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Monday June 3rd, 2024

Sri Lanka exports down 0.2-pct in Oct, state workers import cars

ECONOMYNEXT – Sri Lanka’s exports fell 0.2 percent to 977 million dollars in October 2019 from a year earlier mainly due to falling commodity prices, while imports also fell 3.5 percent despite a pick up in vehicle imports by state workers amid weak credit.

Agricultural exports fell 3.3 percent to 201.3 million dollars in October, coconut products exports fell 8.0 percent to 26.3 million US dollars, central bank data showed.

Seafood exports also fell 17 percent to 19.2 million US dollars amid weak demand, the central bank said.
Imports in October had fallen 12.6 percent amid weak credit, after last year’s currency collapse.

Intermediate products imports grew 2.2 percent to 1,040.2 million US dollars.

Petroleum products were up 15.9 percent to 308 million US dollars and there were zero gold imports compared to half a million US dollars brought in 2018.

In 2018 the rupee started to collapse just as gold imports were halted with taxes as the central started to print money.

Investment goods were down 8.2 percent to 391 million US dollars with machinery and equipment down 6.5 percent to 218.2 million US dollars.

Vehicles imports were down from last year, but the central banks said volumes were starting to pick up with state workers using tax slashed permits to import cars.

In Sri Lanka the elected ruling class who make law gets tax free cars, state workers who implement laws get tax slashed cars while ordinary less priviledged citizens pay up to 270 percent in taxes for cars and motorcycles.

The trade deficit was down to 838 million US dollars from 903 million US dollars amid an overall credit contraction and economic slowdown as well as weaker tourism receipts which tends to reduce incomes to import.

In the first 10 months of the year exports were up 0.8 percent to 9,960 million US dollars, imports were down 12.4 percent to 16.4 billion US dollars and the trade deficit was down 20 percent to 2.8 billion US dollars.

Sri Lanka has a trade deficit because people exports services outside the merchandise account and earn dollars to spend, such as through remittances (labour exports), tourism (leisure services exports) and software.

Tourism earnings were estimated to have falle 20 percent to 2.8 billion US dollars in the first 10 months of the year.

The government is also usually a net borrower abroad, financing a part of the budget deficit with loans from China and other, which is a key driver of imports and the trade deficit.

Foreign direct investments also tend to boost imports when buildings or factories are built. (Colombo/Dec14/2019)

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  1. sacre blieu says:

    The time has come to discipline the economy by establishing a level playing field, where all citizens are positioned in an equitable manner in relation to the many privileges the politicians and state employees are now enjoying, and the other citizens are been unreasonably marginalized, have to foot the deficit. Some are enjoying absurd levels of privileges considering the affordability the state cannot bare, due to the economy been in a parlous state. The end must justify the means.

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  1. sacre blieu says:

    The time has come to discipline the economy by establishing a level playing field, where all citizens are positioned in an equitable manner in relation to the many privileges the politicians and state employees are now enjoying, and the other citizens are been unreasonably marginalized, have to foot the deficit. Some are enjoying absurd levels of privileges considering the affordability the state cannot bare, due to the economy been in a parlous state. The end must justify the means.

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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