In 2022, Sri Lanka’s public debt ratio stood at 128 per cent, a figure slated to be reduced to less than 95 per cent by 2032, said Semasinghe…reports Asian Lite News
The Sri Lankan government will introduce two significant bills aimed at bolstering the country’s economy to Parliament on Wednesday, a Minister said.
The “Economic Transformation Bill” and the “Public Financial Management Bill” are designed to enhance public finance management and safeguard against future economic downturns, State Minister of Finance Shehan Semasinghe told a press conference on Monday.
Semasinghe said it is necessary to maintain optimal levels of public financial management to avert future economic crises, and the bills are aligned with recommendations from a collaborative program with the International Monetary Fund, Xinhua news agency reported.
He added that the legislation encompasses reforms essential for international trade, trade agreements, and climate change mitigation efforts.
In 2022, Sri Lanka’s public debt ratio stood at 128 per cent, a figure slated to be reduced to less than 95 per cent by 2032, said Semasinghe.
Similarly, the fiscal requirement, which was 34.6 per cent of GDP in 2022, aims to be lowered to below 13 per cent by 2032, according to the Minister.
PhonePe announced that it has enabled UPI payment acceptance in collaboration with LankaPay….reports Asian Lite News
India’s fintech company PhonePe Unified Payments Interface (UPI) has been launched in Sri Lanka. Central Bank of Sri Lanka Governor Nandalal Weerasinghe and India’s High Commissioner to Sri Lanka Santosh Jha attended the launch event in Sri Lanka.
In a post on X, the Indian High Commission in Sri Lanka stated, “Unlocking new frontiers in fintech connectivity! @PhonePe UPI payments goes live in Sri Lanka with HC @santjha & @CBSL Governor Dr. Nandalal Weerasinghe gracing the launch event. Giving a boost to @UPI_NPCI services, the launch will further strengthen ease for tourists in Sri Lanka.”
On May 15, PhonePe announced that it has enabled UPI payment acceptance in collaboration with LankaPay. In a statement, PhonePe announced that its app users visiting Sri Lanka can now make payments using UPI across LankaPayQR merchants across the nation.
According to the statement, PhonePe users can simply scan LankaQR code to make secure and quick payments without carrying cash or calculating currency conversions.
Earlier in February, India’s instant payment technology service, the Unified Payment Interface (UPI), was launched in Sri Lanka and Mauritius in a virtual event that was attended by Prime Minister Narendra Modi, his Mauritius counterpart Pravind Jugnauth and President of Sri Lanka Ranil Wickremesinghe.
India, which has emerged as a leader in fintech innovation and Digital Public Infrastructure placed a strong emphasis on sharing its development experiences and innovation with partner countries.
Addressing the occasion via video conferencing, PM Modi said it was an important event for three countries in the Indian Ocean region.
“Today is a special day for three friendly countries in the Indian Ocean region. Today we are connecting our historical relations in a modern digital way. This is proof of our commitment to the development of our people,” PM Modi said.
He said fintech connectivity will not only strengthen cross-border transactions but also cross-border connections.
“FinTech connectivity will not only boost cross-border transactions but also connections. India’s UPI (Unified Payment Interface) is now playing the role of ‘Uniting Partners with India’,” PM Modi said.He asserted that Digital Public Infrastructure such as UPI has brought about changes in the smallest of villages in India, as the technology is convenient and fast.In 2023, a record 100 billion transactions valued at Rs 2 trillion were made via UPI, PM Modi said.
“Digital Public Infrastructure has brought about a revolutionary change in India. Even the smallest businessman in our smallest village is making digital payments because it has convenience as well as speed,” he said.
UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer. (ANI)
India Leads in Mobile Wallet Payments
India has emerged as the global leader in mobile wallet payments, with 90.8 per cent of its population using mobile wallets for transactions in 2023, according to GlobalData 2023 Financial Services Consumer Survey.
In April 2024, India’s Unified Payments Interface (UPI) showcased robust performance, with daily product statistics amounting to Rs 19.64 lakh crore. Continuing this trend, the first half of May 2024 has already seen significant transaction volumes, reaching Rs 10.70 lakh crore by May 15th.
This achievement underscores India’s rapid advancement in digital payment solutions, surpassing other nations in mobile wallet adoption.
