of the food basket of a family as a whole increasing by Rs 2,248.07 YoY, on average. However non-food inflation decelerated to three per cent, aiding overall inflation to also decelerate to 6.7% last month, from 6.8% in July, Nonetheless, non-food inflation as a whole increased by Rs 731.90 YoY last month, impacting an average family’s expenditure basket, with the single biggest cost being transport, an increase of Rs 338.76 YoY, of which the single biggest sub-component was bus fares, with a family’s cost of bus fares rising by Rs 138.02, YoY. The next biggest increase in a family’s non-food inflation cost was ‘health,’ with health expenditure YoY increasing by Rs 128.03 last month. (Ceylon Today, 22.9.2021)
For more than a century, scientists considered lorises, a type of reclusive, tree-dwelling primates, to have two distinct species in Sri Lanka —however, new research indicates 5 to six new species. They’ve been hiding in plain sight, coming out at night and are thus not easy to observe. About the size of a squirrel with long limbs, this shy, furry, nocturnal primate is found in the tropical forests of Sri Lanka and grows to between 6-10 inches. It has a round head, two large eyes – imagine a miniature monkey with owl-like eyes. It is very cute, almost like a cartoon character/ a skinny teddy bear. Apart from being so cute, what makes it so interesting is its cryptic nature. This is why it took so long to discover the new species/ subspecies. The recent study, headed by Padmalal, considered the father of Sri Lankan zoology. This groundbreaking work utilized modern DNA analysis and could reveal new species (some formerly describes as subspecies). The study reflects that the mini primate’s evolutionary history and biogeography are still poorly understood. The team analysed DNA of over a hundred Loris specimens collected from seven different regions in the island to be analyzed as well as skeletons from museums. It’s believed that the newly identified species rarely interbreed even if they overlap, although it is possible hybrids could sterile like lion-tiger hybrids. Still, enough credibility to make it new species. Some defining factors that inspired this search were minor markings, ear size, throat color and other minor features that are hard to observe unless you look up close. When the DNA studies are concluded, we will soon ‘officially’ have the new loris species identified added to the list of mammals in Sri Lanka. (Daily Mirror Online, 27.9.2021)
