SRI LANKA NEWS
(JUNE 2024)
Compiled by Victor Melder
Health experts have raised concerns about the rising use of tobacco products among schoolchildren in Sri Lanka. Speaking on World No-Tobacco Day which fell yesterday (31), Dr. Shakya Nanayakkara, Chairman of the National Dangerous Drugs Control Board, highlighted that tobacco products are becoming increasingly common in schools. Dr. Nanayakkara emphasized that children who become addicted to these products are likely to progress to smoking cigarettes. He also noted the growing popularity of e-cigarettes globally, cautioning that individuals who develop a nicotine habit through e-cigarettes are at a high risk of transitioning to smoking traditional cigarettes. Further, he warned that the ingestion of nicotine can lead to adverse effects such as dizziness, vomiting, and general physical discomfort. As such, Dr. Nanayakkara urged parents and teachers to educate children about the dangers of nicotine and the reasons for its use. (Daily Mirror, 1.6.2024)
Persons of Sri Lanka descent, including those who have renounced their citizenship, and foreign spouses would be able to get permanent residence status, under regulations gazetted by the ministry of public security. A person of Sri Lankan descent or “whose citizenship of Sri Lanka has ceased under sections 19, 20 or 21 of the Citizenship Act” as well as a foreign spouse would be eligible to apply after six months of marriage under the new regulations. However, if the marriage is dissolved before 5 years, the PR status would automatically cease. A person of Sri Lanka descent is someone whose parents, grandparents or great grandparents were born in or are still citizens of the island. A fee of 1,000 dollars would be charged. Children would also be allowed PR status at 400 dollars. In Sr Lanka regulations issued by gazette (subsidiary legislation) by most laws, usually have to be presented to parliament before they are implemented by the agency concerned. Ex-Sri Lankans earlier had to apply for dual citizenship, which was not allowed by some countries. However permanent resident status is provided by many countries. Sri Lanka’s PR status allows persons to work, run businesses, buy or inherit property. There are large numbers of Sri Lankans who have obtained citizenship in foreign countries who have not applied for dual citizenship. Sri Lanka also does not have a naturalization path unlike Western nations which leads to them exiting whatever assets they have in this country and investing it in the new countries. A controversy has also arisen at the moment with legislators losing their parliamentary seats due to being foreign citizens. (Sunday Island, 2.6.2024)
In the backdrop of declining volumes, tea prices are on the rise sharply with May establishing record National Sales Averages both in rupee and dollar terms. Forbes and Walker Tea Brokers said in May, as well as year to date, have seen significant gains except for High and Medium grown. In May, the total auction average of Rs. 1,266.80 per kilo, the High grown average of Rs. 1,162.31 per kilo, Medium grown average of Rs. 1,074.79 per kilo and Low grown average of Rs. 1,608.57 were the highest ever. Sri Lanka’s tea crop in April 2024 has dropped to a four year low of 21.46 million kilos, which is also the lowest since the COVID-19 lockdown year of 2020. Forbes and Walker Tea Brokers said the National Tea Sales Average (TSA) for May 2024 registered Rs. 1,266.80 ($ 4.25), reflecting an increase of Rs. 49.95 and $ 0.16 compared to the April 2024 average of Rs. 1,216.85 ($ 4.09). This substantial growth also shows a positive year-on-year (YoY) variance, with the May 2023 average standing at Rs. 1,055.45 ($ 3.43). It also added that the current figures mark an impressive increase of Rs. 211.35 and $ 0.83 over the previous year. Breaking down the averages by region, the High Grown tea segment showed a month-on-month (MoM) increase of Rs. 4.81 and $ 0.01. However, there was a decrease of Rs. 83.38 and a positive variance of $ 0.10 YoY. The Medium Grown tea average also recorded a positive MoM variance of Rs. 6.87 and $ 0.02, although it saw a slight YoY decrease of Rs. 5.36 while still achieving a $ 0.32 increase in Dollar terms. Forbes and Walker Tea Brokers said the Low Grown tea segment particularly stood out, with increases in both rupee and dollar terms, recording Rs. 72.31 and $ 0.24 MoM. The YoY average for Low Grown tea also demonstrated substantial growth, with an increase of Rs. 18.35 and $ 0.47. It added that despite some regional variances, overall, the tea industry has shown resilience. Both High and Mid Grown regions experienced negative variances in rupee terms during the period from January to May 2024 compared to the same period in 2023. However, all elevations recorded positive variances in Dollar terms, underscoring the sector’s strong performance on the international market. The figures also highlight the robust demand and strategic positioning of Sri Lankan tea in global markets, setting a promising outlook for the remainder of the year. (Financial Times, 6.6.2024)
