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Friday June 2nd, 2023

Sri Lanka’s land acquisition law must be changed to modernise agriculture: president

FARMING: A paddy farmer preparing a field on May 10 amid a curfews. Agriculture is expected to be almost normal.

ECONOMYNEXT – Sri Lanka’s land acquisition law must be changed to benefit large and small scale cultivators, President Ranil Wickremesinghe said , calling for the modernisation of agriculture.

“We have to ensure the security of the land. So we bring legislation where people who are given land will have the security of tenure. It cannot be taken away just by the government. There will have to be a process to be followed and a remedy in court, which is a guarantee you have for any land in Sri Lanka,” Wickremesinghe said speaking at an event in Colombo on Friday November 18.

“It will be equal to any freehold land that you have. The government’s land acquisition law has to be changed. Those we will do. Then we have to build up a new system, not merely for large-scale agriculture, but also for the smallholders.”

According to a study done by CropLife Asia, 25% of the farmers had considered leaving the industry due to the complexities posed while remaining in the sector such as a 67 percent increase in spending. Over 60 percent of farmers had to push prices.

Sri Lanka’s Land Acquisition law states: “Where the Minister decides that land in any area is needed for any public purpose, he may direct the acquiring officer of the district in which that area lies to cause a notice, to be exhibited in some conspicuous places in that area.”

Professor Buddhi Marambe of the Faculty of Agriculture at the University of Peradeniya told EconomyNext on October 29 that Sri Lanka is unable to invest in high product yield machinery for agriculture due to high cost of machinery and capital and Sri Lanka naming itself as a middle income country

“We downgraded ourselves and no one is willing to give us grants and loans,” said Marambe.

President Wickremesinghe has decided to keep the middle income status which has affected the ability for the country to seek assistance for the agriculture sector, the academic said.

After a controversial and poorly implemented fertilizer ban, Sri Lanka’s agriculture sector was left in tatters with low levels of yield.

“Modern and updated technology is costly. The yield we are achieving right now is all right, but the only way to boost the yield further would be through technology in agriculture,” said Marambe.

“Technology is not cheap and getting cheap technology would not bring up anticipated targets and return on investment.”

Sri Lanka is aiming for self-sufficiency by 2023 in rice and green gram.

“Self-sufficiency is a nice word to use but we should not forget that our people not only eat rice. Concentrating on one stream will not result in self-sufficiency. We should make sure the contribution of agriculture is maximised in terms of achieving food security.”

“Self-sufficiency is a political term and would be a great achievement, if it was met,” said Marambe. (Colombo/No19/2022)

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  1. sacre blieu says:

    A similar act was done Dudley Senanayake government, where a grow more food campaign was initiated. Many hundreds of acres of virgin jungle land were given to the private sector for such development. Instead, they were given even vehicle permits and the forests were cleared of prime valuable trees and sold for timber. Those vehicles were mostly seen in Colombo, and were a status symbol, so much so for the food.

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  1. sacre blieu says:

    A similar act was done Dudley Senanayake government, where a grow more food campaign was initiated. Many hundreds of acres of virgin jungle land were given to the private sector for such development. Instead, they were given even vehicle permits and the forests were cleared of prime valuable trees and sold for timber. Those vehicles were mostly seen in Colombo, and were a status symbol, so much so for the food.

Sri Lanka to ramp up weekend fuel deliveries after petrol price cut

More deaths reported at Sri Lanka fuel queues

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation will be operating on the weekend to complete all fuel deliveries to end vehicle queues forming outside fuel stations after the price revision earlier in the week, Energy Minister Kanchana Wijesekera said.

“Instructions have been given to CPC and Ceylon Petroleum Storage Terminals to continue fuel deliveries on Saturday and Sunday this week to supply sufficient stocks to all fuel stations,” Minister Wijesekera said in a TWITTER.COM MESSAGE

“To reduce expenses on overtime, CPC and CPSTL have not been operating on Sundays and public holidays in the last 4 months,” Wijesekera said.

