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The restructuring of State-owned Enterprises (SOEs) is imperative as public entities often strain government resources, National Security Advisor and President's Chief of Staff Sagala Ratnayaka said.

Noting that Litro Gas, once a financial drain, has now turned profitable, he said that as a country, we must speed up the progress and that any shortcomings must be openly addressed and rectified.

Addressing the inauguration ceremony of Litro’s new gas filling station in Mabima, Kaduwela, yesterday (08), Ratnayaka observed that under the leadership of President Ranil Wickremesinghe, the country has stabilized economically over the past two years, despite the challenges faced.

Speaking further, he said;

"Two years ago, the idea of Litro Company constructing a state-of-the-art facility seemed incredible. Litro faced adversity, with gas cylinder explosions and long queues for fuel.

At that time, our country struggled with a scarcity of foreign exchange and lacked a stable currency. It was an unprecedented period of challenge. However, under the capable leadership of President Ranil Wickremesinghe, aid arrived from foreign associates.

Initially, Litro posed a burden on the government. President Wickremesinghe, upon assuming office, revamped the management of the company, leading to its current success. Thanks to Litro’s achievements, the company managed to repay an Rs.26 billion loan from the World Bank within six months. Moreover, last year, Litro contributed Rs.3 billion rupees to the government.

Today, people can obtain gas without enduring long queues. We extend our sincere gratitude to the board of directors, staff, and distributors, especially Chairman Mr. Muditha Peiris, for guiding Litro Company through a challenging period.

The restructuring of state enterprises is imperative. Public entities often strain government resources. Litro Company, once a financial drain, has now turned profitable. As a country, we must speed up progress. Economic collapse led to a surge in living expenses.

When examining the present statistics, they reveal robust economic growth for our country. Following two years of economic turmoil, the primary account balance has shifted to a surplus, and the rupee is appreciating swiftly. Stability reigns, with inflation in check. However, despite these positive indicators, challenges persist.

To strengthen foreign exchange earnings, we should raise tourism initiatives. Transforming our ports into logistical hubs holds promise for economic expansion.

Further advancements can be made by boosting our manufacturing sector, and even exploring electricity exportation. Agricultural development is another avenue ripe for exploration, with numerous opportunities waiting. Fortunately, we possess the requisite human capital to tackle these endeavours.

Litro Company appears to be embracing modernization, setting an example for other institutions to follow suit. While government initiatives are essential, collective support is imperative for success. Tough decisions were made to steer the country back on track, with everyone enduring challenges along the way. The current favourable position of the country is a testimony to confronting rather than evading issues."

Former Health Minister Keheliya Rambukwella and 7 others have been further remanded until 20 May by the Maligakanda Magistrate’s Court over the import of substandard human immunoglobulin vials.

This order was issued when the relevant case was taken up before the Maligakanda Magistrate’s Court today (06).

Meanwhile, one of the suspects who was arrested and remanded in connection with the case was released on bail today.

Accordingly, the former Deputy Director of Medical Supplies Division of the Health Ministry, Dr. Thusitha Sudarshana has been released on bail.

The Criminal Investigation Department (CID) arrested Rambukwella on 02 February in connection with the procurement of substandard human intravenous immunoglobulin (IVIG), when he arrived there, complying with a court order. He had been grilled for nearly 10 hours before being arrested.

The arrest came hot on the heels of pressure from civil society activists and health sector trade unionists, who called for the immediate apprehension of the lawmaker.

Prior to the apprehension of Rambukwella, seven arrests had been made in connection with the drug procurement scam. But the fifth accused was later released on bail. As such, the former Health Secretary, the Director of the Health Ministry’s Medical Supplies Division (MSD) and three other officials of the same division, as well as the owner of the company, which is said to have supplied the substandard batch of immunoglobulin vials, now remain in remand custody.

President Ranil Wickremesinghe states that for the reconstruction of the fallen country, economic stabilization and recovery programs were formally implemented and that as a result, the journey of economic growth started in the middle of 2023.

In a special statement in Parliament today (09), Wickremesinghe said he assumed leadership of the country without any conditions, despite being a sole member of Parliament. He cited his well-thought-out plan, extensive experience and international relationships as reasons for his confidence in the country’s recovery from its challenges.

Meanwhile, the Head of the State noted that economic growth is projected to be around 3% this year, with several local and international financial institutions offering similar forecasts.

The President also expressed that it is his expectation to conclude all negotiations by the middle of this year, and that the ultimate goal of debt restructuring is to reduce the total amount of debt to 95% of the GDP by 2032.

Furthermore, he mentioned that during the first three months of the year, the exchange rate of the US Dollar was brought to a level below Rs. 300 and the foreign reserves were raised to a value of more than USD 5 billion, noting that he was able to achieve this situation as he followed a challenging, difficult but the correct path.

Additionally, Wickremesinghe said a salary increment for government employees can be considered only next year based on the economic growth of 2024 and Government income since the current revenue of the government is not sufficient to consider such salary adjustment requests.