The Excise Department has earned a tax revenue of Rs. 88.7 billion in the period from January 1, 2023 to May 31, 2023. It is significant that the Excise Department has earned more revenue than the same period in the last year, which stood at Rs. 69.9 billion. According to reports it is an increase of 19 billion rupees compared to the same period of the previous year. When it is taken as a percentage, the increase is 28 percent, Excise Commissioner General M. J. Gunasiri said. “The Excise Department has earned Rs.169 billion in 2022. It was increased to Rs.179 billion in 2023. However, compared to 2022, Rs.9 billion more has been earned in 2023,” he added. By the end of the first five months of this year, it is targeted to collect Rs.91.2 billion in tax revenue. Accordingly 98 percent of that target has been achieved so far. In 2023, the government took steps to raise the percentage of excise duty by fourteen percent. In the previous year, the tax volume imposed on liquor has been increased by forty percent on two occasions by the government. However, from this point of view, the Commissioner General stated that the increase in tax revenue in 2023 is not due to the increase in tax percentages. Gunasiri said that this increase of tax income is a good thing even in a declining trend of alcohol production. (Daily News, 7.6.2024)
State Minister of Finance Shehan Semasinghe disclosed to Parliament yesterday (07) the government’s domestic and external debt figures.He said the domestic debt stood at Rs. 17,051 billion as of December 31, 2023, and it had increased to Rs. 17,252 billion by 31 March, 2024.He said external debts amounted to USD 37 billion, including outstanding external debt installments amounting to USD 5.5 billion since April 2022. (Daily Island, 8.6.2024)
The Department of Immigration and Emigration has extended the free-visa entry service for nationals from seven countries until further notice. The new directive was shared via a circular issued on 30 May, by the Immigration and Emigration Controller General Harsha Ilukpitiya.
“This serves to inform you that the existing short-term free of charge visa issuance for designated countries (India, Indonesia, China, Russia, Thailand, Malaysia and Japan) will be in force until further notice,” it reads. On 23 October 2023, the Cabinet of Ministers approved free-visa entry to travellers from seven key tourist-generating markets; India, China, Russia, Malaysia, Japan, Indonesia, and Thailand till 31 March 2024. Later, it was extended till 30 April. The circular noted that potential applicants who apply for a visa in Sri Lanka may avail of the visa-applying facilities by logging onto the department’s website www.immigration.gov.lk and selecting e-Visa (non-residence). “They have also been facilitated to obtain a visa at the port of entry (on-arrival) to Sri Lanka,” the circular added. (Financial Times, 8.6.2024)
Sri Lanka’s tourism industry continues to chalk up a striking performance, raking in over $ 1.4 billion in revenue during the first five months of 2024, marking a staggering 87% surge compared to the same period last year. The boost in revenue generation during the first five months is particularly significant, as it took the country almost nine months to reach a similar milestone the previous year. The robust performance not only attributes to a strong recovery, but also highlights the industry’s potential for growth and resilience in the face of adversity. Tourism earnings in May amounted to $ 154 million, reflecting 54% increase year-on-year (YoY) indicative of the industry’s seasonal fluctuations. The month of May saw a total of 112,128 tourist arrivals, which registered a 35% YoY increase. However, on a month-on-month basis, May earnings saw a 32% decline. Despite this, 2024 May earnings remain