Wickremesinghe chosen Sri Lanka PM in effort to quell crisis – by Krishan Francis and Bharatha Mallawarachi Source:ctvnews.ca COLOMBO, SRI LANKA – Five-time former Sri Lankan Prime Minister Ranil Wickremesinghe was reappointed on Thursday in an effort to bring stability to the island nation, which is engulfed in a political and economic crisis. Wickremesinghe, a contentious choice by President Gotabaya Rajapaksa, took his oath in a ceremony at the president’s residence. Protesters have blocked the entrance to the president’s office for more than a month. The president’s brother, Mahinda Rajakapsa, resigned as prime minister on Monday following violent attacks by supporters on peaceful anti-government protesters. His resignation automatically dissolved the Cabinet, leaving an administrative vacuum. The president’s selection of Wickremesinghe is an attempt to end the violence and restore international credibility as the government negotiates a bailout package with the International Monetary Fund. Sri Lankans for months have been forced to ...

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Tourism – restricting outflow of foreign exchange -by G. A. D. Sirimal Source:island.lk Minister of Tourism, Prasanna Ranatunga, has declared the arrival of large numbers of foreign tourists here. He says about 82,327 of them came here in January, bringing in much needed foreign exchange. Has the Minister found out how much dollars these tourists have brought in and how much has been spent in Sri Lanka? Except those who come on business and stay in five-star hotels, other tourists spend very little. Some female tourists overstay their visas and engage in sex trade. I wish to relate an experience, when I visited Russia to attend a seminar conducted by ESCAP in 1985, when Russia’s economy was poor. ESCAP had deposited a certain sum in dollars with the organiers in Russia to meet payments to delegates and this amount was converted to Russian currency – rubles and paid to delegates ...

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SRI LANKA NEWS (JANUARY 2022)Compiled by Victor Melder. Export earnings from rubber, coconut and cinnamon are on the verge of exceeding $ 4 billion, creating history by recording the highest annual income generated from these crops in a year, Plantation Industries Minister Dr. Ramesh Pathirana said. He also said that the Plantation Ministry was committed to make the tea industry a profitable industry in 2022. He said despite not being able to reach the target export earnings, tea crop was estimated to be 305 million kg in 2021. He outlined that the tea industry was a key export crop which contributed significantly to the national economy. “If we want to build up the economy, then we must strengthen the planters. The COVID pandemic and fertiliser problems have caused some setbacks in the industry. But, amidst all these problems, we are working to strengthen the smallholders who contribute to the national ...

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Tourist payments : Three new regulations from Central Bank Source:newswire.lk Statement from Central Bank CENTRAL BANK MAKES IT MANDATORY FOR HOTEL SERVICE PROVIDERS TO ACCEPT PAYMENTS FROM PERSONS RESIDENT OUTSIDE SRI LANKA IN FOREIGN EXCHANGE The Monetary Board of the Central Bank of Sri Lanka issued Rules making it mandatory for hotel service providers to accept payments from persons resident outside Sri Lanka, only in foreign exchange. These Rules are published in the Gazette Extraordinary No. 2263/41 dated 21 January 2022. With the issuance of the Rules, hotel service providers registered with and licensed by the Sri Lanka Tourism Development Authority are required to; • Accept payments for services rendered to persons resident outside Sri Lanka only in foreign exchange. • Deposit such foreign currency into a Business Foreign Currency Account of the hotel service provider or sell to a licensed bank within three business days. • Credit payments into ...

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Tourism earnings hit $ 500 m target for 2021 By Charumini de Silva Source:ft.lk Industry aims to springboard from recovery to resilience from 2022 onwards Govt. all set to declare 2022 as ‘Visit Sri Lanka Year’ along with Global Communication Campaign Tourism Ministry to set up Special Secretariat to coordinate 5-year GCC activities National Tourism Policy for Sri Lanka to be finalised and implemented from this month The COVID-hit tourism industry has managed to rebound with earnings of over $ 500 million in 2021. “Tourism holds a greater significance in the services sector and has been a driver of growth for the economy. The industry was the most vulnerable to COVID-pandemic, but it has proven again its resilience with remarkable resurgence. The year ended with 194,495 tourists, with earnings surpassing the target of $ 500 million,” Sri Lanka Tourism Development Authority (SLTDA) Director-General Dhammika Wijayasingha told the Daily FT. As ...

