Economy to rebound; average inflation to hit 8.8% - Report

Economic growth will rebound to 7.2% whilst inflation will remain in the high-single digits by the end of 2013, according to a report from CT Smith Stockbrokers (Pvt) Ltd (CTS).

Fully cost-based pricing possible only by 2017: Expert

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.

Remittance-dependent Lanka has ignored migrant worker rights: IMADR Chief

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.

Banks seen raising funds for government

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 in govt. securities exceed limit

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.

Plantation wage hike fears looming

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.

Vehicle registrations continue to decline

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.

Lankan hotels’ energy and water conservation measures in stark contrast- Report

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.

Bad weather hits Lanka’s premium teas

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.

Mannar & Cauvery oil block: Second round bidding to be launched in March

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.

Energy price formula in the offing

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).

IMF urges govt to increase revenue measures

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.

Cabraal unplugs PBJ’S route to bliss: Harsha

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.

Tourism and remittances top US $ 7bn in 2012

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..

Motor vehicle and spare part imports dip 21% in 2012 - Study

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.

Exports slip 7.4% in 2012; trade gap narrows

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 revises National Ratings assigning process

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.

Tea auction prices decline

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.

Cess hike on bulk tea put on hold; terms to be revised

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.

Sri Lanka signs DTA agreement with Luxemburg

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

Hoteliers suffer despite higher tourist arrivals

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.

Greater potential for natural gas: Cairn official

Sri Lanka’s Mannar Basin has a greater chance of being endowed with natural gas than oil, a top official of Cairn Lanka, which has established the country’s first working petroleum system in the Mannar Basin said.

Ceypetco buys big from PetroChina

Sri Lanka’s Ceylon Petroleum Corp (Ceypetco) has finalised a term contract for the purchase of nearly three million barrels of oil products for delivery over a six-month period from PetroChina, industry sources said yesterday.

India lauds Sri Lanka’s economic progress

Indian Minister of State for Commerce and Industry Dr. D. Purandeswari has expressed satisfaction over Sri Lanka’s economic progress and infrastructure development, during her meeting with Economic Development Minister Basil Rajapaksa at his ministry recently.

Frost damage likely to hamper January tea output- Tea broker

Sri Lanka’s January tea production will be negatively impacted by frost damage, a scenario caused by extreme temperature fluctuations during a very short period of time, a tea broker in the country said.

Sri Lanka alive to Indian concerns at allocating oil blocks

India has asked Sri Lanka to keep its sensitivities in mind while allocating oil blocks in the waters that separate the two countries.

G - Sec to see complete overhaul this year

The Government Securities market (G-Sec) comprising of treasury bills and bonds is expected to see a complete overhaul with the establishment of an e-trading platform for the secondary market, according the Central Bank (CB) Governor. This is amongst the many reforms and improvements planned for 2013.

Monetary policy not aligned with SME sector needs: Report

The lack of a clear definition as to what constitutes a Small or Medium Enterprise (SME) in Sri Lanka may be working to the benefit of larger enterprises seeking tax concessions, according to private research firm, Verite Research.

Tourist arrivals reach historic peak in December; record 17% YOY growth

Tourist arrivals reached a historic peak in December 2012 at a recorded 122,252 arrivals during the month, against 97,517 arrivals in 2011.

Allocation riddle!

Budgetary allocations for Sri Lanka’s education sector fall short by approximately Rs.14.2 billion when compared to allocations presented in the Budget Speech by President Mahinda Rajapaksa, Verité Research, a private research firm, which provides strategic analysis for corporate and government institutions in Asia said in a report.