India to build another 10,000 houses for estate community in Sri Lanka

The Government of India has announced plans to build another 10,000 houses for estate workers in Sri Lanka, as part of ‘Phase 4’ of the Indian Housing Project.

Delivering the keynote address at ‘Nam 200’ this afternoon (02 Nov.), celebrating 200 years since the arrival of Indian Origin Tamils (IOT) to Sri Lanka, Indian Finance Minister Nirmala Sitharaman revealed that commending the success of ‘Phase 3’ of India’s flagship development project, Indian Prime Minister Narendra Modi has announced that a further 10,000 houses will be built for estate workers in the Northern Province of Sri Lanka.

Commenting on the success of the third phase of the Indian Housing Project, the Finance Minister revealed that 3,700 houses, of the 4,000 houses agreed to be established under the project, have already been handed over to the beneficiaries.

“This will remain a special moment for our bilateral relationship, as well as personally to me”, Minster Sitharaman said in this regard.

Accordingly, the foundation stone for the first lot of the 10,000 houses due to be built under ‘Phase 4’ of the project will be laid today, as part of the ‘Nam 200’ celebrations.

Finance Minister Sitharaman further highlighted India’s continued commitment and unwavering support to uplift the wellbeing of IOTs in Sri Lanka, and said, “India has consistently stood in solidarity with you, offering all the support within our means”.

She further stated that “Enhancing connectivity between India and Sri Lanka will build bridges of experience and opportunities for the people of both countries”.

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State Bank of India opens two new branches in Sri Lanka’s North, East

State Bank of India (SBI), the largest public bank in India, will open two new branches in Sri Lanka this week, extending the services to the island nation’s Northern Jaffna peninsula and Eastern port district of Trincomalee where India is already dominating.

Indian Finance Minister Nirmala Sitharaman will inaugurate the new branches during her three-day official visit, the Indian government said in a statement.

SBI, the largest bank in India with over 20 percent market share by assets, has been in Sri Lanka for more than 150 years, serving both corporate and retail clients.

India has been expanding its businesses into Sri Lanka’s North and East after the end of a 26-year war in 2009.

India has already built a Cultural Centre in Jaffna, once the de facto capital of separatist Liberation Tigers of Tamil Eelam (LTTE), where predominantly ethnic minority Tamils are living. Tamils are more close to South Indian Tamil Nadu state by culture and language.

India, one of the World’s fastest growing economies, has already got an oil tank farm in the Eastern port district of Trincomalee and is involved in more than a third of fuel business by volume in Sri Lanka.

Trincomalee is also rich in mineral mines.

Currently SBI Sri Lanka is operating through 5 branches namely Fort & FCBU branches at main building in fort, Colpetty branch, Wellawatta branch and Kandy branch.

SBI Sri Lanka has the product range from all types of deposit accounts, financing working capital, term loans, vehicle loans, housing loans and trade finance.

China will play positive role to help Sri Lanka navigate debt situation

China says it will continue to support Chinese financial institutions in actively consulting with Sri Lanka.

Foreign Ministry Spokesperson Wang Wenbin speaking at the Regular Press Conference on Tuesday (31) said that China will continue maintaining friendly communication with other creditors and jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development.

He told reporters that, as an official creditor, the Export-Import Bank of China tentatively agreed with Sri Lanka on the debt treatment, and the Sri Lankan side has released relevant information.

On the 11th of October 2023, the Ministry of Finance of Sri Lanka issued the following statement with regard to the agreement reached with the Exim Bank of China:

The Government of the Democratic Socialist Republic of Sri Lanka is pleased to announce that it has reached an agreement on the key principles and indicative terms of a debt treatment with the Export-Import Bank of China (“China Exim bank”).

The agreement in principle covers approximately USD 4.2bn of outstanding debt. It constitutes a key step towards restoring Sri Lanka’s long-term debt sustainability and will pave the way to a prompt economic recovery.

The indicative terms agreed will provide the necessary fiscal space for Sri Lanka to implement its ambitious reform agenda.

The Sri Lankan Government commends the engagement and continuous support of China Exim bank in reaching this agreement in principle, which demonstrates a mutual commitment in line with the goal/objective of restoring public debt sustainability consistent with the IMF-supported program.

The Sri Lankan authorities hope that this landmark achievement will provide an anchor to their ongoing engagement with the Official Creditor Committee and commercial creditors, including the bondholders.

It should also facilitate approval by the IMF Executive Board of the first review of the IMF-supported program in the coming weeks, allowing for the next tranche of IMF financing of about US$334 million to be disbursed.

