SRI LANKA NEWS IN BRIEF (SEPTEMBER 2017) Compiled by Victor Melder

Alleging that the army continued to hold about 85,000 acres of land in the North, Northern Province Chief Minister and former Supreme Court judge C.W. Wigneswaran,  sought the intervention of most Ven. Tibbatuwawe Sri Siddhartha Sumangala Thera of Malwatte Chapter to shift troops out those lands. CM Wigneswaran claimed that only about 5,000 acres had been so far released to their original owners. The Chief Minister placed the strength of the army deployed in the Northern Province at 150,000. Asserting that there was no requirement to maintain such a large force in the Northern Province, Wigneswaran called for their removal. The Mahanayake thera told the CM to make representations to President Maithripala Sirisena as he could solve the problem. The prelate emphasised that the army could not be removed from the Northern Province. CM Wigneswaran told the Mahanayake that he sought his intervention to bring their problems to the notice of the President. Wigneswaran said there were at least 89,000 widows in the north as a result of the war. Rehabilitated LTTE cadres were unemployed as employers were reluctant to hire them. The farmers of the north had been affected by the import of chillies, onions and other such commodities. Fishermen from the South fished in the Northern seas, depriving the local fishermen of their income, he said. Responding to media Chief Minister Wigneswaran said that federalism did not divide the country but united the country instead. Three judges of the Supreme Court had recorded a judgement regarding federalism. Accordingly, there should be no fear that federalism would pave the way for separation, the CM said. Commenting on disputes over Buddha images being put up in the north Wigneswaran said there was opposition to statues coming up in inappropriate places. Attempts were made to put up Buddha images on lands owned by non-Buddhists, he said. The 20th Amendment to the Constitution had been rejected by the Northern Provincial Councils as it was a threat to democratic administration of the provinces, CM Wigneswaran said. Asked for his views regarding war crimes allegations Field Marshal Sarath Fonseka recently levelled against former Army Commander General Jagath Jayasuriya, Wigneswaran said that minister Sarath Fonseka might have had legitimate reason to make that statement. What he said might be true. The matter should be investigated, he said. (Daily Island 11.9.2017.

Sri Lanka’s tourist arrivals rose 2.5 percent from a year earlier to 190,924 mostly driven by India, as explosive growth Chinese arrivals fell away, data from the state tourism office showed. Arrivals for the 8 months to August rose 3.5 percent to 1.406 million. Visitors from South Asia rose 17.1 percent to 42,649 with Indian arrivals up 27 percent to 31,220. Maldives fell 5 percent to 6,405, and Pakistan was down 1.2 percent to 3,133. In the eight months to August, India tourists were up 3.6 percent to 233,120. East Asian arrivals rose 2.4 percent to 42,412 with China arrivals down 3.7 percent to 42412. Malaysian visitors were up 27 percent to 2,311, Indonesia was up 120 percent to 1,143 and Singapore was up 14 percent to 1,783. Chinese arrivals down 0.7 percent to 189,696 for the eight months. Western European arrivals rose 1.6 percent to 65,949.  UK, the largest generating market was up 7 percent to 21,903. German arrivals were down 10 percent to 10,993 and visitors from France was down 7 percent to 10,730. UK visitors were up 7.8 percent to 121,378. Tourists from Eastern Europe was down 22 percent to 5,711 with Russia down 49 percent to 1,272 and Ukraine up 20 percent to 1,399. Middle East was also down 12.9 percent to 16,339. Saudi Arabia was down 6.2 percent to 8,761 but UAE was up 5.9 percent to 1,373 Sri Lanka’s tourist arrivals has slowed in 2017 amid a partial airport closure up to April 2017. There was also a dengue epidemic which peaked in July and floods. (Daily Island 11.9.2017).

The Government is to launch its first official cannabis plantation to supply the traditional medicine market and export to the United States, the health minister said Wednesday. Rajitha Senaratne said the 100-acre (40-hectare) cannabis farm, which could produce more than 25 tonnes a year and would be under military protection, would ensure a regular high quality supply. “Many ayurvedic doctors have complained that they don’t get good quality cannabis for their preparations,” Senaratne told reporters. “Good cannabis is a vital ingredient in the preparation of traditional medicine.” He said the traditional herbal medicine market currently depends on handouts from courts which seize illegally grown or smuggled drugs. “By the time our native doctors get this cannabis, it is about four to five years old and it has lost its effectiveness,” Senaratne said. He said the government expected to export the surplus from its proposed farm at Ingiriya, 60 kilometres (37 miles) southeast of Colombo. “I am told there is a high demand in the US and several other countries. Cannabis is used by the pharmaceutical industry in the manufacture of tranquilisers and painkillers.” Smoking and possessing cannabis is illegal in Sri Lanka.(AFP) (Daily Island 14.9.2017).

