Introduction to Sri Lanka

They are using taxpayers money to profit for themselves..Oh well..If I ever get there, money seems to be in soft commodities (agricultural) and IT....
* U.S. to support dairy industry in Sri Lanka's Eastern Province
Wed, Jan 20, 2010, 01:09 pm SL Time, ColomboPage News Desk, Sri Lanka.
http://www.colombopage.com/archive_10/Jan1263973177CH.html

Jan 20, Colombo: The United States Agency for International Development (USAID) has signed an agreement with a major farmer society in Batticaloa District of the Eastern Province to expand the milk production in the East and raise the incomes of 1,200 participating farmers.

A press statement issued by the U. S. Embassy in Colombo said the USAID is partnering with the Manmunai West Livestock Breeders Cooperative Society to increase the quantity and improve the quality of milk production in 24 villages.

The USAID will provide the necessary training and technical assistance to the Farmers to improve milk production. (Low Tech knowledge transfer ?? LOL)

The project will also link farmers to the dairy industry and ensure that local farmers have a consistent buyer for their milk at fair prices, it said.

Announcing the project the USAID Mission Director, Ms. Rebecca Cohn, said, the agency is supporting the dairy sector in the East because the dairy industry has a tremendous potential, both to individual farmers and to the national economy.

"Sri Lanka imports about 80 percent of the milk consumed here, so there is a large domestic market for increased domestic milk production. Farmers who produce high quality milk need to be connected with the milk processors so they can sell more milk at higher prices, increasing their incomes and bring more economic activity to their communities," Ms. Cohen said.

* Japan grants 36 million rupees to construct bridges in Sri Lanka's Eastern Province
http://www.colombopage.com/archive_10/Jan1263972078CH.html

Wed, Jan 20, 2010, 12:51 pm SL Time, ColomboPage News Desk, Sri Lanka.

Jan 20, Colombo: The Government of Japan has provided a grant of 36 million rupees for a project to prepare detailed designs for the construction of 5 bridges in the Eastern Province of Sri Lanka.

The Japanese Embassy in Colombo, in a press statement said that most of the infrastructure including roads in the Eastern Province was badly affected by the conflict in the past 30 years and the 5 bridges proposed to construct under the Japanese aid would contribute to the Sri Lankan government's rehabilitation program and improve the living conditions of the people in the Province. (yea, everthing in the name of people. Globalists are running a charity organization.)

The money is to be used to prepare detailed designs for the construction of five bridges that were constructed during the colonial period and are over 50 years old. (Did I mention Sri Lanka has oil ?? Be on the lookout for completion dates.)

The five bridges are include the Panichchankeni Causeway and a bridge on A 15 (Batticaloa -Trincomalee) road and 4 other bridges namely 240/4 bridge, Mundeni River Bridge, Pulavady Bridge and 287/7 Bridge on the Peradeniya-Badulla-Chenkalady Road.

The Road Development Authority under the supervision of the Ministry of Highways and Road Development will implement the project.

Japanese Ambassador in Sri Lanka Kunio Takahashi and the Finance Secretary, Dr. P.B. Jayasundara Tuesday signed the grant agreement at the Ministry of Finance and Planning.

Once big corporations gain foothold in a third world country, they will introduce gene-modified foods. No surprise here. Tea prices have shot up recently...hmm..
http://www.atimes.com/atimes/South_Asia/LA20Df03.html
Drought and Disease Resistant Tea Plants Introduced to Sri Lankan Tea Plantations
http://www.allabouttea.co.uk/tea-news/drought-and-disease-resistant-tea-plants-introduced-to-sri-lankan-tea-plantations/195619
By Phillip Hogan
January 20th, 2010
Posted in Tea in the News

Sri Lanka’s Tea Smallholding Authority introduces two new varieties of modified tea plants in order to tackle increased global demand for purity and in an attempt to put an end to the damage caused by adverse weather conditions.

Tea plants belonging to the Tea Research Institute’s (TRI) 3000 and 4000 series have been introduced to tea plantations belonging to the Tee Shakthi Factory of Mawarala in a bid to meet the demands of the changing tea industry within the country. The modified plants, which were created using advanced breeding techniques and by using molecular biological screenings, are resistant to drought and disease and are reported to produce a better crop yield than other varieties.

