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Efforts to facilitate Indo-Lanka rupee trade underway

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The Sri Lankan High Commission in New Delhi yesterday (14) said that regulations needed to facilitate the rupee trade between the two countries were formulated.

High Commissioner Milinda Moragoda has thanked India, and Finance and Corporate Affairs Minister Nirmala Sitharama for the assistance provided to Sri Lanka in the present economic recovery phase, in particular for the necessary regulations and approvals that were being set in place to facilitate the Rupee trade between the two countries. This was taken up at a meeting held in New Delhi where they focused on the ways and means of utilising the available resources in the one billion USD Indian line of credit to import urgently required essential pharmaceuticals, which are in short supply in Sri Lanka.

It was the latest of a series of meetings he has had with her since November 2021.

The meeting between the Finance Minister of India and the High Commissioner of Sri Lanka took place, just ahead of the first meeting of the G20 Finance Ministers, scheduled to be held, from 24 to 25 February, 2023 in Bengaluru, chaired by Minister Sitharaman.

During the discussion, High Commissioner Moragoda, once again, thanked Minister Sitharaman for the unprecedented emergency assistance that India has extended to Sri Lanka and for the timely issuance of India’s financial assurances to the International Monetary Fund, concerning the country’s debt restructuring process.

High Commissioner Moragoda briefed Minister Sitharaman on Sri Lanka’s ongoing discussions with the International Monetary Fund to obtain the Extended Fund Facility and the present status of the country’s debt restructuring process. While appraising the Minister of the drastic impact the present economic contraction is having on the population of Sri Lanka, High Commissioner Moragoda expressed his appreciation to Minister Sitharaman for her efforts in garnering international support for Sri Lanka’s case, including at the G20 forum.



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Formulation of a Draft Economic Development Bill to expedite the process of Digital Transformation and Digital Economic Development

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It is essential to establish an institutional framework with legal powers to ensure the effective implementation of national digital policy and guidelines.

Quality human capital should be attracted to this institutional framework for the compilation of policies, implementation of policies, regulation, and empowerment of operations. The continuous participation of the private sector should also be considered in establishing a strong institutional framework.

It has been further identified that attention should also be
drawn to new fields of digital innovation, including support for artificial intelligence and related activities.

Taking into consideration the aforementioned matters, a concept paper has been formulated to prepare a Draft Economic Development Bill for the establishment of a new institutional framework.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the  President in his capacity as the Minister of Digital Economy to instruct legal draftsman to formulate a Draft Economic Development Bill based on the aforementioned concept paper.

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Cabinet approval for Sri Lanka Community and Health Survey – 2026/2027

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The Sri Lanka Community and Health Survey is the main data source for obtaining necessary information for reviewing progress toward achieving the national health development goals, as well as the expected sustainable development goals by 2030.

The last survey was conducted in the year 2016, and the Sri Lanka Community and Health Survey should be conducted to obtain updated data to enable the collection of related data and indicators concerning the health and well-being targets of the Global Sustainable Development Objectives.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning, and Economic Development to take necessary steps to conduct the aforementioned survey.

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A National Water Tariff Policy for all Water Supply and Sanitation Services

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The access to secure, reliable and affordable drinking water and adequate sanitation facilities is essential to maintain public health, promote social well-being and foster economic development.

The Sri Lankan Government recognizes water supply and sanitation services as both an economic good and a basic human need. Therefore, when pricing for water and sanitation, a balance should be maintained between the financial sustainability of the service providers and the requirement to ensure fair and affordable access for all strata in the society.

Accordingly, the Sri Lankan government has identified the necessity of a national water supply that is sensitive to gender equality and social integration applicable to all water supply and sanitation service providers. At present, there is no formal national framework for setting, reviewing, approving, and implementing tariffs for water supply systems operated by various water supply providers as well as for setting, reviewing, approving, and implementing tariffs for sanitation systems.

Therefore, the Ministry of Housing, Construction, and Water Supply has formulated a water tariff policy covering all water supply service providers under the Sri Lanka Water Supply and Sanitation Sector Reform Program, which is a policy-based loan program implemented under Asian Development Bank funds.

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