“Port City has signed agreements with China Duty Free,” Minister Amunugama told reporters in Colombo.

“Construction is taking place.”

A cabinet paper relating to its operations has been submitted.

If the approval is received before June 14, operations will begin on that date, Minister Amunugama said.

Several businesses have already started through the Colombo Port City, pending the construction of its buildings under its regulations.

Approved businesses are expected to use only foreign currencies in the area.

Inside the Port City, Sri Lanka’s bank cannot destroy the future value of money (rupees), create forex shortages or social unrest by printing money to cut rates through aggressive open market operations or unrestrained standing facilities.

Colombo Port City is a multiple currency area free of inflationist ‘macro-economic’ policy from a money monopoly and its monetary stability will be externally anchored though currency competition.

Products form multiple central banks including the Fed (US dollar), European Central Bank (Euro) and Peoples Bank of China (Yuan) are expected to compete to gain acceptance from its businesses and workers without a coercive legal tender monopoly that compels an inflating currency to be used.

Typically in dollarized areas (like Panama) banks will have arrangements with their holding companies or other US banks for temporary liquidity facilities, leading to strong market regulation as they would not lend to banks which are not well -managed, unlike unrestrained standing facilities.

In some countries with chronic currency deprecation, balance of payments deficits, outmigration by people who see no future for their children in their own country, there is no penalty rate for standing facilities, no counterparty limits and intra-day liquidity has zero interest rates. (Colombo/May12/2024)

At the moment Laugfs Eco Sri Limited and CleanCo Lanka Limited offer vehicle emission testing in Sri Lanka.

“Considering the number of vehicles in Sri Lanka, complaints we have received from the public, and that the desired emissions reduction has not happened, we have proposed to call for bids, or expressions of interest from other vendors,” Fernando said in Parliament on Thursday.

State organizations like the Sri Lanka Transport Board can also do emission testing, the Minister said. (Colombo/May9/2024)

“With EQT’s support and expertise, we are well-positioned to accelerate our innovation agenda, expand our global footprint, and continue empowering enterprises to thrive in the digital economy,” Sanjiva Weerawarana, Chief Executive and Founder of WSO2 said in a statement.

WSO2 says its cloud based and open source software is used by several hundred of the world’s largest companies as well as universities and government, collectively executing 60 trillion transactions each year.

“We believe that WSO2 is well-positioned to capitalize on long-term trends such as digital transformation and rising generative AI adoption and are confident of drawing on EQT’s proven software value creation playbook to further accelerate WSO2’s strong growth,” Hari Gopalakrishnan, Partner in the EQT Private Capital Asia advisory team said.

Founded three decades ago by the Sweden’s Wallenberg family, EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas.

EQT’s portfolio o includes firms such as IFS, SUSE and thinkproject. (Colombo/May04/2024)

The island nation has received a record number of foreign parcels this year including gifts for the festive reasons from Sri Lankan expatriates to their relatives.

“So it is the responsibility of the Department of Posts to deliver these parcels on time,” Minister Shantha Bandara told reporters at a media briefing in Colombo on Tuesday.

“We were facing an issue with long holidays during the upcoming festive seasons. All the postal employees have decided to report to work on April 12 despite a holiday to prevent a backlog and reputational damage of their service.”

“If not for their service, the people will receive their parcels only around 16^th or 17^th.”

The State Minister did not elaborate on the overtime payment for the work postal workers will receive in return of their service on a public holiday. Sri Lanka has declared holiday on April 12 as the island nation celebrates the traditional new year.

Strong postal trade unions comprising over 27,000 employees cripple the postal services by protesting for wage hikes, sale of state properties, and privatization.

The last strike in March 2024 was in response to the non-repair of two elevators that have been out of service in the eight-story building at the Central Mail Exchange in Colombo. (Colombo/April 09/2024)

“Some conductors take a portion of the money home,” Gunawardana told reporters Wednesday.

“The take home amount is 10 million rupees daily, or 100 lakhs, which together becomes 3 billion a year.