The Japanese Minister of Foreign Affairs Yoko Kamikawa conveyed Japan’s intension to further support Sri Lanka’s development by swiftly resuming existing ‘Yen loan projects’ once the Memorandum of Understanding (MOU) on debt restructuring is signed and the Sri Lankan government’s intention to swiftly conclude bilateral agreement is confirmed.

Addressing a joint media briefing this afternoon (04) with her Sri Lankan counterpart, Sri Lanka’s Minister of Foreign Affairs Ali Sabry, Ms. Kamikawa expressed Japan’s intension to continue to support Sri Lanka’s ongoing efforts for national reconciliation.

Meanwhile, she mentioned that various reforms that Sri Lanka is currently undertaking are all essential for the normalization of the Sri Lanka’s economy.

“Furthermore, Japan and Sri Lanka are both island nations surrounded by the sea. Japan intends to further strengthen co-operation with Sri Lanka in the maritime domain in order to realize an open Indo-Pacific”, the Japanese Foreign Minister expressed.

Additionally, she revealed that Japan will offer an equipped vessel to be used for compiling maritime data and charts based on a request made by Sri Lanka.

The Japanese envoy said Japan is hopeful that Sri Lanka will bring itself back on track for economic development as soon as possible and make further progress as the hub in the Indian Ocean.

“Japan will continue to stand by Sri Lanka through this endeavor”, she added.

President Ranil Wickremesinghe emphasized ongoing efforts to enact unified legislation addressing environmental protection and climate change.

He highlighted the government’s commitment to crafting economic policies geared not only towards fostering export-oriented competitiveness but also towards transitioning to a green economy, aiming to achieve net zero by 2050.

Acknowledging the recent prolonged spells of extreme climate conditions as indicative of future climate change impacts, the President stressed the urgency of addressing climate mitigation measures promptly.

He made these remarks while addressing the inaugural session of the Sri Lanka Climate Summit which commenced yesterday (May 07) in Colombo.

The inaugural Sri Lankan Climate Change Conference, hosted by the Sri Lanka Chamber of Commerce, commenced yesterday under the theme “Climate Action for our Nation and the Planet.” Scheduled to run until May 09, the summit aims to foster a comprehensive understanding of the multifaceted climate crisis, both from a global and national standpoint. It seeks to assess potential disruptions to critical sectors of the economy and deliberate on policy reforms necessary for transitioning towards a low-emission, climate-resilient economic framework.

During his address, President Wickremesinghe highlighted the nation’s proactive approach to combating climate change. He announced the establishment of a dedicated climate change centre in Sri Lanka and his instructions to the officials to model legislation based on the United Kingdom’s Climate Act, endorsed by global financial institutions. The President emphasized the significance of Sri Lanka’s role in addressing climate change, particularly within the Indian Ocean and the tropical belt and outlined plans for the International Climate Change University to be established in the country.

President Ranil Wickremesinghe’s full statement;

“It gives me great pleasure to be here with the Ceylon Chamber of Commerce, primarily because the Chamber has been working with the government on the current issue of climate change.

Today, you have organized this summit, which is a long-felt need for Sri Lanka, for the business community to meet here and to discuss the ways and means of how we could combat climate change. Since I took over as president, I have given top priority to climate change. In fact, I established the Climate Change Centre in my office and appointed an advisor. Until then, our focus has been on the environment. That doesn’t mean that we should take our focus away from the environment, but we must also realize the important role that climate change plays within it. If climate change takes place, as some of you fear, then the environment itself will change for the worse. Therefore, how we can adapt to climate change, how we can combat climate change, is certainly a matter of importance for all of us. I need not say anything more.

You know what it has been like in the last few days, walking around in the city. And this is just a sign of things to come. My task as president has been to restore the economy. In other words, to stabilize the economy. That task is nearing an end and we have to now focus on the next step.

We can’t carry on with this economic model, which certainly hasn’t worked. And we have, as I mentioned many times before, transformed ourselves into an export-oriented economy and a highly competitive economy. For this purpose, the government will be introducing legislation in parliament, which will ensure that all government policies focus on the transformation to a highly competitive export-oriented economy. In fact, the bill will most probably be gazetted next week.

But I am not going to deal at length with the bill, except to say that one of the items in the bill, inn carrying out this transformation, is to ensure that we achieve net-zero by 2050. And I can tell you we will achieve it before that. Sri Lanka can do it.

So in making our policies, which are going to affect all of you, not merely a transformation of an economy into export orientation, but into an economy that is based on achieving net-zero. So that’s how we are going to work this out.

As it is, the first step is, we are already drafting a new law, which will deal with the environment and climate change. In some countries, we have different acts dealing with laws, but we decided that we will bring it together, one law, which will handle both environment and climate change.

It retains the Central Environment Authority but will also bring in the Climate Change Centre. In the process of drafting, I’ve asked the officials now, in doing so, let us as far as possible, follow the Climate Change Act of the UK, which I think is a good one and it puts the burden on the government and the minister to act on the advice of the Climate Change Committee and to table the regulations in Parliament. So that is the legislative aspect that we are bringing in.

