Economy

A fully cost reflective electricity pricing formula in Sri Lanka can only be possible by 2017, following the expected breaking even of the electricity sector in 2016 , a leading energy sector consultant said told a recent forum.

A majority of participants in an open forum called for restrictions on migration to countries which do not have strong bi-lateral agreements with Sri Lanka with regards to the safety and protection of rights of Sri Lankan migrant workers.

The Sri Lankan government appears to be using both state and private sector banks to raise funds on its behalf to fulfill funding needs, without directly accessing international capital markets.

Foreign holdings of Sri Lankan government securities have exceeded the Central Bank’s maximum limit of 12.5 percent of total outstanding Treasury bills and bonds, the monetary authority’s latest data showed on Thursday.

A plantation sector wage hike is expected by mid-2013 as the two-year collective agreement, which was struck between the Regional Plantation Companies and the Lankan estate sector labour unions back in early 2011, is reaching expiration.

The ongoing decline in vehicle registrations continued into the New Year with a total of 28,201 vehicles being registered in January 2013, against 47,500 registrations in the previous year.

The Switch-Asia Greening Sri Lanka Hotels Project has published the first of its research findings on energy and water usage amongst 78 percent of registered tourist hotels in the country.

The buyers of premium Dimbula teas may be disappointed, as the much awaited seasonal teas have run into bad weather which could hinder the production, a Colombo based tea broker said.

Sri Lanka is offering about 10 to 11 offshore blocks in the Mannar and the Cauvery basins in a second bidding round that will be launched on March 7 at a premier oil conference in Houston, USA, a top official of the country’s petroleum exploration office said.

Electricity and fuel prices in Sri Lanka will soon be determined based on a fully cost-reflective pricing formula as the worrisome performance of the staterun Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation (CPC) has been a main concern at the economic health check carried out by the International Monetary Fund (IMF).

Hot on the heels of Sri Lanka rejecting further financial assistance from the International Monetary Fund (IMF), the IMF staff mission Chief yesterday urged the Lankan authorities to take a concerted effort to increase the revenue measures of the country, which is now among the lowest in the region, in order to bolster the country’s development agenda.

The Central Bank Governor, Ajith Nivard Cabraal is likely to have pulled the plug from the conditional ‘Nirvana’ the Treasury Secretary, Dr. P.B Jayasundera was hoping to attain by obtaining budget support from International Monetary Fund (IMF), perhaps with limited conditions, according to the economic spokesman of the opposition.

In 2012, earnings from tourism and remittances reached a record high of US $ 1,039 million and US $ 5,985.3 million respectively reducing the current account deficit of the Balance of Payment (BoP) substantially, according to the data released by the Central Bank..

Vehicle and vehicle spare part imports fell 21 percent in 2012, after seeing a robust growth of 200 percent and 86 percent in 2010 and 2011, respectively, a study carried out by the Ceylon Chamber of Commerce (CCC) noted.

Sri Lankan export earnings extended their losing streak to the month of December, slipping 6.7 percent year-on-year (YoY) to US$ 871 million to end the year 2012 with a negative 7.4 percent growth, with a total export earnings income of US$ 9.7 billion.

Fitch Ratings Lanka Ltd. will adopt a change in the rating process of any upcoming debt issuance ratings for the Sri Lankan domestic bond market. Fitch will assign “expected ratings” followed by “final ratings” for Sri Lankan National ratings.

This week’s Colombo tea auctions saw the prices declining across the board except for few select best western BOPs which appreciated sharply following airmail enquiry, according to tea market report.

In a fresh turn of events, the Ministry of Finance and Planning on the intervention of the Ministry of Plantation Industries, has decided to stay its decision to increase the cess on bulk tea exports.

An Agreement on Avoidance of Double Taxation (DTA) between Sri Lanka and Luxembourg was signed on January 31 in Luxembourg.

Though there is a lot of hype created through monthly arrival figure produced and disseminated by the Sri Lanka Tourism Authority (SLTDA), tourism earnings have failed to lift the bottom lines of Lankan hoteliers, with luxury hotel operators being the hardest hit category.