News

Trade, Commerce and Food Security Minister Nalin Fernando pledges a significant reduction of 75% in the cost of living burden on the people by the end of the first quarter this year.

He attributes this positive outlook to the initiation of 2024 with a positive economic growth rate.

Minister Fernando expressed his commitment to enhancing consumer rights by introducing a new program for the Consumer Authority, aiming to provide greater security for consumers.

The Minister’s remarks were made during a press conference at the Presidential Media Center (PMC) today (03) under the theme “Collective Path to a Stable Country”.

He acknowledged the impact of India’s halt on big onion exports, which has reverberated in Sri Lanka. However, the minister assured that the situation will be sort within the next two weeks when India relaxes its restrictions on onion exports.

Minister Nalin Fernando further commented:

“We embark on the year 2024 with a positive economic growth rate. Notably, by the end of the first quarter, the cost of living burden on the people is projected to decrease by 75%. The existing tax policy assures continued relief for citizens in the future.

While some argue against levying taxes for government income, it must be emphasized that such statements are counterproductive to the country’s economic growth. Citizens bear the responsibility of supporting government investments in the country’s future using tax revenue.

Critics often cite high taxes as a reason for leaving the country. However, taxation in our country stands at a modest 12%, significantly lower than the 38% to 43% in countries attracting emigrants. These nations have thrived due to their tax policies.

The interruption in big onion exports from India has impacted our country, but resolution is expected within the next two weeks when India relaxes export restrictions. Improper publicity surrounding tax amendments, including VAT, has led to unwarranted price hikes by intermediaries and some companies, placing pressure on the people.

In the first quarter of 2024, Lanka Sathosa aims to open five new mega stores and ten regular Lanka Sathosa stores. By year end, the plan is to expand the Lanka Sathosa outlet network to 500 outlets.

Expanding the network to 500 outlets serves the primary goal of enabling consumers to purchase goods at government subsidized prices without shortages. In 2024, the goal is to increase the total income of Lanka Sathosa Company to nearly Rs. 70 billion, achieving an operating profit of nearly Rs. 1.5 billion.

The company aims to secure a net profit of Rs. 500 million amidst the economic challenges.

A new program for the consumer authority is anticipated in 2024, aiming to enhance consumer rights. The Department of Measurement Units, Standards and Services will be fully computerized to meet people’s needs in the first four months of the year.”

Sri Lankan police arrested over 20,000 persons during the period between December 17 and 31 in the operations to curb drug trafficking and organized crimes, the Public Security Ministry said on Sunday .

The ministry said in a statement that 20797 persons were arrested and 1018 of them had been held under detention order for further interrogation.

According to the ministry,1298 persons who are drug addicts were sent for rehabilitation.

The police seized properties owned by drug dealers and organized criminals during operations, the ministry said.

Sri Lankan President Ranil Wickremesinghe has defended the government's decision to raise the Value Added Tax (VAT) from 15% to 18%, citing the nation's dire economic situation and the need for fiscal consolidation.

Addressing the "Shilpa Abhimani 2023" Presidential Handicraft Awards ceremony, Wickremesinghe explained the rationale behind the controversial measure.

The government's decision stems from a crucial agreement reached with the International Monetary Fund (IMF). As President Wickremesinghe stated, the agreement restricts the government from resorting to bank loans and printing money, previously relied upon to finance its operations. This necessitated alternative revenue-generating measures.

To bolster the government's income, the administration aims to achieve a revenue equivalent to 12% of GDP this year, with an ultimate target of 15%. With the restriction on traditional borrowing mechanisms, the VAT hike emerged as the primary avenue to achieve this goal.

President Wickremesinghe acknowledged the potential difficulties the VAT increase may cause for consumers and businesses. However, he emphasized that it is a necessary step towards economic stability. He stated, "These measures, albeit challenging, are essential for generating the necessary income, ultimately strengthening the rupee." He further warned that inaction could lead to dire consequences, including an uncertain economic future marked by potential shortages and a collapsed economy.

Addressing potential criticism, President Wickremesinghe welcomed alternative programs for economic recovery, but emphasized that any such program must be accompanied by a clear strategy to garner IMF support. He stressed the importance of avoiding currency devaluation, which he warned would have detrimental consequences.

He expressed optimism about the potential for economic recovery, predicting a gradual strengthening of the rupee by the end of the year.

A new year has dawned early for Matara with smiling faces and hopes for victory for the NPP in 2024, said its leader Anura Kumara Dissanayake.

He was speaking at the party’s district conference for women at the public stadium in Matara yesterday (30).

A nation-changing tsunami has been launched from Matara, he said, adding the NPP has reached a new high from its popularity during the local government polls announced in March.

It has set up a variety of organizations including the retired tri-forces members, to become a formidable force to save the country from its tragic situation, said Dissanayake.

The women’s conference has dispelled doubts against a NPP victory at any election that takes place in the coming year, he added.

National Security Advisor Sagala Ratnayaka who is also the Chief of Staff to President Ranil Wickremesinghe said that the government would take severe action against those who spread falsehoods about VAT increase among people.

Ratnayaka said that legal action would be instituted against those who spread lies and instigate people against the VAT increase.