The report suggests that the trend of increasing mobile wallet usage is also evident across the Asia-Pacific (APAC) region.
The COVID-19 pandemic played a significant role in accelerating the shift from cash to electronic payments, further boosting mobile wallet adoption.
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, says the disruptive potential of mobile wallets is also impacting smaller countries like Hong Kong’s consumer payments space, predicting a gradual displacement of cash transactions.
Sharma stated, “Mobile wallet usage is all set to disrupt the consumer payments space in Hong Kong and gradually displace cash. Widespread QR code infrastructure, the availability of mobile-based instant payment systems, and rising consumer and merchant preference all contributed towards mobile wallet usage.”
A high percentage of adults have bank accounts and widespread smartphone usage provides a solid foundation for mobile wallet adoption.
The presence of both domestic and international mobile wallet brands, like Apple Pay, Google Pay, PhonePe, etc offers consumers a variety of choices. The increasing acceptance of mobile payments by merchants further encourages usage.
GlobalData’s 2023 Financial Services Consumer Survey, conducted in Q2 2023, surveyed approximately 50,000 respondents aged 18+ across 40 countries. (ANI)
Gunaratne, a retired Major General, has urged the former soldiers not to be entrapped by human smugglers who send soldiers to the war front….reports Susitha Fernando
Sri Lanka’s Defence Ministry has revealed that a large number of the country’s ex-servicemen, who fought in the war against Tamil rebels, have now joined the mercenaries involved in the Russia-Ukraine war.
Defence Secretary Kamal Gunaratne admitted that a large number of ex-soldiers, who earlier fought in the war against the Liberation Tigers of Tamil Eelam (LTTE) for 26 years, have now been lured to join as mercenaries fighting for Russia.
Gunaratne, a retired Major General, has urged the former soldiers not to be entrapped by human smugglers who send soldiers to the war front.
“A group of fake agents are involved in a human smuggling racket to entice former servicemen to fight as mercenaries. They have been lured with many false promises, including getting them enlisted to Russian and Ukrainian official armies, awarding properties from cities like St. Petersburg, citizenships to family members and lucrative monthly salaries ranging from Sri Lankan Rs one million to nearly Rs 1.9 million,” the Defence Secretary said.
He added that despite many promises, the former army men have not received anything.
“However, a large number of former Sri Lankan servicemen who were tricked have gone to the Russian-Ukraine warfront and a section had already died while many others got wounded,” Gunaratne said.
He added that there is no information about the dead and wounded.
“The Defence and Foreign ministries are trying their best to find out about these men as they were enlisted as mercenaries and did not join the official armies,” he said.
Gunaratne urged the former Lankan soldiers not to get involved in the Russia-Ukraine war, which could result in them going missing or killed.
The Defence Secretary said that criminal investigations by military and police intelligence units have already begun against human smugglers and companies involved in recruiting and sending ex-servicemen to the warzone and several arrests have also been made.
“Severe legal action will be taken against these racketeers,” the Defence Secretary added.
Last year, many Lankan ex-servicemen, who were fighting with the Ukrainian army, were reportedly killed during the Russian drone attacks.
Lawmaker Gamini Waleboda had announced in Parliament that, according to the information received, most of these former soldiers and laymen sent to the Russia-Ukraine war have died.
Several media reports have revealed the severe hardships being faced by the Lankans who are involved in the Russia-Ukraine war.
The Sri Lankan military increased during the war against the LTTE, which ended in 2009 and, according to the World Bank data, it peaked between 2017 and 2019 with 317,000 military personnel, twice the size of the UK’s regular forces.
However, with the country undergoing its worst-ever financial crisis, the government has decided to downsize the strength to 150,000-1,00,000 soldiers, 30,000 sailors and 20,000 airmen — by 2030.
Visiting on the invitation of his Sri Lankan counterpart Ranil Wickremesinghe, President Raisi is scheduled to inaugurate the much-delayed Uma Oya Multipurpose Development Project…reports Susitha Fernando
Amid the tension in the Middle East, Iranian President Ebrahim Raisi arrived in Sri Lanka following his three-day visit to Pakistan.
Tight security was imposed across the country, especially closing all roads where the Iranian President is scheduled to travel during the one-day visit to the island nation.
