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Former Minister of Finance Mangala Samaraweera has written to the United Nations Educational, Scientific and Cultural Organization (UNESCO) on the danger faced by the Sinharaja Forest Reserve due to the construction of a road from Lankagama to Neluwa through the Sinharaja forest reserve. In his letter to the Director General of UNESCO, Samaraweera noted that there were several attempts to construct roads bordering the forest reserve on previous occasions too, which were halted by Gazette Extraordinary 2150/31 dated 20 November 2019 through which former president Maithripala Sirisena authorised the expansion of the forest reserve to quadruple the protected area to counter the fragmentation of the forest.

He further said that environmentalists had pointed out that building the road would lead to hotels and shops being constructed along the way, and the forest reserve being encroached upon further including for cultivation purposes, and result in increase of vehicular traffic including at night time, increase in illegal activities including bio-piracy, and pollution of the river (Ginganga).

However, the former Minister said that environmentalists had suggested that the government have discussions with the approximately 300 families and allow the villagers to continue living in Lankagama and leave the road as it is, or accept that the villagers and their children have a right to development and a knowledge-based education and provide them land and necessary facilities elsewhere. If any of the villagers choose to remain in Lankagama as opposed to accepting land elsewhere, then that should be allowed only on the understanding that they should not expect any development within the village.

"Sri Lanka’s forest cover is just under 30% and that too is rapidly shrinking. While it is a fact that all Sri Lankans have a right to equal access to all facilities, it is also equally important for their survival that development is sustainable in keeping with the Sustainable Development Goals (SDGs). The interconnected nature of life, the absolute necessity of maintaining and preserving bio-diversity and forest cover for sustainable development and for dealing with climate change have now been scientifically proven. It is recognized that protection of natural resources and forest cover are essential to life and for maintaining a higher standard of life for all, not only in Sri Lanka but the Planet as a whole. The value of Sinharaja which is a World Heritage property, in this context, is not only for Sri Lanka but for the entire world at large. It is one of the region’s last remaining bastions of ecological importance," he added.

 Letter to UNESCO

After government restricted imports, spice is being sold for five times the capped price in the black market.

A shortage of turmeric, a key ingredient in Sri Lankan cuisine, has sparked concern among consumers about supply amid soaring costs in recent months, after the government decided to restrict imports in the wake of the global coronavirus pandemic.

While the government has capped maximum retail price of turmeric powder at LKR 750 (about ₹295) a kg, traders point to a black market where the spice is sold for almost five times the price. The Sri Lankan Navy has also busted attempts to smuggle in turmeric by sea. Last week alone, authorities recovered nearly 1,500kg of dried turmeric in Norochcholai, some 150 km north of capital Colombo, on the island’s western coast.

Despite the shortage and reports of shooting prices, President Gotabaya Rajapaksa has said his government will not go back on its decision on import restriction. Addressing a Cabinet sub-committee on Cost of Living on Monday, Mr. Rajapaksa said even though the public faced difficulties for a “short period” of time, steps taken to “strengthen the rural economy and uplift the farming community cannot be reversed.” To control foreign exchange parity rates and to get rid of high debt burden on farmers, imports should be restricted, he said, according to a media statement issued by his office.

In April, a month after coronavirus (COVID-19) hit Sri Lanka, the government announced a ban on non-essential imports, to cope with the strain on the country’s foreign reserves as the country’s crucial export and remittances sectors were badly hit. Vowing to boost local production, President Rajapaksa said his government would focus on domestic agriculture.

Key source

According to importers in Sri Lanka, India is among their chief sources of turmeric imports, selling about 5,000 tonnes a year. With production in the island far from meeting the demand — an estimated 7,000 tonnes — consumers fear an acute shortage of turmeric in the coming months. Sri Lanka produces about 2,000 tonnes of processed or dehydrated turmeric a year, a report in the local weekend newspaper Sunday Times said.

The flavourful spice is used in everyday cooking in Sri Lanka, in a range of regional dishes from the hodi or sodhi (stew), a staple side dish with strong hoppers, hoppers and pittu, to dal, eaten with rice and curry. Further, following the pandemic, some have begun adding a pinch of turmeric to their daily cup of tea, citing “medicinal” properties it is believed to have.

Sri Lanka was in the past self-sufficient in turmeric cultivation but along the years, its production fell, according to W.M.W. Weerakoon, Director General of the Department of Agriculture. In his view, the current focus on local production is welcome as it shines the spotlight on local agriculture. But regaining self-sufficiency may take time. “In the case of turmeric, it will be early next year by the time our production grows enough to meet 60 to 80% of our demand,” he told The Hindu.

