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Godahewa explains body blow country suffered , but says future is bright through innovation
State Minister Dr. Nalaka Godahewa said yesterday that covid-19 caused a debilitating blow at a time the government was struggling to settle foreign loans amounting to a staggering USD 11 bn. Dr. Godahewa said that the GDP contracted by 3.6 % percent in 2020.
The State Minister explained that at a time they were struggling to bridge the huge trade deficit of about USD 10 bn, the country lost entire earnings from the tourism industry. The loss of about USD 4.5 bn had a significant negative impact on Sri Lanka’s foreign exchange earnings. To make matters worse, during 2020 and 2021, the government had to settle foreign loans of more than USD 11 bn, draining the country’s reserves down to USD 3 bn.
Dr. Godahewa said so delivering the keynote address at the Inaugural CSSL CEO Conclave@ NITC2021 organised by the Computer Society of Sri Lanka.
“I would like to draw your attention to a recent McKinzie report on the topic “Unlocking Sri Lanka’s digital opportunity” and invite you to think out of the box in order to capitalise on the post pandemic surge in economic rebound and the unique opportunities that come with 4.0 digital revolution”
The eminent panel consisted of Jayantha de Silva, Secretary Ministry of Technology, Rohan Fernando Chairman SLT, Kumar Parakala, President at GHD Digital USA and invited member of Forbes Business Council, Sujeewa Rajapaksa, Chairman People’s Bank and Damith Hettihewa President CSSL and Managing Director of Nimbus Cloud Lanka Ltd. The session was moderated by Arjuna Seneviratne, Leading development Strategist and Former Director of the Strategic Enterprise Management Agency (SEMA).
Delivering his keynote addres, Dr Godahewa said that the recent McKinzie report on the topic Unlocking Sri Lanka’s digital opportunity has highlighted five key areas that CEOs should focus on. They are as follows:
1) .You must set big, bold aspirations, and integrate them into the overall business. Constantly evaluate your unique competitive strengths, identify imminent threats, and reinvent your business models as necessary.
2). Build digital capabilities around customer experience. Use digitalisation to improve you customer-satisfaction by making operational enhancements, primarily by accelerating and simplifying your interactions with the customers.
3). Leverage data analytics to drive real-time decisions across the value chain. Use of data analytics may include targeted marketing and dynamic pricing.
4). Foster an innovative and agile corporate culture. Build a culture that encourages risk taking, experimentation, and accepting failure.
5). Invest in digital organisation and talent. Create a work environment that will enable you to attract and retain employees who can execute your digital agenda. Have organisational structures that encourage autonomy and flexibility.
A digital transformation requires a wholehearted commitment from a company’s leadership. So as CEOs you have an important role to play in driving the required changes in your own organisations. If you don’t see the future unfolding and remain inactive, your companies can get adversely affected by sudden market changes. On the other hand, moving quickly and becoming a leader in the digital transformation will dramatically increase your revenue potential and the returns to shareholders.
At the time we are having this discussion, the Covid-19 pandemic has reached almost every country in the world. We are passing through a very difficult period in human history. More than 4.8 million lives have already been lost, despite the vast advancements in medical sciences.
In addition to the enormous loss of human lives, the current pandemic has resulted in catastrophic economic losses across the globe. In 2020, except China, all other world economies reported negative growth. Even in China which reported a mere 2.2% growth, the growth rate had declined significantly compared to previous years. The global economy is expected to lose nearly 8.5 trillion US Dollars in terms of output, due to the COVID-19 pandemic. It is estimated that the world student population has lost more than 3 trillion learning hours. This too will have serious consequences for human development in the years to come.
Pandemics are not new to the world and we all know that the bad times will be over soon. Therefore, we must look to the future positively. The good news is that the global economy is expected to bounce back with about 5.4% growth rate next year. We must try and follow suit with the right strategies and efficient implementation. Currently we anticipate an economic growth of about 3.4% for 2021 and we should aim for a much higher GDP growth for 2022. However, the slow global recovery, coupled with continued trade restrictions and the high debt burden could continue to affect our growth targets.
We all know that a crisis always sparks innovation and entrepreneurship. That is why there is a famous saying “Necessity is the mother of invention”. If we look at statistics from various parts of the world, 2020 shows a surge of applications for new businesses. The COVID-19 crisis has created an imperative for companies to transform and reconfigure their operations. To the extent that they do so, greater productivity will follow. This is mainly propelled by the readiness of the ICT and the circumstances pushing for change.
