A task force of ministerial secretaries will be appointed to carry out the tasks speedily, following a cabinet paper submitted by President Ranil Wickremesinghe said.

The Bingiriya zone already has 157 acres and another 282 acres is being developed by the Board of Investment, he said.

Steps would also be taken to acquire 666 acres.

There was no information whose lands would be acquired. (Colombo/May23/2024)

“We have conducted a strategic review which has reinforced the role of our core business,” Chairman Peter McBride said in a statement.

“This is working alongside farmers to collect a sustainable supply of milk and efficiently manufacture products valued by customers, to deliver strong returns to farmer shareholders and unit holders.”

The firm will continue to provide milk components to other food manufacturers and also the food service industry.

We believe we can grow further value for the Co-op by focusing on being a B2B dairy nutrition provider, working closely with customers through our high-performing Ingredients and Foodservice channels,” Chief Executive Miles Hurrell said.

Fonterra will appoint advisors and expects to exit retail businesses in the next 12 to 18 months.

Unsolicited interest has already been expressed in some of the retail assets.

In Sri Lanka Fonterra has a number of brands including Anchor and Rathni milk as well as youghurt and ready to drink dairy products.

Ownership of the businesses are not required for the co-operative’s core function of serving the farmers.

“We believe in prioritizing our Ingredient and Foodservice channels and releasing the capital in our Consumer and associated business would generate more value,” Fonterra said in a presentation to shareholders.

“A divestment could allow a new owner with the right expertise and resources to unlock the full potential of these businesses.

“We would expect to continue supplying milk to these brands through Ingredients and supply agreements.

“We have also received unsolicited interest in parts of these businesses.” (Colombo/May16/2024)

Global Conversions, in an automobile re-engineering firm specializing in converting left-hand drive US brands like GMC, Ford, Lincoln, Dodge, Chevrolet, Cadillac and US made Toyota and Nissan vehicles to right hand drive.

The firm says it is the first time a Hummer EV SUV, was converted to right hand drive.

Suresh Edirisinghe, Founder and Chairman of Global Conversions said it was the first time Hummer EV SUV was convereted to right hand drive.

“This accomplishment showcases our dedication to pushing boundaries and delivering exceptional solutions to our customers,” he said in a statement.

Global Conversions said the converted vehicle was tested and its functionality validated, “ensuring the highest safety and performance standards.”

Shifting operations from Sri Lanka to Ras Al-Khaimah in the UAE was a strategic move to expand their business internationally and establish a central meeting point for their customers worldwide the firm said. (Colombo/Mar18/2024)

“Macubator was conceptualized to create awareness and reach new potential entrepreneurs and new idea generators with a platform that strengthens the start-up ecosystem in Sri Lanka and the Indian sub-continent,” Andre Fernando, Managing Director of MAC said in a statement.

“This initiative facilitates collaboration between MAC and the start-up ecosystem to support individuals who are brimming with promising new ideas but face limited financial resources to commercialize their ideas.”

The accelerator is backed by the Guardian Angels Fund, a venture capital fund of MAC Holdings (Pvt) Ltd.

It is supported by a diverse panel of industry experts from the Sri Lanka Association for Software Services Companies (SLASSCOM); Sri Lanka Technological Campus (SLTC) Research and Innovation; University of Colombo Faculty of Arts Alumni Association of Tourism Economics and Hospitality Management, and NSBM Green University

MAC has also established ties with the University of Moratuwa Department of Transport Management and Logistics Engineering for collaboration.

Applications are available at www.guardianangelsfund.com.

The winners will receive financial support and exposure for their start-ups.

“There is a lot of untapped talent in Sri Lanka and the Indian sub-continent which needs financial backing. We hope Macubator will broaden the horizons amongst the younger generation for value generation,” Gayan Maddumarachchi Group Director/Regional Director – Freight and Logistics of MAC Holdings, said. (Colombo/Dec15/2023)

After a currency crisis, Sri Lanka’s government is in a drive to boost its trade balance by increasing exports.

