Category: Breaking News

A duty free shopping complex by China Duty Free in the Colombo Port City is expected to get the go ahead in June, State Minister for Investment Promotion Dilum Amunugama said.

“Port City has signed agreements with China Duty Free,” Minister Amunugama told reporters in Colombo.

“Construction is taking place.”

A cabinet paper relating to its operations has been submitted.

If the approval is received before June 14, operations will begin on that date, Minister Amunugama said.

Several businesses have already started through the Colombo Port City, pending the construction of its buildings under its regulations.

Approved businesses are expected to use only foreign currencies in the area.

Inside the Port City, Sri Lanka’s bank cannot destroy the future value of money (rupees), create forex shortages or social unrest by printing money to cut rates through aggressive open market operations or unrestrained standing facilities.

Colombo Port City is a multiple currency area free of inflationist ‘macro-economic’ policy from a money monopoly and its monetary stability will be externally anchored though currency competition.

Products form multiple central banks including the Fed (US dollar), European Central Bank (Euro) and Peoples Bank of China (Yuan) are expected to compete to gain acceptance from its businesses and workers without a coercive legal tender monopoly that compels an inflating currency to be used.

Typically in dollarized areas (like Panama) banks will have arrangements with their holding companies or other US banks for temporary liquidity facilities, leading to strong market regulation as they would not lend to banks which are not well -managed, unlike unrestrained standing facilities.

In some countries with chronic currency deprecation, balance of payments deficits, outmigration by people who see no future for their children in their own country, there is no penalty rate for standing facilities, no counterparty limits and intra-day liquidity has zero interest rates.

Sri Lanka is expecting to sign foreign direct investment agreements of 3 billion US dollars in 2024, with help of a refinery to be built by Sinopec of China, State Minister for Investment Promotion Dilum Amunugama said.

“The investment promotion ministry was given a target of billion US dollars of FDI for 2024,” Minister Amunugama said.

“Though the final contracts have not been signed I am pleased to say even now discussions are steadily progressing to exceed that number.

“By the second quarter we are likely to be able to double it and by the end of the year may be treble it.”

A renewable energy project by India’s Adani group for which a power purchase agreement was approved by the cabinet this week was valued at 800 million US dollars.

The first phase of an oil refinery in Hambantota by China’s Sinopec group will be around 2.8 billion US dollars.

There were also a number of other projects which on track.

China’s refinery is to be a 5.0 billion US dollar in three phases with the first phase valued at 2.8 billion dollars.

In 2024, in the UK, Canada, France, Italy and Germany the Board of Investment has appointed investment agents and country representatives on an honorary basis from business persons of sri Lanka origina and started investment forums.

“Instead of waiting for investors to come we are now directly approaching them,” Minister Amunugama said.

Sri Lanka’s investment environment has got better compared to last year.

“Whatever anyone says, I can as the Investment Promotion Minister that the environment has got better,” Minister Amunumgam said.

“Firstly, there should be political stability, there should be monetary stability and confidence in monetary stability (mool-yer sthaver-bar-wa-yer).

“Then there has to be some predictability about the future.”

Sri Lanka operates a flexible inflation targeting framework (trying to target a domestic anchor without a clean float) and also target pontential output (print money and cut rates to promote growth), and ends up in the arms of the International Monetary Fund after running out of foreign exchange.

The US Ambassador to Sri Lanka Julie Chung and Sri Lanka Podujana Peramuna (SLPP) National Organiser Namal Rajapaksa had talks on a wide range of matters including on issues affecting youth.

Chung posted on X saying the meeting was part of US outreach across the range of Sri Lankan parties.

“..met with @RajapaksaNamal in his new role as SLPP national organizer to hear about political engagement, including issues affecting youth, and exchange views on strengthening US-SL relations,” the US Ambassador said.

Meanwhile, Rajapaksa said he had a productive discussion with the US Ambassador focusing on political engagement and enhancing US-SL relations.

He said he looks forward to continued dialogue and collaboration.

Former President Maithripala Sirisena has resigned from the post of Chairman of the Sri Lanka Freedom Party (SLFP).

Subsequently, the Executive Committee of the SLFP has unanimously voted to appoint Justice Minister Wijeyadasa Rajapakshe as the new Chairman of the party.

The appointment was made during the executive committee meeting of the party held at a hotel in Kotte today (12).

As the Olympic flame touched down in France from Greece, excitement brewed for the relay involving 10,000 torchbearers, representing diverse stories of achievement. Among them shines a Paris-based, Sri Lankan-born baker Tharshan Selvarajah who only arrived in France for the first time in 2006.

Known for his award-winning baguettes, he makes history as the first Sri Lankan torchbearer in the annals of the Olympic Games.

In 2023, the winner of the “Grand Prize of the Traditional French Baguette,” organized by the Paris City Hall, was the baguette made by Tharshan Selvarajah, after which he received the opportunity to supply baguettes to France’s presidential palace.