Sri Lanka finished in fourth place of the Nations Cup netball championship as they went down fighting against formidable Papua New Guinea 60-48 in their match played at Toa Sports Hall, Singapore on Saturday.

Sri Lanka’s best player, Gayani Dissanayake is about to shoot a goal with two Papua New Guinean players making a vain attempt to foil her in the third place play off the Nations Cup tournament in Singapore yesterday which Papua New Guinea won 60-48. Pic: Prince Gunasekara

The unranked Uganda stunned the netball world thrashing hosts nation Sinagpore by 52 goals to 29 in the final worked off on Saturday at the same venue. Uganda, had already beaten Singapore in the round-robin stage and hosts suffered two consecutive defeats against the unranked African nation.

Sri Lanka’s best performance in the Nations Cup tournament, is the fourth place in the previous championship and had to be satisfied with the same result in the eighth edition of the six-nation tournament this year.

Sri Lanka fielded an inexperienced squad with several new players and it was visible that in the round robin stage, in the previous match, Lankans were storming towards the end of the second quarters, but showed a pathetic display in the third and fourth quarters, handing over the game to Uganda 75-38 on Friday.

At the end of the first quarter, Sri Lanka were leading 14-13. Papua New Guinea, giving a spirited fight back led the way towards 16-12 lead at the end of the second quarter. In the decisive fourth quarter, Papua New Guinea stormed to victory ending the quarter 20-9. Papua New Guinea won the match 60-48 winning the third place of the one-week tournament.

Sri Lanka’s unstoppable goal shooter Tharjini Sivalingam scored 42 goals in 47 attempts while Semini Alwis recorded six goals in nine attempts. Due to Lankans’ failure in passing the ball, Papua New Geniua succeeded 62 times in 79 attempts. It was interesting that Lankan goal shooter Tharjini Sivalingam, goal attacker Semini Alwis, centre Thilini Wattegedara, wing attacker Marisha Fernando, goal defender Gayani Dissanayake, goal keeper Thisala Algama and wing defender Naujali Rajapakse were competing without any replacements throughout the game.

After, winning the fourth place of the championship, Sri Lanka coach Somitha Alwis said that she was happy with Lankans’ performance. As the team comprised inexperienced players, who had a short period of training at home before the tournament.

“We played a brilliant game of netball. I am happy on inexperienced players’ performances and it was visible that the lack of experience and lack of training deprived us going further. We hope to give a much better display in next year’s championship,” Alwis said.

Economy navigates market turbulence

IMF sources last week said that Sri Lanka’s economic outlook and Budget 2014 are positive.

The economy continues to move forward, and has navigated recent market turbulence well.

Overall GDP growth has been solid, said permanent representative of the IMF in Sri Lanka, Koshi Mathai at a media briefing in Colombo.

He said that the consistency in policies, tax proposals, deficit reduction focus and the overall budget is positive.The media briefing was held after the conclusion of IMF Executive Board Ex-Post Assessment of Exceptional Access under the 2009 Stand-By Arrangement and First Post-Program Monitoring Discussion with Sri Lankan officials. According to the IMF assessment, Sri Lanka’s economy continues to move forward, and has navigated recent market turbulence well.

Overall GDP growth has been solid, but recent indicators underline some areas of concern. Trade activity has been slow to pick up, tax revenue and public spending (including capital expenditure) are relatively low, and private sector credit growth has been declining.

It projects real GDP growth of 6.5 percent for 2013, somewhat below the authorities’ forecast of 7 to 7.5 percent. Headline inflation fell to 6.2 percent in September 2013, from 9.2 percent at end-2012. Base effects have been an important factor, but pressures appears to be easing, consistent with more moderate economic growth and lower food prices.

The assessment projects end-2013 inflation at 7 percent. Risks to the inflation outlook stem mainly from potential upward shocks to world commodity prices and lagged effects of monetary easing.

The external position improved during 2013. Imports and exports slowed in the first half of 2013, reducing trade deficit. Exports have since started to pick up, while tourism receipts and inward remittances remain strong. This is expected to contribute to a projected 1½ percent of GDP reduction in the current account deficit in 2013, and broadly stabilise gross reserves.

Fiscal consolidation is facing headwinds. Despite some important tax reforms introduced in 2012, and the 2013 extension of the VAT to the retail and wholesale sectors, revenue performance has been weak thus far in 2013.

To some extent, low revenue reflects the weaker imports, but the numerous tax exemptions and tax administration weaknesses remain the important causes of lower-than-expected revenue.In response to the revenue shortfall, the authorities have kept spending under tight control and are committed not to exceed 5.8 percent of GDP 2013 deficit target. In Budget 2014, they are targeting a further deficit reduction, to 5.2 percent, based on continued restraint of current spending and steps to broaden the tax base.

During 2013, monetary policy has been progressively eased. In October 2013, citing benign inflation outlook and the desire to stimulate the economy to reach higher growth in 2014, the Central Bank of Sri Lanka (CBSL) cut policy rates by 50 basis points.

