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President pledges bank loan concessions for SMEs from Budget 2024

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President Ranil Wickremesinghe emphasized the importance of making the right decisions for the country’s economic development and during his address at the National Industry Excellence Awards 2023, which took place yesterday (01) at the Nelum Pokuna Theater in Colombo. 

He acknowledged that the decision to increase VAT by 18% was a challenging one, driven by the need to maintain economic stability. President Wickremesinghe highlighted that true leadership involves being honest with the people and making decisions that benefit the nation.

He expressed confidence in the youth leadership within the government and the group of young ministers dedicated to working for the country. President Wickremesinghe pledged to collaborate with them to improve the country’s economic situation by 2024.

Additionally, President Ranil Wickremesinghe announced his intention to address bank loan concessions for small and medium-scale industrialists in the upcoming budget, aiming to strengthen Sri Lanka’s export-oriented manufacturing economy. The National Industry Excellence Awards 2023, jointly organized by the Ministry of Industry and the Ceylon Industrial Development Board, is a step towards achieving this goal.

In this context, 300 successful entrepreneurs were recognized and awarded in various categories, including platinum, gold, silver and bronze awards, out of a pool of over 4,000 industrial entrepreneurs who had applied to compete in 21 major industrial sectors and 61 sub-industrial sectors.

Expressing his views further President Ranil Wickremesinghe said;

As I observed the award recipients today, it brought back memories of the challenges we faced last year. At that time, there were numerous uncertainties about the sustainability of our industries. The absence of electricity and the difficulty in obtaining bank loans had led to the closure of thousands of businesses.

Today, it’s truly remarkable to see a substantial number of individuals reinvigorating their industries and achieving success. Small and medium-scale industries have made a swift comeback in a relatively short period. However, some issues remain unresolved, particularly concerning bank loans and market access. Our foremost priority is to address these concerns.

In the upcoming budget, we aim to introduce measures that provide bank loan concessions to support small and medium-scale industries. This program is progressing steadily. We have devised comprehensive strategies to revitalize our nation’s economy, engaging in discussions with both the International Monetary Fund (IMF) and our creditors.

Our primary focus always revolves around our capacity to repay the loans we’ve taken. To achieve this, we must consistently increase our income year after year. Gaining the trust of private creditors and multilateral creditors is imperative to reassure them of our commitment to loan repayment. This commitment must be ingrained in our actions.

A substantial portion of next year’s budget will be allocated to debt repayment and interest. Failure to meet these obligations could push us back into the old, precarious situation. Therefore, safeguarding our currency and fulfilling our loan obligations is of paramount importance.

In the past, when there was a budget shortfall, the solution was to instruct the central bank to print more money. However, this approach is no longer legally permissible and obtaining loans from banks has also become a challenge. These restrictions stem from the informal financial practices of the past.

To ensure our financial stability in the coming year, we must significantly boost our income. We have set specific revenue targets that we must work diligently to achieve. It’s crucial for the country’s progress and to prevent bankruptcy in the near future.

As a result of these financial constraints, we had to make the difficult decision to raise the VAT to 18%. This step aligns us with the practices of countries like India and Pakistan. Such decisions are never easy for any government. However, failing to take these measures would cast a shadow on everyone’s future. Therefore, making the right choices becomes imperative.

These decisions are necessary for the well-being of the country, even if they draw criticism from the public. Both my cabinet and I have willingly shouldered the responsibility of rebuilding our nation, which had faced economic collapse.

We made a deliberate choice not to revert to a state of dependency. Instead, we are committed to moving forward with our own strengths. Regrettably, during a cabinet meeting held last Sunday evening, we had to make this tough decision. While some may point fingers, failing to act would risk returning to the dire circumstances of the previous year. At the start of this year, our economic growth rate was a negative 0.7%. Today, it has improved to 0.5%, with further progress expected next year. This leaves us with a fundamental choice of whether to advance or regress.

This is the essence of leadership – the willingness to make difficult decisions and transparently convey the true state of affairs to the people. Through this decision, we can generate much-needed revenue to support small and medium-scale industries by repaying loans to banks. Without this step, these industries would face collapse, which puts industrialists in a challenging position. Thus, these difficult decisions must be made for the betterment of the country, even if they invite criticism. Our focus should remain on the nation’s well-being.