“Our export basket hasn’t changed recently, partly because our small and medium entrepreneurs don’t have sufficient research and development facilities (like the multinationals) to innovate their products for the export market,” Additional Secretary of the Ministry of Industries, Chaminda Pathiraja said.

“At the same time, state universities and research institutes produce a large amount of research findings yearly, which end up sitting in those institutions; they don’t reach the industry,” Pathiraja said at a press briefing to announce a program on commercialization of new products and research, to be held tomorrow at the Waters Edge.

The networking forum will bring innovators and manufacturers together to focus on the commercialization of research for the value added tea, coir, spice, dairy products, gem and jewellery and packaging products industries.

“We want to encourage collaboration, through programs like our University Business League etc, so that the research output can be commercialized, and what is produced by our factories can increase in quantity and quality. We must focus on the export market.”

The objective of this program, he said, was to reduce the gap in acquiring innovators’ ideas and skills by the investors, and ultimately boost the manufacturing sector’s efficiency in alignment with the export market.
(Colombo/Dec11/2023)

“Since the old fines of old laws do not match the recent substantial rises in prices of goods and services, only small fines are made in relation to current prices,” Minister Gunawardana told reporters.

“The cabinet of ministers has approved the proposal to make the relevant legislative changes.”

Sri Lanka’s inflation hit 70 percent in 2022 after the rupee collapsed from 180 to 330 to the US dollar, after trillions of rupees were printed to suppress interest rates.

The Cabinet of ministers have granted approval to a proposed bill submitted by Justice Minister Wijdesdasa Rajapakshe to amend the legal fines as defined in the penal code, according to “the current financial value”, a cabinet decision dated 06.12.23 said.

The bill will be published in the government gazette and tabled in parliament.(Colombo/December/07)

The Water Board’s revenue increased to 33.6 billion rupees up to August 2023 from 18.2 billion rupees last year after water and sewerage tariffs were increased.

The NSWB had reported gross profits of 15.2 billion rupees up from 7.2 billion last year, while its operating profit was 5.5 billion, up from an operating loss of 1.8 billion rupees.

Water production had fallen 2 percent, sales by 3 percent.

Further, Non-Revenue Water (NRW) increased to 25.32 percent as at the end of August 2023, up from 24.87 percent as at the end of August 2022.

Colombo Dockyard reported losses of 94 rupees per share for the quarter, and 137 rupees loss for the nine months on total loses of 9.8 billion rupees in interim accounts filed with the Colombo Stock Exchange.

In the September quarter revenues fell 13.3 percent to 6.89 billion rupees, cost of sales went up 30 percent to 9.7 billion rupees and there was a gross loss of 2.88 billion rupees.

The firm took a write down of 1.8 billion rupees on expected future losses.

Dockyard told shareholders it had moved to high end vessels targeting European customers and won an order for six 5,000 dead weight tonne hybrid bulk carriers for Misje Eco Bulk AS – Norway and a cable laying ship for FT Marine SAS of France.

To penetrate the market, it had quoted prices with low margins.

“This was considered a sensible decision at the time as part of its long-term development strategy and well within its financial capabilities,” Dockyard told shareholders in interim accounts.

It was first hit by the Covid pandemic. In the currency crisis that the firm was hit by fuel shortages, migration of skilled workers and the difficulty in importing material with global price rises also contributing.

“This led to delays in the deliveries of vessels which forced the Company to pay Liquidated Damages as well as to cancel two number of shipbuilding contracts with the payment of compensations,” the firm said.

After the sovereign default, foreign customers did not accept back guarantees from Sri Lankan banks.

“This forced CDPLC to obtain bank guarantees from international banks after keeping 100 percent deposits with these banks as they were not willing to accept any exposure to Sri Lanka at the time,” the firm said.