We are aware that there has been a major pandemic every 100 years or so. Similarly a technological revolution too has occurred in almost every century. We are in the early stages of the 4th industrial revolution. It is a technology revolution, mainly a digital revolution.
For the ICT industry, the pandemic has been the silver lining in the dark cloud. Things have accelerated in the digital revolution. The ‘future of work’ has arrived ahead of schedule, as a result of the pandemic. The McKinsey Global Institute estimates that more than 20 percent of the global workforce now work away from the office and yet they are just as effective.
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The Sun is directly overhead Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon today (08)
On the apparent northward relative motion of the sun, it is going to be directly over the latitudes of Sri Lanka from the 05th to 15th of April this year.
The nearest areas of Sri Lanka over which the sun is overhead today (08th) are Warakapola, Aranayaka, Gampola, Bibile, Inginiyagala, and Akkaraipattu at about 12:12 noon.
News
AKD admits import of substandard coal, blames technicalities and supplier
… announces temporary relief package
President Anura Kumara Dissanayake yesterday acknowledged in Parliament that the import of substandard coal had adversely impacted electricity generation.
“There’s an issue with the coal. That’s true,” the President said, addressing the House.
President Dissanayake maintained that the problem had not arisen from the tender process but from the failure of the supplier to deliver coal that met the required standards. “The issue did not arise from the tender process. It resulted from the supplier’s failure to deliver coal that met the required standards. I would also like to point out that coal is not tested by individuals through simple inspection or personal judgment; it is examined in certified laboratories,” he said.
The President went on to say that coal shipments are tested through certified laboratories before dispatch, and an initial payment of 80 percent was made after receiving laboratory certification confirming that the coal meets stipulated specifications.
The President said the balance 20 percent was released only after a second verification carried out by an Indian laboratory selected for the purpose in 2023. Tests had revealed that three shipments failed to meet the required specifications.
The President added that although some shipments had passed laboratory tests, operational assessments at the power plant indicated that the coal was not performing to the expected standard. As a result, the government had withheld the remaining payments for certain consignments, imposed penalties on some suppliers, and in a few instances suspended even the initial 80 percent payment.
He said the use of substandard coal would increase electricity generation costs as the shortfall would have to be compensated by alternative sources, such as diesel. However, he assured Parliament that the additional costs would be recovered from the coal suppliers and would not be passed on to consumers.
The President also said the government expected to receive the fourth and fifth tranches of financial assistance from the International Monetary Fund by the end of May. He told Parliament that Sri Lanka hoped to reach a staff-level agreement with the IMF by Thursday, which would enable the country to secure about USD 700 million in funding.
Meanwhile, the President announced a temporary increase in cash assistance under the Aswesuma welfare programme to provide relief to low-income households during the April festive season.
He said the government continued to face challenges in accurately identifying eligible beneficiaries but noted that Aswesuma remained the only available framework to determine eligibility. Under the scheme, current benefit categories include payments of Rs. 17,500, Rs. 10,000 and Rs. 5,000.
For April, the Rs. 17,500 allowance will be increased by Rs. 7,500 to Rs. 25,000, while the Rs. 10,000 payment will rise by Rs. 5,000 to Rs. 15,000. Beneficiaries in the transitional category will receive an additional Rs. 2,500. The temporary increases are expected to cost the Treasury about Rs. 8.5 billion and will apply only for the month of April.
Addressing electricity tariffs, the President said the adjustment that came into effect on April 1 had been determined earlier and was not linked to the present crisis. According to him, the increase for households consuming less than 30 units amounts to about Rs. 15 per month, while other tier increases translate to approximately Rs. 1 to Rs. 1.50 per day.
He said the government had considered three options to manage rising electricity costs: requiring the Ceylon Electricity Board to absorb the losses, transferring the burden entirely to the Treasury, or passing the cost on to consumers. Instead, the government opted for a shared approach involving the State, the public and the national power system operator.
Under this arrangement, consumers using less than 90 units of electricity will receive a subsidy during the next tariff revision. The government has allocated Rs. 5 billion per month for the programme, amounting to Rs. 15 billion over three months. The President said losses in the electricity sector during the same period were estimated at about Rs. 32 billion.
Turning to agriculture, the President outlined measures to stabilise fertiliser supply amid rising global prices. He said the Department of Agriculture currently held about 14,000 metric tonnes of urea imported at the previous price, while private companies also possessed stocks.
