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Wednesday September 27th, 2023

Aeroflot grounding lands Sri Lanka in diplomatic spat with Russia

ECONOMYNEXT – Sri Lanka’s Foreign Ministry said a grounding of an aircraft operated by Russia’s Aeroflot in Colombo following a court order was now “also under consultation through normal diplomatic channels.”

The aircraft was grounded in Colombo following a court order obtained by Celestial Aviation Trading 10 Limited of Ireland, the owner of the aircraft, against Aeroflot in a Colombo court, over a lease dispute.

“The matter is still pending final determination of the Court,” Sri Lanka’s Foreign Ministry said in a statement.

“This matter is also under consultation through normal diplomatic channels.”

The head of Russia’s Federal Air Transport Agency Alexander Neradko, Alexander Neradko, had also sought the assistance of Sri Lanka’s aviation authority when the aircraft was prevented from taking off following a turnaround flight.

The full statement by the Ministry of Foreign Affairs in Sri Lanka is reproduced below:

Statement by the Ministry of Foreign Affairs on the Aeroflot passenger aircraft at the Bandaranaike International Airport

The Ministry of Foreign Affairs wishes to state the following with reference to the Aeroflot passenger aircraft flight SU-289 which is currently at the Bandaranaike International Airport (BIA).

On 2 June 2022, the Commercial High Court of the Western Province issued an Enjoining Order on the Aeroflot flight restraining it from taking off from Bandaranaike International Airport. The case relates to a commercial dispute between the Plaintiff, Celestial Aviation Trading 10 Limited an Irish Company against the first Defendant the Public Joint Stock Company “Aeroflot” and the second Defendant, Mr. N. C Abeywardene/Acting Head of Air Navigation/Airport and Aviation Services of Sri Lanka (AASL), Katunayake.

The matter is still pending final determination of the Court. This matter is also under consultation through normal diplomatic channels.

Ministry of Foreign Affairs

Colombo

4 June, 2022

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Sri Lanka to introduce social security system: minister

ECONOMYNEXT – Sri Lanka’s Labour minister has said that they are set to introduce a comprehensive national social security system, covering all workers.

“The system will address the weaknesses of the current system and provide much-needed support to workers and their families,” Manusha Nanayakkara, Minister of Labour and Foreign Employment said on X (formerly known as Twitter).
He did not specify the details.

Nanayakkara also spoke of the need for robust social security when he met with exporters last week to discuss labor law reforms, boosting female workforce participation and attracting FDI.

Sri Lanka plans to reform labour laws for an export-oriented economy.

The pandemic and the economic crisis highlighted the need to improve the coverage of social security.

Studies have shown that Sri Lanka’s women are kept out of formal employment by childcare, elderly care and housework, as day care and elderly homes are either too expensive or too few.

The government imposed a Social Security Contribution Levy to increase its revenue last year. (Colombo/Sep27/2023)

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Sri Lanka’s stocks up in trading on Wednesday morning

ECONOMYNEXT – Sri Lanka shares were picking up in trading on Wednesday morning.

Turnover was at 50 million. Trading in the Capital Goods Industry Group was driving turnover.

The All Share Price Index was up 0.37 percent or 41.78 points to 11,289.94, while the S&P SL20 was also up 0.68 percent or 21.66 points to 3,187.65.

Hatton National Bank, Commercial Bank and LOLC saw gains in morning trade, while Tokyo cement and Lanka Hospitals were trading down during morning trading. (Colombo/Sep27/2023)

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Sri Lanka rupee opens at 323.50/324.10 to the US dollar, bond yields stable

ECONOMYNEXT – Sri Lanka’s rupee opened at 323.50/324.10 to the US dollar on Wednesday, after closing on Tuesday at 323.70/324.20 to the US dollar, dealers said.

A bond maturing on 01.08.2026 was quoted at 15.50/70 percent on Wednesday up from Tuesday’s close at 15.45/65 percent.

A bond maturing on 01.05.2028 was quoted at 14.50/55 percent from closing at Tuesday at 14.30/55 percent. (Colombo/Sep27/2023)

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