the highest recorded post-COVID. Sri Lanka crossing the 900,000 arrivals milestone so far in 2024, underscores the optimistic outlook, representing a significant increase from the previous year. Looking ahead, Sri Lanka Tourism aims to attract 2.3 million visitors and generate over $ 4 billion in income for 2024. As tourism remains a crucial source of foreign exchange earnings for the country, efforts are underway to attract high-end tourists, with plans to increase the average spending per visitor to $ 4,000. The Sri Lanka Tourism Development Authority (SLTDA) is targeting 2.5 million visitors to spend over $ 500 per day, with a focus on attracting high-spending travelers, who currently constitute a significant portion of tourists visiting the country. (Daily Financial Times, 10.6.2024)
Remittance income from Sri Lankans working abroad has continued to remain robust through May as the country received US$ 544.4 million in the month. This is both, higher from a month ago levels as well as the year earlier levels. Sri Lankan received US$ 543.8 million as remittances in April this year while in May last year the receipts were US$ 479.7 million. For the five months through May, the country received US$ 2, 624.4 million from remittances, up 11.8 percent from the same period a year ago. Sri Lanka’s remittances started normalising when the authorities began cracking down on the informal money exchanges that were offering substantial premiums to the official exchange rate.
The rupee depreciation also helped emigrants to re-route their earnings via banks which until then were repatriated via informal channels. Further the record number of departures for foreign employment also helped Sri Lanka to receive strong amounts of foreign currency every month.
Sri Lanka is looking at roughly US$ 7.0 billion from remittances in 2024 which was similar to the levels received back in 2020. Remittance income weakened to US$ 5,491.5 million in 2021 and further down to US$ 3,789.5 million in 2022 when certain political parties engaged in a widespread campaign to prevent migrants from sending back money by spreading falsities. They engaged in constant propaganda and peddled lies about dollars being stolen and concocted stories about sending dollars back to Uganda. The Sri Lankan economy is once again showing some strength due to normalised flows from remittances and recovering tourism trade. (Daily Mirror, 10.6.2024)
The Department of Census and Statistics (DCS) reports that computer literacy in Sri Lanka has increased to 39% in 2023.In its latest release on computer and digital literacy, the DCS reported that the country’s Computer Literacy Rate stands at 39.0% and the Digital Literacy Rate at 63.5%. Additionally, 20.2% of households own either a desktop or laptop computer, with the urban sector demonstrating higher literacy in both computer and digital skills. Regarding household computer ownership, at least one computer is available in 20.2% of households in the country, meaning one out of every five households owns either a desktop or a laptop. In the urban sector, this percentage is 34.0%, while the rural and estate sectors show 18.1%. (Daily Mirror, 11.6.2024) Sri Lanka is facing a health crisis of non-communicable diseases (NCDs) which account for 89% of deaths, according to Health Secretary Dr. Palitha Mahipala. The hardest hit are those aged 50 to 60, with four out of ten falling victim to NCDs. “Each year, 60,000 Sri Lankans suffer strokes, resulting in 4,000 deaths and leaving thousands with serious health issues,” the health secretary underscored. Smoking is another major killer, causing 20,000 deaths annually,” he added. To combat this, the Japan International Cooperation Agency (JICA) is investing Rs 70 billion over the next five years. Their plan includes boosting primary health care and setting up five cardiac catheterization units across the island. (Daily Mirror, 11.6.2024)
Low country estate workers yesterday issued a warning of a countrywide strike if the Government-mandated Rs. 1,700 wage hike is not implemented within this week. Some workers already protested in Elpitiya town on Monday, expressing frustration and disappointment over the delay. The workers lamented that they hope this wage increase will not become another unfulfilled political promise. They cautioned that if Regional Plantation Companies (RPCs) fail to honour the Government-gazetted wage hike, they will be forced to cease work.