This followed the 50-point cut in May 2013 and a reduction of reserve requirements by two percentage points at end-June. The easing of monetary policy throughout the year has been slow to feed through to bank lending, and private credit growth has continued to slow.

As of June 1, 2013, the CBSL increased the reserve maintenance period of commercial banks from one week to two weeks, to allow greater flexibility in liquidity management, and further relaxation of foreign exchange regulations with effect from June 12, 2013.

The condition of the banking system has improved, and the Financial Sector Assessment Program update last year found that significant progress has been made in strengthening banking supervision.

Vulnerabilities still exist— expressed in the recent rise in nonperforming loans. The recent shift from concessional and bilateral loans to external borrowing by banks and private entities raises the risks to external sustainability.

The Executive Directors welcomed the opportunity to review macroeconomic and policy developments as part of post-program monitoring and the ex-post evaluation of exceptional access under the 2009 Stand-By Arrangement.

The directors were encouraged by Sri Lanka’s strong growth and moderating inflation, and by the economy’s resilience in the face of recent market turbulence. However, vulnerabilities remain, stemming from high debt and declining government revenues relative to GDP.

The directors commended the authorities’ commitment to fiscal consolidation. They welcomed ongoing expenditure restraint, but cautioned against further cuts in capital expenditure to meet fiscal targets.

They underlined the importance of putting tax revenues on an upward trajectory. They emphasised the need for further improvements in tax policy and administration, including elimination or rationalisation of exemptions and holidays.

The Directors said that the flexible exchange rate regime has acted as a buffer to external shocks, and welcomed the Central Bank’s move to a less active intervention strategy. In view of the risks of further market turbulence ahead, they emphasised the need to allow time for the effects of monetary policy to feed through to private credit and money growth before considering a further easing.

The Directors noted progress in financial sector development, and efforts to strengthen supervision and regulation.

Drop in gold prices hits pawning industry

The gold jewellery pawning sector in the country has been adversely affected following the drop in gold prices in the world market triggered by the shift in demand to other assets.

The price of a gold sovereign slumped from around US$ 1,800 to around US$ 1,200 last week causing problems for banks and financial institutes which grant loans on a percentage of the value of the precious metal. Certain banks and financial institutions will incur considerable losses due to the drop in gold prices. Rating agencies and economic analysts said that the recent drop in gold prices could turn out to be risky for Sri Lanka's banking industry as the non-performing loans (NPLs) in the pawning (or gold-backed) loans sector could increase.

The Finance Company PLC, Chairman Preethi Jayawardena said that the pawing business of the company has been affected badly due to the sudden drop in gold prices. He said that they will have to auction jewellery that has been pawned, at market prices.

Analysts said that many customers who had pawned their jewellery are not keen to redeem them as they could purchase gold at a lower price and convert them into jewellery.

TFC's exposure in the pawning sector is little over Rs.1 billion. We give around 80 percent of the value of the gold at pawning, Jayawardena said.

Experts in the sector said that it is the big players such as the State banks that will be affected badly rather than those with less exposure.

Gold merchants are said to gain in the long-term following the drop in gold prices.

The price of gold will stabilise to around Rs. 41,000 a sovereign and with the festive season around the corner the demand for gold will rise, a merchant said.

There will be a slight drop in prices of the precious metal due to the reduction in import duty, gold merchants said. They said that there will not be a major drop in prices as production cost is high.

Sources at Swarnamahal Jewellers said that the price of a gold sovereign will drop by around Rs. 5,000 following the reduction in import duty. The import duty on gold was slashed last week from 10 percent to 7.5 percent to spur sales. The price of a gold sovereign is Rs. 43,500.

Experts said that the expansion in gold backed loans by banks and financial institutions when gold prices shot up has exposed the banking sector to higher risk with the sudden slump in prices. A Standard and Poor's report said that it expects default in pawning loans to increase in the next 12 months unless clear signs of gold prices stabilising emerge. It said that nevertheless, banks’ overall earnings will offer sufficient cushion against higher credit costs in the pawning segment.

According to the report, pawning loans in Sri Lanka have grown with the steady rise in gold prices due to the zero risk weight on pawning loans in the calculation of regulatory capital ratios, and the absence of restrictions on loan-to-value ratios.

A spokesman for Edirisinghe Trust Investments Ltd (ETI) said that the company's pawning business has dropped to around 85 percent due to the drop in gold prices. He said that if the cost is not covered at auctions the company will repurchase the assets and convert them to 24 carat gold and sell them through Swarnamahal Jewellers as new jewellery to cover the advance and cost.ETI's pawning base is around Rs 6 billion. Last year is was Rs. 6.5 billion. The company has reduced the loan to value ratio from around 60 percent to 50 percent due to market fluctuations. “We give discounts up to 50 percent of the value or convert it into a term loan of six months to one year for jewellery that has sentimental value,” the spokesman said.

Pan Asia Bank, Deputy General Manager - Retail Banking and SME, Irishad Ally said that there will not be a major impact on earnings from pawning due to the drop in gold prices as the bank identified the issue early and took steps to minimise the impact. He said the bank's pawning base is around Rs. 6.8 billion.