The Secretary to the Treasury Mr. K M Mahinda Siriwardana issued the following statement:

“Yesterday marked a big step for Sri Lanka as we reach this landmark agreement in principle on debt treatment terms with our largest single creditor. We thank China Exim bank for the support in resolving our country’s debt situation. This agreement constitutes a key milestone in Sri Lanka’s ongoing efforts to foster its economic recovery.”

In the next few weeks, the Sri Lankan authorities and China Exim bank will actively work on formalizing and implementing the agreed parameters of the debt treatment.

Indian Finance Minister meets Mahanayake Theros, briefs on Solar Power project

Indian Finance Minister Nirmala Sitharaman called on the Mahanayake Theros in Kandy on Wednesday (1).

Nirmala Sitharaman called on the Mahanayake of the Malwathu Chapter of the Siam Sect, the Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Thero.

During her meeting with the Mahanayake, Nirmala Sitharaman reiterated the strong connect the people of India feel through the Prime Minister of India for the people of Sri Lanka.

The Indian Finance Minister had also noted that on Thursday (2) she will attend the the exchange of the Memorandum of Understanding for Solar Electrification of Religious Places in Sri Lanka wherein India will allocate INR 82.40 crores out of the GOI grant assistance of INR 107.47 crores earmarked for the promotion of Buddhist ties.

According to the Indian Ministry of Finance, the exchage of MoUs will take place in the presence of President Ranil Wickremesinghe.

Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Thero had acknowledged the deep cultural ties with India and the shared Heritage between the two nations.

The Mahanayake Thero also thanked the Indian Finance Minister for the economic assistance given during the time of economic crisis in Sri Lanka and highlighted that as Sri Lanka’s most trusted friend, India was the first to reach out to help Sri Lanka in moment of economic crisis.

The Indian Finance Minister also called on the Mahanayake of the Asgiri Chapter of the Siam Sect, the Most Venerable Warakagoda Sri Gnanarathana in Kandy.

Indian Finance Minister Nirmala Sitharaman discussed the continued tradition of strong historical and cultural ties between India and Sri Lanka.

Most Venerable Warakagoda Sri Gnanarathana Thero had acknowledged the cordial relations between the two countries and expressed gratitude for the support from India during the times of economic hardship in Sri Lanka.

The Indian Finance Minister also elaborated on the Solar Electrification of Religious Places in Sri Lanka project, and the Mahanayake Thero thanked India for the assistance and indicated that it is a timely and supportive step towards their energy needs.

Parliamentary schedule for 2024 Budget

The Second Reading of Appropriation Bill (Budget) for the fiscal year 2024 (the Budget Speech) is to be presented to the Parliament by President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization and National Policies, at 12 noon on 13 November.

Thereafter, the Second Reading of the 2024 Budget will be debated for a period of one week, from the 14 to 21 November.

The vote for the Second Reading of the Budget is scheduled to be held at 06:00 p.m. on 21 November, following which the Committee Stage debate will be held for a period of 19 days from 22 November – 13 December.

Accordingly, the vote on the Third Reading of the 2024 Budget is slated to be held at 06:00 p.m. on 13 December.

Accordingly, during the period in which the Budget is slated to be debated, the debate is scheduled to be held from 09:30 a.m. to 06:30 p.m. every day, while the Adjournment debate will be held from 06:00 p.m. to 06:30 p.m. everyday, except on the date of vote.

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US visa-denied MP showers praise on China

Ruling party MP Sarath Weerasekara who was denied a visa to travel to the United States, showered praise on China citing it as an indispensable and dependable friend of Asia.

Addressing the BOAO summit in China recently, he said the western world will never comprehend the bond among the Asian countries.

“It is evolved and nurtured through trade and mainly Buddhism. China has been an indispensable and dependable friend of Asia.
We are grateful to China, a permanent member in the Security Council, for the consistent support it has given to Sri Lanka at the Human Rights Council. When we defeated the most ruthless terrorist organization in the world we were vilified by the western countries, but China always stood by us,” he said.

Recently, Weerasekara was denied travel to the US for a programme meant for the Sri Lankan MPs heading parliamentary sectoral oversight committees. Weerasekara chairs the Committee on National Security.

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AKD promises economic freedom

Leader of the NPP Anura Kumara Dissanayake has promised economic freedom by building a production-based economy and ensuring equal dividends to all.

He was addressing the Sri Lankan community in Los Angeles, USA during a recent visit.

Dissanayake identified them as a key pressure group during key national elections as they keep a close tab on developments back home while leading secure lives in their adopted country.

He addressed a key criticism of his party’s capabilities of governance.