President Maithripala Sirisena, in a special gazette notification issued on Monday (11) has declared 81 more leaders and rebels of the 1818 Uva rebellion as national heroes. On December 7 last year, the President annulled the Gazette issued in 1818 and declared as national heroes 19 persons including Monarawila Keppetipola who had been named as traitors for leading and participating the 1818 Uva-Wellassa rebellion against British colonial rule. The gazette issued on Monday includes 49 people sentenced to death and another 32 declared as traitors and expelled to Mauritius consequent to their involvement in the uprising. The list of national heroes sentenced to death by Court Martial are as follows: Appurala Arachchila (Uva), Appuhamy Arachchila (Uva), Arampola (Loku) Mohottala (Sath Koralaya), Aluthnuwara Appuwa (Sabaragamuwa), Aluthnuwara Naiderala (Sabaragamuwa), Aluvihare Nilame (Matale), Ellepola Maha Nilame (Matale), Idamegama Ganethirala (Uva Medakinda), Iriyagama Kalubanda (Yatinuwara), Udapalathe Vidane, Kalugalpitiye Vidane, Kepettipola Maha Nilame (Matale), Kindi Menika Duraya (Sabaragamuwa), Kirinaida (First), Kirinaida (Second), Kiriminda, Kivulegedara Mohottala, Viyaluwa, Kuda Badulugammana Raterala (Wellassa), Kumbakele Shilpa, Kethukurala (SathKoralaya), Kotabowe Magalarawe Mohottala (Wellassa), Ganitha (Uva), Thennewatte Disawa (Dumbara), Diyakele Pihanarala, Deegolle Raterala (Uva), Dewdiya Raterala (Uva Yatikinda), Dewagolle Hondahami (Sabaragamuwa), Nindagame Dinga, Tikirala Alias Kandukara Arachchi, Tikiri Rala, Pelawa Mahaduraya, Puncha/Pinchi, Polgahagedara Pihanarala (Uva), Butawe Raterala (Wellassa), Boragolle Mohottala (Walapane), Bodimaluwe Vidane (Sabaragamuwa), Madugalle Udagabada Nilame (Dumbara), Madulle Aruma (Walapane), Madulle Ganethirala (Walapane) Madulle Punchirala (Walpane) Mawathagama Nilame (Sath Koralaya), Medagasthalawe Basnayaka Rala, Wadawela Mohottala (Uva), Welarawe Raterala (Uva), Sedara (Sabaragamuwa), Hakmana Thennewatte Nilame (Dumbara), Hannasgedara Mohottala (Matale), Haloluwe KudaSattambi (Harispattuwa) and Higgahalande Vidane (Uva). (Daily Island 15.9.2017).

About10 to 12 persons are killed daily in road accidents countrywide, says Assistant Superintendent of Police W. D. A. Dananjaya of the Police Traffic Headquarters. Addressing a press conference at the Health Education Bureau last week to announce the National Accident Prevention Week (Sept. 18-25) ASP Dananjaya said that about 100-125 road accidents were reported daily and 45 to 50 victims were admitted to hospital with serious injuries. Motorcycles and trishaws accounted for 90% of the road accidents, he said. The aim of the National Accident Prevention Week being conducted for the second time was to raise public awareness of accident prevention, the ASP said. Today has been declared as the Road Accident Prevention Day and tomorrow is the Workplace Accident Prevention Day, while Wednesday will be the Domestic Accident Prevention Day. September 21st has been declared the Pre-School Accident prevention Day and the 22nd as the Day of Prevention of Accidents in Schools. (Daily Island 18.9.2017)

Department of Census and Statistics, Ministry of National Policies and Economic Affairs issuing a communiqué releasing National Accounts Estimates for the second quarter of 2017 stated that the GDP growth rate for the second quarter of 2017 has been estimated at 4,0 percent. The Gross Domestic Product for Sri Lanka for the second quarter of 2017 at constant (2010) price reportedly reached up to Rs. Million 2,211,612 and the GDP reported for the second quarter of 2016 was Rs. Million 2,125,848. The four major components of the economy; Agriculture, Industry, Services and Taxes less subsidies on products has contributed their share to the GDP at current price by 8.2 percent, 25.9 percent, 56.6 percent and 9.4 percent respectively in the second quarter of 2017. During the second quarter of 2017, the Industrial and the Services activities have recorded higher growth rates of 5.2 percent and 4.5 percent respectively. However, overall Agricultural activities have reported a negative growth rate of 2.9 percent. Among the sub activities of Agriculture, the value added of ‘Growing of rice’, ‘Growing of oleaginous fruits; including Coconut’, ‘Growing of Cereals (except rice), ‘Growing of vegetables’ and ‘Growing of Spices’ declined by 32.9 percent, 20.2 percent, 15.3 percent, 5.9 percent and 3.8 percent respectively during this quarter, when compared to the same quarter in the previous year. The industrial activities which shared the GDP by 25.9 percent at current price, has recorded a considerable growth rate of 5.2 percent in the overall industrial activities in this quarter. Among the industrial activities, the `Construction.’ activity, which corresponds to the highest share within the industry sector, grew by 9.3 percent during this quarter when compared to the second quarter of 2016. In parallel to the construction activity ‘Mining and quarrying’ also has reported significant growth rate of 18.4 percent. The overall manufacturing activities have grown by 0.9 percent during the second quarter of 2017. (Daily Island 22.9.2017)