“CDPLC at the same time was forced to build these vessels out of borrowed funds.

“At the peak of this crisis CDPLC had to deposit over Euro 45 million in international banks earning almost 0% interest, while was forced to borrow in Sri Lanka for rates as high as 29 percent for LKR borrowings and 12 percent for USD borrowings per annum.”

In the nine months to September the Dockyard said it was hit by 2.6 billion rupees of net interest cost and 1,4 billion exchange loss.

Dockyard said it was able to deliver 4 (3 to Norway and 1 to France) of these vessels “to the full satisfaction of its European customers.”

“With the improving country situation and proactive actions taken by the management, the shipbuilding division is expected to be able to better manage its challenges and deliver their vessels on time and on cost in future,” Dockyard said.

“Further, the ship repair business is expected to provide a steady cash inflow, and the management hopes to grow this line of business in the immediate future.

“On the shipbuilding side, the Company continues to build hybrid bulk carrier vessels while aiming for new European business at higher price points, leveraging the reputation built up in these markets.”

Meanwhile Dockyard had revalued its freehold land by 8.7 billion rupees, allowing the firm to end the year with net assets of 6.9 billion rupees. (Colombo/Nov23/2023)

Heineken was a “distant second to Lion Beer but Distilleries has the industry know-how, market access and financial strength to push into the market.

“We believe a large capacity expansion at Heineken Lanka would be required to compete effectively with Lion,” Fitch said.

“We estimate the expansion will require significant capital outlay and at least two-to-three years to complete.”

Its annual free cash flow, excluding dividends, was around 10 to 12 billion rupees.

The full statement is reproduced below:

Distilleries’ Acquisition of Heineken Lanka May Challenge Lion Brewery Share

Sun 19 Nov, 2023 – 11:59 PM ET

Fitch Ratings-Colombo-19 November 2023: Lion Brewery (Ceylon) PLC (AAA(lka)/Stable), the leader in Sri Lanka’s beer market, could face more competition in the medium term following Distilleries Company of Sri Lanka PLC’s (DIST; AAA(lka)/Stable) decision to acquire beer producer Heineken Lanka Limited, Fitch Ratings says. Heineken is a distant second in Sri Lanka’s beer market for now, but we believe DIST has the industry know-how, market access and financial strength to elevate Heineken’s operations to a level that could weigh on Lion’s market share.

We believe a large capacity expansion at Heineken Lanka would be required to compete effectively with Lion. We estimate the expansion will require significant capital outlay and at least two-to-three years to complete. We believe DIST has the financial strength to fund the expansion, with its annual free cash flow, excluding dividends, averaging LKR10 billion-12 billion. DIST, as the largest spirits manufacturer in the country, already has extensive market access covering all forms of retail channels, providing easy market penetration compared with a new entrant.

However, we expect DIST to face near-term challenges in terms of brand building given the complete ban on media advertising on alcoholic beverages by the government. Lion already has a very strong brand presence in the market compared with Heineken due to the greater mass-market appeal of its products, with cheaper pricing and customisation to local preferences.

Lion’s ability to withstand competitive pressure is also supported by its strong rating headroom. Lion continued to maintain a net cash position as of 31 September 2023, compared with a negative rating sensitivity of EBITDA net leverage of above 5.0x. We believe this provides Lion the flexibility to be more aggressive with its pricing strategy to defend its market share in an increasingly competitive environment.

We expect the acquisition to be positive for DIST as it will help the company to strengthen its market position with a presence in both hard and soft liquor markets. The acquisition will also allow DIST to take advantage of the lower excise duties applicable to beer on an alcohol-equivalent basis. There has been a shift to beer from hard liquor in recent months due to the significant increase in excise duties. DIST could also benefit from the revival in Sri Lanka’s tourism industry, as beer is more popular among tourists than locally made hard liquor.

