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Synergy that exists between India and Sri Lanka in the textile and apparel sector has given the strengths of India in the raw material base and manufacturing, and that of Sri Lanka in making a mark in certain niche categories.

This was stated Ms. Suja K. Menon Head of Economic & Commercial Wing, High Commission of India when she addressed the inauguration ceremony of the India International Textiles Expo (IITExpo) -Exhibition cum Buyer Seller Meet- in Colombo on Monday 29.

She mentioned that several Sri Lankan companies are also investing in India in the textile sector, contributing further to Indian economy.

India is the largest cotton and jute producer in the world and second largest textiles producer, as well as the second largest producer of silk in the world.

There exists significant complementary wherein Sri Lanka can source textile material from India and transform it into apparel and garments exporter for rest of the world. She encouraged Sri Lankan companies to be part of the supply and value chains of large Indian companies.

The India International Textiles Expo (IITExpo) -Exhibition cum Buyer Seller Meet,the three-day event is organized by the Powerloom Development & Export Promotion Council (PDEXCIL) of India, with the support of Ministry of Textiles & Ministry of Commerce & Industry, Government of India.

The Chief Guest at the inauguration ceremony was Hon. Anoma Gamage, Deputy Minister of Petroleum Resources Development of Sri Lanka.

Mr. Sharad Amalean, Chairman, Joint Apparel Association Forum; Mr. Rehan Lakhany, Chairman, Sri Lanka Apparel Export Association; Ms. Suja K. Menon, Head of Economic & Commercial Wing, High Commission of India; and Mr. Sunil Satgonda Patil, Chairman, PDEXCIL were also present.

Deputy Minister Anoma Gamage, in her address, conveyed that textile industry forms an important pillar of the Sri Lankan economy, given its contribution to GDP, exports and forex earning, employment generation etc.

She added that the textile sector also plays an important role in achieving the goals envisaged by the Government of Sri Lanka in its Vision 2025. She underlined the strong bilateral ties between India and Sri Lanka, and cited the potential to further strengthen the collaboration in the textile sector. She also recalled her own personal connect with the textile industry for almost 25 years.

PDEXCIL has had a longstanding association with Sri Lanka since 1998. There also exists an MOU between PDEXCIL and Sri Lanka Apparel Exporters Association (SLAEA), which was signed in Gujarat in June 2017.

At the event, about 30 exhibitors from various textile clusters of India are displaying variety of fabrics, made-ups, home textiles, cotton and blended yarn etc. The event concludes on 31 July 2019.

In another unorthodox move, President Maithripala Sirisena is getting ready to issue a gazette extraordinary very soon resorting to his favourite political gamble of betraying the vast majority of people who voted for him to climb the ladder.

President Sirisena held a special discussion with the Chairman of National Election Commission and the Attorney General on the possibility of conducting provincial polls before the presidential election with a view of sticking into presidency till early next year by hook or by crook, informed sources said.

Political analysts predicted that this gazette extraordinary on provincial council polls will meet the same fate of the previous gazette extraordinary issued by him to dissolve parliament and held snap polls inducting a new Prime Minister and a new Cabinet of Ministers.

The National Election Commission informed that it is prepared to call for Provincial Council Elections disregarding the delimitation process.

The President’s intension is to conduct the provincial polls and thereafter a general election early next year after seeking the Supreme Court's opinion on his term in high office.

According to Article 31(3) of the Constitution, the President election has to be held not less than one month, and not more than two months before the expiration of the term of office of the President in office.

According to this constitutional requirement, the last day by which the presidential poll will have to be held, is the 9th December 2019 because President Maithripala Sirisena’s term in office ends on 9 January 2020.

Be that as it may, the current likelihood is that the PC elections will be even more disadvantageous to the SLFP and (to a lesser extent) to the UNP as well.

This will compel the President to seek refuge in the Rajapaksa camp (SLPP) with his SLFP leftovers compromising his high office for an alliance between the SLFP and SLPP otherwise his dream of sticking into power will vanish in thin air.

President now has only five full months in office before the last date by which a presidential election should be held and a new president declared elected.

Sri Lanka’s housing programmes are being carried out under the purview of four different ministries. Accordingly, the Ministry of Housing and Construction under Minister Sajith Premadasa is entrusted with the 'village reawakening housing programme. The urban and middle income groups' housing programme is under the purview of the Ministry of Megapolis and Western Development headed by Patali Champika Ranawaka.

The Upcountry Development Ministry under Minister Palani Digambaram is tasked with overlooking the upcountry housing projects while the the Ministry of National Policies, and Economic Affairs under the Prime Minister is vested with the task of building houses for the poorest of the poor in the Northern and Eastern provinces.

