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Cabraal: Govt. will deal with evolving scenario if EU decides to withdraw GSP Plus facility

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By Sanath Nanayakkare

Central Bank Governor Ajith Nivard Cabraal yesterday said that discussions were underway on how to cushion the impact on Sri Lanka’s export earnings in case the European Union (EU) withdrew the Generalized System Preferences Plus (GSP+) facility given to Sri Lanka.

“We have already considered some policy measures with all stakeholders to deal with such a scenario, and therefore we won’t be hesitant to deal with a potential reversal of the EU GSP Plus facility,” he told reporters at a news conference held at the Central Bank.

The Foreign Ministry said on 113 Oct. that Foreign Minister G L Peiris, briefing the Colombo-based diplomatic community, sought assistance for post-pandemic economic activity and ongoing domestic processes addressing past human rights violations.

Minister Peiris also emphasised the importance of the EU GSP+ trade concession worth over US $ 500 million.

The Foreign Minister said that the continuation of GSP plus was vital for the Sri Lankan economy, not only for its apparel sector but also for other areas of bilateral trade.

Speaking on the status of the economy, the Central Bank Governor said:

“At present, Sri Lanka is experiencing the consequences of price increases in the global commodity market including fuel, LP gas and food staples. This is a result of the rebounding global economic activity amid accelerated growth in those countries emerging out of the pandemic. However, we hope we can control inflation at mid- single digits and regain a notable growth rate in 2022 with the right policy measures in place.” he said.

Meanwhile, Minister Gamini Lokuge addressing the media on the cost of living said yesterday:”When prices increase in the global market and the dollar appreciates against the Sri Lanka rupee, the government is not in a position to provide essential goods at subsidised prices. For example, the Ceylon Petroleum Corporation (CPC) won’t be able to absorb the losses due to the sale of fuel to the public at subsidised rates anymore.”



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Some VIP security units disbanded, special ‘motivation incentive allowance’ abolished, with some exceptions

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AVM Thuyakontha

Defence Secy. assures regular entitlements won’t be curtailed

Defence Secretary retired Air Vice Marshal Sampath Thuyakontha has assured the armed forces that contrary to claims, reports and speculation, the NPP government will not curtail various entitlements provided to them.

The declaration was made at the Sri Lanka Air Force (SLAF) Headquarters at the Defence Headquarters Complex, Pelawatte, on Monday (Oct 07).

AVM Thuyakontha, who was in the centre of controversy in the run-up to the presidential election over his support for Anura Kumara Dissanayake’s candidature and blacklisted by the SLAF, visited several divisions of Air Force HQ accompanied by the Air Force Commander Air Marshal Udeni Rajapaksa and other senior officers.

Military Liaison Officer of the Ministry of Defence, Air Vice Marshal Padman de Costa also joined the Defence Secretary on his visit to the Air Force HQ.

During the war, Thuyakontha served as the Commanding Officer of the famed 09 Squadron consisting of Mi-24 helicopter gunships.

AVM Thuyakontha reiterated the government’s commitment to the general welfare of the armed forces.

However, the government has declared that what is called ‘motivation incentive allowance’ paid to security forces personnel attached to security units of former VIPs was stopped from Sept. 22, the day after the presidential election.

The Defence Ministry has informed the Army, Navy and Air Force commanders that there was no requirement for ‘motivation incentive allowance’ as the provision of such security has been discontinued.

According to the Defence Ministry, only security units attached to the Chief of Defence Staff, three service commanders and former presidents would continue to receive the special allowance. (SF)

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US strengthens SLAF maritime surveillance squadron

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File picture of Beechcraft King Air 360ER

The SLAF will officially take delivery of Beechcraft King Air 360ER aircraft, donated by the United States at the Katunayake airbase.

The US Embassy in Colombo said that funded by the U.S. Department of Defense’s Building Partner Capacity programme was part of a long-term collaboration with the Sri Lanka Air Force.

“This advanced aircraft is designed to enhance Sri Lanka’s capabilities in search and rescue operations, drug interdiction, and combating trafficking and smuggling. It will also significantly improve the country’s maritime surveillance operations while reinforcing U.S.-Sri Lanka defense cooperation,” the Embassy said.

The Beechcraft King Air 360ER is equipped with cutting-edge technology to boost Sri Lanka’s ability to patrol its waters and address maritime threats.

The aircraft would be assigned to the Number 03 Maritime Squadron based in China Bay, Trincomalee. The squadron comprises Indian and American surveillance aircraft and would be joined before end of this year by an aircraft donated by Australia.

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FDI depends on transparency and ‘streamlined policies’

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President Dissanayake and Ambassador Lee

– South Korean envoy

South Korean Ambassador Miyon Lee has assured President Anura Kumara Dissanayake of their readiness to resume investments here.

A statement issued by ROK Embassy in Colombo quoted Ambassador Lee as having reaffirmed willingness among Korean companies to recommence investments in Sri Lanka and expressed expectations on Sri Lanka’s commitment towards maintaining transparency and streamlined policies to attract Foreign Direct Investment for the country.

Ambassador Lee discussed the issue when she paid a courtesy call on President Dissanayake yesterday (09) at the Presidential Secretariat.

During the meeting, Ambassador Lee congratulated President Dissanayake on his inauguration and also conveyed best wishes from President Yoon Suk Yeol and his expectations to bolster the relationship between the two countries under the new leadership.

Ambassador Miyon Lee expressed the Korean government’s unwavering support to Sri Lanka with the continuation of people-to-people exchanges, cooperation in education, health and various other sectors. While expressing Korea’s intention to collaborate on digitalization, climatic change initiatives and in the renewable energy sector, she elaborated the role of the Korean government agencies such as KOICA, KOFIH and Saemaul Foundation working in Sri Lanka and called for Sri Lankan government’s continued support for various activities steered by these agencies in this country.

In line with the commitments set out by the International Monetary Fund, the Ambassador wished Sri Lanka for a successful Debt Restructuring Programme and emphasized the commitments by Korea Exim Bank to renew the framework agreement for loan projects to Sri Lanka.

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