On that basis, we have to have a green economy. So green financing, and the whole aspect, the commercial and economic aspects become important. That’s where the Chamber of Commerce has an important role to play. We will promote the green economy. We will give priority to promoting a green economy. We might as well be the first in the region to do so. We are small enough to do that. And, our development, I hope, all of you will focus on seeing how we can succeed in becoming a green economy.

So part of this will also, again, will depend on how we structure our new financial instruments. One reason for following the Climate Change Act of the UK is that it has been well accepted by the financial circle. So we will ensure that our green financing, the different options available, are certainly based on the same practices as the UK. The rest is how do we get these instruments together? What do we do?

Well, that’s why I think the Chamber of Commerce, the Stock Exchange, our investment ministry all should come together. So that’s one area that will have to be developed once we announce the details of our policy on climate change. I would want it to cover every sector of the economy.

We might as well start from the beginning. We need not be looking at different sectors and sequencing it. We are small enough, and where we are, we can start on all sectors together. But what, has engaged our attention is the energy sector. I remember when we started the accelerated Mahawali scheme as a member of the Cabinet at that time, was to ensure that we had a majority of hydroelectricity potential. So we built all these reservoirs just within a space of 10 years.

But since then, as development came, we had to also bring in the fossil fuels. Now we have brought the fossil fuels, we brought the mini hydros, and what’s the next stage? Are we going to stay on with fossil fuels, or move on? Now Sri Lanka certainly has potential for renewable energy. If you look at our solar capacity, and our capacity for wind power, we are looking at something like in the region of 30 to 50 gigawatts.

One of the things that depends on determining the wind power now is the inquiry we are carrying out about how birds will be affected in the Mannar district. I have seen the CEB plant, and I have seen how it operates, and it’s automatic, so it switches off when a bird comes near. But nevertheless, let’s exhaust that, it will take a bit of time, but I said let’s get through this, and be sure that we avoid any harm to wildlife in the process. But we certainly have this potential.

It’s not merely on land, not only offshore, but on the high seas. It will start from about Puttalam and go all the way to Mulaitivu, and again, as far as wind power is concerned in Hambantota. That’s the wind power potential. Solar is anywhere. And in addition to land, the ancient kings left us with reservoirs, which we now find also becoming useful for floating solar.

The interest in solar is just starting. We have a long way to go, but the vision statement I made with Prime Minister Modi included Sri Lanka selling energy to India. So we have now agreed to have the connectivity. We’re also now working on another project near Poonakary or Pooneryn, to utilize the Poonakary reservoir. And that includes building the largest battery storage facility in Asia. So we are also now working on battery storage. There’s much more potential that is coming to place.

But we want to make the best use of the renewable energy sources that we have. Some people have spoken about the biomass, but most of the reports that I’ve received so far doesn’t indicate that biomass has such a good future in Sri Lanka. Nevertheless, let’s get our energy worked out.

So this is one sector that we are looking at. Based on energy, we can do many changes. If there’s green hydrogen, since we are developing the Trincomalee port, we have the, the Colombo port, and we have the Hambantota port, then we become more attractive as a regional logistics centre. So this is some part of the thinking that is going on as far as the economy is concerned. The rest of where we start, what we do, is left to the Chamber of Commerce and the other institutions and the smaller chambers outside there. So now it’s up to you to make use of the potential that we have in Sri Lanka.

In keeping with this, we’ve also decided to emphasize on teaching technology. Again on the vision statement, Prime Minister Modi has been generous enough, to give us a campus of the IIT Chennai. So that will come into Kandy. In addition, the government is asking the universities to ensure that engineering faculties are started in all universities.

And next is the emphasis on the teaching of AI. The government itself is starting another university in Kurunegala and another university in Sitawaka, affiliated on the same model as the KDU, which will focus on technology. And finally, there’s one more university which we are planning again on technology.

So this is important for us. But we need the personnel. We have a shortage of skilled people. I think, Duminda has been involved in restructuring the total system of vocational training. All this is necessary to go to the next stage of technological development and as far as the economy is concerned, a new area is agricultural modernization. So there will be far-reaching changes including making available about 300,000 new acres for agriculture to take place. So all this fits into agriculture, the green economy.

The next issue is to go out of Sri Lanka into the world. The global community has still not been able to come together on an agreement of how we deal with the challenges. From COP meeting to COP meeting, we’ve gone there and there’s a lot of talk but unfortunately there has been no agreement. I don’t think we can go on and on meeting like this.

In the next two meetings either we must come to some agreement or give this up. That’s what Sri Lanka plans to tell the COP. But on our own, we’ve taken three initiatives. Firstly, debt restructuring and debt restructuring must help the African nations. That funding is necessary. Money is necessary, to make it available for the African nations to push through.