Sajith unhappy!

Minister Sajith Premadasa meanwhile has expressed his concern on splitting his pet subject of housing development among four different ministries.

Addressing a meeting in Hambantota, he noted that this was political game to undermine his popularity in rural areas.

Loans under the 'Enterprise Sri Lanka' subsidised credit schemes, introduced by Finance Minister Mangala Samaraweera with the intention of creating a new entrepreneur class in the country, has totaled LKR 88 billion to 55,000 recipients since the programme was initiated in June 21 last year.

The Finance Ministry will be going rural to tap the potential of youth with hidden business innovation talents creating awareness on export markets and business skills, State Minister for Finance Eran Wickramaratne told a media conference in Colombo on Monday.

A series of entrepreneurial exhibitions along with workshops is to be conducted countrywide to promote entrepreneurship where the island nation is lagging behind other countries in the region, he said.

The number of Sri Lankan entrepreneurs as a share of the working population is around 3 per cent compared to 11 per cent in Bangladesh and over 20 per cent in Vietnam, he added.

The first of the series of exhibitions was held in Moneragala showcasing 5,175 new businesses. There were 640 stalls and over 500,000 persons visited the exhibition in August 29 last year.

Over 2000 prospective entrepreneurs register in Anurudhapura!

The second exhibition focusing on the development of enterprises and the creation of 100,000 new entrepreneurs by 2020 concluded in Anuradhapura yesterday with over 2000 potential entrepreneurs and new businesses regustering with the Enterprise Sri Lanka credit schemes.

The Ministry has also focused on empowering female entrepreneurs by providing additional incentives with a view of a paradigm shift in the economy in the coming years.

These exhibitions will be a platform for intended entrepreneurs to gain the knowhow and share knowledge on the enterprise development, Deputy Treasury Secretary A.R. Deshapriya disclosed.

State and private banks and other relevant agencies have been directed to provide required assistance, advise and training for budding youth to become entrepreneurs, he added.

The final decision of the Muslim MPs, who previously held portfolios in the government, on whether or not to re-accept the ministerial posts previously held by them is to be made following a meeting this afternoon.

The group of Muslim MPs met with Prime Minister Ranil Wickremesinghe yesterday (28) to discuss several concerns, especially on the formation of a separate Tamil divisional secretariat in the Kalmunai North Pradeshiya Sabha division, before making a final call on re-accepting portfolios in the government.

The MPs today (29) held a discussion with the Internal and Homer Affairs and Local Government and Provincial Councils Minister Vajira Abeywardena on several issues including the controversy over the separate divisional secretariat in the Kalmunai Pradeshiya Sabha in the Easter Province.

However, a final decision is yet to be formally announced on the re-acceptance of portfolios by the Muslim MPs.

UNP MP Mujabir Rahuman meanwhile told the media that the Muslim MPs have decided to re-accept portfolios and they would be worn in within the next few days.

Nevertheless, MP Faizal Cassim has said that a final decision would be made only depending on the outcome of the meeting with Minister Abeywardena.

The Muslim ministers in the government resigned in June stating it would help facilitate investigations into the Easter Sunday attacks as well as express concern over the government’s failure to protest the Muslim community when being targeted by extremist groups.

However, UNP MPs Kabir Hashim and M. Haleem re-accepted portfolios several weeks ago.

The government is mulling to cancel the lease agreements of valuable state-owned estates, land and property leased out to plantation companies and private firms over its failure to pay accumulated lease rent running up to millions of rupees.

Some 571 estates belonging to the Janatha Estate Development Board (JEDB) and State Plantation Corporation of Sri Lanka had been given on lease to 23 divisional plantation companies in 1995.

As for three of those plantation companies, the value of net assets had not exceeded Rs. 200 million as at 31 December 1994, and hence, lease rents could not be recovered since 1995 from those companies in terms of the lease rent agreement, a recent government audit inspection revealed.

However, by 2011, it had been identified that the value of net assets of those companies had been over Rs. 200 million.

According to findings of the Auditor General’s Department, no lease rent whatsoever had been recovered by the Government from 45 estates managed by those three companies due to failure in taking action to revise the lease rents indicated in the agreements.

Of the lease rent amounting to Rs. 175.48 million recoverable from Kurunegala Plantation Company as at 31 December 2017, a sum of Rs. 129.76 million had remained due from 2009.

The state audit observed that no action has been taken to recover the money due to inefficiency of the state authorities.

