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Thursday September 21st, 2023

USAID provides additional 65 million dollars in aid to Sri Lanka

ECONOMYNEXT – United States Agency for International Development (USAID) will provide an additional amount of 65 million US dollars (approximately 23 billion Sri Lankan rupees) in assistance for a period of five years, a statement issued by the US embassy said.

This funding has been given to Sri Lankan in addition to a previous funding of 60 dollars million (21 billion rupees) for humanitarian and fertilizer assistance, which was announced last week by USAID Administrator Samantha Power who was in the island on an official visit.

All USAID funding for Sri Lanka is provided as gifts or grants and is implemented by local and international organisations that adhere to strict monitoring standards, the statement said.

Sri Lanka is currently facing its worst ever currency crisis after rampant money printing and mismanagement.

According to the USAID statement, since 1956, the United States has provided 2 billion dollars (720 billion rupees) as development aid and assistance measures to Sri Lanka.

“The United States and the American people are proud of our enduring and robust partnership with the people and government of Sri Lanka. We remain fully committed to supporting locally led initiatives to advance a stable, prosperous, and peaceful Sri Lanka – critical to promote a free and open Indo-Pacific in which all nations are connected, prosperous, resilient, and secure,” US Ambassador Julie Chung was quoted as saying in the statement.

The aid aims to support Sri Lanka to advance market-driven growth, environmental sustainability and resilience, and good governance, the statement said. (Colombo/Sep21/2022)

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  1. Eva says:

    Don’t give any dollars to sri lanka because the Rajapakases will put their hands into this too. Enough they robbed the whole country that’s why the country is bankrupt.

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  1. Eva says:

    Don’t give any dollars to sri lanka because the Rajapakases will put their hands into this too. Enough they robbed the whole country that’s why the country is bankrupt.

Sri Lanka government to develop Arugam Bay tourism sector

ECONOMYNEXT – The Arugam Bay Tourism Development Plan, which focuses on challenges to infrastructure development in the area and obstacles hindering the growth of the tourism sector, was discussed by government officials and key stakeholders yesterday (20).

Participants from heads of relevant organizations, the Police and district officers met at the Presidential Secretariat to discuss how each institution could contribute to finding solutions to these challenges, the president’s media division said in a statement.

The main tourism plan for Arugam Bay, prepared by the Urban Development Authority (UDA) was presented by chief of presidential staff, Sagala Rathnayaka.

904,318 tourists visited Sri Lanka from January to August 2023, an increase from the 719,978 tourists that arrived in the country during the whole of 2022, statistics provided by the Sri Lanka Tourism Development Authority show.
“A tourist will spend an average of 185 -195 dollars a day,” Sri Lanka Tourism Development Chairman, Priyantha Fernando, told EconomyNext.

Sri Lanka’s government aims to attract five million tourists a year, and has mooted the establishment of an Investment Infrastructure Corporation, a decision-making council and regional committees under provincial tourism boards. (Colombo/Sep21/2023)

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Sri Lanka gets 19.23 mn US dollar grant from USA

ECONOMYNEXT – The United States yesterday (20) announced the commitment of more than 19 million US dollars in additional funds to further the development of Sri Lanka.

The 19.23 million US dollar (6.2 billion rupees) is obligated through the Development Objective Grant Agreement between the United States Agency for International Development (USAID) and the Sri Lanka government.

“This development assistance will support economic growth and democratic governance activities and demonstrates the ongoing US commitment to its partnership with Sri Lanka and in building lasting people-to-people ties,” a statement by the Embassy of the United States of America read.

“This investment demonstrates the United States’ ongoing commitment to our partnership with Sri Lanka and our steadfast support to the people of this stunning, opportunity-filled country, as USAID Administrator Samantha Power and President Wickremesinghe discussed in New York,” said Gabriel Grau, USAID Sri Lanka and Maldives Mission Director.

“With these funds we’ll continue to work with the government of Sri Lanka to improve economic growth and democratic governance and advocate for vulnerable populations.”

USAID is an independent agency of the United States government responsible for administering civilian foreign aid and development assistance.

The United States has provided more than 2 billion US dollars (nearly 720 billion rupees) in assistance to Sri Lanka since 1956. (Colombo/Sep21/2023)

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Sri Lanka’s 2022 EPF returns falls to lowest, single digit in near two decades – CB data

ECONOMYNEXT – The 2022 annual average return on Sri Lanka’s largest contributory pension scheme, the Employees’ Provident Fund (EPF), has fallen to its lowest in nearly two decades, Central Bank data showed.

The annual average return in the last year fell to 9.52 percent from the previous year’s 11.40 percent, a central bank response to a Right to Information (RTI) request showed.

Returns on EPF has raised concerns among contributors after the government decided to include EPF investments in the government treasury bonds under the domestic debt optimization (DDO) process.

Last year’s lower return has been recorded despite market interest rates being more than 30 percent towards the end of the year. In contrast, the fund has given a double digit return in 2020 when the market interest rates hovered in single digits.

Analysts have predicted the returns to be further low with the central bank opting for the government’s DDO option.

A central bank analysis on DDO showed the return on EPF could fall to as low as 6.79 percent if the DDO option was not chosen within the next 12 years as against 8.02 percent if opted for DDO.

Trade unions and some politically motivated fractions opposed the government move to include the EPF investments under the DDO. However, parliament approved the move early this month.

According to the data made available from 2005, the central bank, which is the custodian of the EPF, has given the highest return of 16.03 percent in 2009.

The island nation’s largest pension fund has almost 21-million member accounts including 18.3 million non-contributing accounts due to some members having multiple number of accounts.

The 3.38 trillion-rupee ($10.6 billion) worth fund as of end 2022 is managed by the central bank, including its investment decisions.

As of end 2022, the central bank has invested 3.23 trillion rupees or 95.7 percent of the total EPF in government securities, while 84.1 billion rupees has been invested in listed companies in the Colombo Stock Exchange, the central bank said quoting the EPF audited financial statement. (Colombo/September 21/2023)

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