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Oil plunges to lowest level since Jan.



The price of U.S. benchmark West Texas Intermediate slid roughly 5% to trade at $79 per barrel, reaching its lowest point since January amid mounting recession fears.

Meanwhile, the price of international benchmark Brent crude fell below $87 per barrel, also on track for its lowest close since January.

Both WTI and Brent crude were in technically oversold territory, posting a fourth straight week of declines on Friday and marking the worst losing streak since last December.

Widespread recession fears have been weighing on energy prices but also slammed the stock market recently, with the S&P 500 and Dow Jones Industrial Average falling back into bear market territory on Friday. Both major indexes also set a new low point for the year amid the broad selloff.

Contributing to oil’s decline was also continued strength in the U.S. Dollar, which is considered a safe-haven asset. The ICE U.S. Dollar Index, which tracks the Dollar against a basket of other currencies, rose nearly 1% and reached its highest level since 2002.

With the Federal Reserve raising interest rates by 75 basis points for a third consecutive policy meeting in a row on Wednesday, central banks around the world have been doing the same by announcing rate hikes. Global economic growth concerns have “hit panic mode given a chorus of central bank commitments to fight inflation,” says Edward Moya, senior market analyst at Oanda.

“Central banks are poised to remain aggressive with rate hikes and that will weaken both economic activity and the short-term crude demand outlook,” he describes, adding, “the dollar rally is about to enter another level that could keep the pressure on commodities.”

The S&P 500 energy sector fell more than 6% on Friday for its worst day since May, adding to losses in recent weeks. Still, the sector has far outperformed the benchmark S&P 500 index this year (down 23%), rising over 20% thanks to a surge in oil prices earlier this year.

But some investors may now be looking to cash out as oil prices have fallen back down to earth. “Not only are there worries about consumption given rising recession risks, but this is a pretty crowded space with a lot of nervous longs sitting on healthy year-to-date gains that they’re eager to lock in,” says Vital Knowledge founder Adam Crisafulli.

(Excerpts : Forbes)


Price formula needed to regulate wheat price – CoPF




Dr. Harsha de Silva, Member of Parliament instructed the Auditor General’s Department to calculate the amount of wheat flour currently available in Sri Lanka’s warehouses and submit a forensic audit report regarding the issue pertaining to Wheat flour within 2 months. 

The Parliamentarian was of the view that if there is a price formula for wheat Flour as well, there will be no opportunity to decide the prices according to the wishes of individual parties.

This was discussed when the Committee on Public Finance met recently under the Chairmanship of Hon. (Dr.) Harsha de Silva, Member of Parliament.

The Members of the Committee pointed out that Wheat Flour is being sold at different prices in shops all over Sri Lanka. However, according to the prices given by the Ministry of Finance, one kilo of Wheat Flour can be sold for 198 rupees. The Chair emphasized that two price calculations are being used in setting the price of Wheat Flour and this should be changed.

Although the price has increased due to the increase in the tax imposed on Wheat Flour, the Chair stated to the officials that the increased tax has increased the price of the Wheat Flour that was already in the warehouses of the country.

Price formula needed to regulate wheat price

Recalling the efforts made to prepare a price formula for gas and milk powder last season, the chairman pointed out the dire need of a price formula for regulating the price of wheat. The Committee emphasized that a price formula should be prepared immediately in order to work in a more diversified manner.

CoPF approves tax reductions on more goods under the Singapore -SL FTA

Furthermore, under the Singapore-Sri Lanka Free Trade Agreement, the Committee on Public Finance approved the reduction of taxes on many other goods. It was approved when the Resolution under the Customs Ordinance published under the Gazette Extraordinary No. 2338/54 was discussed on June 30th, 2023.

Under the said, it was proposed to reduce the tax rate which was 15% to 5%. Granting approval for the said, the Committee questioned the officials regarding the benefits of this trade agreement. However, the official responding to the said stated that it was not possible to conduct a feasibility study. Expressing his displeasure, the Chair instructed the chief officer in charge of the Singapore-Sri Lanka Free Trade Agreement to submit a report to the Committee within 6 weeks, presenting logical facts about the agreement.

