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Monday June 3rd, 2024

Sri Lanka 2015 budget gives more subsidies for tea

Oct 24, 2014 (economynext)  – Sri Lanka’s 2015 government budget promised more support for tea cultivation by small farmers and exports in value-added form but warned big plantations their lands would be taken if they did not replant as expected.

The budget increased the replanting subsidy for tea small holders by 41% to Rs200,000 per acre from Rs142,000 and the new planting subsidy by 60% to Rs160,000 from Rs100,000 an acre.

Small holders produce the bulk of the island’s tea crop.

Fertiliser will continue to be given at the subsidized price of Rs1,250 per 50/kg bag for all plantation crops, President Mahinda Rajapaksa, who is also finance minister, told parliament when presenting the budget Friday.

The Rs5,000 per acre grant assistance to support land preparation towards water retention, soil conservation and use of organic fertilizer for smallholder tea cultivation to increase production would also be continued.

"Financial assistance will be extended to fully modernize smallholder tea factories with modern machinery and processing equipment," Rajapaksa said.

Regional plantations companies (RPCs) were also given support but warned their land leases could be cancelled if they didn’t improve productivity and do regular replanting of aging tea bushes.

"Only a few plantation companies have shown notable increases in their productivity," Rajapaksa said.

Plantation companies which had not responded to government proposals to take action to improve productivity will be put on six-months notice so the government as ‘Golden Shareholder’ can make decisions regarding the development of plantations under each company, including the cancellation of their lease holding, he said.

He offered soft loans to RPCs through a government credit scheme at six percent interest with an eight-year maturity to all "well-performing companies that will commit to an agreed area for planting and replanting, for social development of plantation workers and to increase the volume of value added tea exports."

But RPCs that have not paid their land lease rentals will not be eligible.

Rajapaksa proposed to spend a billion rupees to set up a separate government-owned plantation company to develop all remaining state-owned tea estates under the Janatha Estates Development Board and Sri Lanka Plantations Corporation.

The government-owned Kurunegala and Chillaw coconut plantation companies "have performed well and paid dividends to the Treasury," Rajapaksa said.
He also proposed to "suitably" reduce import taxes on packaging material required for exports without affecting local industries that manufacture such material.

 

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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