Meanwhile, importers and traders point to a growing black market where 1 kg turmeric is sold for LKR 4,500, despite the government’s price regulation.

A group of turmeric importers has also written to the President and the Prime Minister, seeking release of 1 million kg of turmeric, imported from India earlier, stuck at the Colombo Port, in order to ease the shortage at least temporarily. (The Hindu)

U.S. Ambassador to Sri Lanka Alaina B. Teplitz opened the new Khoonethivu Navalar school in Sampur on August 26. The new facilities include a two-story classroom building with eight classrooms, a rainwater harvesting system with a 30,000 liter storage tank, and washrooms with facilities for both male and female students, teachers, and people with disabilities.  The United States and the Sri Lankan Ministry of Education invested 93 million rupees (approximately $500,000) in this project, which was an initiative of the U.S. Indo-Pacific Command (USINDOPACOM). “This new building offers a safe environment for students to explore new concepts and new ideas while also building a future for themselves and their community,” said Ambassador Teplitz at the ceremony.  “All adults share both the privilege and responsibility of supporting and empowering children in their education.” 

In addition to providing much needed classroom space, this building will also serve as an emergency shelter for up to 400 evacuees from the local community which is especially beneficial as the region is vulnerable to natural disasters. 

Also participating in the ceremony were Eastern Province Governor Anuradha Yahampath, Secretary of the Ministry of Education (Eastern Province) I.K.G. Muthubanda, Provincial Director of Education M.T.A. Izam, Zonal Director of Education A.L.M. Cassim, and Divisional Secretary M.B.M. Mubarak.

Over the past nine years, the American people through USINDOPACOM has supported the construction of 14 schools with investments over $5.8 million.  School construction projects represent a long-running partnership between the United States and local communities, directly benefiting underserved communities while also contributing towards educating Sri Lanka’s youth.

There are nearly one thousand foreigners who are engaging in informal tourism in Sri Lanka running businesses such as restaurants, bars, villas, lodges and Ayurveda spas concentrated mainly in the Southern coastal areas bringing no income to Sri Lanka and the Director General of Sri Lanka Tourism said they will be holding discussions with the Immigration and Emigration Department next month to investigate the matter.

Chairman of Sri Lanka Podujana Peramuna (SLPP), Minister G. L. Peiris says there would not be any necessity to hold a referendum to get the proposed 20th Amendment to the Constitution implemented.

Peiris said a two thirds majority in parliament would be sufficient to get the 20th Amendment passed.

The Minister explained that the clauses that would require a referendum will not be touched when introducing the new 20th Amendment to the Constitution.

A new fire broke out on a supertanker carrying about two million barrels of oil in the Indian Ocean off Sri Lanka's eastern coast as Russian and Indian warships joined the battle to put out the blaze.

The United States and Sri Lanka expressed commitment in expanding bilateral defense relations and to advancing shared interests, a US government statement revealed. This assurance was given during a telephone conversation between US Secretary of Defense Dr. Mark T. Esper and Sri Lankan President Gotabaya Rajapaksa yesterday (31).

The two leaders discussed their shared commitment to a free and open Indo-Pacific that ensures the sovereignty of all nations.

Reviewing common bilateral defense priorities, they noted opportunities to enhance military professionalization, counter-terrorism, and maritime security cooperation. "During the call, Secretary Esper congratulated the Sri Lankan President on his successful handling of the COVID-19 pandemic and the recent conclusion of parliamentary elections, and urged continued progress on reconciliation and human rights in Sri Lanka," a statement issued by the US government said.

Meanwhile, in a twitter message, Dr. Esper said: “Good talk today w Sri Lankan President @GotabayaR. We discussed our cooperation in responding to COVID 19 & the international security environment. We look to deepen CT & maritime security cooperation, and I encouraged continued progress on human rights & reconciliation," he said.

Current U.S policy in Sri Lanka aims to support Sri Lanka’s democratic institutions, encourage its economic development, counterterrorism, and promote a free, open, and prosperous Indo-Pacific region. 

Both governments intend to promote further economic cooperation and exchanges in maritime security and safety, and agree to pursue joint initiatives to enhance security, stability, transparency, and economic opportunity for mutual benefit.

The United States has made substantial investments in agriculture,enterprise development, education, healthcare, energy and natural resources, and humanitarian activities.  

The two countries are also discussing a $480 million Millennium Challenge Corporation (MCC) compact supporting Sri Lanka's economic development. The US also provided $39 million in foreign military financing to enhance Sri Lanka’s maritime domain awareness. 