Police spokesman and Deputy Inspector General (DIG) Nihal Thalduwa said that additional security personnel from Army, Navy, Air Force and the police elite force, Police Special Task Force (STF) have been deployed to provide extra security for the visiting dignitary.
“The security programme will cover areas where the Iranian President is due to travel to,” Thalduwa said, adding that multiple roads would be closed to provide special security to the Iranian President.
Visiting on the invitation of his Sri Lankan counterpart Ranil Wickremesinghe, President Raisi is scheduled to inaugurate the much-delayed Uma Oya Multipurpose Development Project (UOMDP), one of the largest irrigation and hydro-electricity projects in Sri Lanka.
“A highlight of President Raisi’s visit will be the signing of five memorandums of understanding (MoUs), aimed at bolstering bilateral relations between Iran and Sri Lanka,” the President Media Division (PMD) announced.
Originally started in 2008, the project is aimed to provide irrigation water to about 4,500 hectares of new land and 1,500 hectares of existing agricultural land in the Monaragala district and three districts getting 39 million cubic meters (MCM) of water for drinking and industrial purposes and also to generate 290 GWh of electrical energy annually to the National Grid.
The total $514 million contract became effective on March 15, 2010. Initially, the Export Development Bank of Iran (EDBI) was to fund USD 50 million until 2013, but due to international sanctions against Iran, funds could not be provided. However, the project was continued with Sri Lankan funds and with the Iranian contractor Farab Company.
Due to financial challenges, disruptions caused by the global Covid-19 pandemic and protests due to environmental damages, the completion date was changed to March 2024 from March 2015.
The historical ties between Sri Lanka and Iran date back centuries with interactions between the two nations being primarily centered on the Strait of Hormuz during the Persian era. Formal diplomatic relations were officially established in 1962 and Iran established its mission in Colombo in 1975, while Sri Lanka established its mission in Tehran in January 1990.
Iran has provided development assistance to Sri Lanka with loans focusing on enhancing infrastructure, irrigation, and power sectors. Sri Lanka has already repaid over $19 million to Iran, with a remaining gross payable amount of around $35 million.
The PMD stated that the two countries have collaborated closely with the United Nations and its affiliated agencies, offering mutual support on matters of shared concern. Both nations are active members of various international and regional organisations, including the Asian Cooperation Dialogue (ACD), the Non-Aligned Movement (NAM), and the Indian Ocean Rim Association (IORA).
To facilitate much-needed tourists from Iran, Sri Lanka has approved Mahan Air flights between the two countries. In 2022, Iran ranked 27th among countries with the highest international tourist arrivals in Sri Lanka. By June 2023, Sri Lanka had welcomed 5,973 Iranian tourists.
Following tensions in West Asia, where Iran launched hundreds of drones and missiles at Israel on April 14 in a tit-for-tat to a suspected Israeli airstrike on April 1 that targeted a compound at its Consulate in Damascus, Syria, there were doubts about the visit of Iranian President to Sri Lanka, but an Iranian official had confirmed his visit.
Indian High Commissioner said that India’s defence exports stand at nearly 2.6 billion US Dollars a year…reports Asian Lite News
Indian High Commissioner in Colombo Santosh Jha on Wednesday said that India is prepared to share the advanced defence equipment with Sri Lanka.
“We are not only producing our national requirements but we are also willing to make these capabilities available to our friendly partner countries like Sri Lanka,” the High Commissioner said.
He said that India’s defence exports stand at nearly 2.6 billion US Dollars a year.
He said that following the vision of Atmanirbhar Bharat or ‘self-reliant India’, there is a significant capability development within the Indian defence industry.
“Our government has promoted this vision through enabling policies and frameworks, initiatives such as the establishment of defence industry corridors, and supporting and handholding different stakeholders,” the High Commissioner said adding that the defence industry has been promoted to collaborations between private and government-owned enterprises.
He said that India has invested in research and development and promoted the use of innovation and new-age technologies to build the capabilities that are future-ready.
He said that the Indian defence industry today rolls out state-of-the-art systems, advanced technologies and world-class equipment which ranges from fighter aircraft and helicopters to naval vessels, from electronic warfare systems to cyber security solutions and from small arms to large-calibre precision long-range artillery systems.