Inflation, as measured by the change in the National Consumer Price Index (NCPI) (2013=100), which is compiled by the Department of Census and Statistics (DCS), increased to 7.9 per cent in August 2017 from 6.3 per cent in July 2017, on year-on-year basis. Both Food and Non-food categories contributed towards the year-on-year inflation in August 2017. The change in the NCPI measured on an annual average basis increased from 6.2 per cent in July 2017 to 6.5 per cent in August 2017. When the monthly change is considered, the NCPI decreased from 122.4 index points in July 2017 to 122.3 index points in August 2017. This monthly decrease was mainly due to the decrease in prices of the items in the Food category. Within the Food category, prices of vegetables, red onions, garlic, fresh fish and rice decreased during the month. Meanwhile prices of big onions, some fruits, coconuts and potatoes increased during the month. Prices in Clothing and Footwear; Furnishing, Household Equipment and Routine Household Maintenance; Health (Payments to private hospitals room charges); Transport (Airline fare); Education (Vocational training course fees); and Miscellaneous Goods and Services sub-categories increased. Prices in Housing, Water, Electricity, Gas and Other Fuels and Communication sub-categories increased marginally during August 2017. Alcoholic Beverages and Tobacco (areca nuts) sub-category also increased during August 2017. Meanwhile, prices in Recreation and Culture; and Restaurants and Hotels sub-categories remained unchanged during the month. The NCPI Core inflation, which reflects the underlying inflation in the economy increased to 4.8 per cent in August 2017 from 4.2 per cent in July 2017 on year-on-year basis. Annual average NCPI Core inflation declined from to 5.9 per cent in July 2017 to 5.8 per cent in August 2017. (Daily Island 23.9.2017)

Continuing the upward trend observed since March 2017, earnings from exports increased in July 2017 surpassing the US dollars 1 billion mark for the second time during the year, a Central Bank press release stated yesterday. “Accordingly, earnings from exports at US dollars 1,016 million in July 2017 registered a year-on-year growth of 13.9 per cent. The growth in exports was mainly driven by industrial exports followed by agricultural exports,” it said. The Central Bank further stated,” Earnings from industrial exports grew by 11.6 per cent (year-on-year) to US dollars 757 million in July 2017, led by increased exports of textiles and garments. Indicating a reversal of negative growth experienced in the previous two months, export earnings from textiles and garments increased by 9.6 per cent (year-on-year) to US dollars 467 million compared to July 2016, registering the highest monthly value recorded so far during the year. Garment exports to the EU market increased by 10.6 per cent (year-on-year) to US dollars 188 million in July 2017 signalling the positive impact of the restoration of the GSP+ facility in May 2017″. “During the month, garment exports to the USA and non-traditional markets also grew by 7.9 per cent and 6.5 per cent (year-on-year), respectively. Meanwhile, export earnings from food, beverages and tobacco increased significantly by 46.8 per cent (year-on-year) to US dollars 34 million. Further, reflecting the improved performance in all sub categories, export earnings from rubber products increased by 15.2 per cent (year-on-year) in July 2017. Due to higher export volumes and prices of bunker and aviation fuel, earnings from export of petroleum products increased significantly by 21.5 per cent (year-on-year) in July 2017. Meanwhile, export earnings from chemical products (led by perfumes), printing products (led by currency notes) and base metals and articles increased during the month compared to the corresponding month of the previous year. However, export earnings from leather, travel goods and footwear, and gems, diamonds and jewellery declined in July 2017”. “Sri Lanka’s external sector continued to improve with increased exports and inflows to the financial account, However, , the trade deficit widened in July 2017 compared to the corresponding month of 2016 due to higher import expenditure amid the increase in export earnings. Tourist earnings declined marginally in July while workers’ remittances increased, reversing its declining trend observed in the last four months. Inflows to the financial account continued to strengthen with net inflows to the government securities market, long term loans to the government, receipt of the third tranche of the Extended Fund Facility (EFF) of the International Monetary Fund (IMF), as well as continued portfolio investment inflows to the Colombo Stock Exchange (CSE)”. it stated. (Daily Island 29.9.2017)

Sri Lanka had earned over 2 billion U.S. dollars from tourism this year with steady growth in numbers, the Central Bank. Earnings from tourism increased to 2,086 million dollars during the first seven months of the year, compared to 2,013.5 million dollars during the same period in 2016, latest data showed. The government ahs said it aims to double the number of tourists to 5 million by 2020 as part of a new tourist strategy to boost revenue. Sri Lanka’s tourism industry boomed after the end of civil war in 2009 with arrivals growing to a record 2.05 million at the end of 2016. This year the country has targeted an ambitious 2.5 million tourists. According to data released by the Sri Lanka Tourism Development Authority, cumulative arrivals of tourists in the first eight months rose 3.5 percent to over 1.4 million compared to 1.3 million in the same period last year. India continues to lead arrival figures with 233,120 followed by China with 189,696, Britain with 141,378, Germany with 89,459 and France with 73,081. Tourism accounts for close to 5 percent of Sri Lanka’s economy. In the first six months of 2017, Sri Lanka earned 1.7 billion dollars from tourism. ( Daily Island 30.9.2017)