“So therefore, I have struggled to implement e-ticketing from the moment I took this responsibility.”

However, Minister Gunawardana said that there has been opposition from transportation workers with some of them setting up committees and taking the matter to court as citizens.

Many workers are honest, but there are some who are not, in the same way most passengers buy tickets but some travel without, he said.

“If they make an e-reservation, some guards don’t like it,” Gunawardana said. “They take a 5,000-rupee ticket and sell it to the tourists for 30,000 rupees. They don’t let us do it online.”

“About 35 bus conductors are interdicted each day for siphoning off passenger revenues,” he said.

It was happening especially on long distance buses.

“The private bus owners have solved this problem in this way,” he said. “They give the bus to the driver and conductor and tell them to run it as they wish.

“They say at the end of the day give us this amount of money.” (Colombo/Apr03/2024)

“The daily administration and management will be transferred to Sahasya Investment Limited from April 1 through an agreement,” Cabinet spokesman Minister Bandula Gunawardena said.

“Then after a legal and financial feasibility study is conducted jointly by the RDA and Sahasya Investment Limited, all properties will be transferred within six months.”

The transfer of expressway is part of the restructuring of Road Development Authority, Minister Gunawardana said. “No staff will lose their jobs or perks.”

Sahasya Investment Limited is a company owned by the government established in 2020. (Colombo/Mar26/2024)

The message was conveyed during a meeting between Indian High Commission Santosh Jha and Ports and Aviation Minister Nimal Siripala de Silva, the statement said.

“As part of the project, a new breakwater will be constructed, and the port will be dredged up to a depth of 30 metres to accommodate deep-draft vessels,” the statement said. 

The port suburb’s ferry terminal connects Kankesanthurai with Karaikal Port in Puducherry southeast of Tamil Nadu.

The Commissioner said that the Indian Government has designated Sri Lanka as the top travel destination for Indian tourists, and commended the commencement of flights between Chennai and Jaffna, the statement said.

The Ports Minister said that the construction of a new terminal costing 600 million rupees at the KKS port, meant to cater to the convenience of Indian tourists, is currently underway, it said. “He highlighted that over the past nine months, a significant number of Indian tourists have visited the island,” the statement said.

Plans to initiate a ferry service route from KKS to Nagapattinam were recently stalled, as the costs to make the journey between the two points was not financially viable, resulting in high ticket prices, the Indian High Commissioner had said.

Though slated to begin in February, the regular services to carry passengers from KKS to Nagapattinam are yet to commence.(Colombo/Mar19/2024)

“Commuters are informed about the train schedules by means of 2 main screens and 7 screens set up inside the station, which are visible to the persons outside the station, and to the commuters inside the station, near the main entrance,” a statement by the Government Information Department said.

The screens were sponsored by Media Hut Advertising.

The Colombo Fort Railway Station is the main hub of Sri Lanka Railways, where thousands of commuters gather at weekday rush hours. (Colombo/Mar9/2024)

“At a time when there is an opinion that it should be privatised, we have promised to make Langama [SLTB] profit by 2025. Accordingly, by the end of 2023, Langama recorded a profit of 1098 million rupees,” Gunawardena said at an event to appoint new drivers and conductors.

The Ceylon Transport Board provides a “silent service” that no one can see, as it even operates on very difficult roads without the sole objective of profit, Gunawardena was quoted in a statement by the Department of Government Information.

The State transport service has faced criticism for delays in its implementation of digitalisation, and for its loss-making practices that make it unable to improve service.

According to the minister in January, bus drivers or conductors do not return the day’s total earnings to their respective depots, resulting in a loss of around 100,000 rupees a day per depot. “That’s about 10 million rupees in total losses a day,” said Gunawardena.

The minister estimated that annual losses incurred due to drivers not depositing their daily earnings amounted to around 3,650 million rupees. The government formally announced a digitalisation initiative for the SLTB in November 2023, to be implemented in 2024.