It is hoped that cultivators can harvest cuttings of the modified tea plants from the Tee Shakthi estates in a bid to propagate their own nurseries with the new species.

Smallholder cultivators have been provided with 165,786 cuttings by the Tee Shakthi estates.

Climate change has affected Sri Lanka’s tea industry greatly; unpredictable weather conditions such as severe drought and extended periods of frost and cold weather have damaged the country’s tea outputs. Reduced production output has had severe consequences for a country that caters for a number of specialist, seasonal teas.

Sri Lanka is home to Dimbula and Uva teas which are sold for higher prices at auction. These teas do not last long in dry or frosty conditions as their distinctive characteristics are completely depend upon reliable weather patterns. Without this the entire crop can be rendered un-usable.

Dimbula teas are produced from January to March in Sri Lanka and require cold mornings followed by hot days in order to reach their full potential. Even a slight change in temperature can affect the quality of the tea.

Sri Lanka's central bank has pulled back from plans to allow a free flow of foreign currency in and out of the country after concerns were raised that the change could let government officials send ill-gotten cash overseas before the upcoming hotly contested presidential election. - Feizal Samath
(Looks like PPT withdrew large sum of capital. Sri Lanka government is fighting back.)
Sri Lanka drops plan to relax forex rules
By Feizal Samath
http://www.atimes.com/atimes/South_Asia/LA21Df02.html
COLOMBO - Under pressure over accusations that ill-gotten money would be siphoned out, Sri Lanka's central bank has put the lid on a plan to allow a free flow of foreign currency in and out of the country.

In a move that was welcomed mostly by the business community, the central bank on January 4 said it planned to allow the unhindered flow of foreign exchange, which would enable anyone to open bank accounts abroad or send money out freely.

That, however, triggered an uproar among the supporters of General Sarath Fonseka, the main opposition candidate in the January 26 presidential poll. They claimed the move was designed to allow the administration's officials, anticipating defeat in the elections, to move tainted or ill-gotten money out of the country.

The central bank governor, Ajith Nivard Cabraal, told Inter Press Service over the weekend that due to the political furor, the plan had been put on hold until the elections were over.

"There was an unnecessary political uproar over the relaxation of foreign exchange rules, which has been happening over the years," said Cabraal. He said banks and big businesses welcomed the move, saying it was good for investment purposes and those who regularly traveled abroad.

President Mahinda Rajapaksa, who is seeking a second term in office, has called a poll two years before the end of his six-year term, which began in 2005. The decision was prompted by his soaring popularity in the immediate aftermath of the defeat in May 2009 of Tamil rebels, who had been fighting for independence and self-rule for nearly 30 years.

However, the president's former army commander, Fonseka, who led the troops to victory, turned against him over many disagreements and was thrust into the hustings as a presidential candidate.

Backed by several opposition parties and, unofficially, sections of the military, Fonseka has become the president's nightmare, with support for the former commander swelling in the past few weeks, threatening the latter's chances.

While Rajapaksa banks on winning the war as his trump card to secure a second term, Fonseka is also claiming success in the war while accusing the incumbent president and his family of corruption. He has vowed that if elected, he will bring down the high cost of living and set up an anti-corruption body with broad powers.

The move to liberalize foreign exchange controls follows an improvement in Sri Lanka's foreign exchange reserves in recent times, from a dismal position in late 2008 to early 2009, which saw huge outflows due to the global financial crisis.

Some US$600 million was withdrawn by foreigners who had bought Treasury bonds from the central bank, sending reserves sliding to just enough to finance 1.7 months of imports, compared with an average six months of imports in previous years.

Sri Lanka is self-sufficient in rice, the staple food, but depends on imports for fuel, wheat flour and sugar, among other essentials.

Subsequently, through a series of measures, including curbs on imports and increased remittances from Sri Lankan migrant workers in the Middle East, the sale of Treasury bonds and the grant of an International Monetary Fund (IMF) bailout package worth $2.6 billion, foreign reserves have gradually improved to $5.2 billion, translating into 6.3 months of import cover by the end of November 2009.

