The Board arrived at this decision with a view to easing monetary conditions in line with the faster-than-expected slowing of inflation…reports Asian Lite News
The Monetary Board of the Central Bank of Sri Lanka (CBSL) decided to reduce the Standing Deposit Facility Rate and the Standing Lending Facility Rate by 250 basis points to 13.00 per cent and 14.00 per cent, respectively, the CBSL said in a statement on Thursday.
The Board arrived at this decision with a view to easing monetary conditions in line with the faster-than-expected slowing of inflation, gradual dissipation of inflationary pressures and further anchoring of inflation expectations, Xinhua news agency reported citing the CBSL as saying.
The commencing of such monetary easing is expected to provide an impetus for the economy to rebound from the historic contraction of activity witnessed in 2022, while easing pressures in the financial markets, the bank said.
During the four months ending April 2023, the trade deficit decreased notably, compared to a year earlier, reflecting mainly the subdued import expenditure, which outweighed the impact of moderation of external demand for merchandise exports.
The downward adjustment in market interest rates will accelerate in line with the envisaged single-digit inflation, thereby supporting credit to the private sector and softening the pressures in the financial sector, the CBSL added.
The cabinet nod has been received following a preliminary review done on South Africa’s Truth and Reconciliation Commission and how the country confronted its own apartheid-era crimes…writes Susitha Fernando
The Sri Lankan Cabinet has approved the setting up of a South African-style Truth and Reconciliation Commission to solve the ethnic crisis with the Tamils that had resulted in the 26-year-old Civil War.
The cabinet nod has been received following a preliminary review done on South Africa’s Truth and Reconciliation Commission and how the country confronted its own apartheid-era crimes through such a body.
Foreign Affairs Minister Ali Sabry and Justice, Prison Affairs and Constitutional Reforms Minister, Wijeyadasa Rajapakshe who had visited South Africa on an invitation by the South African International Relations and Cooperation Minister to conduct a preliminary study on the Commission, had presented a joint-cabinet paper for the approval.
“The two ministers held discussions with the South African President, International Relations and Cooperation Minister and other heads of the South African Government on South Africa’s Truth and Reconciliation Commission,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said.
Since the end of war in 2009, successive governments had promised to investigate crimes committed by both sides during the 26-year conflict between government forces and separatist Tamil Tiger rebels.
In 2015, the Sri Lankan government informed the UN Human Rights Council on setting up similar commission with the proposals to set up a criminal justice mechanism and compensate victims.
Human rights groups had complained that Sri Lanka has failed to address continuing incidents of torture by the police and military against minority Tamils and had demanded for an international investigation with the participation of a majority of international judges in an independent system and an independent international prosecutor.
The LKR depreciated dramatically from 202 per dollar in March 2022 to around 360 after the government allowed it to float…reports Asian Lite News
The Central Bank of Sri Lanka said the local rupee (LKR) demonstrated a notable appreciation of 19.8 per cent against the US dollar during the year up to May 26.
The Sri Lankan rupee also experienced significant appreciation against various currencies during this timeframe as well, Xinhua news agency reported citing the bank’s.
The LKR appreciated 26.4 per cent against the Japanese yen, 17 per cent against the British pound, 18.9 per cent against the euro, and 19.7 per cent against the Indian rupee.
The LKR depreciated dramatically from 202 per dollar in March 2022 to around 360 after the government allowed it to float.
The Sri Lankan rupee, however, has been appreciating in the last few months.
The Central Bank had recently announced that the economy has stabilised following the worst-ever crisis and the interest rates will be reduced by the last quarter of the year.
‘No security arrangements with China’
Welcoming Japan’s cooperative approach to have peace in the Asian region and dialogue between all nations, Sri Lanka President Ranil Wickremesinghe on Thursday said that Japan, China, India, and ASEAN, should commence an open-ended dialogue amongst themselves and thereafter with the other Asian countries as a first step in establishing a new framework for Peace and Cooperation in Asia.
