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No import of vehicles anytime soon as govt. is concerned about drain on exchange reserves – Siyambalapitiya

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Ranjith Siyambalapitiya

By Rathindra Kuruwita

The government has not decided on a timeline to allow the free import of vehicles to the country, State Minister of Finance, Ranjith Siyambalapitiya says. He said that importing vehicles would be a drain on the country’s foreign currency reserves.

“We have allowed the import of 250 buses and 750 vans for tourism. We are looking into whether and how we can relax the import of vehicles. That’s it.”

Siyambalapitiya said there is one vehicle for five Sri Lankans. The government has appointed an expert committee to examine whether the country is ready to allow the import of private vehicles.

“We will decide what to do, based on what the Committee says. Some groups, like vehicle importers, are adversely affected by the restrictions on vehicle imports. However, we must look at national priorities.”

The State Minister said there will be a massive demand for vehicles, if the government relaxes the restrictions on vehicle imports. This would lead to a large outflow of foreign reserves.

“We have not allowed vehicle imports since 2020. The demand probably is huge now”.

Siyambalapitiya said there are sporadic rumours that the government will allow vehicle imports soon. “I don’t know how to make these videos and how they come with this idea,” he added.

He also said that they are closely monitoring the vehicles imported under a scheme to allow migrant workers to import vehicles.

Siyambalapitiya said that restructuring domestic debt was controversial and that the biggest burden of the restructuring was borne by the EPF.

“There are 2.7 million beneficiaries and last year, we promised to pay them an interest rate of 9 percent until 2026. However, at the end of 2023, we realized we can give a higher interest rate because of the good investments we had made with the fund. We decided to give an interest of 13 percent for 2023. What we will pay for 2024 will be decided in 2025,” he said.

He added that this is the first time that EPF beneficiaries received an interest rate of 13 percent after 2009.

Siyambalapitiya said in the past four months, the Central Bank has bought 1.2 billion dollars from the local market. If the Bank did not make this intervention, the exchange rate of the dollar will be about 250 rupees.

“This would have badly affected the exporters.”

Sri Lanka has exceeded its state revenue target for the first quarter of 2024 by 6 percent, Siyambalapitiya said, adding that the government expects a revenue collection of 4,106 billion rupees in 2024.

The State Minister said the government wants its revenue to be at least 14 percent of the GDP and that he believes the revenue target for the year can be achieved.

The Sri Lankan government collects revenue through three institutions, i.e., Sri Lankan Customs, the Excise Department, and the Inland Revenue Department, and has collected 834 billion rupees (about 2.8 billion dollars) in the first quarter, compared with an expected revenue target of 787 billion rupees (about 2.6 billion dollars) in the period, he said.

Siyambalapitiya mentioned that cheques will no longer be accepted to pay income tax. Over the years a large number of people have paid their income tax by cheque and a lot of these cheques have bounced.

The State Minister said that any government that comes into power will have to follow the current economic policies. There will be a collapse akin to 2022, if there is a diversion from the current path.



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Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam

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Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.

The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.

The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.

The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.

During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.

Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.

Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.

Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.

Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.

(PMD)

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Accelerate projects related to resolving the public’s drinking water issues – President Instructs Officials

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President Anura Kumara Dissanayake has instructed officials to promptly identify and commence the projects required to resolve the drinking water issues that have become a major concern for the public.

The President also instructed officials to formulate plans with close attention to the current needs of the people, pointing out that the inability to ensure an adequate supply of drinking water has given rise to numerous problems affecting the public.

President Anura Kumara Dissanayake made these remarks during a discussion held on Friday  (08) afternoon  at the Presidential Secretariat with relevant officials to review the current status of national drinking water, community water supply and wastewater management projects, the progress and requirements of budget allocations, as well as future plans.

The President further instructed officials to submit a report indicating the projects that could be identified and commenced immediately, the required allocations and the expected completion dates. He stressed that financial constraints should not be treated as an obstacle and directed officials to prepare project plans and submit the necessary funding requests accordingly.

