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Friday March 31st, 2023

Fire guts 60 houses in underserved area in Sri Lanka

ECONOMYNEXT – Residents blamed drug addicts for fire that gutted at least 60 houses in suburb area of Sri Lanka capital on Tuesday despite dozens of fire trucks were deployed to control the fire spreading, area residents and officials said.

The fire in Kajimawatta slum area with 300 mostly wooden houses is the worst disaster in the last three years, the residents said.

“There was a house where usually drug addicts use. That house has been used by several drug addicts and the fire started from this house,” a resident at Kajimawatta told EconomyNext.

Several other residents in the area also conformed that the fire was initially started at a house where drug addicts frequently met everyday.

“When I came home, it had turned into ashes. I could not find anything from my house including television,” M D Quitus, a 58 year mason said.

Residents said it was the fourth time the fire had destroyed parts of their houses in a 4 acre land where nearly 300 slum houses are built mostly without proper land ownership.

Gravel roads within the slum were filled with water after the residents broke the some of the common water supply taps to douse the fire. Some residents were trying to take their belongings out of the ash after searching for whatever left following the fire.

“Within two hours, all houses were burnt. This because all these houses are connected via wooden walls. People could not act fast because some drug addicts at the house where the fore started just left the house without doing anything,” another resident said asking not to be named.

The authorities deployed at least 12 fire trucks, they could only control the fire after 2 hours.

President Ranil Wickremesinghe instructed the President’s Secretary Saman Ekanayake to take steps to provide immediate relief to all the residents affected by the fire.

The President’s media divisions said that he had instructed presidential s secretary to intervene immediately and direct the Colombo government agent, Tri Forces Commanders, the Fire Brigade, the Health Department, the Urban Development Authority and all other relevant government agencies to look into the needs of the people who were residing in the apartment complex and provide them the required facilities immediately.

“Accordingly, all relevant departments have already taken steps to provide the maximum intervention required to douse the fire and provide all other necessary facilities promptly,” the president’s media said.

“The President has further stated that special attention should be provided to attend to the needs of mothers, women and children who are affected by this tragedy.”

Area residents, however, said they were still waiting for the government’s relief.

The slum area has been vulnerable to fire because of compacted houses in narrow area.  (Colombo/Sept28/2022

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Sri Lanka rupee closes at 328/329 against the US dollar, bond yields down

ECONOMYNEXT – Sri Lanka’s treasury bond yields were down and the rupee closed at 328/329 against the US dollar in the spot market on Friday, dealers said.

A 01.07.2025 bond closed at 29.80/30.20 percent on Friday, down from 31.25/30 percent on Thursday.

A 15.09.2027 bond closed at 27.45/55 percent, steady from 28.80/85 percent on Thursday.

Sri Lanka rupee closed at 328/329 rupees against the US dollar, from 327/330 rupees from a day earlier. (Colombo/ March31/2023)

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Sri Lanka tax hike: no response from president, professionals to discuss next steps

GMOA Secretary Haritha Alutghe

ECONOMYNEXT – Sri Lanka’s trade unions and professional associations who have been agitating against an International Monetary Fund (IMF) backed progressive tax hike will meet to discuss further union action after a letter to the president went unanswered.

Government Medical Officers’ Association (GMOA) secretary Dr Haritha Aluthge told reporters on Friday March 31 that the unions will meet as the self-styled Professionals’ Trade Union Alliance (PTUA) collective which have so far been organising strikes and demonstrations demanding a revision of the taxes.

The PTUA has been awaiting a promised meeting with President Ranil Wickremesinghe for some days now. Aluthge previously said on Monday that if the meeting did not materialise, the unions would be compelled to go on strike.

The issue has become stagnant due to government inaction, said Aluthge at Friday’s press conference.

“The PTUA informed the president in writing yesterday for the last time to please understand the gravity of this situation and to immediately give us a meeting and present the government’s interim solution, through which the government can take measures to ease the sense of tension among professionals,” he said.

The purpose of the meeting is to discuss an “interim solution” to the professionals’ grievances over the progressive income tax hike until a reported revision that’s due in six months when the country’s recently approved 17th IMF programme comes up for review.

“Sadly, there has still been no response,” the GMOA official said.

All unions and professional associations will meet Friday evening together with a number of other unions to discuss further action, he added.

The privately-owned English-language weekly newspaper The Sunday Times reported on March 26 that the IMF had indicated the possibility of revising some of the taxes imposed as part of the IMF’s staff-level agreement with Sri Lanka when the programme comes up for review in six months.

According to the newspaper, IMF officials had conveyed this to representatives of trade unions during a virtual roundtable held last Friday March 24. The virtual meeting was held on the initiative of the IMF and was attended by trade unions and professional associations representing the PTUA including the GMOA. (Colombo/Mar31/2023)

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Sri Lankan transport associations cut haulage and transportation fees after fuel price cut

ECONOMYNEXT –  Sri Lanka Association of Container Transporters and fuel bowser owners has decided to reduce the haulage charges and transportation fee, after the government cut the auto diesel prices by 80 rupees, association officials said.

“Due to the recent reduction in Auto Diesel price from March30, 2023, the committee has decided to reduce haulage charges by 7 percent,” association said.

Sri Lanka Private Petroleum Tanker owners has also decided to reduce the transportation fee of fuel by 8 -10 percent from April onwards.

“We will be meeting with the association members and will be deciding on exactly how much we will be reducing,” the General Secretary of the association Nimal Amarasekera told EconomyNext.

“We hope to reduce it by 8-10 percent and will be applied.”

Meanwhile United Lanka Fuel Transport Bowser Owners Association said, the price reduction will be done, and the specific amount will be calculated using the cost per kilometer for a transporting bowser.

“We have different types of bowsers such as 13,200 litre and 19,800 litre likewise,” Association President K.W. Charles told EconomyNext.

“So the cost per kilometer per bowser is different and after we calculate only we can give a specific percentage.

“It will come to effect from this month and the payments for the next month will be based on the new prices.”

Charles said, this is only based on the price reduction of fuel, however several costs as maintenance and spare part costs should also be considered when deciding the transportation cost, which is also being discussed with the Ceylon Petroleum Corporation.

Sri Lanka slashed fuel prices with effect from Wednesday (29) midnight, Power and Energy Minister Kanchana Wijesekera said, after a protest by trade unions of state-run fuel retailer Ceylon Petroleum Corporation (CPC) resulting in queues at filling stations due to supply disruption.

The price of Petrol 92 Octane will be slashed by 15 percent or 60 rupees to 340, Petrol 95 Octane 95 will be reduced by 26.5 percent or 135 rupees to 375, Auto Diesel by 19.8 percent or 80 rupees to 325, and kerosene by 3.3 percent or 10 rupees to 295. (Colombo/ March31/2023)

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