In his address at the “Nikkei Forum: Future of Asia” held in Tokyo, he stressed on Asia’s significance as the world’s largest economic zone, home to 60 per cent of the global population, and a major contributor to global growth.
As per the full speech shared by the President’s Media Division (PMD) in Colombo, Wickremesinghe highlighted Asia’s potential for continued growth, despite setbacks on the global stage.
“China’s recovery, together with a healthy domestic demand in India, will be the main supports of growth for the region. Asia also has the advanced economies of Japan and South Korea contributing to the region’s development, through foreign investments and technology transfers,” he said.
Referring to the US-China rivalry in the Asian region, Wickremsinghe emphasised that Asian countries do not wish to be forced to manage competing pressure from both parties.
“… the pressure on Asian countries to choose between the US and China is being resisted by many.
“We in Asia don’t want to choose between US and China. Many of us cannot make that choice because we have already made our choice, and that choice is Asia. We want an Asia that can accommodate the Indo-Pacific, the BRI, as well as the ASEAN Outlook on the Indo-Pacific,” he contended.
However, Wickremesinghe, who took over the country after political and economic turmoil in 2022, said though a member of China’s BRI initiative, Sri Lanka has no security arrangements with China nor they intend to enter into any security agreement with China.
“Asia has become the crux of US-China rivalry. The intensification of that rivalry in recent times has brought about the QUAD (between the USA, India, Australia, and Japan) and the Indo-Pacific on one hand and the Belt and Road Initiative (BRI) on the other.”
Highlighting the importance of Asia, Wickremmeinghe said that not only has Asia become the global economic powerhouse but has become the most dynamic region.
“Claiming nearly 30 per cent of the Earth’s land mass, Asia is home to 4.75 billion people, which is about 60 per cent of the world’s population. The region is now the world’s largest economy,” he stated.
Highlighting the impact on climate change specially on the Asian region, the Srin Lankan President advocated that Asia should agree on a common timeline for achieving carbon neutrality, based on the shorter period upheld by some of the industrialised countries in the region.
“This is possible if an agreement is reached amongst China, India, Japan, Korea and Indonesia,” he said.
“By mid-century, rising waters will impact nearly a billion people in the Asia-Pacific region. It is regrettable that as many as eight of the fifteen countries affected by climate change are from Asia: Maldives, Bangladesh, China, India, Indonesia, Myanmar, Pakistan, the Philippines and Vietnam.
“Ironically, the region is also a key cause of the climate change crisis. We produce about half of the world’s carbon emissions and have 5 of the largest greenhouse gas emitting countries. One cannot emphasise the urgency for policies and actions to curb emissions on the part of these countries.
A single Asian voice devoid of disharmony needs to be present at COP 28. The success of this conference will depend on the ability of the key Asian nations to come to an agreement,” Wickremesinghe warned. (with inputs from Susitha Fernando)
The report estimates 3.9 million people or 17 per cent of the population is in moderate acute food insecurity, which is nearly a 40 per cent decrease from June/July last year….writes Susitha Fernando
With 17 per cent of the total population still in moderate acute food insecurity, especially in the regions of Indian-origin Tamil in the tea plantations and former war affected Northern and Eastern Tamil settlements, there is an improvement in food security in other parts of Sri Lanka, FAO and WFP report reveals.
Amid the severe financial crisis that Sri Lanka has been suffering from last year, the food security is improving across all provinces except Nuwara Eliya district, where Indian-origin Tamils who came as labourers to work in the tea plantations and former war-torn northern and eastern regions including Kilinochchi, Mannar, Batticaloa, Vavuniya, and Jaffna, it reported.
“The highest level of acute food insecurity was found within the tea plantation communities in the estate sector and among daily wage labourers and households who rely on social assistance programmes as their main source of income,” the report stated.
The Crop and Food Security Assessment Mission (CFSAM) report was jointly carried out in February/March 2023 by the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP).
The report estimates 3.9 million people or 17 per cent of the population is in moderate acute food insecurity, which is nearly a 40 per cent decrease from June/July last year.
