Author: TELO Admin

The UK Government has launched its new trade preferences scheme in Sri Lanka.

A series of events were held in Colombo for the new trade preferences scheme – the Developing Country Trading Scheme (DCTS), which will come into force this year.

“The UK’s new Developing Countries Trading Scheme provides Sri Lankan and UK businesses with a fresh opportunity to diversify and deepen supply chains and reduce the cost of exporting to the UK. We hope businesses will take advantage of the great opportunities we have highlighted through our events this week,” British High Commissioner Sarah Hulton OBE said.

The main event was attended by State Minister of Finance Shehan Semasinghe, Central Bank Governor Dr. Nandalal Weerasinghe, and senior officials from the Department of Commerce, Export Development Board for Sri Lanka (EDB), and the Board of Investment of Sri Lanka (BOI). The event was delivered in partnership with the Council for Business with Britain – the UK-Sri Lanka bilateral trade association.

UK officials showcased high potential value chains and products that can benefit from the new scheme. This was based on research into UK retailers’ and consumers’ buying considerations, as well as insights from Sri Lankan producers, trade programmes and policymakers.

While Sri Lanka exports numerous high value products to the UK including textiles, tea and rubber, there has been a steady decline in trade volumes between Sri Lanka and the UK since 2018. Under UK trade preferences, Sri Lankan exports will benefit from generous tariff cuts and new products will be brought into scope, facilitating access to the UK market for Sri Lankan businesses across a wide range of industries.

“The Developing Countries Trading Scheme will support businesses by giving them the tools to export duty-free to the UK, opening up markets and boosting consumer choice. We want to go bigger and further with our global trade links and the DCTS enables the UK to achieve this with developing countries,” UK Minister of State at the Department for Business and Trade, Nigel Huddleston said.

The new scheme has been designed to grow free and fair trade with 65 countries, including Sri Lanka, thereby creating jobs and boosting their economies. The DCTS offers one of the most generous sets of trading preferences in the world and demonstrates the UK’s commitment to building long term, mutually beneficial relationships with countries like Sri Lanka.

During the visit to Colombo, DCTS officials also met the Minister of Trade, Commerce, and Food Security, Nalin Fernando. They additionally delivered further information sessions and engagements in partnership with the Ceylon Chamber of Commerce, Department of Commerce, EDB, and BOI, Joint Apparel Association Federation, European Chamber of Commerce Sri Lanka, AmCham Sri Lanka, and Rotary International. The sessions focused on sharing insights including current trends, UK market purchasing criteria, barriers to trade and what can be done to unlock Sri Lanka’s trade and investment potential. Attendees also learnt about other key trade-related information including quality certification and customs requirements.

The Developing Countries Trading Scheme (DCTS) will replace the UK Generalised Scheme of Preferences and will come into force in 2023. Under the scheme, Sri Lanka is eligible for zero tariffs on 92% of products. Over 150 additional products will be brought into scope of the new scheme, including milled grains, pet food products and dairy products.

Key figures:
• £1.4bn of total trade (goods and services) between the UK and Sri Lanka each year.
• Over 99% of goods exported from Sri Lanka eligible for duty-free access to the UK.
• £69m of tariffs saved on exports to the UK from Sri Lanka under UK trade preferences.

Further information on the scheme can be found at this link: https://www.gov.uk/government/publications/developing-countries-trading-scheme-dcts-new-policy-report/developing-countries-trading-scheme-government-policy-response

A series of digital user guides for businesses will be published when the scheme comes into force.

The Sri Lankan Rupee (LKR) has depreciated against the US Dollar (USD) today for the third consecutive day, according to the Central Bank.

Accordingly, today’s buying rate of USD is Rs. 327.59 while the selling rate is Rs. 344.66.

The Rupee has been appreciating against the USD and other major currencies since earlier this month, but the Rupee continue to depreciate against the USD since last Friday.

Yesterday’s buying rate of USD was Rs. 319.84 while the selling rate was Rs. 335.68.

The Chief Prelate of the Malwathu and Asgiri Chapters have asked President Ranil Wickremesinghe to prepare a proper policy mechanism to reduce the rising cost of living to alleviate public burden and calm the social unrest.

Chief Prelate of the Malwathu Chapter Most Venerable Thibbatuwawe Sri Siddhartha Sumangala Thera and the Chief Prelate of the Asgiri Chapter Most Venerable Warakagoda Sri Gnanaratana Thera in a letter addressed to the President commended the steps taken by the President to bring back some normalcy to the country after a turbulent period where major economic, political and social instability existed last year.

The Chief Prelates noted in the letter that the postponement of the local government election has caused some unrest among the public and that preserving democracy means confirming people’s sovereignty through free and fair elections.

They have pointed out to the president, who is recognized as a democratic state leader, that it is the government’s responsibility to conduct the local government elections properly.

The Prelates also highlighted the duties of responsibilities of all stakeholders to ensure economic stability in the country..

“The government should take immediate measures to successfully face the emerging economic challenges and implement populist policies to minimize the rising cost of living and secure people’s lives. Also, all parties have their duties and responsibilities to stabilize the country economically at this critical time,” they said.

The prelates said throughout the past period, they have pointed out the need to establish a practical sustainable policy framework.

“We have reiterated the need to put aside party political theories and implement long-term plans based on national principles for the sake of public welfare.”

“Instead of placing the entire burden of the economic crisis on the public, we have emphasized that the government should work to reduce public suffering through practical solutions such as proper management of public money, prevention of corruption and misuse of public resources, and removal of unlimited privileges enjoyed by public representatives,” the Chief Prelates stressed.

They said the public protests about existing problems should not be implemented with the aim of creating political, economic and social instability in the country. Also, the public should have the right to express their opinions freely in accordance with the legal limits of the country.

Therefore, the Chief Prelates said they expect the government to control the cost of living and gradually restore the lives of the people by securing the supremacy of the law and wished the President that he will get strength and courage from the blessings of Ratnatra for the task.

Former Minister Wimal Weerawansa thrashed SLPP MP Namal Rajapaksa calling him a broiler chicken who was pumped up without any experience or political knowledge.

Weerawansa speaking at a rally in Hambantota said Namal was playing cricket with a group of SLPP MPs while the people were suffering.

“He is just like Ranil. He still has not learned anything. It is reasonable that people get angry. He never learns. He is a prematurely grown broiler chicken,” he said.

He said the nepotism has been the downfall of the country and the Rajapaksa family.

“They were planning to field Yoshitha Rajapaksa in Badulla District at the last General election. It is Dullas Alahhapperuma, who implored Gotabaya Rajapaksa to stop it,” he said.

Hindus in the Vanni district are opposing a planned destruction of a rock they have dedicated to God Ganesh.

They have been making post-harvest offerings to a stone pillar at Puvarasankulam in Vavuniya, which had gone missing and a statue of God Ganesh is in place since.

Now, the divisional secretary has given approval to an outsider to start a quarry there to excavate for granite.

Following protests by the people, DS N. Kamaladasan and Pradeshiya Sabha chairman T. Yogarasa visited the place on March 08.

DS Kamaladasan promised to raise the matter with the Archaeology Department and the Environment Authority.