Read more: https://economynext.com/e-ticketing-system-will-minimise-sltb-losses-sri-lanka-minister-141973/

Gunawardena told parliament in January that the SLTB was to unroll a card or QR code enabled payment system for State-run buses to mitigate around 10 million rupees in losses made a day.

“In about two months, we will be able to introduce a card or QR system,” he said at the time. Gunawardena said work to digitize the issuance of bus and train tickets is currently underway.

Digitalisation of Sri Lanka’s State-sector has been high on the agenda since the island nation went into its 17th programme with the International Monetary Fund (IMF). (Colombo/Mar7/2024)

“The e-motoring project has been in operation for awhile now. We are waiting on the Attorney General’s advice to complete the final phase,” Gunawardena told journalists at a briefing to announce the department’s progress.

“From March 4, everyone seeking the services of this institute will be able to book an appointment through either the automated telephone service or website. We believe this will deliver an efficient, productive, low-cost service to everyone.”

Gunawardena said that a recent incident of a trainee driver ploughing into a crowd waiting to obtain DMT services earlier this week was a case in point. “About 4,000 people in and around Colombo visit Werahera or Narahenpita [DMT locations] on an average day. This can be reduced.

“In the recent past, the DMT has been issuing a piece of paper instead of a license. People had to wait 8-12 months for a license. With the internal reforms in place we will clear the backlog within 3 months. Applications received from this point on will be processed within a month.

“The solution to all the accusations hurled at this institute is the full digitalization of the DMT’s services.”

Gunawardena said that the DMT had registered a revenue of 12.2 billion in 2023 despite a vehicle import ban in place due to a foreign exchange shortage. “In an average year, it registers about 6-7 billion. Even in 2018 when the highest number of vehicles were registered, it didn’t make this much,” Gunawardena said. (Colombo/Feb29/2024)

“Cabinet approved the implementation of a pilot project in the Gampaha District to provide light vehicle driving licenses for hearing impaired persons,” Cabinet spokesman Minister Bandula Gunawardena said on Tuesday.

“Thereafter, necessary steps will be taken based on the results of the pilot project and the recommendations of the committee headed by the Ministry of Transport and Highways Secretary regarding the implementation of this project island-wide.”

The issuance of driver’s licenses to hearing impaired persons will be done on a bi-annual renewal basis.
(Colombo/Feb6/2024)

The CAA fixed prices as a knee jerk reaction to price fluctuations under the direction of ministers in successive governments, but the moves only resulted in black market and exorbitant profits for sellers, economists and analysts have said.

Minister Fernando admitted that the objectives of the CAA, which comes under the purview of his ministry, has not been met.

“There are a lot of female graduates appointed to CAA and they are unable to do the raids to control the market manipulation,” including hoarding, selling at higher prices, and healthy competition, Fernando told EconomyNext.

“So, we are in the process of restructuring the CAA. We cannot go ahead with the current staff. We cannot run a police force with 65 percent women. Likewise, we can’t do the raids with the existing staff that includes 65 percent of the women officers.”

The CAA has been under criticism over its decisions that led to price spikes in eggs, sugar, wheat flour, and cooking gas among many others. The price controls led to no supply of goods before, forcing consumers to buy them at any costs.

Though CAA has been raiding sellers who sell at higher prices and lower quality goods. The interventions have been ineffective as the same malpractices continue with less resistance, analysts say.

They say CAA’s interventions have been disruptive and worse for consumers.

Last year, soon after the CAA slammed price controls on eggs, farmers slaughtered layer chicken for meat as egg prices were not high enough to cover feed.

With a collapse in demand for day-old layer chicks, hatcheries then slaughtered parent stock, leading to a shortfall of eggs in the market for a long period. Separately the CAA also banned the use of rice for chicken feed.

Recently, Cabinet Spokesman Minister Gunawardana has said the CAA made gas companies sell at below the cost when they were importing at high prices and leading the gas companies to suffer bankruptcy.

In times of crisis when supplies fall, prices can go higher than costs, if there is demand, expanding margins and incentivizing producers, like farmers to grow more chicken, eventually driving prices down.