Nearly 10,000 people are severely acute food-insecure, down from 66,000 people last year, the report added.
It noted that the improvement in food security stems from better food consumption, which could be attributed to reduced food prices and improved incomes among farming communities during the harvesting period when the mission was carried out.
“After many months of challenges, we are finally witnessing an improvement to the country’s food security but there is more to be done.
“A high number of households — more than 60 per cent — are adopting negative measures to put food on the table, including borrowing money and purchasing food on credit,” said Abdur Rahim Siddiqui, WFP Sri Lanka’s Representative and Country Director.
“The Crop and Food Security Assessment Mission (CFSAM) report is an eye-opener on the continuing vulnerabilities and challenges that exist within the food systems of Sri Lanka. This report and its findings will no doubt serve as a guiding light for policymakers and stakeholders to collectively work towards ensuring food security, strengthening agricultural resilience and mitigating risks faced by farmers and rural communities who have been disproportionately impacted by the economic crisis,” Vimlendra Sharan, representative of FAO to Sri Lanka and the Maldives, said speaking on CFSAM Report findings.
The joint FAO/WFP Mission has recommended providing immediate support to farmers, particularly by releasing available fertiliser stocks, to provide adequate support to increase fodder and feed crop production and to minimize the impact on the livestock and fisheries sectors and continuing food and/or cash assistance to facilitate access to food among households most vulnerable to food insecurity.
The WFP stated that it extends its emergency operation, which commenced last year, to provide food rations and cash assistance to people identified as ‘food insecure’, while FAO assured that it remains committed to supporting Sri Lanka in its efforts towards achieving sustainable food systems, food security and zero hunger.
The bank said that the program is part of a broader package of financial assistance anchored by the IMF’s Extended Fund Facility for the country…reports Asian Lite News
The Asian Development Bank (ADB) on Monday said it has approved a $350 million special policy-based loan to provide budget support to Sri Lanka for the stabilisation of its crisis-hit economy.
The bank said that the program is part of a broader package of financial assistance anchored by the International Monetary Fund’s Extended Fund Facility for the country, which aims to stabilise the economy and lay the foundation for economic recovery and sustained growth, reports Xinhua news agency.
The ADB said Sri Lanka is facing a severe and unprecedented economic crisis, and high inflation has eroded purchasing power, livelihoods have been affected, and past development gains have been reversed.
“The ADB is concerned about the deep crisis in the country and its impact on the people of Sri Lanka, especially the poor and the vulnerable, particularly women,” said ADB President Masatsugu Asakawa.
More than 80% of Sri Lanka’s population lives in rural communities with poor access to infrastructure.
ADB helped finance the rehabilitation of roads across the country to improve access to health and education and boost agriculture productivity.
The lender is committed to standing with Sri Lanka as it addresses its present challenges and strides toward economic stabilization, sustainable recovery, and inclusive growth, said Asakawa.
Sri Lanka has embarked on bold reforms to address the causes of both internal and external imbalances and return to a sustainable debt trajectory, the ADB said.
The country faces a long road to recovery and must remain steadfast in the implementation of necessary reforms, which include enhancing tax revenue collection, strengthening public financial management, improving performance of state-owned enterprises, ensuring autonomy and independence of the central bank, safeguarding financial sector stability, and bolstering governance frameworks, the ADB said.
As these measures are implemented, it is essential to ensure that adequate social protection is provided and implementing governance reforms and anti-corruption measures will be critical, it added.
In 2022, in close coordination with development partners, the ADB repurposed $334 million of existing loans as emergency response to support the import of essential items such as fertilizers, medicines, chemicals for water treatment, working capital for small and medium-sized enterprises, and cash transfers to the poorest and the most vulnerable.
The minister added the new legislation is necessary due to various issues associated with the management of religious institutions…reports Asian Lite News
Sri Lanka’s Ministry of Buddhasasana, Religious, and Cultural Affairs is drafting a new law to promote religious harmony, state media reported on Sunday, quoting the ministry’s chief Vidura Wickramanayaka as saying.