DIST has not disclosed the value of the transaction, but we do not believe it will have a material drag on the company or parent Melstacorp PLC’s (AAA(lka)/Stable) balance-sheet strength. We rate DIST at the consolidated profile of Melstacorp based on our Parent and Subsidiary Linkage Rating Criteria.

Melstacorp’s last-12-month EBITDAR to net leverage stood at 0.7x at end-September 2023, compared with a negative rating sensitivity of above 5.5x, indicating strong rating headroom. Furthermore, our rating-case assumptions include annual spending of LKR5.0 billion on potential M&A.

“We write inform you of the commencement of our tin can manufacturing project,” the company said in a stock exchange filing.

“Tess Agro Plc launched ‘Agro Tin Tech’ on the 13th of November 2023, the tin can manufacture plant at their factory premises in New Nuge Road, Kelaniya. The Company has the capacity to produce 80,000 cans per day.

“The initial investment of this project amounted to Rs 79.2 million for the machinery and equipment. This will cater to the growing needs of the local as well as export market.”

“The “Tin can”, one of the most ideal, popular and suitable packaging form for many products like fish, soft drinks, soups, spices, cosmetics, pharmaceuticals, and other products has undeniably resulted in its popularity.

“The high demand for this product locally and internationally provides a foundation for great prospects of this project’s success.”

Related story
Sri Lanka’s Tess Agro eyes funds from Swiss firm to make tin cans

The diversified TESS group of companies is engaged in engineering, export of marine products, deep sea fishing, supply of healthcare equipment and services, and export of agricultural produce from Sri Lanka.

The group is the largest exporter of marine products from Sri Lanka to the European Markets and is among the 10 largest perishable exporters from Sri Lanka to world market and enjoy s BOI status and enjoys a 15 year tax holiday, according to the Export Development Board. (Colombo/Nov16/2023)

The firms owed 6.7 billion rupees including fines, he said.

“Five liquor manufacturing companies who failed to pay taxes have been informed in writing by the Commissioner General of the Excise Department that their liquor licences have been suspended,” Siyambalapitiya told parliament replying opposition leader Sajith Premadasa Tuesday

The five companies are: Royal Ceylon Distilleries; W M Mendis and Co Limited, Finnland Distilleries Corporation (Pvt) Limited (formally known as Randiya Distilleries (Pvt) Limited), Synergy Distilleries (Pvt) Ltd, and Randenigala Distilleries Lanka (Pvt) Ltd.

Related story
Sri Lanka’s Perpetual linked W M Mendis to re-start alcohol production: report

Siyambalapitiya said this was the first time that the government withheld the licence of liquor manufacturers.

The total taxes due the government from these companies was 2,715 million rupees, the minister said, adding that delays in payment incurred a 3 percent fee monthly, which amounted to 4,005 million.

“In total these companies have to pay the government 6,721 million rupees.”

Some alcohol firms were defrauding the state by selling arrack with fake revenue stickers, legislators have charged.

Minister Siyambalapitiya has also revealed that bottles with fake stickers were found.

Related stories

Sri Lanka legislator queries lack of criminal penalties on alcohol tax scam firm

Sri Lanka to probe alcohol tax fraud by with fake revenue stickers: Minister

“There were appeals from the companies and practical issues in recovering the entire amount in one payment. If we close down these companies, we can’t recover the tax revenue due to the government.

“So we are working on setting up payment plans with them which they have entered into agreements with the Excise Department,” Siyambalapitiya said.

The government has also given the companies a grace period till December 29 this year to settle arrears.

“If they still are unable to pay by the agreed due date, legal action will be taken against them, and their licences will be cancelled. (Colombo/Nov7/2023)

A statement issued by the trade body said, that while it recognised the government’s commitment to revenue enhancement, the broader economic ramifications of such a decision needed to be evaluated.

“The current economic landscape, characterized by escalating income taxes, elevated electricity tariffs, and rise in fuel prices, suggests that an additional VAT increment will further strain consumers purchasing power,” the statement said.

