News
Reserves fall to lowest since 2009, rupee strengthening to be short-lived: report

by Sanath Nanayakkare
Sri Lanka’s Foreign reserves had dropped to USD 4.1bn in March 2021, the lowest since August 2009, on the back of over US$ 4bn outstanding debt payment during April-December 2021 period, a report issued by First Capital Research yesterday said.
According to the report, rupee appreciation is likely to be short-lived considering Sri Lanka’s depleting foreign reserve position, high foreign currency debt repayment requirement and limited funding sources available in the market are expected to further increase depreciation pressure on the currency during 2Q and 3Q.
“We maintain our exchange rate target for 1H2021 at Rs. 196-202 with 2021 year-end target at Rs. 205-215 as mentioned in our ‘Investment Strategy 2021 – January 2021,” the report recalls.
“Sri Lankan rupee appreciated 5% against the US dollar over the last 2 market days reversing the continuous accelerated depreciation witnessed in January-April 2021. On 12th April, Sri Lankan rupee recorded a historical low of Rs. 201:1 US$. Ministry of Finance (MoF) reported on the same day that the government of Sri Lanka entered into a loan agreement with the China Development Bank (CDB) for US$ 500mn and MoF expected the funds to be disbursed during the same week. Following the announcement, the market registered a steep appreciation with mid-rate recording at Rs. 190.9 on April 19,” it says.
The total foreign debt repayment (capital and interest) for 2021 is US$ 6 bn, according to the report.
Meanwhile FC Research believes that the temporary appreciation in USD-LKR, may adversely impact earnings of export companies such as Hayleys, Haycarb, Dipped Products, MGT Knitting Mills, Teejay Lanka, Expolanka Holdings etc. in the short term.
“However, considering the potential future currency pressure, we expect an overall depreciation of approximately 12% for the rupee providing a significant gain for companies with foreign currency revenue”, FC research predicts.
News
Government to facilitate Bora Conference

Secretary to the President Dr Nandika Sanath Kumanayake has instructed relevant officials to provide the maximum support necessary to successfully hold the Global Bora Community’s Spiritual Assembly and Convention scheduled to take place in Sri Lanka.
The Secretary to the President issued these instructions during discussions held on Thursday (12) at the Presidential Secretariat regarding the Global Bora Conference and Convention.
The Bora Conference and Convention will be held from 27 June to 05 July, coinciding with the Bora Community’s Spiritual Assembly, centred on the Bambalapitiya Bora Mosque and the Sri Lanka Exhibition and Convention Centre, with the participation of the community’s Spiritual Leader His Holiness Dr Syedna Mufaddal Saifuddin Sahib.
Approximately fifteen thousand members of the Bora Community from India and numerous other countries are expected to arrive in Sri Lanka for this Convention and Conference. Extensive discussions were held regarding the provision of all infrastructure facilities, including airport arrangements, for them.
A group of the Bora Community’s religious leaders, along with officials including the Secretary to the Foreign Ministry, Aruni Ranaraja and Senior Additional Secretary to the President Roshan Gamage, participated in this occasion.
News
Opp. forms alliance to seize control of hung councils including CMC

The Samagi Jana Balawegaya (SJB) has reached consensus with Sri Lanka Podu Jana Peramuna (SLPP), United National Party (UNP) and the People’s Alliance (PA) to take control of Akurana, Kadugannawa, Kuliyapitiya and Udubaddawa Pradeshiya Sabhas.
Opposition parties made the announcement at a joint media briefing by SJB National Organiser Tissa Attanayake, SLPP General Secretary Sagara Kariyawasam, PA General Secretary Lasantha Alagiyawanna and UNP General Secretary Thalatha Athukorala.
Terms of 161 out of 339 local government bodies to which elections were held in May commenced on June 2. The ruling NPP and the Opposition parties have been trying to seize control of the remaining councils. Contestants failed to secure working majorities in 178 councils. Both sides have accused each other of trying to bribe elected members in a bid to take control of the councils.
Elections were not held to two local government institutions on 06 May—the Kalmunai Urban Council due to a court case and the Elpitiya Pradeshiya Sabha (PS), which was elected last year.
Responding to questions, the Opposition spokespersons said that they were confident of forming administration and many more councils.
SJB sources said that the Opposition was also working on an arrangement regarding the Colombo Municipal Council scheduled to meet on Monday (16) for the first time when the Mayor will be elected.
Leader of Tamil Progressive Alliance (TPA) Mano Ganeshan, MP, has alleged that the NPP bribed two of its members in the Haldumulla PS to vote in favour of the person nominated by the NPP as the chairman.
News
Committee probing IGP to meet daily from June 16

The committee, chaired by Supreme Court Judge P.P. Surasena, inquiring into the conduct of IGP Deshabandu Tennakoon will meet daily from 16 June.
Director Legislative Services / Director Communication (Acting) of Parliament M. Jayalath Perera said that the decision had been taken on 11 June, when four witnesses gave evidence before the Committee. The IGP is under investigation regarding acts of gross abuse of power.
The committee, chaired by Supreme Court Judge P.P. Surasena and comprising Justice W.M.N.P. Iddawala and E.W.M. Lalith Ekanayake, Chairman, National Police Commission, convened at Parliament from 9.30 a.m. to 8.00 p.m., during which evidence was thus recorded.
The committee of inquiry with the participation of Additional Solicitor General (President’s Counsel) Dileepa Peiris and Deputy Solicitor
General Rajitha Perera, representing the Attorney General’s Department, and R.S. Weerawickrama Attorney-at-Law, appearing on behalf of the Inspector General of Police, cross-examined the witnesses.
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