The government is now compelled to cancel or extend the lease agreements on lands given to Regional Plantation Companies in a bid to recover millions of rupees as accumulated dues.

Three committees appointed by the Plantation Industries Ministry have recommended that those lease agreements should be cancelled or extended considering the performance of the leaseholders of state land to make the plantations viable.

The Ministry is considering the option of extending the leasing period from the present 53 years to 99 years, as requested by the companies in accordance with the recommendations of the committees provided private management companies make the necessary investments needed for their long term sustenance.

The Committee on Public Enterprises (COPE) inquiry revealed that land and properties owned by the JEDB have been undervalued at very low rates and given on long-term lease during the previous regime.

The 6,250 sq. ft. building bearing no. 175 at Vauxhall Street has been given to Asoka Glass Company on a 35 year lease at the rate of Rs. 10.42 per sq. ft, or Rs. 65,137.50 per annum.

Also, 4,586 sq. ft. of the same building has been given to Thilona Lanka on a 30 year lease at an annual Rs. 105,000 lease.

Kandy Tyre House has received 5,322 sq. ft. of the building for 30 years for Rs. 159,660, or at Rs. 30 per sq. ft. per year.

Meanwhile, 14,500 sq. ft. of no. 32 at Darley Road has been given to Man Care Centre for Rs. 19.25 per sq. ft. per annum.

In the same building, New Zealand College received 28,921 sq. ft. for Rs. 13.49 per annum, while Higher Technical Institute was given 11,500 sq. ft. for two years at the rate of Rs. 60 per sq. ft.

For Lakeside Property Development, a little over one acre from the same property has been leased out for 53 years at Rs. 93,497 per perch.
The payment due is Rs. 921,693,426, but the JEDB has accepted Rs. 15,520,512 only.

COPE has instructed the immediate suspension of the leasing of the Vauxhall Street property, valuate it anew in accordance with the prevailing market prices to lease it at a suitable rate.

It has been widely speculated that former first lady Shiranthi Rajapaksa is one among five possible presidential candidates of the SLPP. According to reports, the names are being kept under wraps despite being widely discussed among party members.

Sinhala weekly Anidda said reported that, “At the JO party leaders meeting, five names had been suggested and it was agreed that Mahinda Rajapaksa should choose one." The names of Gotabhaya Rajapaksa, Chamal Rajapaksa, Dinesh Gunawardene and Kumara Welgama had been discussed as possible candidates.

Keeping the names mentioned above a secret appears to be unusual. However, joint opposition leaders believe this is because the fifth name being floated around belongs to Shiranthi Rajapaksa.

Perplexing statement by Rajapaksa

According to reports, Mahinda Rajapaksa has been tasked with choosing a name and informing the leaders of the joint opposition while the chosen candidate will be announced at the SLPP party convention on August 11.

Mahinda Rajapaksa however, speaking to media after attending an event at the BMICH recently said he has not said Gotabhaya Rajapaksa would be fielded as their party candidate.

Gota named to keep the excitement up!

A decision is said to have been made to portray former Secretary of Defence Gotabhaya Rajapaksa as the presidential candidate despite him not being able to relinquish his US citizenship in order to keep the excitement and activities up of the racial forces that have gathered around him, Sinhala weekly Anidda had reported.

It further notes that they have also decided to name another candidate after nominations are called while also to carry out a propaganda campaign claiming that Gotabhaya was not able to relinquish his US citizenship due to a conspiracy between Prime Minister Ranil Wickremesinghe and the US government.

Attempts to crown Namal!

Speaking in parliament this week, Opposition Leader Mahinda Rajapaksa said the 19th Amendment was brought to prevent Namal Rajapaksa from becoming the presidential candidate.

A close confidant of the Rajapaksa family told ‘The Leader’ that Mahinda and Shiranthi’s only hope is to make Namal the President and they would not let anything get in its way. He stressed that therefore they will not allow Chamal to become the candidate in case it may affect Namal’s chances.

He also said Namal’s parents are apprehensive about those supporting Gotabhaya treating Namal badly adding that it is likely that a candidate outside the family will be named.

Religious leaders from Buddhist, Hindu, Islam and Christian faiths, VVIPS, antiwar and social justice activists from across the country will be gathering in Colombo to consider what they can do together to restore lasting peace in the island nation.

A unique National Conference on Peace, Harmony and Coexistence will be held on 30 July from 4 p.m. at the Nelum Pokuna Theatre, Colombo 7 will see a plethora of political VVIPs given its significance.

