Economy grows at 7% in 2Q

The Sri Lankan economy grew 7 percent in the second quarter (2Q) accelerating from the 6 percent growth reported in the first quarter of 2013, Central Bank Governor Ajith Nivard Cabraal said in an interview with Bloomberg in Hong Kong.

CB liquidity scheme for troubled finance companies

Acknowledging openly that there is a liquidity issue with Sri Lanka’s bloated finance sector, the Central Bank on Saturday said it would provide liquidity to any troubled finance company with immediate effect.

New all-time high for low grown teas

At the tea auctions held on September 3, 2013, an invoice of New J.S.P. BOPF achieved an all-time record price of Rs.760 per kg for the low grown category.

Israel mulls using SL’s FTAs to penetrate Asian markets

A visiting Israeli business delegation has expressed interest in harnessing Sri Lanka’s free trade agreements (FTAs) to carry out trade with the countries in the Asian region, a statement issued by the Board of Investment (BoI) said.

Aid comes with Chinese men: Dr. Kelegama

The most popular Chinese aid comes with the condition of Chinese labour being used in those projects and the interest rates of those loans are also on the high side comparable to some other multilateral donors, according to an eminent economist.

T-bill yields flat

Treasury bill yields remained flat at yesterday’s auction held to reissue Rs.9,000 million maturing bills, the Public Debt Department of the Central Bank said.

Open, freely accessible Internet crucial to wider economy: Google Director

Governments must seek to improve access to the Internet and resist stifling its usage through regulations in order to derive maximum economic benefit, according to Google Asia Pacific Director Ann Lavin.

Visa-free travel in the offing for Lankan businessmen

Sri Lankan businessmen travelling to countries in the South Asian Association for Regional Cooperation (SAARC) region will soon be able to travel without visa and the SAARC Secretariat has already taken measures to identify them as a separate category under its visa exemption scheme, according to a top official from the SAARC Secretariat.

Sri Lanka truly shines in Beijing

“Sri Lanka Shines in Beijing,” a Rs. 150 million mega promotional campaign by Sri Lanka Tourism’s promotional arm, Sri Lanka Tourism Promotion Bureau (SLTPB) was concluded in Beijing, China, yesterday with the support of the Chinese government and the Sri Lankan Embassy in Beijing.

Gem & jewellery and tourism go hand-in-hand: Amunugama

Sri Lanka needs to develop its gem and jewellery industry with the country’s tourism sector in mind, and the government is devising plans to expand the two industries simultaneously, a senior minister told a forum yesterday.

We no longer seek aid but trade: CB Governor

The Governor of the Central Bank yesterday said that Sri Lanka was no longer a country which seeks foreign aid but would only need trade with the international community.

NSB to sell minimum of US $500mn 5-yr bond

Sri Lanka's state-run National Savings Bank (NSB) plans to raise a minimum $500 million through the sale of a likely five-year bond with a target yield around 7 percent, sources close to the deal told Reuters on Monday

Hambantota Port sees increase in ship traffic this year

The second international sea port in Sri Lanka, Magam Ruhunupura Mahinda Rajapaksa Port (MRMRP) in Hambantota has received 100 vessels since it opened for berthing in November 2010, Sri Lanka Ports Authority (SLPA) said.

SAFTA aims to boost regional trade through ‘sensitive list’ slashing

All members of the South Asian Free Trade Area (SAFTA) representing approximately 1.6 billion people aim to push for the reduction of their sensitive lists substantially, and for the first time the entire bloc is openly calling for stronger private sector involvement in moving forward.

Trade deficit widens in June

Sri Lanka’s June trade deficit expanded 25 percent Year-onYear (YoY) to US $ 829.1 million amid a sharp increase in import expenditure, though trade gap for the first six months narrowed 7.1 percent YoY to US $ 4.55 billion.

T-bill yields flat, 3-month bids rejected

Sri Lanka’s Treasury yields edged down at yesterday’s Treasury bill auction with bids for 3-month bills were rejected, a press statement issued by the Public Debt Department of the Central Bank showed.

Fitch says FDI inflow to Sri Lanka modest; urges to mobilise domestic savings

Fitch Ratings in a report yesterday said Sri Lanka’s strong economic growth is attracting foreign capital but foreign direct investment inflows remain modest compared with rated peers, leading to rising external indebtedness.

Lankan banks in ‘highest risk’ category: S&P

While observing the economic imbalances building up in Sri Lanka with the pickup in growth in private sector credit, a global rating agency, Standard & Poor’s Rating Services (S&P) identified the country’s banking sector as having a very high risk in the South and South East Asian region, slightly better than only Vietnam and Cambodia.

SL records US $ 537 mn FDIs in first half

Central Bank said the country has received US $ 537 million worth Foreign Direct Investments (FDIs) in the first half of 2013.

Loose regulations fuel gold loans

Loose regulatory guidelines with regard to gold-backed loans have been identified a key contributor to a ‘runaway growth’ in pawning loans, exposing the Sri Lankan banking industry to higher loan defaults, international credit agency Standard & Poor’s (S&P) said in a special report.

Central Bank seen keeping rates steady

The Central Bank is expected to keep key monetary policy rates steady, a Reuters poll showed, as it reviews the impact of policy easing in recent months.

Banking sector capital adequacy figures not all rosy: Fitch

The capital adequacy of the Sri Lankan banking sector to withstand sudden solvency risks is not as healthy as reported statistics, a top Fitch Ratings official told a recent forum in Colombo.

IMF cautions on aggressive monetary easing

International Monetary Fund (IMF) said they were very concerned about the aggressive monetary policy easing pursued by the Lankan authorities to spur growth amid looming inflationary pressures.

Construction sector must establish presence overseas for sustainability: Prof. Jayawardena

Sri Lanka’s construction industry must look to secure contracts overseas in order to ensure longterm sustainability, according to University of Moratuwa Vice Chancellor Professor Ananda Jayawardena.

Belarus looking for agro - automotive JVs in Sri Lanka

Belarus, a former Russian Federation country with an industry-driven economy has expressed interest in assembling agro-automotives such as tractors and other heavy duty automobiles in Sri Lanka.

New terminal, breakwater open for business

President Mahinda Rajapaksa yesterday officially opened South Asia’s only container terminal that can handle Triple-E vessels and the new breakwater of Colombo Port stretching 400 metres to the sea.

Bleak outlook for financial sector in 2013

Sri Lanka’s banking, finance, insurance and real estate sector (financial sector) will have a bleak outlook for 2013 on the back of low credit growth and deteriorating asset quality, an equities research report by a leading securities trading firm said.

Sri Lanka eyes South Asian hub with Chinese mega port

A US $ 500 million Chinese-built port opens today in Colombo, giving Beijing a vital foothold on the world’s busiest international shipping lane as it seeks to secure maritime supply routes.

Government pushing private sector out of growth equation?

The growth in the Sri Lankan economy happens without the expansion of the private sector and the country does not see the private sector participation in the economy, according to a leading economist in the country.

SLPA unveils 7-yr corporate plan

Marking the end of the first fiveyear port development plan, the Sri Lanka Ports Authority (SLPA) has announced a seven-year corporate plan with the vision to achieve ‘logistics excellence in the silk route’, a vision established in line with Mahinda Chinthana Vision for the Future.