Otherwise, there would be a disaster on the continent. We ourselves went through debt restructuring. We didn’t go and ask for money. We did it the hard way. Okay, that’s all right, as Sri Lanka is a country that can make it. But the rest of them certainly need it.

Secondly, funds that we are waiting for, which were promised in Glasgow, but either the money got lost or it never left the banks where it was stored. But that unfortunately happens to be the story of funding. Now that funding is required.

We need that funding but the money hasn’t turned up, while we are watching for this money to come we see for instance in the last few weeks a fairly large chunk of money being voted by the US congress to help Ukraine, Taiwan and Israel. The EU is also voting money to help Ukraine that may be in the region of about $100 billion and I don’t know how much Russia is putting in to keep the war going in Ukraine. But certainly all this together must be coming to about $ 150 to 200 billion.

Just imagine what that can do. We went from COP meeting to COP one conference of the party to another conference of the party to another conference of parties and where?

We were promised all these monies we are standing watching the fight and all of a sudden all the money goes into Ukraine and Gaza and towards Taiwan. So remember that the developing world has to put up a fight. We have to put up a fight on one side and on the other side we must do all we can to develop it commercially.

This is why in Sri Lanka I have promoted the concept of the tropical belt. After all, the tropical belt is the sink. So let’s identify every area in the tropical belt, which is commercially viable as far as climate change is concerned for different projects. Let’s do all that first. If the money is not coming to us as aid or a development, okay, let s take the money in for commercial development of the environmental projects. So I mean, you look at what’s available in Africa.

Look at what’s available in Sri Lanka. So let’s do that. But we will be pushing it at the next meeting or the conference of parties and in addition to that IORA. Here we are studying on the potential for the Indian Ocean.

So take the tropical belt cross the Indian Ocean and there you get the big sink you want. That is what Sri Lanka will be pressing and that will make a big change. The money is there. We have to get the money. If it’s not coming through the traditional development assistance, well there’s commercial potential let’s exploit it. Why are we waiting? That s what we require.

Then with Sri Lanka also bringing the legislation, we’ve been speaking with some of the countries to establish the international climate change university for climate adaptation. We ve already selected about 600 acres at the old Skanska camp and the surrounding area in Kothmale.

So that’s where we’ll be working. We ve been talking with Korea and we’ll be talking with India, China, Japan and some of the Western countries that have shown interest. So with the legislation ready, we hope to start that next year. But this is Sri Lanka s contribution that we are making as a country to climate change. I thought I d mention that here.

I don’t want to take any more of your time, because there’ll be a far more interesting discussion that will take place. So I thank you for inviting me to address this gathering.

President of IIT Madras Research Park Prof. Ashok Jhunjhunwala, CEO of India Council for Energy, Environment and Water Dr. Arunabha Ghosh, Resident Representative for Sri Lanka at the United Nations Development Program (UNDP) Azusa Kubota, Dr. Rohan Pethiyagoda, President of the Sri Lanka Chamber of Commerce Mr. Duminda Hulangamuwa, President of the Steering Committee on Climate Action of the Sri Lanka Chamber of Commerce and the President of the Dilmah Group Mr. Dilhan Fernando and Senior Advisor to the President Mr. Ananda Malawathantri, were among the dignitaries present. Additionally, diplomatic officials, representatives from foreign organizations, businessmen, and other dignitaries attended the event”.

President Ranil Wickremesinghe hailed the government’s decision to grant free land rights to the people as a ground-breaking step, emphasizing that no other nation has undertaken such a massive initiative to date.

The President made these remarks while participating in the inaugural event for distributing freehold land deeds to Mahaweli settlers as part of the “Urumaya” program at Polonnaruwa Royal Central College this morning (04).

Emphasizing the principle that as one section of the population benefits from the country’s economy, another should not be left to suffer, the President underscored that the revolutionary initiative of granting free land titles was launched to uplift low-income individuals.

He urged the people to actively participate in building the economy in collaboration with the government’s agricultural modernization program, highlighting the potential for Polonnaruwa to become a key export district in the country.

The President highlighted his achievement in swiftly stabilizing the country’s economy with the help of one group, despite inheriting a government initially opposed by all. He extended an invitation to all sectors to collaborate in bolstering the nation’s economy over the next two to three years, aiming to secure a prosperous future for the youth.

The Sri Lanka Mahaweli Authority has outlined plans to prepare 204,002 freehold deeds, with on-going preparations at all regional levels. It is anticipated that 20,178 freehold deeds will be distributed to Mahaweli settlers by the end of May.

To commemorate its launch, 1340 freehold deeds were distributed to the residents of B, C, Madirigiriya, and Moragahakanda Mahaweli Zones in the Polonnaruwa District.

In a symbolic gesture representing the distribution of land deeds, the President personally handed out deeds to 30 individuals.

Addressing the gathering, President Ranil Wickremesinghe explained that those present, who entered the hall as licensees, would leave as landowners, as their land would become freehold that day. The president also emphasized the importance of land ownership in society and the significance of this change.