The High Commissioner said that over the last five-year there has been a ten-fold increase in defence exports. “India has exported defence hardware and software to more than 85 countries while more than 100 indigenous firms are active in the field,” he said.
The Envoy also explained the support extended to Sri Lanka, during the Covid-19 pandemic and the economic crisis.
“We are driven by the sense of responsibility and obligation for closest friend and neighbour. We stood shoulder-to-shoulder with our civilisational twins when it was needed most, and without any hesitation,” he said.
The High Commissioner reiterated that India’s approach to Sri Lanka was guided by the neighborhood-first policy and SAGAR vision.
“For us, as close and proximate neighbours, cooperation is the only option. It is not driven by choice and opportunity alone,” he added.
During the stay, the ships will undertake training for Sri Lanka Coast Guard on VBSS…reports Asian Lite News
Indian Coast Guard ships Samarth, an Offshore Patrol Vessel and Abhinav, Fast Patrol Vessel, arrived at Southern port city of Galle for training and professional interaction, the Indian High Commission in Colombo said.
“The ships will visit Colombo from March 2 to 5 before departing the Island nation. The Commanding Officers of the Indian Coast Guard Ships, Deputy Inspector General P Pradeep Kumar and Commandant (JG) Prabhat Kumar will be calling on Director General Sri Lanka Coast Guard and other senior officers,” the Indian High Commission said.
During the stay, the ships will undertake training for Sri Lanka Coast Guard on VBSS, Fire Fighting and Damage Control, Maritime Pollution Response and hold few other professional interactions.
Other activities such as yoga, beach cleaning and walkathon will also be held during the visit.
Additionally Passage Exercise (PASSEX) is to be conducted with Sri Lanka Coast Guard Ship, on departure, off Galle and Colombo.
The ships will be open for visit by school children. The ships would host a reception onboard for guests from Sri Lanka including senior officials from defence hierarchy and civil administration.
“The visit of these Indian Coast Guard Ships will significantly aid in augmenting capabilities of Sri Lanka Coast Guard and personnel in order to efficiently address maritime security challenges in the region,” the High Commission said.
Indian Naval Ships and Submarines Kora, Kabra and Karanj had visited Colombo in past few months. Visits by Indian Navy and Coast Guard vessels to Sri Lanka aim to enhance camaraderie and interoperability between the two friendly neighbouring Navies, which is in keeping with India’s SAGAR (Security and Growth for All in the Region) doctrine and ‘Neighbourhood First’.
Sri Lankan President Ranil Wickremesinghe on Monday virtually launched the project along with Indian High Commissioner Santosh Jha….reports Asian Lite News
India has launched the construction of houses for the Indian origin plantation workers across six different provinces in Sri Lanka.
The construction will be carried out under the Indian Housing Project (IHP) and around 1,300 houses will be built for 10, 000 for Indian origin plantation workers.
Sri Lankan President Ranil Wickremesinghe on Monday virtually launched the project along with Indian High Commissioner Santosh Jha.
In May 2017, during his visit to the plantation regions of Sri Lanka, Prime Minister Narendra Modi had announced Phase IV of IHP.
Along President Wickremesinghe on November 2, 2023 the foundation stone for the project was laid by Indian Finance Minister Nirmala Sitharaman during her visit to India’s southern neighbour.
“Government of India’s total commitment under the flagship IHP currently stands at 60,000 houses. In the first two phases, 46,000 houses were covered in Northern and Eastern Provinces,” Indian High Commission in Colombo said.
It said that under Phase-III at least 4000 houses being built for plantation workers are at the verge of completion.
Indian origin Tamil community and plantation regions have been of specific focus under the government of India’s development cooperation partnership with Sri Lanka.
The overall portfolio of grant projects alone stands at more than SLR 30 billion or nearly Indian rupees 8 billion.
In addition to the remaining 14,000 houses, India launched another landmark project which is the construction of a multi-specialty hospital in Dickoya in the Central upcountry.
Marking the 200 years of arrival of the Indian origin Tamil community to Sri Lanka, in July 2023, a multi-sectoral package of SLR 3 billion was also announced by Prime Minister Narendra Modi during the visit of President Ranil Wickremesinghe to India.