President Maithripala Sirisena will be the Chief Guest at the event. It will be attended by leaders of all four major religions in Sri Lanka, intellectuals and scholars who have been involved in promoting peace and coexistence.

The event is to be attended by Prime Minister Ranil Wickremesinghe, Leader of Opposition and former President Mahinda Rajapaksa, former President Madam Chandrika Kumaratunga, Speaker of the Parliament Karu Jayasuriya, Tamil National Alliance (TNA) Leader R. Sampanthan, several other ministers, political party leaders, legislators and diplomats.

Organiser of the conference Western Province Governor A.J. Muzzamil said the purpose of this conference was to promote the values of interfaith, peace, harmony, coexistence and tolerance among the people of Sri Lanka.

He expressed the hope to convey a message to the world that the people of Sri Lanka live in harmony and that the people of Sri Lanka reject all forms of religious extremism in the country

He added that the conference was also aimed at encouraging the people of all communities in Sri Lanka to adopt and live according to the Sri Lankan culture, traditions and make sure that Sri Lanka is the most peaceful country for all communities to live in harmony.

“The conference will project an image to the world that Sri Lanka is a country with a majority of Buddhists and people of other religions live in harmony and respect one another’s cultures, traditions and social values,” Muzzamil added.

Muslim World League Secretary General Dr. Mohammad Ibn Abdulkarim Alissa will be attending the conference at the Governor’s invitation as a special guest.

Alissa has been actively involved in promoting world peace and coexistence among people of all faiths for the good of the global community. He is also an ardent campaigner against religious extremism and terrorism in all forms and believes in resolving problems peacefully through mutual understanding and dialogues.

He is also a recipient of several awards for his outstanding services towards world peace in countries such as Singapore, Malaysia, Thailand and several African countries.

He has also won the Galileo International Award for his efforts in promoting peace and harmony and he is also a recipient of the Moderation Prize in 2018.

The Board of Investment (BOI) is now obliged to conduct investigations into the failure of their two senior officials in charge of Katunayake Free Trade Zone yard to monitor and duly report the incident of allowing the stock mattresses to perish at open air without reshuffling and reprocessing.

This move has been taken in the wake of Hayleys Free Zone Ltd (HFZ), a subsidiary of Hayleys Advantis PLC, deciding to meet the Board of Investment (BOI) today to present a proposal to BOI.

The ‘free port’ and ‘bonded’ areas in ports and free trade zones have been declared as being outside the Sri Lankan territory, and goods delivered there cannot be subjected to Customs inspections, the import and export regulations in the Finance Act indicated.

It is possible for most BOI ventures to secure such concessions by taking cover behind the Strategic Development Projects Act (2008).

BOI in a statement noted that, “In January 2018, having observed that a significant amount of this cargo was stored within the free zone premises without being re-exported as envisaged."

BOI has given written instructions to the company to strictly comply with commitments laid out in the BOI agreement and the applicable environmental regulations.

Simultaneously, the BOI took further steps to suspend all future imports of used material and the company committed to clear all cargo by end February 2018.

The company however, has failed to meet this commitment and has from time to time requested extensions to comply, citing technical and other constraints.

Since the company has failed to re-export the goods as committed, the BOI has decided to take stern action against the company with a view to concluding this matter expeditiously.

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Sri Lanka’s land mark 350 meter tall lotus tower slated to blossom in 912 days by 2015 following its ground breaking in November 2012 is still to see the light of the day owing to irregularities and embezzlements during the construction process.

A Chinese conglomerate consisting of China National Electronics Import and Export Corporation (CEIEC) and Aerospace Long-March International Trade Co. Ltd. (ALIT) were to complete the project on a Turnkey Basis before the end of this year, Telecommunication Regulatory Commission (TRC) sources said.

The value of the Project was U.S$ 104.30 million. Although the period for completing the Project had been extended up to October 2017, it was not completed even by 31 May 2018, a recent government audit query revealed.

Thus, there had been a delay exceeding 200 days from November 2017 up to May 2018 Auditor General’s report observed pointing out that in terms of agreements, the demurrage of US$ 10.43 million for the said delay had not been recovered.

The land on which the Lotus Tower was erected had not been vested in the TRC by the Urban Development Authority (UDA) even by May 2018.

The EXIM Bank of China had disbursed the first installment of the loan on 19 August 2013.

However, in terms of the loan agreement, the period for the disbursement of the loan was due to be ended by 18 August 2016. By that date, a sum of $43,746,097 of the entire loan or 49 per cent had been released, audit inspection highlighted.