The President lamented the prevalent lack of legal land rights among many long-standing residents of the country, despite generational occupancy. He underscored the Urumaya program’s role in rectifying this, granting people freehold land deeds and securing their permanent rights, free from external interference or cancellation.

‘We’ve all faced numerous challenges over the past three years. Just like the country’s economy, our personal finances took a hit, and money became scarce. It was a tough time for everyone. However, we’re gradually overcoming these economic hurdles. We need to persist with this progress for another two or three years.

The government successfully raised the salaries of government employees by LKR 10,000. Similar salary increases were implemented in various public sector institutions. Furthermore, we’ve also ordered to increase wages in plantation sectors.

During past economic hardships, the impoverished population of the country faced significant challenges. In response, we launched the ‘Aswasuma’ program, with support from the World Bank. Through this initiative, we tripled the ‘Aswasuma’ allowance and expanded benefits to reach more people, increasing beneficiaries from 1.8 million to 2.4 million.

Additionally, we arranged for low-income individuals to receive 10 kilograms of rice each for two months during the Sinhala New Year. Amidst these efforts, as the country’s economy makes a steady recovery, it’s crucial to ensure that every segment of society reaps the benefits. Thus, we’ve undertaken the task of granting free land rights to all individuals currently residing on government-owned lands.

It’s worth noting that the government’s decision to grant land rights to the people marks a revolutionary move. Unlike in other countries, such comprehensive land rights initiatives are rare. Therefore, this represents a significant revolution. These land rights extend beyond just agriculture; they encompass housing as well. Even those residing in apartments now have rights to their homes. Consequently, this program can be seen as revolutionary on a global scale, a liberation for our citizens.

We discussed expediting the issuance of these land deeds in the Cabinet this week. The Prime Minister has taken charge of these efforts. I urge the chairpersons of District Development Committees to oversee this matter and provide updates. We aim to complete this program within the next two months. The Land Commissioner’s Offices, the Ministry of Mahaweli, the Department of Survey, along with District Secretaries and Divisional Secretaries, must collaborate to drive this program forward.

Furthermore, upon obtaining these lands, it is imperative that you participate in the government’s agricultural modernization program. It is the responsibility of each of us to contribute to advancing the country’s agriculture, leading it towards a competitive agricultural export economy through modernization efforts.

The Agriculture Modernization Program stands as a flagship initiative of the government, and the upcoming visit of the Japanese Foreign Minister aims to explore potential support. Additionally, representatives from the World Bank will visit next June to assess the program’s progress and plan for the next three to four years. Therefore, it is essential to formalize these activities as we need to present plans for the program’s continuation. Through these efforts, we are committed to advancing our nation.

I urge everyone to actively participate in this program. The Polonnaruwa district holds immense potential to emerge as a significant export district in Sri Lanka. We’ve already initiated steps towards that goal. Some may question what has been accomplished in the past 76 years. However, it’s crucial to recognize the development efforts undertaken, such as the establishment of waterways, provision of electricity, and settlement of people to achieve self-sufficiency in rice production.

Yet, I have taken on the responsibility to provide the development that these provinces have lacked. I extend an invitation to all to join in this endeavour.

I firmly believe in the unity of our government. Today, we have an exceptional administration. Despite facing initial resistance, we embraced a government that was initially rejected by many. However, we have now initiated collaborative efforts to strengthen the country’s economy together. Therefore, I appeal to all of us to work collectively towards building a robust economy over the next two or three years, ensuring a bright future for our youth.

Prime Minister Dinesh Gunawardena praised the Urumaya Program, which is based on President Ranil Wickremesinghe’s vision, as a transformative initiative that promises a significant revolution in the country.

Acknowledging the challenging circumstances inherited, Prime Minister Gunawardena commended President Wickremesinghe for his leadership in steering the nation from chaos to stability, both politically and economically. Despite facing criticism, President Wickremesinghe remained resolute, advancing the country’s progress without yielding to detractors.

In the past two years, farmers encountered numerous challenges, including a shortage of fertilizer. However, the current president implemented fertilizer subsidies, demonstrating a steadfast belief in the agricultural sector. The Prime Minister emphasized the pivotal role of farmers in ensuring the country’s food security, particularly during times of crisis.

Hence, measures were initiated to distribute freehold deeds to farmers in Polonnaruwa under the ‘Urumaya’ program. The progress achieved in the agricultural sector has bolstered international confidence. Therefore, we seek your continued support in nation-building, ensuring the trust bestowed upon us is upheld.

Minister of Wildlife and Forest Resources Conservation and Irrigation, Ms. Pavitradevi Vanniarachchi, emphasized that President Ranil Wickremesinghe is instituting a comprehensive system that addresses the fundamental needs of households, including land, food, and water. With the provision of freehold land deeds, families can effortlessly establish themselves, creating economic empowerment. When 2.0 million of freehold land deeds are granted, it generates significant economic strength. President Ranil Wickremesinghe’s ‘Aswasuma’ program empowers the people of this country to stand independently. The President has emphasized through the President’s Secretary that the agricultural modernization program should be the government’s top priority.