Chicken meat prices which went up to around 1600 to 1700 rupees a kilo came down as the CAA did not disrupt price signals and farmers expanded production. (Colombo/Jan 31/2024)

The move could also help the island nation to earn foreign exchange for the service which it now provides for in local currency, two government official said.

Tourists who wish to drive within Sri Lanka should obtain a driving license by visiting the DMT at Werahera, a Colombo suburb amid heavy bureaucratic red tapes, tourist operators have said.

The Minister said around 3,500 foreigners annually visit Werahera to obtain their licenses.

“This is not a good situation. From April this year, we have taken steps to facilitate the issuance of driving licenses for foreigners at the airport itself when they arrive,” Alagiyawanna told reporters in Colombo at a media briefing on Wednesday (17).

Foreigners at the moment pay 30,000 Sri Lankan rupees to obtain a driving license in one-day service and 25,000 rupees in a normal service, the DMT data show.

Sri Lanka is in the process of maximizing its dollar earnings after an unprecedented economic crisis forced its government to declare bankruptcy and sovereign debt default in April 2023. (Colombo/Jan 17/2024)

Manusha Nanayakkara met with drivers at the ministry where “It was discussed to prepare a data system containing the details of three-wheelers and to introduce a related QR code, and to prepare a system which can find trip for three-wheelers through the internet,” a statement by the government information department said.

However, most taxis operating in Sri Lanka find indirect ways to avoid paying for such already established systems, such as Uber and PickMe.

Also discussed at the meeting was the need for a ‘professional council for three-wheeler drivers’ to ensure professionalism and a social security system for the drivers. Until this is established, an interim sectoral steering committee would be appointed for the taxi drivers.

Sri Lanka has over a million registered three-wheelers, but research showed less than half of that number were operating as taxis.

In 2022, during Sri Lanka’s fuel crisis, Power and Energy Minister Kanchana Wijesekera estimated that according to registrations at provincial and divisional secretaries, there are only 350,000 commercial tuk tuk drivers in the country.

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Half of Sri Lanka’s tuk-tuks not taxis; most drivers middle-aged: Research

A proposal by the three-wheeler drivers regarding the development of their professional dignity was presented to the Nanayakkara. The minister said he will consider gazetting the proposals under the new Employment Act. (Colombo/Jan17/2024).

Sri Lanka’s unprecedented economic crisis forced the DMT to suspend imports of printing materials in the face of severe dollar shortage after declaring bankruptcy and sovereign debt default.

“We could not issue the driving license as we did not have dollars to order the required materials,” Alagiyawanna told reporters in Colombo at a media briefing.

“Accordingly, there are 865,000 temporary paper license holders without proper licenses.”

With the slight economic recovery and improved foreign exchange reserves, the government has now gradually started imports which were earlier suspended.

“We have established three new machines now with the involvement of the private sector and taken steps to print around 4,000 driving licenses on a daily basis,” the Minister said.

“From October onwards, we should be able to issue driving licenses instantly without any backlog.”

He said the DMT will be giving priority in issuing the driving license for those who have to migrate for jobs or face employment interviews. (Colombo/Jan 17/2024)

“A price formula will be introduced for water charges, that can reduce the water charges along with lowering the electricity bill,” Thondaman was quoted as saying in a statement by the Government Department of Information.

Thondaman was speaking at a discussion held at the Peradeniya University Institute of Water Research and Technology.

Last week, the National Steering Committee on Water Sector Reforms met today to finalise several key policies and guidelines in the water sector.

“We are ready to present to the public, for their feedback, Sri Lanka’s new national policies on Drinking Water and Water Safety, as well as new Guidelines on Water Supply Connections,” Thondaman said on X.

“Our aim is to ensure a safe, affordable and reliable water supply for all under a consistent and clear framework.”

The new policies and guidelines are part of the US$ 200 million ADB supported reforms in the water sector.

Thondaman said the goal of the reforms was to create a more sustainable water sector in Sri Lanka that is both climate and consumer conscious. (Colombo/Jan15/2024)

Transport Minister Bandula Gunaardena told parliament on Thursday January 11 that some bus drivers or conductors do not return the day’s total earnings to their respective depot, resulting in a loss of around 100,000 rupees a day per depot.