Wickramanayaka said that the new law would require all religious institutions in Sri Lanka to register with the government, which would allow the government to track and monitor religious activities, and to intervene if necessary to prevent religious conflicts, Xinhua news agency reported.
By registering religious institutions, the government will be able to better understand the religious landscape of Sri Lanka, Wickramanayaka said.
The minister added the new legislation is necessary due to various issues associated with the management of religious institutions.
He stated he will present a draft bill promoting peaceful religious coexistence to the cabinet within the next few weeks.
Wickremsinghe emphasised that Asian countries do not wish to be forced to manage competing pressure from both China and US…writes Susitha Fernando
Welcoming Japan’s cooperative approach to have peace in the Asian region and dialogue between all nations, Sri Lanka President Ranil Wickremesinghe on Thursday said that Japan, China, India, and ASEAN, should commence an open-ended dialogue amongst themselves and thereafter with the other Asian countries as a first step in establishing a new framework for Peace and Cooperation in Asia.
In his address at the “Nikkei Forum: Future of Asia” held in Tokyo, he stressed on Asia’s significance as the world’s largest economic zone, home to 60 per cent of the global population, and a major contributor to global growth.
As per the full speech shared by the President’s Media Division (PMD) in Colombo, Wickremesinghe highlighted Asia’s potential for continued growth, despite setbacks on the global stage.
“China’s recovery, together with a healthy domestic demand in India, will be the main supports of growth for the region. Asia also has the advanced economies of Japan and South Korea contributing to the region’s development, through foreign investments and technology transfers,” he said.
Referring to the US-China rivalry in the Asian region, Wickremsinghe emphasised that Asian countries do not wish to be forced to manage competing pressure from both parties. the pressure on Asian countries to choose between the US and China is being resisted by many.
“We in Asia don’t want to choose between US and China. Many of us cannot make that choice because we have already made our choice, and that choice is Asia. We want an Asia that can accommodate the Indo-Pacific, the BRI, as well as the ASEAN Outlook on the Indo-Pacific,” he contended.
A Chinese flag is seen in front of the Friendship bridge over the Yalu River connecting the North Korean town of Sinuiju and Dandong in China’s Liaoning Province, April 1, 2017. REUTERS/Damir Sagolj
However, Wickremesinghe, who took over the country after political and economic turmoil in 2022, said though a member of China’s BRI initiative, Sri Lanka has no security arrangements with China nor they intend to enter into any security agreement with China.
“Asia has become the crux of US-China rivalry. The intensification of that rivalry in recent times has brought about the QUAD (between the USA, India, Australia, and Japan) and the Indo-Pacific on one hand and the Belt and Road Initiative (BRI) on the other.”
Highlighting the importance of Asia, Wickremmeinghe said that not only has Asia become the global economic powerhouse but has become the most dynamic region.
“Claiming nearly 30 per cent of the Earth’s land mass, Asia is home to 4.75 billion people, which is about 60 per cent of the world’s population. The region is now the world’s largest economy,” he stated.
Highlighting the impact on climate change specially on the Asian region, the Srin Lankan President advocated that Asia should agree on a common timeline for achieving carbon neutrality, based on the shorter period upheld by some of the industrialised countries in the region.
“This is possible if an agreement is reached amongst China, India, Japan, Korea and Indonesia,” he said.
“By mid-century, rising waters will impact nearly a billion people in the Asia-Pacific region. It is regrettable that as many as eight of the fifteen countries affected by climate change are from Asia: Maldives, Bangladesh, China, India, Indonesia, Myanmar, Pakistan, the Philippines and Vietnam.
“Ironically, the region is also a key cause of the climate change crisis. We produce about half of the world’s carbon emissions and have 5 of the largest greenhouse gas emitting countries. One cannot emphasise the urgency for policies and actions to curb emissions on the part of these countries.
A single Asian voice devoid of disharmony needs to be present at COP 28. The success of this conference will depend on the ability of the key Asian nations to come to an agreement,” Wickremesinghe warned.