Low Country Estate Workers Association Advisor Susantha Liyanarachchi stressed that if the RPCs do not implement the wage hike within a week, all workers will stage a countrywide protest. Meanwhile, Upcountry estate workers also reported not receiving the increased wage, noting that they have only received Rs. 900 so far. “We only received Rs. 900. But we learn that some RPCs have given their employees the increased Rs. 1,700 wage,” said a worker from the upcountry estates. On 3 June, The Court of Appeal refused to issue an injunction order in response to a petition filed by 21 RPCs. The petition sought to suspend the implementation of the gazette issued by the Labour and Foreign Employment Ministry, which mandates an increase in the salary of estate workers to Rs. 1,700.(Financial Times, 12.6.2024)
The Government revenue has increased by 44% to Rs. 916.2 billion in the first quarter. The increase is due to revenue-based fiscal consolidation efforts. The sharp rise of 44% augurs well for the Government’s aggressive stance of enhancing revenue. In 2023, Government revenue as a percentage of GDP rose to 11.1% from 8.4% in 2022. The total Government revenue including grants surpassed its historically high level of Rs. 3 trillion to Rs. 3,048 billion up by Rs. 1 trillion or 54% in 2023 from Rs. 1.97 trillion in 2022. Tax revenue rose by 187% to Rs. 2,720 billion from Rs. 1.751 billion in 2022.Non-tax revenue rose to Rs. 328.3 billion from Rs. 228 billion. The Ministry of Finance attributed several factors to the significant improvement of Government revenue. Among them, tax policy reforms together with enhanced tax administration including reforms to broaden the tax base and improve compliance have played a pivotal role. Income Tax demonstrated significant growth driven by substantial increases in revenue from corporate and non-corporate tax (by Rs. 608.2 billion), Advanced Personal Income Tax (APIT) (by Rs. 145.0 billion), and Withholding Tax (WHT) (by Rs. 157.9 billion). These increases were the result of revisions to tax rates, rationalisation of tax slabs, and reduction of tax-free thresholds with effect from 1 January 2023, and realisation of the full effect of tax policy measures in 2023. Further, there was a considerable increase in revenue from taxes on goods and services, primarily due to an increase in revenue from Value Added Tax (VAT) (by Rs. 694.5 billion) resulting from increasing the VAT rate, reduction of the VAT registration threshold, and removing VAT exemptions on condominium housing apartments. The revenue from the Social Security Contribution Levy (SSCL) increased to Rs. 216.2 billion in 2023, owing to the realisation of the full impact of the SSCL following its implementation on 1 October 2022. This increase was mainly due to the rise in the tax revenue to GDP ratio by 2.5 percentage points and the non-tax revenue to GDP ratio by 0.3 percentage points. This ratio exceeded the envisaged annual estimate of 10.1% for 2023 by 1 percentage point. At 11.1% of GDP in 2023, Government revenue has recovered to only 0.8 percentage points below the Government revenue to GDP ratio of 11.9% in 2019 prior to the tax policy changes implemented at the end of 2019. (Financial Times, 12.6.2024)
The Sri Lankan Embassy in Moscow said yesterday that Foreign Minister Ali Sabry, who is currently in Russia to participate in the BRICS 2024 Foreign Ministerial Session with developing countries, had a bilateral meeting with Russian Foreign Minister Sergey Lavrov on Monday (10). Minister Sabry, during the meeting, brought to the attention of his Russian counterpart the issue of Sri Lankan citizens who have joined the Russian Armed Forces and sought his assistance in resolving the issues encountered by them. At the request of Minister Ali Sabry, it was also agreed that there would be no further recruitment from Sri Lanka, the Embassy said. Russia’s Ambassador to Sri Lanka Levan Dzhagaryan, during a press conference held in Colombo last week, said he was surprised that the issue of Lankan mercenaries fighting for Ukraine had been ignored. Ambassador Dzhagaryan underscored the efforts undertaken by Sri Lanka’s Ministry of Foreign Affairs and Russian competent authorities in order to sort out the issue pertaining to the Lankan citizens involved in the conflict in Ukraine. Defence Secretary Gen. (retd) Kamal Gunaratne said on Monday that the government expected that Russian authorities would provide a detailed list of the number of Sri Lanka’s ex-military personnel serving at the Russian front against the Ukrainian army. Addressing