Over the past three decades, the country has been moving on the path of a gradual relaxation of controls on the outflow of foreign exchange, while caution has been exercised when it comes to full liberalization.

Sarath Fernando, a veteran campaigner for the rights of peasants and convenor of the non-governmental organization Movement for National Land and Agriculture Reform, said Sri Lanka must exercise restraint in freeing the foreign exchange market.

"When the East Asian crisis happened some years back, Sri Lanka escaped the impact because of our controls. By allowing a free flow of currency, there is a danger of a lot of money going out," he said. If that happened, he said, "There was a possibility of many people losing jobs because investors will take the money out when they want and as they like."

Other experts have also cautioned the central bank against the free flow of foreign exchange, saying it should be done only after a comprehensive study is undertaken.

W A Wijewardene, a recently retired deputy governor of the central bank, said that while the dismantling of barriers to the free flow of foreign exchange had been a gradual process and needed to be done, more discussion was needed.

"There is no fiscal discipline in the government, which has a huge budget deficit, and traders import all kinds of luxury goods [which are unnecessary], and that could drain the reserves," he said in an interview with IPS.

Relaxation of foreign exchange regulations has always been in the cards under successive governments since Sri Lanka's shift to an open market economy in 1978. But the biggest concern in opening the doors to an unrestricted flow of foreign exchange is the likelihood that fund outflows would be far greater than the inflows.

A senior economist attached to a local think-tank, who declined to be named, said the concern was essentially in the context of the fundamentals of the economy.

Budget deficits, estimated at 7% to 8% of gross domestic product, are still unmanageable and foreign reserves are mostly from "hot" capital, or foreign speculative funds that go into the Treasury bond and Colombo stock markets, and other "borrowed" sources, which can be quickly repatriated, as happened in early 2009, when foreign investors took out their money invested in Treasury bills. (PPT in action. Dumping local assets to rescue the USD)

The economist explained that the problem in Sri Lanka was that government spending was dictated by politics and not by economic considerations. "The moment you have a kind of structure where politics dictates what you do, then nothing is certain, and in this case, the free movement of foreign capital can be a negative development," he said. (It is the same in every country, Politics)

The IMF's representative in Sri Lanka, Koshy Mathai, welcomed the central bank's initial plan to ease the rules on foreign exchange, saying it was a good idea to streamline the exchange control regime to facilitate both outward and inward capital flows and boost investor confidence.

On the concern about huge outflows of foreign exchange, "It is intrinsically difficult to predict the impact of such measures on reserves, and it thus seems sensible to attempt these reforms at a time when reserves are healthy," Mathai told IPS.
However, in November last year, when newspaper reports hinted of a possible dismantling of the foreign exchange rules, the local office of international governance watchdog, Transparency International (TI), urged Rajapaksa to ensure that proper governance mechanisms were in place to forestall capital flight or large-scale outflows. (Countries usually depreciate their respective currencies to prevent capital from leaving their countries.)

TI Sri Lanka executive director, JC Weliamuna, raised the concern in the context of large-scale scams in the financial sector between late 2008 and mid-2009, when some financial services companies that collected millions of rupees in deposits from the public at high interest rates collapsed, prompting their owners to flee abroad with the money.

A string of other finance companies connected to the Ceylinco Group, one of Sri Lanka's largest conglomerates, also crashed when depositors began pulling out money, fearing similar collapses. The group's chairman was placed on remand for several months for alleged mismanagement as the organization struggled to return the money of some 30,000 depositors.

The beleaguered chairman's wife, who was deputy chair of the group, fled abroad and is being sought by police.

List of tallest structures in Sri Lanka
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The following are the names and details of the tallest buildings and structures in Sri Lanka. Most of them are constructed in Colombo, the commercial capital of Sri Lanka. Buildings with over 20 floors, and structures over 50 m (160 ft) are listed below.
http://en.wikipedia.org/wiki/List_of_tallest_buildings_in_Sri_Lanka
[edit] List of tallest buildings in Sri Lanka (with their completion dates )



The two WTC towers on the right, and the BOC tower on the left.

Phase-1 of the Havelock City Project under construction.