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SRI LANKA NEWS (DECEMBER 2021) Compiled by Victor Melder. Sri Lanka’s inflation, as measured by the change in the Colombo Consumers’ Price Index (CCPI) increased to 9.9 percent in November 2021 from 7.6 percent in the previous month, the Department of Census and Statistics reported Tuesday. The CCPI for all items for the month of November 2021 increased to 150.7 from 146.9 in October 2021. With respect to October 2021, the reported inflation for November 2021 was mainly due to the higher price levels prevailed in the month, the Department of Census and Statistics said. As a result, the Year on Year inflation of Food Group increased to 17.5 percent in November 2021 from 12.8 percent in October 2021 and the Year on Year inflation of Non Food Group increased to 6.4 percent in November 2021 from 5.4 percent in October 2021. For the month of November 2021, on year‐to‐year ...

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Seeking outside help on bended knees won’t solve SL’s debt woes: Cabraal-By Nishel Fernando Source:Dailymirror Says govt.’s unique approach to current economic woes will transform SL’s external sector and debt profile for better  Reiterates reaching out to IMF will not solve current crisis Assures govt. is equipped with tools and expertise to find solutions within country Says ongoing national debt restructuring exercise is not much different to a corporate debt restructuring process Assures soft landing for COVID-hit biz and individuals, once moratoria end Central Bank Governor Ajith Nivard Cabraal sees a rare silver lining for the country to transform its external sector and the debt profile to a much resilient and sustainable position, with the unique approach taken by the government to emerge out of the current external sector crisis, instead of bending the knees to the International Monetary Fund (IMF). “Every crisis has a silver lining and we should ...

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Lowering of interest rates only escalates bank profits – by Sunil Thenabadu The motive of the government decision to lower the interest rates of deposits was predominantly to engross the banks to lend at lower interest rates  for entrepreneurs to boost the economy of the country which is in dire straits.However would this proposal prove productive?  Owing to this absurd stunt has left the senior citizens and pensioners high and dry resulting in unprecedented agony and anguish.Many who are victims have  highlighted to the media  the grievances on behalf of so many distraught senior citizens and pensioners particularly as many  have no access to the media. This much spoken of government’s harsh decision to lower interest rates has made the lives of senior citizen’s and pensioners miserable with escalating high cost of living, Skyrocketing  cost of medical expenses etc.It is pertinent to mention that monthly interest rates on fixed deposits which they mostly rely upon have been reduced to alarmingly low 4% and 5 % which has added to the woes already the senior ...

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The economy of Sri Lanka: Is there a way out? By by Prof. Arusha Cooray Source:island.lk Sri Lanka is currently facing an unprecedented set of economic challenges: a large and increasing public debt, rising fiscal and current account deficits, foreign exchange shortages and declining investor confidence. The collapse of tourist revenues and remittances due to the pandemic, have compounded the situation. Sri Lanka’s foreign exchange reserves are at an all-time low, currently sufficient to cover two months of imports. As a rule of thumb, a country’s foreign exchange reserves should be sufficient for at least three months of imports. The fall in foreign exchange reserves has led to a depreciation of the rupee against the US dollar, making it more difficult to service the debt denominated in foreign currency. Sri Lanka’s debt to GDP ratio currently stands at 101%. Businesses relying on imports are struggling to meet foreign currency payables. ...

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Daunting task for government amid sliding economy  By Sunil Thenabadu The landslide resounding victory of the SLPP sweeping aside all opposing political parties in year 2020 like a “tsunami” would never have been even in the wildest dreams of any staunch supporter of the party. However the top-notch politicians prior to the postponed election knew well the pathetic situation our economy was in, was aware of a daunting task for any new government.  Although the victory at the polls was a cake walk, astounding music to the ‘SLPP”,  the new government which is burdened with an enormous intimidating state of affairs to place the system on track in the midst of a global recession and rising job losses. With negative growth predictions, no budget for the entire 2020, with negligible taxes figures with another hurdle is the climbing of tax issues in year 2021.  So far, figures indicate at least half a million workers – directly and indirectly – have lost their jobs largely in ...

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