He said that customers who have pawned jewellery which has sentimental value will redeem them than the assets that has no emotional value. “We expect the price of gold to stabilise and the industry to be back on track shortly,” he said.

Gold jewellery makers said that they will not be affected, as jewellery is made on orders.

Pattakannus, Chairman and Managing Director S.A. Thiagarajah said that the drop in gold prices will affect those who hold a large inventory. He said that the impact will be felt when banks sell the current stocks and import new stocks. The price of a gold sovereign rose to Rs. 60,000 in 2012. He said that the price of a gold sovereign rose from Rs. 300 to Rs. 700 overnight in 1971. The demand for gold fluctuates according to the strength of the dollar. When the dollar is strong the demand for gold declines.

Sharp increase in cannabis users

The growing number of cannabis users, has now resorted to trafficking the drug illicitly using public transport to avoid arrest, a spokesperson for the National Dangerous Drugs Control Board said.

“This trend has been seen in recent years as the number of cannabis users has increased islandwide”, Assistant Director NDDCB Ms Badhrani Senanayake, told the Sunday Observer.

Her recently released report on the drug situation in Sri Lanka, says that compared to 2011, the number of cannabis related arrests increased by 11 percent last year, with the prevalence rate of 184 per 100,000 population in 2012.

The Western Province leads the number of cannabis arrests by a significant margin. According to statistics quoted in the report, 61 percent of the cases were from the Western Province, followed by 11 percent in the Southern Province and 6 percent in the Eastern Province. District-wise 50 percent of cases were from Colombo, followed by 7 percent from Gampaha and 6 percent from Hambantota.

Cannabis is reportedly the only plant (drug) cultivated illicitly in Sri Lanka on an estimated 500 hectares, mostly in the dry zones of the Eastern province and southern province.

Recently seized cannabis show that modern agriculture methods are being used. “A more potent variety of cannabis with more flowering tops is now becoming popular especially among young users”, the NDDCB spokesperson said, adding that the growing incidence of cannabis users in Sri Lanka was noted from 2008”. “Cannabis constitutes a major problem in Sri Lanka”, she said.

She said that heroin users were now shifting from Colombo to remote towns and rural areas. The use of opium however, was low with only three arrests since this drug is given only to ayurvedic physicians in government hospitals for medicinal use, the spokesman said.

President Rajapaksa to attend funeral

President Mahinda Rajapaksa is expected to attend South African president Nelson Mandela's funeral next week.

The President accompanied by External Affairs Minister Prof. G.L. Peiris will travel to South Africa on their return from a pre-planned official trip to Kenya from December 10 to 14, official sources said.

According to foreign media reports the revered South African leader who died at the age of 95 is expected to be buried on December 15, in the hilly areas of Qunu where he grew up.

South Africa's Government announced that Nelson Mandela's funeral cortege will travel through the streets of the capital Pretoria on three consecutive days for people to pay their last respects.

The Government has planned a ten day remembrance in honour of the departed leader before the funeral on Sunday.

According to reports South Africa is readying itself to receive a flood of world leaders for the funeral and among those expected to be present are US President Barak Obama, the US first lady Michelle Obama and former first couple George W Bush and Laura Bush.

South Africa is being inundated with condolence messages from across the world since the death of the elder statesman Mandela it was announced on Thursday. He died at his home in Johannesburg after suffering from a lung infection.

‘TNA continues anti-govt propaganda’

The TNA is continuing its anti-government propaganda by taking advantage of its status as the people’s representatives, disregarding the fact that it was President Mahinda Rajapaksa’s commitment to restore democracy in the terrorism-torn province that helped hold the election, Minister of Mass Media and Information Keheliya Rambukwella told the Sunday Observer.

It is evident that the party has not changed its pro-LTTE political approach and ideologies and took every opportunity to tarnish the Government’s image both here and abroad along with the pro-LTTE diaspora groups, he said.

TNA MP S. Sritharan told Parliament recently that the LTTE's ‘Heroes’ Day’ should be commemorated. During a recent meeting at Trincomalee with a US delegation, party leader R.Sambanthan had alleged that the government is not ‘interested in reconciliation’ and Chief Minister C.V.Wigneswaran had threatened to violate the law if he was prevented from entering specific security areas in the North.

All these moves prove that they had not deviated from the stand of the now defunct LTTE, he said. In spite of all such threats, law and order will be strictly maintained in the country, the Minister said.

Govt spends Rs. 2.7 b on 37 million school text books

The Government has spent Rs.2.7 billion to print 37 million school text books to be distributed among students in state schools next year.

Education Minister Bandula Gunawardena said printing and distributing school text books for over 10,000 schools in all nine provinces including the North and the East by December was a complex process.

The Education Ministry has printed 37 million text books of 437 different types in Sinhala, Tamil and English. It will be distributed among 4.2 million students in state and semi-government schools and pirivenas.

The national ceremony to distribute school text books was held at the Magammana Maha Vidyalaya, Homagama under the patronage of Minister Gunawardena recently.

Senior Minister A.H.M.Fowzie, Education Deputy Minister Mohanlal Grero and senior education officials were also present.