The NPP is an honest and dedicated group committed to spending their efforts for the country and the people without expecting anything personal.

It has personnel with expertise in economics, foreign affairs, education, health, agriculture, economy etc., Dissanayake added.

Sri Lanka: Inflation rises to 1.5% in October

Inflation in Sri Lanka rose to 1.5% in October 2023, compared to 1.3% in September the same year.

The Department of Census and Statistics releasing the Colombo Consumer Price Index for October 2023 reported that Food Inflation remained at -5.2%.

The Overall Rate of Inflation as measured by the Colombo Consumer Price Index (CCPI) has increased to 1.5% in October 2023, according to the Department of Census and Statistics.

The latest report by the department states it was an increase from the 1.3% reported in September 2023.

The department further said food inflation remains unchanged at -5.2% in October as it was in September.

However, non-food inflation has increased to 4.9% in October from the 4.7% recorded in September this year.

EU grants 100,000 euros in emergency aid for Sri Lanka flood victims

The European Union (EU) has allocated 100,000 euros (over 34.5 million Sri Lankan rupees) for emergency humanitarian assistance to some 15,000 people affected by floods in Sri Lanka.

Families in the worst-hit localities in Sabaragamuwa, Southern and Western provinces will benefit from the aid, the EU’s Colombo mission said in a statement on Monday October 30.

“This EU funding supports the Sri Lankan Red Cross Society (SLRCS) in delivering emergency relief items, including drinking water, clothes, bed sheets and mosquito nets. In addition, affected families will receive cash grants to enable them to meet their basic needs. The assistance will also focus on cleaning up flooded areas and wells while delivering hygiene promotion campaigns. Medical camps will be set up to assist those injured in the wake of the floods,” the EU said.

According to the statement, the funding is part of the EU’s overall contribution to the Disaster Response Emergency Fund (DREF) of the International Federation of Red Cross and Red Crescent Societies (IFRC).

“The southern part of the island nation started experiencing a series of strong monsoon rains in early October, causing floods and landslides that affected more than 75,000 people in 13 districts. As a result of the continued downpours and strong winds, a number of houses, agricultural lands and crops in low-lying areas were damaged. Major traffic arteries to several districts were cut off by fallen trees. The floods left many drinking water resources contaminated. The worst affected areas were the coastal districts of Galle, Gampaha and Matara, with most parts flooded for more than a week.”

The European Union is signatory to a 10 million-euro humanitarian delegation agreement with the International Federation of Red Cross and Red Crescent Societies (IFRC) to support the Federation’s Disaster Response Emergency Fund (DREF). Funds from the DREF are mainly allocated to “small-scale” disasters – those that do not give rise to a formal international appeal, the EU said.

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India’s Finance Minister Nirmala Sitharaman to visit Sri Lanka tomorrow

India’s Finance Minister Nirmala Sitharaman will embark on a three-day official visit to Sri Lanka tomorrow (Nov. 01), the Indian government said in a statement.

During the visit, Minister Sitharaman will deliver the Keynote Address as the Guest of Honour at the ‘NAAM 200’ organised by the Sri Lankan government to commemorate the 200th anniversary of the arrival of India-origin Tamils (IOTs) to Sri Lanka, on November 02 at Sugathadasa Indoor Stadium in Colombo.

The Indian finance minister will also give the keynote address at the India Sri Lanka Business Summit themed ‘Enhancing Connectivity: Partnering for Prosperity’. It is jointly organized by the Confederation of Indian Industries (CII), the Indo-Lanka Chamber of Commerce & Industry, and the Ceylon Chamber of Commerce, on November 02, at Hotel Taj Samudra in Colombo.

As part of the official visit, Minister Sitharaman will engage in bilateral discussions with President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena.

She will witness the exchange of the Memorandum of Understanding (MoU) for Solar Electrification of Religious Places in Sri Lanka wherein India will allocate INR 82.40 crores out of the Indian government grant assistance of INR 107.47 crores earmarked for the promotion of Buddhist ties.

Minister Sitharaman will also inaugurate SBI Branches at Trincomalee and Jaffna on November 02 and 03, respectively.

She will visit Sri Dalada Maligawa (The Temple of the Sacred Tooth Relic) in Kandy, Jaya Sri Maha Bodhi in Anuradhapura, Thirukoneswaram Temple in Trincomalee and Nallur Kandaswamy Temple in Jaffna during the course of her visit to Sri Lanka.

Besides the above engagements, Minister Sitharaman is also slated to visit Lanka IOC Oil Tank Farms, Jaffna Cultural Centre and Jaffna Public Library during her visit.