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Lanka signs agreement to receive EU grant for agriculture modernisation

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The Ministry of Finance and the World Bank recently signed a new agreement to receive a grant from the European Union to support the Agriculture Sector Modernization Project (ASMP).

 This grant is part of the EU’s EUR 25 million support to the US$ 125 million project and will be administered by the World Bank.

Since its inception in 2016, the Agriculture Sector Modernization Project has supported the Government of Sri Lanka’s efforts to increase agriculture productivity, boost the value addition of smallholder farmers and agribusinesses and to improve their access to markets. The project also supports agricultural diversification and technology improvements. The project has so far benefitted more than 48,000 smallholder farmers across the country and has created more than 1500 new jobs through investments in agribusiness organizations.

The World Bank has said in a media statement: “Sri Lanka is blessed with an agricultural sector with deep historical roots, which will continue to underpin rural livelihoods and enable the country to rise to future challenges,” said Faris. H. Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka. “Agriculture is important for Sri Lanka’s economy, and we continue to work with all our partners to promote inclusive and resilient growth, through increasing agricultural productivity, farmer incomes and creating jobs in the sector.”

This additional investment will help prepare Sri Lanka for COVID-19 recovery by contributing to export revenues and creating high quality jobs in agro-processing. It will also help expand opportunities for inclusive livelihood support in rural areas, and providing essential food items.

The additional grant funding from the European Union will support the expansion of agriculture clusters in five districts: Kandy (Central Province), Badulla (Uva Province), Ampara (Eastern Province), and Killinochchi and Vavuniya (Northern Province). The scale-up will contribute to a greater livelihood transformational impact and by reaching a larger number of project beneficiaries. It is expected that a total of 25,000 additional beneficiaries would be supported, including 6,000 direct members of farmer producer organizations.

“The European Union is pleased to be partnering with the World Bank and the Government of Sri Lanka to move towards a more sustainable, resilient and productive agriculture”, said Denis Chaibi, European Union Ambassador to Sri Lanka and the Maldives. “By contributing to the agriculture sector modernization programme, we aim to support smallholder farmers, promote new farming solutions to boost productivity and create more jobs, all ultimately to be able to make a positive impact on the lives of some of the most vulnerable”.

The current World Bank portfolio in Sri Lanka consists of 19 ongoing projects, with a total commitment value of US$2.33 billion in a variety of sectors including transport, urban, agriculture, water, education, and health.

The EU has provided over EUR 1 billion in grants so far to Sri Lanka to support and accompany local efforts for recovery and reform processes in a wide range of areas including poverty reduction, democratic governance, local development, agriculture, water or health.



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Elders’ home devastated by fire was a ‘house of horror’: Witnesses

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Death toll rises to 12: Director remanded

Some residents were allegedly chained

Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.

Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.

Authorities have not yet verified these claims, and Police said investigations are continuing.

Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.

Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.

The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.

Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.

Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.

A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.

Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.

The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.

 By Norman Palihawadane and Nishan S Priyantha

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CERT : AI-generated videos depicting Prez, PM lure public into financial scams

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Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.

According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.

The images of famous sports personalities and other public figures have also been misused in the deceptive content.

The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.

According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.

Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.

“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.

Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.

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New tax law comes into force

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Speaker Dr Jagath Wickramaratne endorsing the certificate on a Bill (File)

Speaker Dr Jagath Wickramaratne on Wednesday endorsed the certificate on the Inland Revenue (Amendment) Bill, bringing the legislation into force as the Inland Revenue (Amendment) Act, No. 11 of 2026, Parliament sources said.

The Bill, which amends the Inland Revenue Act, No. 24 of 2017, was passed by Parliament on May 19.

The new law introduces a series of reforms aimed at modernising tax administration procedures, improving compliance and enforcement mechanisms, enhancing the accuracy of tax calculations and deductions, and strengthening transparency within the tax system.

The amendments also support broader economic policy objectives and include measures designed to reinforce anti-money laundering safeguards.Among the key provisions of the Act is the mandatory use of Taxpayer Identification Number (TIN) certificates for specified high-value financial transactions.

The legislation also introduces revisions to the calculation of taxable income, clarifies tax exemptions applicable to certain projects and business entities, and expands the scope for information disclosure to relevant authorities.

The amendments are expected to improve the efficiency of tax administration while facilitating greater accountability and regulatory oversight.With the Speaker’s endorsement of the certificate, the Inland Revenue (Amendment) Bill has now become law as the Inland Revenue (Amendment) Act, No. 11 of 2026.

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