In the past, we encountered numerous challenges due to the inability to grant land rights to the people. However, today, not only have these rights been bestowed, but the government’s primary focus lies in modernizing the agriculture industry. When compared to other nations globally, we lag behind, prompting our President to offer guidance and assistance, facilitated by the Asian Development Bank, to foster economic growth.

Reflecting back about two years ago, our country faced a severe economic downturn, leaving the people bewildered and uncertain about the nation’s future. However, under the leadership of President Ranil Wickremesinghe, we witness the nation’s remarkable advancement, driven by his expertise, experience and tangible results. It is incumbent upon us to express our gratitude to him for steering the country out of that tumultuous period.

Religious leaders, led by Maha Sangha, and government officials, including State Minister Lohan Ratwatte and State Minister Siripala Gamlath, along with Member of Parliament P. Harrison, former Deputy Minister Chandrasiri Suriyarachchi, former Member of Parliament Nalaka Kolonne, North Central Province Governor Mahipala Herath, Secretary to the President Saman Ekanayake, Secretary of the Ministry of Irrigation Saman Darshana Padikorala, Director General of Sri Lanka Mahaweli Authority Mahendra Abeywardena, and security force representatives, as well as other delegates and attendees, were present at the event. (PMD)

Minister of Foreign Affairs, Ali Sabry says the government expects to finalize the foreign debt restructuring process by June, leading to a reduction of approximately US $17 billion of Sri Lanka’s debt burden.

The minister further said that the primary focus is on navigating the challenge of debt restructuring.

Stating that the initial phase of domestic debt restructuring has been completed, with attention now turned to foreign debt restructuring, he said negotiations with private investors linked to sovereign bonds aim to finalize this phase by June, with a targeted completion before June 2024.

Successful restructuring could result in a $17 billion advantage for Sri Lanka, potentially reducing the debt burden through various means, while these efforts will also facilitate the continuation of developmental activities within the country, he said.

Minister of Foreign Affairs Ali Sabry made these remarks while addressing a press briefing held at the Presidential Media Centre today (May 08).

The minister also emphasized that Sri Lanka’s adherence to a non-aligned foreign policy, coupled with its commitment to maintaining relations with all nations, while safeguarding its sovereignty, has resulted in numerous concessions for the country.

Minister Ali Sabry further highlighted the government’s endeavours to garner support for Sri Lanka’s economic development by fostering strong ties with both China and India.

During the press conference, he gave the following overview of the recent foreign policy decisions, foreign relations and the high-level visits the Sri Lankan government has undertaken, particularly the recent visits of the Japanese Foreign Minister and Iranian President.

“Sri Lanka prides itself on upholding an independent foreign policy, which doesn’t mean isolation but rather engaging with all nations—a concept known as non-alignment. Our commitment lies in maintaining this legacy of non-alignment, independence, and the sovereignty of our Parliament and state. Hence, it’s crucial for us to collaborate with both Eastern and Western nations, nurturing closer ties with our allies.

Over time, we’ve cultivated strong relationships with Western and Eastern countries, as well as our neighbours, which have proven invaluable in overcoming economic challenges.

Securing support from major partners and creditors, including the U.S., France, India and China, was pivotal during negotiations with the IMF. We’ve made progress in debt restructuring, gaining the backing of the Official Creditor Committee and comprising nations like India, Japan and the Paris Club. Our aim is to conclude debt restructuring by the end of June, with the support of all major players. This includes finalizing agreements with China. Once debt restructuring is achieved, mainly the external debt restructuring, we can focus on fostering economic growth through partnerships with various parties. Our on-going engagement with China, evident through visits by the President, Prime Minister, and myself, underscores our commitment to this approach.

Currently, our primary focus lies in effectively navigating the challenge of debt restructuring. We have successfully completed the initial phase, addressing domestic debt restructuring. Moving forward, our attention turns to the next crucial steps, particularly foreign debt restructuring. Our aim is to diligently negotiate and finalize this phase by the end of June, specifically engaging with private investors associated with sovereign bonds. The government is determined to achieve this milestone before June 2024.

Upon successful completion, Sri Lanka stands to gain a significant advantage of US $17 billion throughout the entire restructuring process. This advantage may manifest in various forms, including reductions in principal amounts, interest payments, or extended repayment timelines. Such restructuring efforts hold the potential to alleviate our debt burden by US $17 billion. Simultaneously, these endeavours will pave the way for the continuation of developmental activities within the country at the earliest opportunity.

The Prime Minister’s recent visit to China, where we signed nine MoUs, reflects our ongoing efforts to strengthen ties. Particularly with India, considerable progress has been made in our collaboration with India, with significant Indian investments currently underway. Additionally, the recent approval by the Cabinet of tariffs and Power Purchase Agreements with the Adani Group at US $0.08 per unit is a notable development.

