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Proposed privatisation of SriLankan in line with IMF remedy – CEO

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Richard Nuttall

SriLankan Airlines CEO Richard Nuttall has declared that the Wickremesinghe-Rajapaksa government intends to privatise several state-owned enterprises, including SriLankan as part of the International Monetary Fund (IMF) programme.

Asian News International quoted Nuttall as having said on Wednesday (13): “The government is trying to privatise a number of state-owned enterprises as a part of the

IMF programme that it’s going through. One of those is SriLankan Airlines.”

Nuttall said that one of the steps taken in that direction is the government helping with the balance sheet which would be completed in a month or two.

“There are two parts to that. One is, the government working to help us with our balance sheet and a lot of work has gone on with that and we expect that to be finished in the next one or two months,” the CEO said.

Nuttal said that the airline is also looking for an investor, three candidates have been finalised and the government is in talks with them.

“And then the other side is looking for an investor. Expressions of interest were completed in April and there were six candidates. That’s now been whittled down to three. So the government is now talking to three different entities and we’ll see what happens from there,” he said.

The CEO shared that no Indian company has showed interest in investing in SriLankan Airlines but one of the consortiums have some Indians in them.

“There’s no Indian company, but one of them is a consortium that we understand has some Indian,” Nuttar said.

Replying to a question about the updates on the expansion plan of Sri Lankan Airlines, Nuttall said, “At the moment, our fleet is 21. We’re hoping for it to grow. It should grow to 22 next month. We’re looking to get another three aircraft within the coming twelve months, so that would take us to 25. So if you look, we’ve also got a couple of aircraft that we’re replacing with engines. So that’s about 50 per cent growth by the end of this year.”

The CEO said that the expansion will be from increased frequencies to existing destinations rather than adding new destination cities. “And I think most of the expansion that we’ll get from that will be not new cities, but it will be increasing frequencies to existing destinations, particularly in India and Southeast Asia,” he added.

Nuttall said that during economic downturn that the country is currently facing, more people tend to go and work overseas which in turn helps the airline.

“If one looks at Sri Lanka, two of the biggest sources of currency for the country come from the diaspora, Sri Lankans working abroad and tourism. So actually when you have an economic downturn, more people go overseas. So it’s a natural hedge. So for the airline that’s good and we can support the economic development of the country by supporting the people that want to go and work overseas,” the CEO said.

Nuttal highlighted that the tourism sector has recovered and back to pre-COVID times. He added that the Indian market has trebled in the last year.

“When it comes to tourism, actually tourism has come back really, really quickly to Sri Lanka. So tourism is now back where it was pre-COVID. And if we look at the Indian market, the Indian market has I think trebled in the last twelve months. We were doing roughly 1,012 thousand a month last year and now we’re up closer to 40,000,” the CEO said.

“And the Indians are just over 20 per cent of the tourists that comes to Sri Lanka. And you know, realistically, when we look at the size of the population here and we look at the growing economy, we think that 40,000 a month is just the tip of the iceberg. We think that number could grow,” Nuttal added.



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COPE discovers fake documents covering drug imports in 2022/23

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The Parliamentary watchdog Committee on Public Enterprises (COPE) has found that there were fake documents regarding the importing of medicines under the emergency procurement system in 2022 and 2023.

This was revealed during a COPE meeting held at Parliament probing the transactions of the National Medicine Regulatory Authority (NMRA).

NMRA CEO Saveen Semage told the committee that several fake documents have been found due to the lack of registration of medicines.

Stating that six such fake documents were found last year alone, Semage said he had recorded statements regarding each of the documents with the Financial Crimes Investigation Division.

He revealed that, however, no investigations have been conducted yet into the incidents.

“We have documents with confessions from a woman accepting that fake documents had been made. However, a statement has not even been recorded from that woman yet,” he said.

Meanwhile, COPE member MP Asitha Niroshana Egoda Vithana also revealed that the highest number of waive-off registrations (WOR) for medicines had been obtained in 2022 and 2023.

He said 656 such WORs had been obtained in 2022 and 261 in 2023, adding that this proves that discrepancies have taken place during the emergency procurement of medicines during these periods.

Furthermore, Deputy Director General of the Medical Supplies Division of the Health Ministry, Dr. G. Wijesuriya said discussions are underway on allowing the State Pharmaceutical Corporation (SPC) to directly import essential medicines.He pointed out that it was essential to take a policy decision in this regard as a solution to mitigate such discrepancies.

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Batalanda report tabled in parliament, forwarded to AG

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Bimal Ratnayake

The Batalanda Commission report was tabled in Parliament on Friday by the Leader of the House and Transport Minister, Bimal Ratnayake.

Minister Ratnayake announced that the government has decided to forward the report to the Attorney General for legal advice. Additionally, a Presidential Committee will be appointed to provide guidance and recommendations on how to proceed with the findings of the report.

Ratnayake said that the Cabinet of Ministers, along with President Anura Kumara Dissanayake, has made a policy decision to take necessary action in response to the report. He reassured the public that steps are being taken to ensure that such a dark chapter in the country’s history is never repeated.

Minister Ratnayake said that a two-day debate on the Batalanda Commission report will be scheduled in Parliament at an appropriate time, allowing for a detailed discussion on the report’s findings and recommendations.

The report, which will be printed in all three official languages—Sinhala, Tamil, and English—will be made available to the public in the near future. Ratnayake confirmed that printed copies would be provided to members of Parliament as well as the general public for their review.

The Leader of the House further revealed that there are 28 evidence volumes associated with the commission’s work, which will be submitted to Parliament at a later date for further scrutiny.

Ratnayake said that as entire country concerned of the Batalanda Commission’s findings, the government’s commitment to addressing the issues raised and preventing future atrocities stands clear. The next steps, including legal action and policy recommendations, will be shaped by expert advice and informed parliamentary discussions, he said.

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CB Governor stresses need to assist crisis-hit construction industry

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Governor of the Central Bank Dr. Nandalal Weerasinghe on Friday (14) emphasized the importance of promoting a sustainable and cost-effective construction industry in the country, highlighting key challenges and opportunities in the sector.

Speaking at ‘Construction Expo 2025’, Dr. Weerasinghe underscored the need for Sri Lanka to align with global trends in sustainable construction, integrating cost-effective energy solutions and eco-friendly building practices.

“I must say my views here are not necessarily as Governor of the Central Bank of Sri Lanka, but as a person looking at this construction industry and how this can be developed and what the issues are. Sustainability in construction is essential, not just for new projects but also for existing buildings,” he noted.

Dr. Weerasinghe acknowledged that the construction sector has been one of the hardest-hit industries due to multiple economic pressures in recent years including the decline in public investments, high material costs and the industry being dependent on government projects.

The CBSL Governor, who acknowledged that the government faced fiscal constraints, limiting infrastructure spending and delaying payments to contractors, said that however, the outstanding arrears had now been settled.

“Government did not have space to spend money for public investment, especially construction that had a significant impact on the industry in the last couple of years, plus the government inability to pay the arrears for a long period. That was an issue we all recognize that has been one of the adverse impacts the industry had in the past”, he expressed.

“Also the cost of materials went up significantly, partly because of foreign exchange shortages. As a result, the shortage had shot up the prices of construction materials, as well as depreciation of the currency, high interest rates, finance costs, and other factors. We all recognize that it had an adverse impact on the industry. It’s one of the worst affected industries because of all these factors.”

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