Sri Lanka to present Economic Transformation Bill | EconomyNext
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Monday May 27th, 2024

Sri Lanka to present Economic Transformation Bill

ECONOMYNEXT – A proposed Economic Transformation bill will be gazetted shortly, cabinet spokesman Minister Bandula Gunawardena said.

“The Legal Draftsmen has prepared the formal draft bill, including the revisions suggested by the Attorney General, which will be published in the government gazette notification.”

It will subsequently be presented to the Parliament for its concurrence.

The bill will establish an economic commission, investment zones and international trade office, Gunawardena said earlier.

“The bill contains structural, quantitative, and qualitative changes to support future economic development,” Minister Gunawardena has said.

The bill is part of a series of drafted laws that are to reform Sri Lanka’s legal framework, to meet the requirements for the International Monetary Fund’s Extended Fund Facility program. (Colombo/May14/2024)

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Sri Lanka making new economic laws to embed structural reforms
Sri Lanka economic transformation bill to establish commission, investment zones

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Sri Lanka govt to take over tea estates that don’t increase worker wages

ECONOMYNEXT — All estate owners in Sri Lanka should implement the decision to increase the plantation workers’ wages to 1,700 rupees from June and those that fail to do so will be taken over by the government and handed over to others who will manage them properly, Labour Minister Manusha Nanayakkara said.

Small tea estate owners are already paying more than the prescribed minimum wage and there is a problem related to increasing these wages in the regional estate companies which have been transferred to the private sector from the government, a statement from the ministry quoted Nanayakkara as saying.

President Ranil Wickremesinghe has told the cabinet of ministers that a bill must be drafted to take over the estate companies that do not implement the minimum wage and “give them to those who can implement them properly”, the statement said.

Separate discussions have been held with estate owners and labour unions, and because the parties could not reach an agreement, the ministry had convened the Wage Boards, said Nanayakkara.

“In the first instance, the estate owners did not attend, and they officially informed us that they would not participate in the second session. Therefore, as a last resort, we proposed a wage of 1,700 rupees, inclusive of a basic wage of 1,350 and a 350 rupee allowances, based on the legal provisions we have. We gazetted this on April 30 and May 1, giving the relevant parties 15 days to file objections,” he said.

“Since no substantial objections were received, the Department of Labour, the government, and I, as the Minister of Labour, finalised the notification last Thursday,” he added.

President Ranil Wickremesinghe had requested owners on numerous occasions to raise the wage, said Nanayakkara, in a bid to uplift the tea industry.

“When this country fell during the time of COVID-19, the estate workers made a great sacrifice because they could not have a meal of rice, a roti, or drink plain tea.  The President repeatedly urged the estate owners to provide a reasonable wage to the workers. However, since we did not receive a satisfactory response, we took this decision. All estate owners will now have to pay this minimum basic wage,” he said. (Colombo/May27/2024)

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Sri Lanka’s Ceylinco Insurance changes name

ECONOMYNEXT – Sri Lanka’s Ceylinco Insurance Plc has changed its name to Ceylinco Holdings Plc, the company said in a stock exchange filing.

The largest private sector insurance company in Sri Lanka, the company offers insurance, education, hydropower, healthcare and financial services.

The company was included in the S&P SL20 in June 2018.

The share closed flat at 2,500.00. (Colombo/May27/2024)

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Sri Lanka rupee closes weaker at 300.50/70 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee depreciated slightly to close at 300.50/70 to the US dollar on Monday, from 300.10/30 the previous week, dealers said. Bond yields were slightly up.

A bond maturing on 15.12.2026 closed up at 9.90/10.05 percent from 9.85/10.00 percent.

A bond maturing on 15.09.2027 closed up at 10.30/40 percent from 10.25/40 percent.

A bond maturing on 01.07.2028 closed up at 10.80/95 percent from 10.70/80 percent.

A bond maturing on 15.01.2030 closed up at 11.60/80 percent from 11.55/70 percent.

A bond maturing on 01.10.2032 closed up at 11.85/12.05 percent from 11.75/90 percent. (Colombo/May27/2024)

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