It has been revealed that as a result of the construction work not being done on the due date, the agreed charge that had to be paid for not utilising the loan for the period from 19 August to 27 October 2017 alone had been $ 322,984.

The EXIM Bank has taken action to restrict the total loan to $67,259,754 although the total amount of loan being $ 88,655,000 due to the exceeding of the period of the loan agreement and ,the agreed charges of U.S. Dollars 636,508 had been over paid, audit report disclosed.

The Cabinet of Ministers, in its decision dated 27 October 2010 had decided to vest the proposed television tower and the Entertainment Centre in a Management Consultancy Company.

The company has been entrusted with the task of establishing the television tower, and the Entertainment Centre as a Public Company under the ownership of the TRC.

This company has been directed to enlist it in the Colombo Stock Exchange and to issue a share capital of 30 per cent through an initial public issue.

However, in terms of the Sri Lanka Telecommunication Act, No.25 of 1991 and the Sri Lanka Telecommunication (Amendment) Act, No.27 of 1996, the TRC had no powers to implement this process, the AG’s audit report revealed.

By reason of impossibility of establishing a company in terms of the Telecommunication Act, Action had been taken to lease the Lotus Tower to a property Management Company as TRC has no powers to set up a Public Company.

However, even by July2018, no Cabinet approval had been obtained for same, audit report pointed out disclosing that Cabinet approval had not been obtained even by 30 July 2018 for the vehicle park with an investment of Rs.4 billion as proposed by the TRC.

Army Commander Lieutenant General Mahesh Senanayake has been summoned again by the Parliamentary Select Committee (PSC) probing the Easter Sunday attacks.

Senanayake has already appeared and testified before the PSC.

However, he has been asked to appear before the Committee again on Wednesday (31).

Sources in the PSC said the Army Commander has been summoned again since there were some clarifications that were needed following the statements made by the intelligence chief and the investigators of the attacks.

Meanwhile, Prime Minister Ranil Wickremesinghe and several other ministers will be summoned before the PSC on 6 August.

Accordingly summons are to be issued to the Prime Minister; State Minister of Defence Ruwan Wijewardene; Minister of Public Administration, Disaster Management, and Rural Economic Affairs Ranjith Madduma Bandara; and Minister of Ports and Shipping, and Southern Development Sagala Rathnayake to appear before the Committee on 6 August.

Sources have also said the PSC would also invite President Maithripala Sirisena to testify.

The relief package with a moratorium on repayment of loans and more financial assistance for the revival of the tourism industry badly hit by the Easter terror attacks is now on full swing covering all tourism sector institutions and service providers on case-by-case basis.

Deputy Treasury Secretary A.M.P.M.B. Atapattu divulged that the moratorium period will be on until 31st March 2020 for both capital and interest payments granted to the tourism sector as of 18th April 2019.

The tourism sector relief packages will be offering working capital loans up to LKR 250 million, based on turnover, he said.

The government would bear 75 percent of the interest component, until March 31, 2020, to offer a 3.4 percent concessionary interest rate for the grappling tourism sector subject to two-year maximum tenure.

A loan scheme for informal tourism sector including many small scale hotels, service providers and inns are eligible for an interest free loan of up to LKR 500,000 taking into consideration effect of the Easter Sunday attacks.

The interest-free loan is expected to be repaid in three years with a grace period of 12 months.

Releasing an explanatory note on concessions granted to tourism industry, Central Bank announced wide range of concessions granted to all tourism industry service providers.

Persons and entities providing tourism sector services which have not been registered with relevant authorities are required to register with the Sri Lanka Tourism Development Authority (SLTDA) to prove their eligibility for the relief package.

State Minister for Tourism Eran Wickramaratne said that VAT will be reduced from 15 to 5 percent on hotels and tour operators registered with SLTDA from 1st April 2019 to 31st March 2020.

Tourism loans registered on or before 18th April 2019 but will be granted before 31st March 2020 under "Enterprise Sri Lanka" credit schemes introduced by Finance Minister Mangala Samaraweera, with the interest subsidy being borne by the government to continue from the granted date, he disclosed.

Under the Enterprise Sri Lanka loan schemes, an allocation of LKR 1.514 billion has been made for providing relief for the tourism sector loans.

1,055 applications for loan facilities have been received by banks as at May 31. The tourism exposure to banks is around LKR 62 billion where LKR 26 billion has been considered for moratorium, Central Bank data showed.

The tourism sector can obtain fresh working capital under the Enterprise Sri Lanka programme with a repayment period of 2 years with 75 per cent of the interest subsidy borne by the government from the effective interest rate until 31st March 2020.