Economy

Sri Lanka is among the twelve countries that has highly vulnerable financial systems and a highest risk rating, according to global rating agency, Fitch.

The Embassy of Sri Lanka in Washington DC, USA yesterday drew the attention of all Sri Lankan exporters of food and beverage products to USA and asked them to renew their registration with the US Food and Drug Administration (FDA) before 31 December 2012.

Sri Lanka’s tourist arrivals hit a record high in the first 11 months of 2012, surpassing its annual peak recorded last year, government data showed yesterday.

Though Sri Lanka has recorded GDP growth rates of 8 and 8.3 percent during 2010 and 2011, the country still remains far too distant from the other emerging markets in terms of both fiscal balance and public debt as a percentage of GDP, an International Monetary Fund official showed.

New regulations for the ornamental fish industry are crucial to the protection of Sri Lanka’s endemic species as well as the future of a potential growth industry, according to the Live Tropical Fish Exporters Association of Sri Lanka.

The Sri Lankan banking sector, which has an asset base of over Rs.5,000 billion and accounts for 55% of the total assets of the financial sector, is lagging behind in providing loans and advances over five years, against regional and non-regional counterparts, said a top official of the International Monitory Fund (IMF), urging the sector to address the relative lack of long-term finance in the market.

The Treasury bill yields at yesterday's bill auction for the re-issue of Rs.12 billion maturing bills, fell significantly amidst a policy rate cut announced by the central Bank.

Clearly unhappy over the decision of the Sri Lankan government to impose fresh import duty on automobile exports from India, the Indian government indicated that it would explore the option through diplomatic channels to prevail upon Sri Lanka to bring down the import tariff as such a move could hit Indian vehicle exports to Sri Lanka.

Rising income levels in Sri Lanka are leading to notable changes in residential and employment demographics, according to the latest findings from Nielsen.

The Monetary Board of Central Bank of Sri Lanka today reduced the policy rates by 25 basis points in view of slowing of credit growth and inflation.

The GDP growth of South Asian countries comprising of Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka for 2013 have been reduced from 6.4% to 6.2% while the growth outlook for 2012 has been cut to 5.3% from the previous estimated 5.5%. In 2011, the region grew by 6.2%.

Sri Lanka’s trade deficit in October narrowed 6.7 percent Yearon-Year to US $ 810 million, amidst falling import expenditure and improved foreign inflows, the external performance report released by the Central Bank for the month of October showed.

One of the most popular and prestigious airlines in Asia, Korean Air (KE) is returning to Sri Lanka in March 2013 after a lapse of 28 years. 

The Treasury has instructed Sri Lanka’s Civil Aviation Authority to increase the airport tax by US $ 10 from January 1, 2013 and to revise the applicable exchange rate of US $ 1 to Rs.130.

Sri Lanka’s first coffee table book on tourism, authored by former Tourism Chief and present Securities and Exchange Commission Chairman Nalaka Godahewa, was launched yesterday in a colourful ceremony attended by government ministers, ministry secretaries, hoteliers and key private sector officials.

Sri Lanka’s fruit and vegetable (F&V) export ear nings growth is expected to be restrained to around 3% to 5% in 2012 amidst economic downturn, international competition, exchange fluctuation and export produce shortages, an industry official said.

Sri Lanka’s GDP is set to grow at 7.2% over the course of 2013, according to Standard Chartered Bank projections.

Sri Lanka's year-on-year inflation rate in November rose to 9.5% against 8.9% a month ago, according to data released on Friday by the Department of Census and Statistics.

The board of directors of Seylan Bank PLC informed the Colombo Stock Exchange (CSE) today the decision to proceed with a public issue of 10,000,000 (ten million) Unsecured Subordinated Redeemable Five year Debentures with a par value of Rs.100 each to raise Rs.1,000,000,000 (One billion) with an option to issue a further ten million of the said debentures  in the event of an oversubscription.

Vehicle registration in September fell 44.8 percent from a year earlier to 26,427, amidst registration of motor cars, goods and transport and dual purpose vehicles falling sharply, the latest data released by the Central Bank of Sri Lanka showed.