He also instructed that, rather than depending on foreign loans, greater attention should be given to completing projects as far as possible using domestic funds. In addition, he directed that staff required for project planning be recruited on contract basis.

The President also emphasised the importance of utilising capital expenditure allocations within the same year for the relevant projects. He pointed out that failure to do so would result in adverse consequences such as additional project costs, the loss of benefits from the funds already spent and the need to allocate capital provisions again in the following year for the same projects.

During the discussion, the President separately reviewed the projects being implemented and planned to resolve drinking water issues faced by people in the districts of Colombo, Gampaha, Kalutara, Galle, Matara, Monaragala, Kandy, Gampola, Anuradhapura, Vavuniya, Jaffna, Ampara, Batticaloa and Polonnaruwa, along with the progress achieved and the issues that had arisen in implementing them.

Officials also informed the President that deteriorating main water pipelines had resulted in insufficient water capacity being supplied to residents in the Colombo District. They further presented plans to address these issues, while the President highlighted the need for close coordination and systematic planning between the Road Development Authority and the National Water Supply and Drainage Board in carrying out these activities.

The President also instructed officials to take steps to commence the Weli Oya Reservoir Project next year in order to support flood control and meet drinking water requirements in the Colombo District.

Attention was also drawn to the North Central Main Canal and North Western Canal projects. Reviewing the progress of projects being implemented to address the severe drinking water shortage faced by people in the areas of Welikanda, Medirigiriya and Lankapura, the President instructed officials to expedite the completion of projects that would not incur significant costs by using domestic funds.

The President further pointed out the importance of implementing all projects in a highly systematic and organised manner and ensuring that their benefits are delivered to the public. Although certain projects had been suspended midway due to priority being given to essential projects, he stressed that all projects were aimed at addressing the needs of the people and should therefore be carried out in a planned and methodical manner.

Minister of Housing, Construction and Water Supply Dr Susil Ranasinghe, Deputy Minister of Transport and Highways Prasanna Gunasena, Deputy Minister of Housing, Construction and Water Supply T.B. Sarath, Deputy Minister of Cooperative Development, Upali Samarasinghe, Members of Parliament including Samantha Ranasinghe, Nishantha Samaraweera, Sunil Biyanwila, Manjula Suraweera Arachchi, Shantha Padmakumara Subasinghe, Wasantha Piyathissa, Roshan Akmeemana, Ilan Kumaran, M. Jegadeeswaran, and S. Thilakanadan and Kandasamy Prabhu, Secretary to the President Dr Nandika Sanath Kumanayake, Secretary to the Ministry of Housing, Construction and Water Supply L.B. Kumudulal, Director General of the Department of National Budget Jude Nilukshan, Chairman of the National Water Supply and Drainage Board Engineer A.M.P.C.P. Bandara, Chairman of the Water Resources Board R.M.S. Bandara, Director General of the Mahaweli Authority of Sri Lanka H.M.J.K. Herath and several other state officials were also present at the occasion.

(PMD)

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President of Vietnam and delegation departs Sri Lanka

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Tô Lâm, President of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam and his delegation departed Sri Lanka on Friday (08) night from the Bandaranaike International Airport, Katunayake, successfully concluding the State visit undertaken at the invitation of President Anura Kumara Dissanayake.

The visit by the Vietnamese President and the accompanying delegation further strengthened the longstanding friendship and cooperation between Vietnam and Sri Lanka, while paving the way for numerous mutual benefits for the peoples of both countries.

This marked the first visit to Sri Lanka by a Vietnamese President in 15 years. The visit also comes at a significant moment as Sri Lanka continues its forward journey towards economic stability under the present Government.

Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, was present at the airport to bid farewell to the Vietnamese President and the delegation.

President’s Media Division (PMD)

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