“That’s about 10 million rupees in total losses a day,” said Gunawardena.

“You know the problems that crop up when you try to do something new with the SLTB,” he said, noting that the Transport Ministry has been making “great efforts” to introduce an electronic card or QR code system for commuters to pay for their tickets.

The project is now in its final phase, the minister said. President Ranil Wickremesinghe has appointed a ministry secretary who has expertise in the subject, he added.

“So in about two months, we will be able to introduce a card or QR system,” he said.

The government announced a digitalisation initiative for the SLTB in November 2023, to be implemented in 2024.

He said at the time that, annually, losses incurred due to drivers’ not depositing their daily earnings amounted to some 3,650 million rupees.

Digitalisation of Sri Lanka’s state-sector has been high on the agenda since the island nation went into its 17th programme with the International Monetary Fund (IMF) since the 2022 currency crisis, the worst in decades.

A top official said in September 2023 that all financial transactions by state institutions will be made digitally by March 31, 2024, under a new policy. Critics say, however, that many state-owned enterprises and institutions have been slow to adapt.

This is in marked contrast to the private sector. Sri Lankan businesses saw a rapid shift to digital in the years since COVID-19, with many turning to the internet to boost sales and grow their market share. (Colombo/Jan11/2024)

This allows the use of electronic documents and reports when obtaining services from District Secretariats, Divisional Secretaries and Grama Niladhari Officers.

The electronic transaction orders (e-Grama Niladhari Information System) No. 1 of 2022 prepared by the Minister of Technology under the provisions of the Electronic Transactions Act No. 19 of 2006 was published in the extraordinary gazette notification No. 2311/40 of 22.12.2022.

Sri Lanka is on a drive to adopt digital technologies and is amending regulations to facilitate electronic transactions, enhance cybersecurity, and promote the use of digital platforms for various services.

Global institutions, including the International Monetary Fund (IMF), have recommended the Sri Lankan government to digitalise its transactions, including tax claims, to reduce human intervention and corruption.

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Since the Covid-19 pandemic, an increasing number of Sri Lankans have switched to digital transactions. (Colombo/Jan2/2024)

The project is a part of the Railway Efficiency Improvement Project implemented with Asian Development Bank funds.

International bids were invited for the design and construction of the Factory, and out of 9 bids submitted, 2 were rejected, Gunawardena said at a press briefing.

“The cabinet-appointed Standing Procurement Committee submitted its recommendation after evaluating the remaining 7 bids, and recommended the China Civil Engineering Construction Company.”

The Railway Efficiency Improvement Project was prepared to support improvements in the operation, maintenance, safety, skills development, and implementation capacity of Sri Lanka Railways, according to an ADB statement:

“The project will (i) improve the operational efficiency of the railway network by addressing key operating bottlenecks with the modernization of the telecommunications, ticketing, operations headquarter, and train control center systems; (ii) upgrade the railway workshop at Ratmalana, and procure rolling stock and track maintenance equipment; (iii) improve railway safety mainly through the construction of housing blocks to support the future resettlement of encroachers, and the improvement of Colombo Fort and Maradana stations; and (iv) upgrade the Sri Lanka German Railway Technical Training Center (SLGRTTC); and (v) support project implementation capacity and readiness, notably for the future modernization of the Kelani Valley line and other suburban lines.” (Colombo/Dec13/2023)

“This significant development marks a major milestone in the development of the Colombo Port City SEZ as a premier international business and services hub in South Asia—a world-class project that is transforming Sri Lanka’s economic landscape,” the Colombo Port City Commission said in a statement.

The Commission said it was “collaborating with the Central Bank of Sri Lanka, the Securities and Exchange Commission, and the Insurance Regulatory Commission of Sri Lanka to ensure robust and streamlined guidelines are in place.”

The Colombo Port City is a dollarized area where currency competition is allowed. (Colombo/Dec08/2023)