An Echelon Media Company
Thursday April 18th, 2024

Sri Lanka BoI looks at rejected but reusable materials

ECONOMYNEXT – Sri Lanka discards 900 to 950 tons of plastic a day, yet is only able to collect 300-350 tons, Sri Lanka’s Central Environmental Authority (CEA) said at a Board of Investment event held last week.

“We throw away two thirds as we cannot collect it,” Chairman of the CEA, Supun Pathirage, said. “It is unfortunate that we have no means of collecting and repurposing it.”

“If this goes on, we will not eat the fish in the sea but the plastic in the sea,” Pathirage said. “Research has shown that there is microplastics even in breast milk today.”

Factories in the country are large producers of ‘waste’, or rejected but reusable materials, including plastic and polythene.

The CEA tied up with Sri Lanka’s Board of Investment (BoI) to increase the collection of these reusable or recyclable materials produced as a byproduct in factories. At present, most of these are incinerated or end up in dumps and landfills.

The BoI and CEA streamlined the unorganized disposal of redundant items from BOI enterprises by issuing licenses to entrepreneurial collectors which would allow them to collect redundant, obsolete and scrap materials for repurposing, possibly even re-export recyclable products.

The CEA registered 30,000 factories, with a 3,000 rupee permit given to a collector valid for one year.

Along with the permit, their businesses were registered and an income tax file was opened for each collector. The permits were issued to people who are currently working in this industry.

The CEA will issue permits to collect scrap materials only to those registered on this system, in the future. This would prevent the handling of scrap materials through various illegal methods, as license holders can get scrap material directly from factories without middlemen.

“There are 17 free trade zones in the country which come under the purview of the BoI. We are responsible for them, and everyone connected to them: everyone who works in them. One of the main reasons for disputes is the lack of structured organization (krama wath bavin thora veema),” State Minister of Investment Promotion Dilum Amunugama said at the event. (Colombo/Sep25/2023)

Leave a Comment

Your email address will not be published. Required fields are marked *

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published. Required fields are marked *

Sri Lanka’s discussions with bondholders constructive: State finance minister

ECONOMYNEXT – Sri Lankan authorities continue to engage all debt restructuring negotiations in good faith, within principles of equitable treatment among creditors, and with maximum transparency within the norms of such negotiations, State Minister of Finance, Shehan Semasinghe has said.

“It is standard practice, when a representative group of bondholders is formed, to entertain confidential discussions with such group and its appointed advisors. In the case of Sri Lanka, the Ad Hoc Group of Bondholders represents holders controlling more than 50% of the bonds, which make them a privileged interlocutor for Sri Lanka,” Semasinghe said on X (twitter).

“It is well understood that given the price sensitive nature of the negotiations, and according to market regulations, discussions with the Group and its advisors are to be conducted under non-disclosure agreements. This evidently restricts the ability of the Government to unilaterally report about the substance of the discussions.

“The cleansing statement, which was issued on the 16th of April, at the conclusion of this first round of confidential discussions with members of the Group, aims at informing the Sri Lankan people, market participants and other stakeholders to this debt restructuring exercise, about the progress in negotiations. It provides the highest possible level of transparency within the internationally accepted practices in such circumstances.

“As informed in this statement, confidential discussions held in recent weeks with bondholders’ representatives proved constructive, building on the restructuring proposals presented by both parties. During the talks both sides successfully bridged a number of technical issues enabling important progress to be made. Sri Lanka articulated key remaining concerns that need to be addressed in a satisfactory manner.

“The next steps would entail further consultation with the IMF staff regarding assessments of the compatibility of the latest proposals with program parameters. Following these consultations, we hope to continue discussions with the bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka’s EFF program.”

Continue Reading

Sri Lanka rupee weakens at 301.00/302.05 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 301.00/302.05 to the US dollar in the spot forex market on Tuesday, from 299.00/10 on Tuesday, dealers said. Bond yields were broadly steady.

A bond maturing on 15.12.2026 closed stable at 11.30/35 percent.

A bond maturing on 15.09.2027 closed at 11.90/12.05 percent up from 11.95/12.00 percent.

A bond maturing on 15.12.2028 closed at 12.10/20 percent down from 12.10/15 percent.

A bond maturing on 15.07.2029 closed at 12.25/40 percent.

A bond maturing on 15.03.2031 closed at 12.30/50 percent. (Colombo/Apr17/2024)

Continue Reading

Sri Lanka Treasury Bill yields down across maturities

ECONOMYNEXT – Sri Lanka’s Treasuries yields were down across maturities at Wednesday’s auction with the 3-month yield moving down 7 basis points to 10.03 percent, data from the state debt office showed.

The debt office sold all 30 billion rupees of 3-month bills offered.

The 6-month yield fell 5 basis points to 10.22 percent, with 25 billion rupees of bills offered and 29.98 billion rupees sold.

The 12-month yield dropped 4 basis points to 10.23 percent with 18.01 billion rupees of bills sold after offering 23 billion rupees. (Colombo/Apr17/2024)

Continue Reading