the media in Colombo, Gen. Gunaratne said that they expected the Russian authorities to provide a comprehensive list of Lankans at a forthcoming high-level meeting scheduled for 26 and 27 June in Moscow. The upcoming meeting is scheduled to be attended by the Sri Lankan high-level delegation led by State Minister of Foreign Affairs Tharaka Balasuriya and the Deputy Minister of Defence of the Russian Federation. “We intend to contact Lankan mercenaries serving there and facilitate the return of those who are willing to come back. We have also asked for details of Lankan soldiers wounded and being treated there. We’ll bring them home and are planning to complete their treatments at the Army Hospital,” Gen Gunaratne said. He said that he was also the Chairman of National Anti-Human Trafficking Task Force and the offences of sending Lankans to the Russia-Ukraine war front had been done by human traffickers. “The matter is being investigated and several senior former officers, including a very senior Army officer, have been found involved in this racket. We would take the severest possible action against these racketeers,” Gen Gunaratne said, adding that as of Monday morning 42 such ex-servicemen who fled the Russia-Ukraine front have returned home. Police said that as of yesterday morning they have received 491 complaints from the families of Lankans gone missing in Russia and Ukraine. (Daily Island, 12.6.2024)
The Parliament says it cannot confirm Speaker Mahinda Yapa Abeywardena’s claim that a day’s proceedings cost the taxpayer as much as Rs 15 mn. The Parliament emphasised that as in the case of other government corporations and departments, a day’s expenditure couldn’t be calculated. The House said so in response to The Island query pertaining to a statement made by Speaker Mahinda Yapa Abeywardena in Parliament on March 20, this year. Responding to a series of questions that had been submitted to Parliament in terms of the Right to Information (RTI) Act No 12 of 2016, the Parliament didn’t have the required data to back Speaker Abeywardena’s claim.The Island asked Parliament as to how Speaker Abeywardena calculated a day’s expenditure at Rs 15 mn as the House previously declared it couldn’t confirm Chief Government Whip Prasanna Ranatunga’s declaration that a day’s proceedings cost the taxpayer Rs 10 mn. Minister Ranatunga, on Dec 10, 2023, alleged that the main Opposition Samagi Jana Balawegaya (SJB) wasted Rs 10 mn by sabotaging the special debate on the VAT (Amendment) Bill conducted on that day. The SLPP heavyweight said so during a heated argument with SJB and Opposition Leader Sajith Premadasa.During Karu Jayasuriya’s tenure as the Speaker (2015-2019) the UNPer is on record as having said that a day’s proceedings cost the taxpayer over Rs 4 mn. Parliament responded to a set of queries posed by The Island on March 22, 2024 ,well after the stipulated period to answer RTI queries. However, the Parliament disclosed that the recurrent and capital expenditure of Parliament for 2023 were Rs 3,574,101,968 and Rs 42,099,475 respectively. Hence the total expenditure Rs. 3,616,201,443. Parliament declined to respond to several questions claiming either Parliament didn’t have the relevant data or they were irrelevant. The questions included one on the expenditure incurred during the Budget debate last year (Nov 13-Dec 08, 2023). The House declined to compare the expenditure of Sri Lanka’s Parliament and that of regional Parliaments. The Speaker, on March 20, declared that a three-day no-confidence motion against him over the enactment of the Online Safety Bill wasted as much as Rs 45 mn at the rate of Rs 15 mn per day.The Parliament couldn’t say how much food and electricity cost the taxpayer. According to the response received for the RTI query, the Parliament opened on all week days though the sittings were held a maximum of eight days a month. (Daily Mirror, 14.6.2024)
The Intentional Monetary Fund (IMF) announced the completion of the second review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing Sri Lanka to draw SDR 254 million (about US$336 million). This brings the total IMF financial support disbursed so far to SDR 762 million (about US$1 billion). The Executive Board also concluded the 2024 Article IV Consultation with Sri Lanka. In the official statement released earlier today, the IMF said its directors welcomed the progress made to advance debt restructuring to restore Sri Lanka’s debt sustainability. However, they called for a swift finalization of the Memorandum of Understanding with the Official Creditor Committee and final agreements with the Export-Import Bank of China. The directors stressed the importance of seeking comparable, transparent, and timely completion of restructurings with external private creditors consistent with program targets. (Daily Mirror, 13.6.2024)