Regardless, let us embark on this journey with the resolute decision to rebuild our nation. This program offers us the opportunity to transform our country into a prosperous one, no longer dependent on external support. I hold strong belief in the promising future of this nation. We are in negotiations with international financial institutions, including the World Bank and while the path may be challenging today, I am confident that we will reap positive results in the next two or three years.

Looking ahead to 2024, I extend my best wishes to all, expressing our shared aspiration to bolster the nation’s economy further.

The event also featured addresses from Minister of Industry and Health, Dr. Ramesh Pathirana, as well as Ministers of State, Prasanna Ranaweera and Chamara Sampath Dasanayake. Notable figures in attendance included Secretary of the Ministry of Industry, Ms Thilaka Jayasundara, Secretary to the Prime Minister, Mr Anura Dissanayake, Chairman of the Ceylon Industrial Development Board, Dr. Saranga Alahapperuma, and various Ministerial Secretaries, heads of government institutions, prominent industrial entrepreneurs and distinguished guests.

(President’s Media Division)

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Lohan Ratwatte transferred to prison hospital 

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Former State Minister Lohan Ratwatte, who was arrested and remanded on charges of using a luxury car illegally imported from abroad and assembled in Sri Lanka, has been transferred to the prison hospital.

He was arrested by Mirihana Police on October 31 in Katugastota, Kandy.

Ratwatte was subsequently produced before the Acting Magistrate of Nugegoda from the Mirihana Police Station, and was ordered to be remanded until November 7.

However, the Acting Magistrate granted permission for Ratwatte to receive treatment at the prison hospital.

Police said that the former state minister was arrested in Kandy over an incident of discovering an unregistered car at his wife’s house in the Mirihana area of Nugegoda.

The car without registered number plates was found on October 26, 2024, according to police.

Police had found the luxury car in question during an inspection carried out based on information received by the police headquarters that there is a luxury car without number plates in a three-storied house in the Embuldeniya area in Mirihana, belonging to Shashi Prabha Ratwatte, the wife of former State Minister Lohan Ratwatte.

During the investigation, both Ratwatte and his wife had explained to the police that his mother-in-law resides in the said house. They had claimed that the car had been brought there three weeks ago by Ratwatte’s private secretary, who was recently found dead with gunshot injuries in the Katugastota area of Kandy.

(AdaDerana)
(This story, originally published by AdaDerana has not been edited by SLM staff)

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Bell 412 helicopter on standby for KDU bus accident patients

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The Defence Secretary has directed the Sri Lanka Air Force to keep a Bell 412 helicopter ready at the Diyatalawa Air Force Base for the potential airlift of patients injured in the recent bus accident to Colombo for further treatment if needed.

The accident, which occurred at Ambagas Junction on the Dunhinda-Badulla road around 7:45 AM on November 1, involved a bus carrying 42 people from the Kotelawala Defence University’s (KDU) Southern Campus. Among the group were 36 students from the 39th KDU Intake, three lecturers, an instructor, a senior military officer, and the bus driver.

Two female students, residents of Kurunegala and Nivithigala, tragically lost their lives. 

The remaining 40 were admitted to the Badulla General Hospital, with seven in the ICU and one in critical condition.

KDU’s Vice-Chancellor confirmed that arrangements for the funerals will be made with university support. 

Preliminary findings suggest a mechanical fault may have caused the accident, with a detailed investigation underway.

The Ministry of Defence has expressed condolences to the victims’ families and commended the prompt rescue efforts of local residents, as well as the swift response by Dr. Palitha Rajapaksa and the hospital staff.

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(Previous News : November 01, 2024 11.28 am)

2 dead in Badulla bus tragedy

Two persons have been reported dead after a bus carrying a group of university students had toppled across the road at Dunhinda Road in Badulla this morning (Nov. 01).

The accident had occurred between the third and fourth kilometer posts on the Badulla-Mahiyanganaya main road, near the Dunhinda access road, after the bus collided with a bund.

According to reports, the bus was carrying a group of students from the Southern Campus of the General Sir John Kotelawala Defence University (KDU), who had been on a field trip.

Over 30 persons injured had been rushed to the Badulla Hospital, reports say.

(Pic : Accident 1st)

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Doctors at Karapitiya Hospital begin 24-hour strike over internal threats

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Doctors at the Karapitiya Teaching Hospital in Galle have commenced a 24-hour token strike, according to the Government Medical Officers’ Association (GMOA).

GMOA Treasurer Dr. Ubhaya Bandara Warakagoda stated that the strike was initiated in protest over threats made by a doctor against several other doctors of the hospital.

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