Following discussions with fertiliser suppliers, companies had agreed to release all remaining stocks purchased at the old price to Agrarian Service Centres. These quantities, together with government stocks, are expected to be sufficient for two paddy cultivation seasons.
However, fertiliser required for the third season would have to be imported at higher prices. The President said recent offers for urea ranged from USD 680 to USD 850 per metric tonne.
To cushion farmers from price increases, the government has decided to sell fertiliser for the third season at a fixed price of Rs. 10,200 per bag despite the estimated market price ranging between Rs. 13,500 and Rs. 14,000. The Treasury will absorb the difference, amounting to roughly Rs. 3,000 per bag, at a total estimated cost of about Rs. 1.7 billion.
The President also announced increases in fertiliser subsidies. Farmers cultivating paddy will receive Rs. 30,000 per hectare, up from Rs. 25,000, while subsidies for subsidiary crops during the Yala season will increase from Rs. 15,000 to Rs. 18,000. Small tea holders will receive a one-time additional payment of Rs. 5,000 per fertiliser bag in addition to the existing Rs. 4,000 subsidy.
He said the expanded fertiliser support programme would cost the government about Rs. 6.5 billion, with an additional Rs. 600 million allocated specifically for fertiliser subsidies.
The President also outlined plans to manage rising energy costs, particularly in the fuel sector. He said the government had considered allowing fuel prices to fully reflect market costs or introducing a subsidy mechanism.
According to current estimates, he said, diesel would exceed Rs. 600 per litre if sold strictly at cost. Instead, the government has decided to maintain the existing tax structure and provide Treasury-funded subsidies.
Under the proposed scheme, diesel will receive a subsidy of up to Rs. 100 per litre, while petrol will receive up to Rs. 20 per litre. Fuel prices will continue to be adjusted based on monthly cost calculations, with the next revision scheduled for May 1.
The subsidy programme is expected to cost around Rs. 20 billion per month and will operate for three months at an estimated total cost of Rs. 60 billion.
In addition, fishermen will receive targeted assistance. Small fishing boats will qualify for an extra Rs. 50 per litre fuel subsidy for up to 625 litres per month, credited directly to bank accounts. This will provide a monthly benefit of Rs. 31,250 per boat.
Multi-day fishing vessels will receive a fuel allowance of Rs. 150,000 per vessel during the three-month subsidy period, the President said.
By Saman Indrajith
News
‘Sri Lanka – China relations: Community with a Shared Future’ launched
The Chinese Embassy in Colombo launched the commemorative publication in connection with the 70 years of Sri Lanka Diplomatic Relations with China titled, “Sri Lanka – China Relations: Community with a Shared Future” on 03 April 2026 in the presence of a large distinguished audience.
Cao Jing, Deputy Director General of the Asian Department of the Ministry of Foreign Affairs, Officials of the Chinese Foreign Ministry, Diplomatic Corps, Xu Yan of the Chinese People’s Association for Friendship with Foreign Countries, officials of Ministry’s line agencies and state-owned enterprises and several other guests having interests in Sri Lanka participated at the event.
The commemorative publication captures the essence of Sri Lanka’s resilience as a nation by tracing its rich history, civilization and culture. It offers insights into salient features of Sri Lanka that has been recognized for ages as “a land like no other”.
The publication was authored by the distinguished career Ambassador Dr. Ananda Kumarasiri.
In delivering the opening remarks Ambassador Majintha Jayesinghe, expressed his appreciation to the author Dr. Ananda Kumarasiri. Recalling the establishment of Diplomatic Relations in 1957, Sri Lankan Ambassador stated that the impressive tapestry of genuine friendship that exists between our two countries since ancient times have grown exponentially.
Ambassador Majintha Jayesinghe expressed the aspiration that this book will present an insightful account of the rich heritage of Sri Lanka’s relations with China. He hoped that the commemorative publications would encourage future generations to look at the shared history and relations with pride and motivate them to further enhance this unique friendship and goodwill to higher vistas of achievements.
In his address, Ambassador, Dr. Ananda Kumarasiri among other important observations, pointed out that there is much scope for Sri Lanka and China to collaborate in a number of fields. In particular, he highlighted that China’s tremendous technological and industrial progress can be harnessed for Sri Lanka to embark into-the development of alternative sources of energy, backward integration of Sri Lanka’s primary resources that would ensure value added exports and also in recycling wastes from various primary resources.
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