Sri Lanka has witnessed a staggering 150 elephant deaths within the last five months due to an array of tragic causes, reflecting the escalating conflict between humans and wildlife. According to Wildlife Department sources, the deaths include 28 from gunshots, 21 from electrocution, 13 from ‘hakka patas’ (explosive devices hidden in food), 2 from poisoning, 3 from train accidents, 1 from a road accident, 7 by drowning, and 4 from other accidents. Further, the causes of other deaths are owing to natural causes or causes that could not be identified. The majority of these deceased elephants are young. On the other hand, this tragedy extends beyond wildlife, as the ongoing human-elephant conflict has claimed 45 human lives so far this year. According to Wildlife Department statistics, 2023 saw the deaths of 488 elephants due to various reasons including human elephant conflict while 184 human fatalities directly consequent to the conflict. Moreover, the sources told Daily Mirror that the estimated wild elephant population, according to a 2011 survey, was 5,878. However, wildlife authorities now estimate the population ranges between 6,000 and 7,000, although this number is under threat with the current situation. In response to the growing crisis, authorities are planning a comprehensive survey in August to obtain updated data on the wild elephant population and assess the impact of ongoing conservation efforts. In light of the conflict, the government has planned to launch two pilot projects: the ‘Temporary Agricultural Electric Fence’ and the ‘Village Electric Fence,’ aiming to safeguard villages and farmlands affected by severe elephant-human conflicts.This announcement came during a recent discussion led by Sagala Ratnayaka, Senior Advisor to the President on National Security and Chief of Presidential Staff, along with heads of relevant agencies. (Daily Mirror, 14.6.2024)
The police are on the lookout for the arrest of five persons of the Vedda community and a foreign national for slaughtering a peacock, roasting its meat and consuming it inside the Maduru-Oya National Park. The incident, which reportedly took place in 2019 or 2020, has recently come to light due to video footage shared on social media. The video has amassed over eight million views, prompting a public outcry and subsequent investigation. Wildlife Ranger – Henanigala W. M. Kumarasiri Wijekoon informed the Mahiyangana Magistrate Court about it. The traditional hunting tools of the community such as bow and arrow had been used in hunting the peacock, which is declared a protected species. The video shows the peacock being roasted, dipped in bee honey and eaten according to the traditional style of the indigenous community. It is reported that the incident had happened in 2019 or 2020. The crime appears to have been committed collectively. (Daily Mirror, 15.6.2024)
According to reports by Gynaecologists and Obstetricians, during the past five years the number of births in the country has decreased by more than 100,000 and the annual death rate has increased by 35,000. Based on reports, there were 325,000 births in 2017, but this number dropped to 247,000 in 2023. Meanwhile, annual deaths increased from 146,000 in 2017 to 181,000 in 2023. While addressing the media, Gynaecologist Prof. Sanath Lanerolle said the main reason for the decline in births is that many married couples have left the country during their fertile years. A situation where the births are delayed has been reported due to the current economic crises. The percentage of those getting married has decreased by 12.5 percent over the past five years. This decline could impact on the country’s future workforce as the number of elderly people increases, they claimed. (Daily Mirror, 17.6.2024)