The Chamber recommended that the government explore alternative fiscal strategies including refining budgetary practices and reducing undue borrowing.

The full text is as follows:

Ceylon Chamber advocates for a balanced fiscal approach over proposed VAT rate hike

The Ceylon Chamber of Commerce raises concerns regarding the proposed increase of the Value Added Tax (VAT) to 18%.

While recognising the government’s commitment to revenue enhancement in alignment with International Monetary Fund obligations, it’s imperative to evaluate the broader economic ramifications of such a decision.

The current economic landscape, characterized by escalating income taxes, elevated electricity tariffs, and rise in fuel prices, suggests that an additional VAT increment will further strain consumers purchasing power.

As consumer spending plays a pivotal role in our GDP growth, there’s a significant risk that this tax increase could lead to a further decline in consumption.

Household consumption expenditure growth has been contracting since the end of 2021.

At a time when Sri Lanka’s focus should be on reviving economic growth through reform measures, such hikes may inadvertently lead to further economic contraction, potentially offsetting the intended revenue gains.

With this context, the Chamber strongly recommends that the government explore alternative fiscal strategies, such as expenditure rationalization.

By refining budgetary practices and reducing undue borrowing, a more balanced and sustainable fiscal path can be charted.

Furthermore, the pressing need to modernize our revenue collection mechanisms is evident.

Challenges, such as the Inland Revenue Department (IRD) issuing tax default notices spanning several decades, highlight the inefficiencies of our current system.

The Revenue Administration Management Information System (RAMIS) demands further enhancement for maximum efficacy.

A thorough digital transformation, leveraging systems like RAMIS, is crucial for streamlining processes and optimizing revenue collection.

The Ceylon Chamber of Commerce remains committed to constructive dialogue with the government on these crucial matters, aiming to achieve a fiscal approach that ensures robust and sustainable economic growth for the entire nation.

The forum’s focus was on the need to prioritise Sri Lanka’s labour law reforms to develop competitive industries and services.

‘If we are to develop quickly, we need to generate USD 15 billion per annum. To do this, we need to attract FDIs,” advisor to the ministry of labour and foreign employment Shan Yahampath said.

A priority of ongoing labour reforms was to attract investments through high-skill job creation and spur entrepreneurship and innovation Yahampath said.

“Adopting efficient labor laws are pivotal to this, as we need to focus on job creation and understand the role SMEs play.”

The minister of labour and foreign employment has prepared a concept paper for the formulation of a new Employment Act, in consultation with trade unions, employers and relevant parties.

Sri Lanka’s Cabinet this week said it had advised the Legal Draftsman to prepare a bill based on the concept paper, and the recommendations from a tripartite committee representing employers, employees and the government, functioning under the prime minister’s office.

The Ministry has given a seven-week window of consultation where any individual, association or union could make representation of issues in the current law that needed addressing.

“Sri Lanka cannot be a competitive business hub without adhering to current international labour practices,” CEO of the Shippers Academy Rohan Masukorala said at the forum.

The 8-hour work week initiated in 1926 is not conducive to the modern world, Masukorala added.

Labor reforms should formalize administrative relaxations on the flexibility over a five-day week, which will encourage more people, especially women, to enter the workforce, Secretary General of JAAF Yohan Lawrence said at the same event.

“Improving flexibility in terms of work hours is advantageous not only for employees but also employers,” Lawrence pointed out.

Lawrence added that under the current law, termination and the cost of restructuring were detrimental to companies.

“If a manufacturing plant is located in a region that doesn’t make the economies of scale worthwhile, the cost-effective ability to relocate and restructure is essential. The law should allow this.”

President of AmCham Shirendra Lawrence pointed out the potential of encouraging the 51% female population to enter the labour force via more flexible labour laws, as an impetus to attract and retain investors.