A considerable flood possibility is likely to occur in low-lying areas of the Gin Ganga valley…reports Asian Lite News
Sri Lanka’s Irrigation Department has warned of possible floods in some areas in the country’s south as the water level of a major river has increased following heavy rains.
The department said on Sunday in a statement that a considerable rainfall had occurred in some of the upstream and middle reach catchment areas of the river called Gin Ganga, Xinhua news agency reported.
By analysing the current rainfall situation and river water levels at hydrological stations in Gin Ganga, a considerable flood possibility is likely to occur in low-lying areas of the Gin Ganga valley, the Irrigation Department added.
Residents in those areas and vehicle drivers driving through there have been advised to pay high attention to the situation.
Sri Lanka’s Department of Meteorology said on Sunday that the showery condition is expected to continue further in southern parts of the country due to the indirect influence of the extremely severe cyclonic storm Mocha in the Bay of Bengal.
Heavy showers above 100mm are likely to occur at some places in Southern province and Ratnapura district, and residents have been urged to take adequate precautions to minimise damage caused by temporary strong winds and lightning during thundershowers locally.
Gunawardena said that Sri Lanka has agreed to implement a robust social security network to protect the most vulnerable groups in the country…reports Asian Lite News
Sri Lanka’s cabinet of ministers approved a proposal to start discussions with the World Bank to obtain $200 million for social security programs, a spokesperson said on Tuesday.
Cabinet spokesperson Bandula Gunawardena told journalists that President Ranil Wickremesinghe made the proposal in his capacity as the Finance Minister, reports Xinhua news agency.
Gunawardena said that Sri Lanka has agreed to implement a robust social security network to protect the most vulnerable groups in the country as a part of the International Monetary Fund-supported 48-month Extended Fund Facility.
He said the World Bank has already agreed to provide a loan of $200 million to support social security programs, and the discussions with the World Bank will be to finalise the funding.
Sri Lanka’s cabinet of ministers also endorsed a proposal in April to authorise the finance ministry to proceed with negotiations seeking a $350 million loan and another $1.5 million grant from the Asian Development Bank.
The exhibition displays digital recreations of the fresco paintings from the world-famous UNESCO Heritage Site Ajanta caves of India…reports Asian Lite News
The High Commission of India in Colombo has organized a special exhibition on India’s rich Buddhist Heritage as a part of the ‘Buddha Rashmi’ National Vesak Festival at Seemamalakaya, Gangaramaya Temple in Colombo, ADA Derana reported.
President Ranil Wickremesinghe, accompanied by Indian High Commissioner Gopal Baglay, senior ministers and other dignitaries, visited the exhibition on May 3, after inaugurating the Vesak festival. The Vesak festival is jointly organized by the Presidential Secretariat, the Prime Minister’s Office and the Gangaramaya Temple, ADA Derana reported.
This exhibition, which commemorates the birth, enlightenment and Mahaparinirvana of the Buddha on the sacred Vesak full moon Poya day, underlines the civilizational connection between India and Sri Lanka.
The exhibition displays digital recreations of the fresco paintings from the world-famous UNESCO Heritage Site Ajanta caves of India, depicting significant episodes from Lord Buddha’s life and Jataka tales.
Ajanta Caves are Buddhist cave monuments in Maharashtra, India dating back to the 2nd and 1st centuries BC, ADA Derana reported.
The exhibition is yet another testimony to India’s untiring efforts to preserve and restore Buddhist heritage in India and across the world, the Indian High Commission said in a media release.
Curators of the exhibition Ankur Naik and Prasad Pawar gifted a replica of the digitally restored Padma of the renowned ‘Padmapani’ on an original basalt stone to President Wickremesinghe, in what is a vivid example of the impressive restoration works which are being carried out in Ajanta caves.
The exhibition was also displayed at the first Global Buddhist Summit held in New Delhi in India from April 20 to 21, 2023. Indian Prime Minister Narendra Modi visited this exhibition at the Summit, ADA Derana reported.
The exhibition is open for public viewing from May 5 to May 7, 2023. (ANI)