During the 2020 COVID-19 pandemic, the United States has provided over $5 million in assistance to Sri Lanka to date. The United States is Sri Lanka’s largest export market and accounts for nearly $3 billion of the $11.7 billion of goods Sri Lanka exports annually.

Sri Lanka has also received approximately $1.2 billion in lending from the IMF since June 2016 with a new disbursement of $164.1 million agreed upon in May 2019.

Pressure is mounting against certain appointments of persons recently made to the public sector by president Gotabaya Rajapaksa and the government.

Web journalist Desmond Chathuranga De Alwis was today arrested by the Criminal Investigation Department (CID) for allegedly publishing a news item that undermines the judiciary.

Indian High Commissioner Gopal Baglay called on the Minister of Power, Dullas Alahapperuma today and reiterated India's commitment towards a strong and multi-faceted partnership with Sri Lanka including in the power sector.

They also discussed various issues of mutual interest including ways to expedite progress on bilateral power projects currently under discussion between the two sides. The High Commissioner also handed over a copy of a letter conveying an offer from India to Sri Lanka for a Line of Credit worth US$ 100 million for three solar projects announced during the International Solar Alliance Founding Conference held in March 2018 in New Delhi. This LoC will cover financing for rooftop solar systems meant for 20,000 households and 1,000 government buildings all across the island.

The combined generation capacity of these rooftop systems will be about 60 MW. The LoC will also provide financing for a floating solar power plant. The implementation of the LoC will begin with the conclusion of an LoC agreement between the two sides. The High Commissioner conveyed that the US$ 100 million LoC is in line with the national priorities of India and Sri Lanka to enhance the share of solar and renewable energy in overall energy generation.

Sri Lanka government revenue fell to Rs 663.4 bn during the first half of this year from Rs. 888.0 bn recorded in the corresponding period of 2019, underscoring the damage done to the economy by the Covid-19 pandemic and the lockdown that followed, Central Bank data showed.

During the same period, total expenditure and net lending declined to Rs. 1,401.2 bn from Rs. 1,410.3 bn recorded in the corresponding period of 2019.

The revenue shortfall widened the overall budget deficit to Rs. 735.7 bn during the first half of 2020 from Rs. 521.7 bn recorded in the corresponding period of the previous year.

 In nominal terms, domestic financing increased to Rs. 882.5 bn in the first half of 2020 compared to Rs. 463.4 bn in the corresponding period of 2019, while foreign financing recorded a net repayment of Rs. 146.8 bn during the first half of 2020 compared to a net borrowing of Rs. 58.3 bn recorded in the corresponding period of 2019.

Outstanding central government debt increased to Rs. 14,052.2 bn by end of June 2020 from Rs. 13,031.5 bn as at end 2019.

Total outstanding domestic debt increased by 13.6 per cent to Rs. 7,530.8 bn, and the rupee value of total outstanding foreign debt increased by 1.9 per cent to Rs. 6,521.4 bn by end June 2020.

During the year up to 28th August 2020 the Sri Lankan rupee depreciated against the US dollar (2.5 per cent).

Reserve money increased to Rs 878.8 billion last month from Rs 869.0 billion during the previous month of June, Central Bank weekly economic indicator report revealed.

 However the reserve money decreased compared to the previous week mainly due to the decrease in currency in circulation, report disclosed.

Broad money (M2b) expanded by 15.7 per cent, on a year-on-year basis, in July 2020  while net Credit to the Government from the banking system increased by Rs.172.0 bn in July 2020.

Outstanding credit to public corporations increased by Rs. 31.3 bn in July 2020. Outstanding credit extended to the private sector declined by Rs. 3.6 bn in July 2020.

The total outstanding market liquidity was a surplus of Rs. 193.041 bn by end of this week, compared to a surplus of Rs. 192.972 bn by the end of last week.

During the year up to 28th August 2020 the Sri Lankan rupee depreciated against the US dollar (2.5 per cent).

The total number of international tourist arrivals to Sri Lanka from January to July 2020 was 507,311. No tourist arrivals have been recorded for the month of July 2020 due to the termination of all passenger flights and ship arrivals into Sri Lanka from 18th March 2020.

Total arrivals recorded from January to July 2019 were 1,124,150. In comparison to January to July last year (2019), a decline of 49.7 % has been recorded for the same period in 2020.

Tourism earnings declined to US$ 956.2 during the first half of last year from $2,118.8 million in the same period last year.

Workers’ remittances increased to $702.1 million last month compared to $ 625.7 million July 2019.