The unique donkey population native to the Kalpitiya Peninsula, which contributed to the area’s biodiversity, is facing the threat of extinction, causing concern among environmentalists. Residents of the area said the donkey had lost its natural habitat due to illegal felling of trees and clearing of jungle for agriculture. They pointed out that mangroves and sand dunes were the breeding grounds of the donkey but the prawn farms expelled the animal from its habitat and breeding grounds. Roshan Priyalal Silva of Erambukudella, a businessman, said the donkey, an animal endemic to Kalpitiya would soon be a thing of the past. It is endangered with extinction due to human activities. Quite often donkeys frequenting the roads are knocked down to death by vehicles. Cruelties inflicted by unscrupulous individuals resulted in the death of donkeys. Development activities including prawn farms, salterns and illegal clearing of jungles resulted in this state. Donkey population in Kalpitiya has a long history. They had been used to transport salt from Puttalam,” he said. He further said that it was imperative that a wildlife authorities, and animal lovers’ organizations should put their heads together and work out a plan to protect the donkey population endemic to Kalpitiya. However, Kalapitiya Wildlife Ranger Upali Kumaratunga said the donkey is a domestic animal used as a beast of burden under the Fauna and Flora Ordinance and not a wild animal protected by wildlife regulations. (Daily Mirror, 18.6.2024)
A proposal has been made to increase the price of an ordinary postage stamp to Rs. 100 by July, Mass Media Ministry Secretary Anusha Palpita said. He told the Daily Mirror that the Postal Department is currently incurring an annual loss of Rs. 7,000 million. “Last year, the loss was reduced to Rs. 3,200 million. However, with a salary increase for postal employees costing Rs. 2,800 million this year, the Postal Department’s loss will rise again to Rs. 7,000 million.” he said. “If the losses continue to increase, it might reach Rs. 5 billion by 2025. Less than 1.5 million people use postage stamps, yet the entire country bears the burden of the Postal Department’s losses,” he added. The price of a stamp was Rs. 15 until 2022, and the current price is Rs. 50. “We are awaiting approval from the Treasury to raise the price of a postage stamp. This decision is necessary due to the ongoing losses of the Postal Department,” Palpita said. (Daily Mirror, 19.6.2024)
Sri Lanka’s rupee has reached the Rs. 300 mark against the US dollar, marking its highest valuation in three months. According to the Central Bank, the last instance of the rupee hitting 300 against the dollar was recorded on March 18, 2024. Since then, the currency has fluctuated within the range of 290 to 299. (Daily Mirror, 19.6.2024)
The proposed wealth tax will be on over half-a-million houses at Rs. 200,000 per year if the Government were to raise the targeted figure of Rs. 100 billion in 2026, according to analysts who based their forecast from President Ranil Wickremesinghe and Finance Ministry pronouncements. The President in Parliament yesterday said 90% of the houses in the country will not be subject to the proposed Imputed Rental Income Tax (IRIT) effective from 1 April 2025. He also said a person’s first house will not be taxed. The Finance Ministry in a statement on Sunday said the Government hopes to raise Rs. 100 billion or 0.4% of GDP via the new tax in 2026. Analysts estimate there are over 5 million houses in Sri Lanka and if 90% won’t be covered, the tax net for the Government is only 500,000 units or half-a-million and a tax of Rs. 200,000 is required to raise the targeted Rs. 100 billion. KPMG said imputed rental income is the deemed income that homeowners could earn if they rented out their homes. As per the IMF report, the proposed Imputed Rental Income Tax (IRIT) is not a transaction tax and is imposed on individuals. “Clarity is needed whether IRIT will be on lessor or lessee in case of rented residential property,” said KPMG in a tax alert. “Where a company is the owner/lessor of a residential house, will IRIT be applicable?,” the KPMG questioned. (Financial Times, 20.6.2024)
The Sri Lankan market suddenly increased rubber imports from Viet Nam with a growth of 435.7 per cent in volume and 530.5 per cent in value in the first five months of the year, a news report published by Viet Nam News said on Friday.The report filed from Ha Noi said: “The Agency of Foreign Trade under the Ministry of Industry and Trade cited statistics from the General Department of Customs as saying that the country rubber exports reached 84,460 tonnes last month, worth US$135.64 million, up 14.8 per cent in volume and 14.5 per cent in value compared to April, but decreased by 27.9 per cent in volume and 14.9 per cent in value compared to May last year. “This is the second consecutive month that rubber exports have decreased compared to the same period last year. “In the first five months of this year, rubber exports reached 572,280 tonnes, worth $859.4 million, down 2.4 per cent in volume, but up 6 per cent in value compared to the same period last year. “Rubber exports to many major markets decreased in the first five months of this year, in particular markets such as China, the Netherlands and Peru. “However, exports to some markets still grew including India, South Korea, Russia, Indonesia, Sri Lanka, Turkey, Brazil and Italy. “Notably, Vietnamese rubber imports to the Sri Lankan market suddenly soared in the first five months of the year, rising the market share of rubber exports to this market from 0.26 per cent to 1.43 per cent of Viet Nam’s total rubber exports.” (Sunday Island, 23.6.20-24)