The Beira Lake, with the two WTC twin towers on the right, and the cylindrical BOC tower on the left, in the far background

Just read the completion dates via the following link:
http://en.wikipedia.org/wiki/List_of_tallest_buildings_in_Sri_Lanka

holy shit..they have twin towers?

Even though it is rather a small sum of money...but, best keep an eye on completion dates.
Phase 1 of Omanthai Railway Station to be completed by April 5
Thu, Mar 11, 2010
http://firstlanka.com/english/news/phase-1-of-omanthai-railway-station-to-be-completed-by-april-5/

Deputy Minister of Social Services Lionel Premasiri said that they hope to finish construction of the 200-metre long railway platform within a few weeks. Once construction is finished, a special train will set out from Thandikulam to Omanthai declaring the station open.

The Minister said they will be able to complete some of the work ahead of schedule. He said 3.6 million rupees was allocated for the initial stage but that only 1.6 million rupees had been spent.

More infrastructure upgrade....
India assists SL to upgrade Colombo – Matara railway line
Thu, Mar 11, 2010

The Indian High Commission, Colombo in a Press Release dated March 10,2010 states that India has extended US$ 67.4 million Line of Credit to Sri Lanka for the upgradation of Colombo-Matara Railway Line.
A Line of Credit Agreement for US$ 67.4 million was signed between Government of Sri Lanka and Export-Import Bank of India earlier today. The Agreement was signed by Dr. P.B. Jayasundera, Secretary, Ministry of Finance and Planning and Mr. Prabhakar Dalal, Executive Director, Export-Import Bank of India in the presence of H.E. Mr. Ashok K.Kantha, the High Commissioner of India in Colombo. The Line of Credit will fund the Second Phase of the Upgradation of Southern Railway Line from Colombo to Matara. The Government of India, through the Export-Import Bank of India, had earlier provided a Line of Credit of US $ 100 million under an Agreement signed in July 2008. The implementation of the First Phase of the Upgradation of the Southern Railway Line is currently ongoing.

Sri Lanka is a country with plenty of natural resources and cheap labor. Hence Global powers are updating their infrastructure.....
Chinese representatives discuss road development projects in Jaffna
http://www.tamilnet.com/art.html?catid=13&artid=31340

Two Key representatives of Chinese government who visited Jaffna Thursday met Jaffna Government Agent, K. Ganesh at Jaffna Secretariat and discussed the projects of broadening five main streets in Jaffna peninsula with Chinese aid, sources in Jaffna said. The representatives, along with the GA and the Director of Planning, inspected the Pa’n’nai causeway bridge located on Jaffna-Oorkaavattu’rai road which had not seen maintenance or repair in the last 30 years due to war. The projects of broadening of Jaffna-Oorkaavattu’rai road into a two-way street and the renovation of the bridge on it have been prioritized, Jaffna Secretariat sources said.

And I thought Malaysia has cheap labor !! LOL..Even developing countries are outsourcing to Sri Lanka...
Sri Lanka gets Malaysian motorcycle plant
http://www.lankabusinessonline.com/fullstory.php?nid=1726520508

Mar 11, 2010 (LBO) - Malaysia's DNC Asiatic Holdings is to set up a plant to make motorcycles in Sri Lanka mainly for export with an investment of 16 million US dollars, the island's investment promotion agency said.
The Board of Investment said in a statement the venture, Demak Manufacturing Lanka, will provide employment for a workforce of 200 people initially.
“The production would be mainly targeted for the export market while the products would also be available locally,” it quoted Kent Kee, director, commercial operations of Demak Manufacturing Lanka, as saying.

everyone chases the cheapest labor around..

First War, then infrastructure upgrade..cool..thanks Seeker..
Sri Lanka: A Cinderella Story
http://www.cnbc.com/id/15840232?video=1573360779&play=1

Airtime: Mon. Aug. 23 2010 | light e) ET
Roman Scott, managing director at Calamander Capital, is bullish on Sri Lanka's consumer, agribusiness and tourist sectors. He tells CNBC's Oriel Morrison that the South Asian nation has outperformed ASEAN economies over the last 6 years.

i guess if vietnam wages go high they will swap over to sri lanka??

What the globalists like about Sri Lanka ?? Oil and agriculture..And yes you are correct..

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