As the Ministry of Foreign Affairs, we adhere strictly to international rules and regulations in our interactions with foreign countries. Consequently, the visit of the Iranian President to Sri Lanka raised no concerns within the international community. In parallel, we’re actively seeking to attract more investors, as demonstrated by the successful visit of the Iranian President, which led to the inauguration of the Uma Oya project contributing 120 megawatts to our energy grid. Furthermore, we anticipate increased tourism from the region with news of Mahan Air, the Iranian airline, expressing interest in flying to Sri Lanka.

In recent developments, the visit of the Japanese Foreign Minister to Sri Lanka marked an important milestone. Japan has pledged its moral support and endorsed Sri Lanka’s economic reforms. During discussions, Japan officially encouraged and praised the bold economic reforms that the Sri Lankan government is undertaking and affirmed its commitment to restarting stalled projects. This collaboration with our partners is pivotal in driving our economic agenda forward and fostering development.

Saudi Arabia has shown a keen interest in investing in Sri Lanka. Notably, Middle Eastern nations are actively seeking to diversify their economies away from fuel dependency and are exploring investment opportunities abroad. We are diligently working to capitalize on these opportunities for the benefit of Sri Lanka.

To position Sri Lanka as a premier tourist destination, we must shift our focus away from visa fees. Instead, we should consider offering free visas to citizens of approximately fifty countries. Such a move could ignite excitement within the tourism sector and bolster visitor numbers.

Furthermore, diplomatic initiatives are currently in progress to retrieve Sri Lankans detained by smugglers in Myanmar and to protect our youth enlisted in mercenary forces linked to the Russia-Ukraine conflict. These issues have also been addressed with Russian security authorities”.

The All Ceylon Restaurant Owners’ Association has decided to reduce the prices of several food items in line with the reduction in gas prices.

Litro Gas Lanka and Laugfs PLC announced a reduction in their gas prices effective from midnight today (May 03).

Accordingly, the All Ceylon Restaurant Owners’ Association announced that the prices of Fried Rice, Rice & Curry, and Koththu will be reduced by Rs. 20.

The Association further said that the prices of short eats will also be reduced by Rs. 10.

The All Ceylon Restaurant Owners’ Association said that even though prices of food items have been reduced, there will be no revision to the prices of plain tea and milk tea.

President Ranil Wickremesinghe stressed that the enhancement of the rural economy pivots on agricultural advancement. He highlighted the pivotal role of dedicated government officials at the grassroots level in ensuring the success of various government initiatives aimed at rural development, notably the agricultural modernization program.

The President made these remarks during his address at the ceremony held at the Temple Tress today (08), where 2100 new Grama Niladhari officers were awarded appointment letters.

Following the Grama Niladhari Service Examination held by the Department of Examinations on 02nd December, 2023, 2100 candidates with the highest scores at the Divisional Secretariat Divisional Level were granted Grama Niladhari positions.

President Ranil Wickremesinghe participated symbolically in distributing the appointment letters. He briefed the new GN Officers on government initiatives like “Aswesuma” and “Urumaya”, aimed at uplifting low-income individuals, urging them to actively engage in these programs for the economic development of their communities.

Commenting further President Ranil Wicremesinghe said;

Today marks a significant milestone as I extend my heartfelt congratulations to all of you who have been appointed as GN Officers. With this appointment, you embark on a journey as integral members of the government service, contributing to the betterment of our country. Your role as GN Officers holds great importance, serving as the cornerstone of our country’s basic administrative structure.

In our on-going efforts to revitalize the economy amidst its challenges, today’s implementation of a rapid development program is a crucial step forward. Collaborating with international bodies such as the International Monetary Fund (IMF) signifies our commitment to overcoming obstacles and fulfilling necessary conditions for progress. This development initiative places the village at its core, recognizing its pivotal role in driving the development across the country.

Our recent strides in agricultural productivity serve as proof to the effectiveness of our development strategy. Successful harvests in both Yala seasons of 2022 and 2023, followed by another prosperous Maha season in 2023, have bolstered our economic resilience. These achievements highlight the pivotal role of agriculture in our journey towards economic strength and prosperity.

Today marks a significant juncture as we embark on the crucial task of appointing 2100 GN Officers, granting them the authority not only for administrative duties but also for spearheading rural economic development programs. This appointment underscores the pivotal role each of you plays in shaping the future of our communities.

In this endeavour, collaboration between Divisional Secretaries and GN Officers is the most important thing. I emphasize four key areas where joint efforts are essential. The implementation of the “Aswesuma” program stands as a cornerstone in our efforts to uplift low-income earners, with plans to triple allowances compared to Samurdhi. Completing the computerization of beneficiary information by year-end streamlines program execution, ensuring smoother operations from the following year. Additionally, expanding the pool of beneficiaries reflects our commitment to increasing relief efforts, thereby fortifying village economies.

Furthermore, enhancing income sources for these individuals is imperative, as their earnings contribute significantly to village economies. Initiatives such as providing 10 kilograms of rice to low-income families during the last New Year season not only alleviate financial burdens but also support local rice mill owners, thereby stimulating economic activity within villages. Sustaining and expanding these initiatives are vital steps towards fostering whole village development.