The initial step of implanting the newly developed, small-sized loop into the uterus of female monkeys to effectively prevent pregnancy has been successful, Prof. Ashoka Dangolla of the Veterinary Medicine and Animal Science Faculty said. He told the Daily Mirror that the Veterinary Faculty at Peradeniya University, with support from the Dental Faculty, has designed a small-sized loop. “We measured the dimensions of the female monkey’s uterus and designed a smaller-sized loop to fit and implant. The new smaller-sized loop was created with the help of specialists and technology from the Dental Faculty at Peradeniya University. The loop was implanted in six female monkeys. One loop was expelled as the uterus contracted, dilated and secreted various fluids, but the loops in the remaining five monkeys were successfully implanted. It has been two months since the implantation, and X-ray examinations have confirmed that the loops are still in place. A one-and-a-half-year-old female monkey that had given birth once was used for this test,” Prof. Dangolla said. “If the implantation of the loop is successful, there is no possibility of the monkeys becoming pregnant, and it would not affect their usual sexual behaviour. Implanting these loops will help control the monkey population without resorting to killing or relocating them, and it is a low-cost solution,” the Professor said. “As our second experiment, we plan to place two male monkeys in a cage with the female monkeys that have the loops to observe whether the females become pregnant,” he said. “If the female monkeys do not become pregnant, we can implement these loops for female monkeys in the wild. However, we need to determine the optimal timing for loop implantation, as it cannot be done if the females are about to deliver or are already pregnant,” he said. The surgical technique for implanting the loop can be easily taught to local veterinary doctors, he said. The Professor added that the manufacturing cost for this new loop is approximately Rs. 2,000 and this method will help maintain the monkey population without harming them. (Daily Mirror, 23.6.2024)
According to the Department of Agriculture, the consumption of fruits in Sri Lanka has increased to 12.8 million metric tons (1,283,039 metric tons) in the year 2023. The annual requirement of fruits in this country is 19.6 million metric tons. (196,9371 metric tons). When looking at the increase in the production of fruits in 2023, the increase in the production of bananas, mangoes, pineapples and papayas is notable, says the Department of Agriculture. Apart from this, the export of fruits has also increased in the year 2023. Accordingly, 38,201 metric tons of fruits have been exported. By 2027, it is planned to increase banana production to 19.5 metric tons per hectare, mango production to 9.5 metric tons, papaya to 45 metric tons, pineapple to 14 metric tons and passion fruit to 30 metric tons. Dr. Kamani Ranatunga stated that many technical measures have been planned for that purpose such as variety breeding, hybrid variety breeding, high density cultivation, integrated pest control, introduction of plant nutrients, and reduction of crop damage and introduction of value added production technology. (Daily News, 24.6.2024)
Declaring that his government had secured agreements with the official creditors, as well as China, on debt restructuring, President Ranil Wickremesinghe, in his address to the nation, said that the country could now defer all bilateral loan installment payments until 2028. The President said the country had received an opportunity to repay loans on concessional terms, with an extended period until 2043. The UNP leader warned those who attempted to disrupt the debt restructuring process. Pointing out that they hadn’t been able to achieve their objectives, the President warned whom he called detractors would face the shame of having betrayed their country. (Daily Island, 27.6.2024)