“The textile, security, catering and other sectors are governed by a separate set of laws. Unifying this will certainly be more attractive to investors,” he said.

The free trade zones collective also expressed concerns about existing labour laws, claiming that the current legal framework does not prepare workers to enter or stay competitive in the changing world of work.

“The number of jobs that will be created in ten years’ time is unknown to us. Sri Lanka must prepare its workforce for that future while keeping investments in mind,” Chairman of the Free Trade Zone Manufacturers Association Dhammika Fernando said.

“The Board of Investment was given an FDI target of USD 1.5 billion to be met for this year. However, it’s October and the country is struggling to bring in USD 750 million.

“Regional peers like Bangladesh have already gained the infusion of USD 2 billion and even countries like Myanmar has attracted USD one billion,” Fernando said. (Colombo/Nov3/2023)

Wickremesinghe said this when he met leading private sector figures at a 2024 pre-budget discussion held at the Presidential Secretariat yesterday (1), according to a statement released by his media office.

“Leaders of private sector institutions presented proposals to the President, focusing on increasing government revenue and efficiency, as well as measures to support various industries, including attracting investors, the tourism industry and the garment industry,” the statement said.

“They urged the President to prioritize measures aimed at overcoming the current economic crisis and addressing the challenges faced by business people in various sectors in this year’s budget.”

President Wickremesinghe expressed his “commitment to giving careful consideration to the ideas and suggestions put forward by the leaders of private sector institutions.”

Wickremesinghe intends to conduct separate discussions on each of these areas in the future, the statement continued. (Colombo/Nov 2/2023)

“In the upcoming budget, we aim to introduce measures that provide bank loan concessions to support small and medium-scale industries,” Ranil Wickremesinghe said in his address at the National Industry Excellence Awards 2023, which took place yesterday (1) at the Nelum Pokuna Theater in Colombo.

Wickremesinghe added that a substantial portion of the budget will also be allocated to debt repayment and interest.

“Failure to meet these obligations could push us back into the old, precarious situation. Therefore, safeguarding our currency and fulfilling our loan obligations is of paramount importance,” Wickremesinghe was quoted as saying by his media office.

“In the past, when there was a budget shortfall, the solution was to instruct the central bank to print more money. This approach is no longer legally permissible and obtaining loans from banks has also become a challenge.

“To ensure our financial stability in the coming year, we must significantly boost our income. We have set specific revenue targets that we must work diligently to achieve.”

Wickremesinghe said it was necessary to gain the trust of private and multilateral creditors and “reassure them of our commitment to loan repayment. This commitment must be ingrained in our actions.”

“We had to make the difficult decision to raise the VAT to 18 percent yesterday (31). Such decisions are never easy for any government. However, failing to take these measures would cast a shadow on everyone’s future.”

“Through this decision, we can generate much-needed revenue to support small and medium-scale industries by repaying loans to banks. Without this step, these industries would face collapse, which puts industrialists in a challenging position.”

Wickremesinghe recalled the challenges faced last year. “At that time, there were numerous uncertainties about the sustainability of our industries. The absence of electricity and the difficulty in obtaining bank loans had led to the closure of thousands of businesses.”

“It’s remarkable to see a substantial number of individuals reinvigorating their industries and achieving success. Small and medium-scale industries have made a comeback in a relatively short period.

“Some issues remain unresolved, particularly concerning bank loans and market access. Our foremost priority is to address these concerns.”

At the start of 2023, the country’s economic growth rate was a negative 0.7%. “Today, it has improved to 0.5%, with further progress expected next year. This leaves us with a fundamental choice of whether to advance or regress.” (Colombo/Nov 2/2023)

“What the less affluent people drank was ‘extra special (athi vishesha),” Dasanayake told parliament.

“The cost of production is 1,200 rupees but it is sold at 3,200 rupees. The economic experts (arthiker osthar) are advocating high taxes but what they do not know is there is moonshine (kasippu) in this country.”