The CEB spokesman said earlier that they are generating more than 60 per cent of the electricity using thermal power…report Asian Lite News
Sri Lanka’s state-owned electricity producer and distributor, the Ceylon Electricity Board (CEB), has urged people to use electricity sparingly as demand for power has grown due to the dry weather, a senior official told the media.
CEB spokesman Noel Priyantha told the media on Sunday that electricity demand has increased by between three and four gigawatt hours in the past month, Xinhua news agency reported.
Usually, electricity consumption increases during dry periods in Sri Lanka as people use electric fans and air conditioning to keep cool, energy experts say.
Priyantha said the percentage of electricity produced by hydropower has dropped to 21 per cent in recent days due to dry weather, and 4.5 per cent of electricity is generated from solar and five per cent from wind farms.
The CEB spokesman said earlier that they are generating more than 60 per cent of the electricity using thermal power.
The cost of generating electricity using thermal power is high and this is one of the main reasons why the cost of electricity production is among the highest in Asia, Narendra De Silva, general manager of CEB, has said
With the government’s new initiatives, there has been a significant surge in tourist arrivals…reports Asian Lite News
Sri Lanka has rolled out infrastructure development projects and innovative tourism promotion programmes in a bid to attract high-end tourists, the President’s Media Division (PMD) said.
The PMD said in a press statement that President Ranil Wickremesinghe conducted a tour of Tangalle and Galle areas on Saturday to assess tourism industry resurgence on the southern coast of the country, Xinhua news agency reported.
During the tour, the President visited several tourist hotels, talking with owners to understand their challenges first hand, the PMD added.
The PMD said the tourism sector in Sri Lanka faced a rapid downturn due to the Covid-19 pandemic and economic challenges.
With the government’s new initiatives, there has been a significant surge in tourist arrivals, said the PMD, adding that more than 1.4 million tourists visited Sri Lanka in 2023.
Building on this momentum, the government aims to surpass the peak of 2.5 million tourists in 2017, with plans underway to achieve this milestone by 2024, the PMD said.
The existing law holds social media companies accountable for objectionable content shared on their platforms as determined by Sri Lankan authorities….reports Asian Lite News
Sri Lanka announced plans on Tuesday to revise its stringent internet censorship law following backlash from major global tech firms, who faced potential legal repercussions for content shared on social media platforms. Information minister Bandula Gunawardana revealed that the cabinet had decided to amend the hastily passed Online Safety Law, acknowledging concerns raised by experts in the field.
The existing law holds social media companies accountable for objectionable content shared on their platforms as determined by Sri Lankan authorities. In response to opposition from an international coalition of tech companies, who deemed the legislation impractical, the government pledged to incorporate expert input into the proposed amendments.
Critics, including opposition lawmakers, condemned the law as an attempt to silence political dissent ahead of upcoming presidential elections. Social media played a pivotal role in mobilizing protests during Sri Lanka’s severe economic crisis in 2022, leading to widespread demonstrations and the resignation of then-president Gotabaya Rajapaksa.
The law imposes severe penalties, including up to 10 years in prison for social media executives failing to disclose user information linked to illicit content. It also criminalizes anonymous and parody social media accounts, extending jurisdiction to users posting from abroad. Public security minister Tiran Alles previously refuted claims that the law would suppress dissent.
UPI services in Sri Lanka
India recently launched its Unified Payment Interface (UPI) services in Sri Lanka and Mauritius.
RuPay card services were also launched in Mauritius as part of this initiative.
Prime Minister Narendra Modi attended the inaugural event virtually alongside his Mauritian counterpart Pravind Jugnauth, and Sri Lankan President Ranil Wickremesinghe.
Indians visiting the two nations will be able to utilise UPI services to make payments, and Mauritians travelling to India will be able to do the same. Additionally, Mauritian banks will be able to issue RuPay cards and use them for transactions in both India and Mauritius.
The launch of the Indian services comes amid growing bilateral economic ties with Sri Lanka and Mauritius.
UPI services, developed by the National Payments Corporation of India (NPCI), enable immediate real-time bank transactions using mobile phones.
RuPay is an Indian-based card payment network that is widely accepted at retail locations, ATMs, and online platforms globally.
Prior to this, NPCI International Payments Limited (NIPL) worked with Lyra, a well-known French expert in e-commerce and proximity payments, to introduce UPI services to France.
