News

SL can build reserves, pay debt, with vehicle imports of $1.5bn : CB Governor

Published

3 weeks ago

January 7, 2025

editor

Sri Lanka can build reserves and repay debt even if vehicle imports go up to 1.5 billion US dollars a year, Central Bank Governor Nandalal Weerasinghe has said.

In 2024 the central bank has projected that relaxing commercial vehicle imports would result in forex needs of about 500 million dollars and private vehicle imports may require another billion US dollars a year.

“Even if vehicle imports cost 1.5 billion US dollars, we can maintain reserves, and make the required payments after completing debt restructuring, and also increase government revenues and balance the requirements,” Governor Weerasinghe told Derana television in a talk show.

“There could be a small deficit in the current account deficit.”

In the past the current account deficit had been much higher, he said

Sri Lanka’s private banks repaid debt, the central bank, built reserves and the government also repaid debt to multilaterals, who resumed budget support loans which could be used for repaying debt, in a situation where bilateral debt flows were halted.

The net repayment of debt, made possible by not suppressing interest rates with inflationary policy, which is not usual in Sri Lanka, turned the financial account in to a surplus since the central bank restored monetary stability in late 2022.

However, the resumption of bilateral loans which will be invested domestically could boost domestic spending and imports, which can turn the external current account back into deficit, analysts have said.

Meanwhile Governor Weerasinghe said the government may have to maintain taxes at a level that does not result in a steep fall in second hand vehicles in his personal opinion, he said.

“You have to work backwards from the current market price levels,” he said, allowing a person who want a new vehicle to buy and without encouraging people who do not want a new car to buy one.

“We have to balance it, that is my opinion, but it is a fiscal policy of the government,” he said.

At the moment due to the depreciation of the rupee and the imposition of higher value added tax, the cost of a new imported car had anyway gone up, he said.

(economynext.com)

(Except for the headline, this story, originally published by economynext.com has not been edited by SLM staff)

News

Bird deaths in Beira : NARA to submit report

Published

9 minutes ago

January 25, 2025

editor

The National Aquatic Resources Research and Development Agency (NARA) has initiated an investigation over the recent spate of bird deaths at Colombo’s Beira Lake and a report is to be submitted within 03 days.

Over the last few days, over 30 carcasses of ducks and geese have been found dead in the vicinity of the lake and residents claim that the deaths were reported after chemicals were added to the lake to reduce its odor.

Meanwhile, Colombo Municipal Council’s (CMC) Chief Veterinary Officer, Mohamed Ijas has confirmed that bird flu has been ruled out but had been unable to verify claims about chemicals being the cause.

News

Awareness programme on e-NIC held

Published

11 minutes ago

January 25, 2025

editor

An awareness programme to introduce the process and discuss issues related to the Electronic National Identity Card (e-NIC) was held yesterday (Jan. 24) at the Information and Communication Technology Agency of Sri Lanka (ICTA), Colombo. The event was conducted under the patronage of Deputy Minister of Digital Economy, Eranga Weeraratne.

The session aimed to address key challenges and operational aspects of the e-NIC project, providing a platform for stakeholders to exchange ideas and identify solutions. The Chief Advisor to the President on Digital Economy and the Chairman of ICTA Dr. Hans Wijayasuriya, along with ICTA Director, Sanjaya Karunasena, also participated in the programme, contributing valuable insights to the discussion.

This initiative marks a significant step in streamlining the implementation of e-NICs and ensuring a smooth rollout for citizens, aligning with the President’s vision for a digitally empowered economy.

(President’s Media Division)

News

Air Vice Marshal Vasu to lead SLAF

Published

4 hours ago

January 25, 2025

editor

Air Vice Marshal Vasu Bandu Edirisinghe is set to become the next Commander of the Sri Lanka Air Force (SLAF), succeeding Air Marshal Udeni Rajapaksa, who will retire on January 29.

Currently serving as the SLAF’s Director General of Planning, Edirisinghe brings extensive experience to the role. A native of Kandy and an alumnus of St. Sylvester’s College, he joined the SLAF as an Officer Cadet in 1991 and was commissioned as a Pilot Officer in 1993.

Initially trained on the SF 260 Warrior, he transitioned to rotary-wing aircraft due to a shortage of helicopter pilots. After completing training on Bell 206/212/412 helicopters, he was operationally cleared for flying duties and served in utility operations in the North and East of the country.

Edirisinghe will take over as the 20th Commander of the SLAF.Air Vice Marshal Vasu Bandu Edirisinghe is set to become the next Commander of the Sri Lanka Air Force (SLAF), succeeding Air Marshal Udeni Rajapaksa, who will retire on January 29.

Edirisinghe will take over as the 20th Commander of the SLAF.