Also we have initiated another ground breaking initiative, granting free land rights to its residents, a move poised to revolutionize their economy. This progressive step towards land ownership marks a significant transformation, bringing forth newfound economic opportunities that extend throughout the village community.

Furthermore, the village’s economic landscape undergoes further strengthening through an ambitious agricultural modernization endeavour. Historically, the region boasted agricultural prosperity, with lucrative exports such as spices, including cumin, flourishing from Dambadeniya to Kandy. The colonial era saw a thriving export economy cantered on tea, rubber, and coconut, indicative of the region’s agricultural prowess.

In a bid to reignite the country’s economy, a comprehensive agricultural development strategy has been devised, starting at the Divisional Secretariat Divisional Level. Collaborating with the private sector, agricultural modernization committees have been established at Govijana Seva centers, inspiring local farmers towards progress. Presently, 25 Divisional Secretariats have been earmarked for this transformative initiative, each receiving substantial financial backing. The path is set for expansion, with plans to extend this initiative to 100 Divisional Secretariat Divisions by the following year, signalling a resolute commitment to agricultural revitalization and economic revival.

The eradication of village poverty pivots on the development of village agriculture, making the agricultural modernization program imperative. While certain southern regions have prospered through tourism, the overarching objective remains the development of the village economy. Active participation from all residents is crucial to drive these initiatives forward and foster economic growth within their respective areas.

Additionally, a rural education and health improvement program has been initiated, necessitating the collective engagement of the community. Efforts to streamline land deeds related to the “Urumaya” program are underway, with plans to introduce a mobile service for enhanced efficiency. It is anticipated that all land deeds will be successfully processed within the next two months, facilitating smoother implementation of the program’s objectives.

The Committee on Public Finance (CoPF) has approved, subject to conditions, the Recovery of Loans by Banks (Special Provisions) (Amendment) Bill which was amended to facilitate legal provisions for the suspension of Parate Law until December 15.

Accordingly, the banks’ practice of acquiring properties of whose loans are yet to be paid off will be suspended until December 15 and the Recovery of Loans by Banks (Special Provisions) Act No. 4 of 1990 will be amended to facilitate the necessary legal provisions.

The approval was given when the Committee on Public Finance met in Parliament recently (30) under the chairmanship of Member of Parliament (Dr.) Harsha De Silva, the Communications Department of Parliament said.

Officials representing the Ministry of Finance said that they hope to provide temporary relief to the creditors. Accordingly, the committee questioned the officials what action will be taken in this regard after December 15.

Thus, the officials present failed to give a clear answer in this regard and the committee recommended to provide a road map for the actions to be taken after December 15 to those subject to Parate Law.

Also, the committee recommended that all the parties who have done business with the banks subject to Parate Law should be given a fair opportunity to negotiate with the banks, the statement said.

The committee also questioned the officials about the distribution of loans under the Parate Law. The chair of the committee inquired about the manner in which the micro, small scale and medium scale enterprises in particular have received loans under this law and the criteria under which they are classified. The officials did not have the correct data about this and the chair of the committee instructed the officials to provide that data to the committee.

The committee also inquired the percentage of the sectors that were most affected. Furthermore, the committee asked the officials to provide data on the implementation of the Parate Law in other periods compared to the specific period in which there was an economic recession due to the impact of the corona virus in 2020, 2021 and 2022.

The officials present mentioned that the data on this matter this will be presented to the committee in the future.

Meanwhile, the committee has also given its approval for the orders under the Foreign Exchange Act No. 12 of 2017 and the regulations under the Sri Lanka Securities and Exchange Commission Act No. 19 of 2021. Also, the committee approved the regulations under the Import and Export (Control) Act No. 1 of 1969.

State Minister (Dr.) Suren Raghavan, Members of Parliament Premnath C. Dolawatta and Madhura Withanage participated in this committee.

Also, officials representing several government institutions including the Ministry of Finance, Economic Stabilization and National Policy, the Auditor General’s Department, the Central Bank of Sri Lanka, and Sri Lanka Customs were present in this committee.

adaderana

Sri Lanka's Cabinet of Ministers decided to retain the existing $50 fee per person for a 30-day visa for foreign visitors entering the country.

Additionally, the cabinet decided to continue offering free visa services to citizens of seven countries: India, China, Russia, Japan, Malaysia, Thailand, and Indonesia.

At the same time, the Department of Immigration and Emigration will be responsible for issuing visas to foreigners upon their entry.

Sri Lanka’s primary gas dealer, Litro Gas Lanka has announced that the price of its 12.5kg domestic LP Gas cylinder will be reduced.

Litro Gas Chairman Muditha Peiris said the price of the 12.5kg domestic LP Gas cylinder, which is currently at Rs.4,115, will be brought below Rs.4,000.

He further said that Litro Gas Lanka will announce the price reduction tomorrow (May 03).