Resolutions under the Customs Ordinance published under the Gazette Extraordinary No. 2336/72 on 16th June 2023 was further reviewed for a second time. However, the Committee decided not to approve the proposal made under this Gazette. Here, the officials presented a proposal to change the HS code related to the import of raw materials required for soap production. The Committee questioned whether there will be an increase in tax rates on the import of the relevant raw materials. Accordingly, the Chair pointed out that it is questionable for one group of the government to request for the approval to reduce tax and another group to request to increase taxes. In the year 2021, it was revealed to the Committee that no new investment has been made during that period, even though the tax charges have been reduced in the import of raw materials required for soap production. Accordingly, the Chair instructed the concerned officials to conduct a discussion under the leadership of the Secretary to the Ministry of Finance to formulate a policy on tax revision and submit it to the committee.

Furthermore, 2 other gazettes submitted for the Committee’s approval regarding the tax revision under the Special Commodity Levy Act No. 48 of 2007 were approved.

Meanwhile, the Committee discussed the current status of the process related to the establishment of a Gambling Regulatory Authority. Officials stated that they have discussed with several organizations in Singapore and Sri Lanka and have prepared a draft. However, before preparing a final Bill, the Chair instructed the officials to refer the draft to the Committee on Public Finance for approval. Accordingly, the Committee was instructed to provide a comparative report within two weeks pertaining to the existing system in Singapore and the model expected to be created in Sri Lanka regarding the establishment of a Gambling Regulatory Authority.

Furthermore, the Committee instructed the Sri Lanka Board of Investment to submit a detailed report including the amount of investment and its benefits in the last period.

Moreover, during the discussion regarding other matters taken up at the Committee, Hon. Nimal Lanza, Member of Parliament questioned the Sri Lanka Board of Investment regarding the decision made to import palm trees from a foreign country and add value to them and re-export them to India. The Member of Parliament stated that there is a danger of this matter developing into a diplomatic concern. Accordingly, the Parliamentarian requested the Sri Lanka Investment Board to inform the other parties concerned to reconsider the decision.

State Minister Hon. (Dr.) Suren Raghavan, Members of Parliament Hon. Rauff Hakeem, Hon. Patali Champika Ranawaka, Hon. Mahindananda Aluthgamage, Hon. Nimal Lanza, Hon. Harshana Rajakaruna, Hon. Madhura Withanage were present at the Committee meeting held.

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Other airlines to operate SriLankan flights!




Minister of Ports, Shipping and Aviation Nimal Siripala de Silva has said that national carrier – SriLankan Airlines has incurred a loss of around USD 06 million due to delays of 08 flights in recent days.

This was revealed during a special discussion held between Aviation Minister – Nimal Siripala de Silva, the SriLankan Airlines management and representatives of trade unions.

The minister further stated that it is not possible to grant an allowance or a salary increase to employees at present.

The Minister also revealed that it has been decided to allow other airlines to operate the flights of the carrier by granting them rights under the ‘5th freedom of the air’, while safeguarding the rights of SriLankan Airlines.

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SriLankan struggles being unable to meet aviation engineers’ demands




Internal sources at the SriLankan Airline said that it has become impossible to maintain the airline due to the inability of the management to fulfill the demands made by the aviation engineers.

Due to this situation, several flights of SriLankan Airlines were delayed in the last few days.

Meanwhile, a special discussion has been called today (02) to look into the matter.

This discussion is scheduled to be held today at 9.30 am under the chairmanship of Aviation Minister Nimal Siripala de Silva.

It was reported that the authorities would inquire about the delayed flights, which had added a blemish to the country’s national airline.

The management of SriLankan Airlines and all trade union representatives are scheduled to attend the discussion.

Several SriLankan flights were canceled in the past few days and delays continued in some flight schedules.

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