Before the Covid-19 crisis, a bottle of arrack made with cane sugar ethanol (coconut toddy arrack is more expensive), was 1,900 rupees, leading to taxes close to 2,000 rupees, he said.

“In some bars sales are down 25 to 75 percent,” Minister Dasanayake said. “If the government wants more revenue it will have to reduce the 2,000 rupee gain and boost legal consumption.”

Sri Lanka’s legal alcohol producers are not buying ethanol produced at state-run Sevenagala and Pelwatte sugar firms and the material is piling up.

“There are about 10 lacks (million) barrels of ethanol piled up. Alcohol firms with licenses are not buying. They are burying ethanol in the ground.”

“Before 2019 imports were banned, ethanol was being imported to the country. But now there are no buyers.”

Sri Lanka banned imports to give more profits to politically connected and state-run ethanol producers at the expense of tax losses to the state, critics say.

However Dasanayake told parliament Pelwatte and Sevenagala sugar firms were willing to give ethanol at a lower price now.

Central Bank Cycles

In Sri Lanka alcohol and chicken consumption usually falls after the central bank cuts rates with liquidity injections to boost growth and triggers a currency and economic crisis and then imposes an economic slowdown to stop a balance of payments crisis.

Like alcohol firms, Sri Lanka’s poultry firms also get hit after a currency crisis.

In the latest currency crisis where a surrender rule led to the failure of a float, the rupee collapsed steeply from 200 to 360 to the US dollar driving up inflation to 70 percent, sharply reducing the disposable income of the population and tipping many people below the poverty line.

Industry officials say sales are down to around 40 percent from pre-crisis levels in many alcohol factories.

In addition to inflation reducing disposable income, there were other fallouts of currency crises driven by rate cuts in the stabilization period. The construction sector also slows after a currency crisis.

The small 185 ml bottle (Karley bothalaya) which was easiest on the purse used to sell in urban areas heavily due to the construction sector.

“When the construction sector slows, the people go back to their villages,” an industry official said.

“We do not know what they drink there, but legal arrack sales fall.”

Personal Income Taxes

The income tax hikes have further reduced the sale of large full bottles (750 ml).

“Even the higher income people can no longer afford to drink at the increase in income taxes. They have to pay children school fees, and meet housing and lease payments,” the person said.

“Instead they are looking for jobs outside the country.”

“Not just young people but people in their 50s are now looking to at least go abroad and work the few years they have left and save something. There is no savings.”

Minister Dassanayake said in his electorate in the Badulla District there was a steep increase in kasippu consumption among the people resident in plantations. (Colombo/Oct23/2023)

All soft alcohol permits issued so far are suspended.

No new permits will be issued.

An Excise Notification that allowed soft alcohol licenses to be issued, is also suspended.

The suspension will stay until the hearing concludes in Sri Lanka’s Court of Appeal.

Courts will next hear the case on November 13, 2023 (Colombo/Oct1/2023)

“The system will address the weaknesses of the current system and provide much-needed support to workers and their families,” Manusha Nanayakkara, Minister of Labour and Foreign Employment said on X (formerly known as Twitter).
He did not specify the details.

Nanayakkara also spoke of the need for robust social security when he met with exporters last week to discuss labor law reforms, boosting female workforce participation and attracting FDI.

Sri Lanka plans to reform labour laws for an export-oriented economy.

The pandemic and the economic crisis highlighted the need to improve the coverage of social security.

Studies have shown that Sri Lanka’s women are kept out of formal employment by childcare, elderly care and housework, as day care and elderly homes are either too expensive or too few.

The government imposed a Social Security Contribution Levy to increase its revenue last year. (Colombo/Sep27/2023)

Related stories
Unpaid care work keeps Sri Lanka’s women out of workplace: Researchers

Sri Lanka’s pandemic-hit unemployment show need for social security: IPS