“Non-placement of orders by fuel stations from last Saturday, anticipating a price reduction, not maintaining minimum stocks, immediate increase in demand by consumers after the price revision, and quota increase have created shortages in the fuel stations.”

The Minister in April 2023 said all fuel stations would be required to maintain a minimum of 50 percent of stock tank capacity.

“I have asked CPC to review and suspend the license of fuel stations that had not maintained minimum stocks.” (Colombo/ June 02/ 2023)

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Sri Lanka bonds yield up at close, rupee at 291.75/292.50 against the US dollar

ECONOMYNEXT – Sri Lanka’s bonds closed steady on Friday, dealers said, following the central bank’s decision to cut its main policy rate by 250 basis points.

The Spot US dollar closed at 291.75/292.50 rupees, dealers said.

The rupee opened at 290.25/75 to the US dollar Thursday and closed at 292.50/295.50 to the US dollar.

A bond maturing on 15.09.2027 closed at 24.70/90 percent up from 24.50/90 percent a day earlier, dealers said.

A bond maturing on 15.05.2026 closed at 25.75/26.25 percent up from 25.00/26.00 percent a day earlier.

A bond maturing on 01.05.2025 closed at 27.00/30 percent, up from 26.30/27.00 per cent at last close.

A bond maturing on 01.07.2032 closed at 20.25/21.00 percent, up from 20.00/40 per cent at last close.
(Colombo/ June 02/2023)

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Sri Lanka’s shares edge up on positive macroeconomic sentiments

ECONOMYNEXT – Sri Lanka’s shares closed higher in trade on Friday, over positive macro-sentiments encouraging investors to redeem their interest towards buying, an analyst said.

The main All Share Price Index was up 0.72 percent or 62.19 points to 8,753.80,  while the most liquid index S&P SL20 was up 0.68 percent or 16.87 points to 2,487.29.

Sri Lanka’s inflation in the 12-months to May 2023 has eased to 25.2 percent from 35.3 percent a month earlier according to a revised Colombo Consumer Price Index calculated by the state statistics office.

Prior to the Monetary Policy investors were quite optimistic that inflation is to lower and interest rates will decrease and since exp, an analyst said.

Sri Lanka Central Bank is waiting for the government proposal on the domestic debt restructuring (DDR), the central bank governor Nandalal Weerasinghe said amid uncertainty over DDR and speculations over instability in the banking sector.

“On debt restructuring, the borrower is the ministry of finance’s treasury. Certainly we will announce what the strategy will be. We are waiting for a government proposal,” Weerasinghe said.

Sri Lanka’s investors are waiting on assurances to be made on debt restructuring and optimization, Central Bank Governor Nandalal Weerasinghe said, “It is up to the government to clear the uncertainty, because from our side we have done that part.”

The central bank cut the key policy rates by 250 basis points to spur a faltering economic growth as inflation was decelerating faster than it projected.

The speculation of DDR has hit the market and the risk premium has kept the market lending rates well above the central bank’s policy rates. The government has yet to present its plans on DDR.

Weerasinghe said the central bank has done its best to reduce the risk premium through bringing down the market lending rates while keeping the policy rates unchanged.

Sri Lanka’s President Ranil Wickremesinghe has discussed progress of International Monetary Fund program and debt restructuring during a visit of Deputy Managing Director Kenji Okamura, statement said.

“The discussion primarily focused on the progress of the IMF program between Sri Lanka and the IMF,” a statement from President’s office said.

“Attention was also paid to the on-going debt restructuring negotiations.”

However Officials from IMF have said Sri Lanka has to focus on expanding taxes.

“We discussed the importance of fiscal measures, in particular revenue measures, for a return to macroeconomic stability,” Deputy Managing Director Kenji Okamura said in a statement.

The finance ministry this week issued rules requiring everyone above 18 year of age to register to pay income tax.

“I was encouraged by the authorities’ commitment to negotiate a debt strategy in a timely and transparent manner.

The market generated a revenue of 738 million rupees, while the daily average was 1 billion rupees.

Top gainers in trade were Vallibel One, LOLC Finance and Browns Investment. (Colombo/June02/2023)

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