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Monday June 3rd, 2024

Sri Lanka vehicle registrations hits 6-year low amid elections, peg collapse

ECONOMYNEXT – Sri Lanka’s vehicle registrations fell to 24,472 units in November 2019, the lowest since the June 2013 amid a collapsed of a ‘flexible exchange rate’ and election in November, an analysis of vehicle registry data compiled by JB Securities, a Colombo-based equities brokerage.

In June 2013, vehicle registrations fell to 24,415, down from 47,500 in January 2012 after rates were hiked and currency was floated after a rate cut and several months of liquidity injections triggered a balance of payments crisis.

In 2019 Sri Lanka is againt going through a credit slowdown and stagflation after a collapse of the island’s highly unstable soft-peg labeled a ‘flexible exchange rate’.

The peg has downward only disorderly market conditions (DMC) rule under an International Monetary Fund program but no sterilization restriction leading to little or no-credibility, analysts have aid.

The flexible exchange rate collapsed to 182 from 153 to the US dollar in 2018 amid high levels of excess liquidity injected to target a call money rate.

Restrictions were then slapped on vehicle imports. In 2019 a further blow to sentiment was delivered from suicide bombings by Islamist extremists in April.

However some restrictions on vehicle imports have been relaxed. Unlike other imports, vehicles provide large volumes of tax revenues due to high rates of taxation.

Motor car registrations fell to 2,030 units in November from 2,512 in October and 7.226 units in May 2018. In eh currency cycle liquidity injections began in March 2018, just as the economy was recovering from a 2015/2016 collapse of the peg to 153 to the US dollar from 131 to the dollar.

Motor cycle registrations fell to 18,540 units in November from 21,918 units in October and 22,273 units in November.

In March 2018, as money printing began 30,381 units were registered just as the recovery was starting.

In November 638 crossovers and sports utility vehicles were registered down from 738 in October, 101 pick-ups down from 149, 158 light trucks down from 217 and 55 heavy trucks down from 101.

Registration of buses fell to 152 from 206 a month earlier. (Colombo/Dec25/2019)

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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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