He said that there was information that some parties with vested interests were creating dissent and displeasure against the government by spreading false accounts about the VAT increase.

(The Island)

1,554 suspects were arrested over drug trafficking during Operation Yukthiya, in the 24-hour window that ended at 12:30 am today.

Police say that investigations on 82 of the arrested suspects have begun based on detention orders.

62 were directed to drug rehabilitation centers.

128 wanted suspects by the Police Narcotics Bureau and Special Bureau were also arrested.

Police say that illegal asset investigations were initiated against suspects who were arrested.

Police say that drugs including Heroin, ICE, and cannabis, were seized during the drug raids carried out.

The proposals requesting to grant relevant exemptions or incentives to two projects at the Port City of Colombo have received Cabinet approval.

The government said a proposal has been submitted by Asiri Port City Hospital (Pvt) Company to implement a project to develop a hospital in the Port City of Colombo under an investment of USD 100 million.

A proposal was also submitted by TIQRI Software PTE Ltd to implement an Information Technology Business in the Port City of Colombo with an initial foreign direct investment of US$100,000.

Both projects qualify for exemptions or incentives under 2(b) of Colombo Port City (Guidelines on the Grant of Exemptions or Incentives to Businesses of Strategic Importance) Regulations, No. 2 of 2023.

Accordingly, the proposal presented by the President, in his capacity as the Minister of Investment Promotion, to grant relevant exemptions or incentives to the Asiri Hospital project under the said provisions, and to announce the project as a primary business of strategic importance through a gazette order, and then table the said order in the Parliament, was approved by the Cabinet of Ministers.

The proposal presented by the President to grant relevant exemptions or incentives to the Information Technology Business project under the said provisions, to announce the project as a secondary business of strategic importance through a gazette order, and then table the said order in the Parliament, was also approved by the Cabinet of Ministers.

The National Building and Research Organisation (NBRO), on Saturday (Dec.30) issued early landslide warnings for several localities in 5 districts, to be in effect until 02.30 p.m. tomorrow.

Accordingly, a Level 02 (Amber) alert was issued for the following areas:

Badulla – Saranathota and Passara Divisional Secretariat Divisions (DSD) and surrounding areas

Kandy – Ududumbara DSD and surrounding areas

Monaragala – Medagama DSD and surrounding areas Nuwara-Eliya – Hanguranketha and Walapane DSDs and surrounding areas

Meanwhile, Level 01 (Yellow) alerts have been issued for the following areas:

Badulla – Bandarawela, Hali-Ela and Badulla DSDs and surrounding areas

Matale – Laggala Pallegama, Rattota and Naula DSDs and surrounding areas

Sri Lanka Customs has achieved a record revenue exceeding Rs. 900 billion in 2023, according to Customs Media Spokesman Seevali Arukgoda. 

The department had earned Rs. 970 billion last year, marking the highest annual total in its history. 

The revenue collected for 2023 was 138% higher than that of 2022, he said. 

Initially set a target of Rs. 1,217 billion for 2023 by the Ministry of Finance, the target was later cut down to Rs. 893 billion due to the economic challenges. 

Despite this being the highest annual revenue ever recorded, it’s worth noting that in 2018, Sri Lanka Customs had also achieved a revenue of Rs. 923 billion.

Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandala Weerasinghe has emphasised the importance of the continuity of the Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF).

Speaking at a special briefing held this afternoon (29 Dec.), Dr. Weerasinghe explained that the EFF programme should continue for the next four years, under any government, in order to get the debt relief and international financial support required.

He warned that unilateral withdrawal from the IMF-EFF agreement will result in severe implications.

Dr. Weerasinghe was addressing a press briefing convened at the Central Bank premises on the Financial Stability Review (FSR) of 2023.

The CBSL recently released its report on FSR for 2023 which highlighted that although it is expected that the existing macro-financial vulnerabilities would dissipate in the period ahead, with the envisaged improvements in the macroeconomic front, continued advancement along the policy reforms agenda envisaged in the IMF-EFF agreement is essential to direct the economy and the financial system into stable grounds.

In this vein, the report read:

“Any deviation from this path would bring detrimental and irreversible consequences to the financial system and the economy, though moving along this arduous and narrow path is challenging. The instigation and operationalisation of strong and appropriate frameworks that proactively address vulnerabilities and implementation of timely, well sequenced, and consistent policies is also crucial to ensure the stability of the Sri Lankan financial system.

As the economy undergoes a monetary policy easing cycle, the credit cycle is expected to enter an expansionary phase, in which macroprudential concerns could build-up. The Central Bank commits to monitoring these developments closely and implementing necessary policy actions to mitigate systemic risks and ensure financial stability through macroprudential interventions”

The Ministerial Sub-Committee for Cricket handed over its report to President Ranil Wickremesinghe at the Presidential Secretariat today.

The president said he intends to implement the recommendations of the report, while the report and the new sports Bill draft would be presented to Parliament shortly.

Distilleries Company of Sri Lanka (DCSL), announced that it will increase the prices of its alcoholic beverages starting January 1, 2024, citing the recent revision of VAT.

The price hikes will vary based on bottle size:

750ml bottles: Increase of Rs. 90

375ml bottles: Increase of Rs. 50

180ml bottles: Increase of Rs. 20