Manufacturing sector reports highest non-performing loans in 2020

While the overall asset quality in the banking sector improved sharply, despite the worst predictions and pandemic-related headwinds, the loans to the manufacturing sector reported the highest non-performing loans (NPLs) compared to the other key sectors of the economy.

Local tourism industry in for fresh slowdown with COVID-19 third wave picking up in source markets

Sri Lanka’s hard-hit tourism sector, which has entered into a path of gradual recovery, could be in for another slowdown, as its key source markets are grappling with the third wave of the COVID-19 pandemic.

Shares fall as spiking virus cases raise restriction fears

Sri Lankan shares closed lower yesterday, led by losses in industrial and financial stocks, as a surge in coronavirus cases stoked fears of fresh restrictions in the country.

ICRA Lanka expects strong private credit growth in March

ICRA Lanka Limited yesterday said private sector credit is likely to have expanded at similar pace or faster in March, after a spurt in private credit in February, which defied its earlier expectations.

UL brings down Indian delegation on familiarisation tour

In an effort to recommence tourist arrivals from India under the bio-bubble concept, Sri Lanka has recently welcomed a delegation from the neighbouring giant for a familiarisation tour of the island nation.

Rupee gains sharply against US dollar

The Sri Lankan Rupee further appreciated today with the selling rate of a US dollar recovering to Rs.191.97 from Friday’s (16) Rs. 201.28.

Cabraal briefs Chief Prelates on Port City Commission Bill

On the instructions of President and the Prime Minister, State Minister of Finance Ajith Nivard Cabraal visited today the Asgiriya Chapter, the Malwathu Chapter and the Chief Prelates of the Amarapura and Ramanna Maha Nikayas and briefed them on the proposed Port City Economic Commission Bill.

Sri Lanka at GSP Engagement Week Virtual Conference – An Overview

During the Week of 22 - 25 March, the GSP Hub which is a European Union (EU) funded project launched in 2020 hosted an important virtual engagement relating to the EU’s Generalised Scheme of Preferences (GSP)to increase awareness, transparency, and to engage with stakeholders of GSP.

Rupee to stabilise at Rs.175- 180 range against dollar by year end: Cabraal

State Minister of Money & Capital Markets and State Enterprise Reforms, Ajith Nivard Cabraal expects Sri Lankan rupee to stabilise at Rs.175-Rs.180 range against US dollar by end of this year, supported by anticipated boost from proposed increase in International Monetary Fund’s (IMF) Special Drawing Rights (SDR) combined with expected improvements in the country’s external account.

Solid 1Q earnings season expected with surge in consumer demand

Another solid earnings season is about to get underway as listed companies are set to report their financial performance for the January-March quarter shortly, providing a catalyst for the share market, which took a breather after the wild run in January this year.

March vehicle registrations keep up with Feb. recovery trend

Sri Lanka’s vehicle registrations were observed to be keeping up with the recovery witnessed in February this year, although March figures show a marginal month-on-month (MoM) dip of just two units.

Central Bank’s forex purchases hit seven-month high in March

The Central Bank’s net purchases of foreign currency from the domestic foreign exchange market reached the highest since August 2020 as the monetary authority continued to accumulate foreign exchange despite the recent volatility seen in the rupee against the dollar, in their pursuit to rebuild foreign reserves from non-borrowed sources.

UDA to call RFPs for 5 land plots around Beira Lake

Export earnings recover to near pre-pandemic levels in February

Earnings from merchandise exports flirted to near pre-pandemic levels in a sign of gradual recovery of international trade with the normalising of economic activities in Sri Lanka’s key export markets.

CB urged to offer higher rates for future SLDBs to induce rollover

While expressing full confidence on the government’s willingness and ability to honouring future debt obligations, a leading asset manager wants the Central Bank (CB) to consider offering higher interest rates for future US$-denominated Sri Lanka Development Bonds (SLDBs) to induce rollover of the record SLDB maturities scheduled for the year.

Oil rises above US $ 67 in fifth day of gains on demand hopes

Oil rose above US $ 67 a barrel yesterday, gaining for a fifth session, as a stronger demand outlook and signs of economic recovery in China and the United States offset rising COVID-19 infections in some other major economies

Asian markets rise after record China growth, Wall St surge

Asian markets rose yesterday as record Chinese economic growth reaffirmed the country’s strong recovery, while traders tracked a Wall Street surge fuelled by blockbuster reports on US consumer spending and jobless claims.

China GDP grows record 18.3% in first quarter in virus rebound

China’s economy expanded at a record pace in the first quarter as the country continued its rapid recovery from last year’s pandemic-fuelled slump, official data showed yesterday.

Maldives to offer holidaymakers vaccines on arrival

The Maldives will soon offer visitors vaccinations on arrival as part of its three-pronged initiative aimed at reviving the country’s hard-hit travel sector, according to its tourism minister.

Citigroup to exit consumer banking in 13 markets

Citigroup is closing its consumer banking operations in 13 markets across Asia, Europe and the Middle East. The US banking group will instead run these operations from four hubs in Singapore, Hong Kong, the United Arab Emirates and London.

Singapore Airlines to increase flight frequency to Sri Lanka

From May 1, 2021, Singapore Airlines will increase its flight frequency to Sri Lanka from three times to five times weekly, operating the Airbus 350-900MH aircraft.

Cabraal defends Colombo Port City Commission Bill

While dismissing claims on Colombo Port City (CPC) is on the verge of becoming a Chinese colony and concerns on potential money laundering activities, Money and Capital Markets and State Enterprise Reforms State Minister Ajith Nivard Cabraal defended the Colombo Port City Commission Bill, stressing that it is in line with the country’s Constitution and it will attract foreign investments to CPC to become an international business hub.

Rupee eases to Rs. 201.28 against US dollar

The Sri Lankan Rupee witnessed a recovery today by easing to Rs. 201.28 against the US dollar.

CB extends suspension on banks from buying sovereign bonds

The Central Bank has extended the suspension on banks from purchasing Sri Lanka-issued international sovereign bonds (SLISBs) till April 23 in a bid to ward off the pressure on the rupee.

Bond yields decline after US$ 500mn Chinese loan

The secondary market yields of the Sri Lanka issued International Sovereign Bonds (SLISBs) fell soon after the country secured the second tranche of the China Development Bank loan for budget support, propping up its reserves.

Manufacturing PMI hits 9-month high in March; services sector expands for 4th straight month

Sri Lanka’s manufacturing activities recorded a nine-month high in March while the services sector maintained its growth momentum for the fourth consecutive month, the Purchase Managers’ Index (PMI) released by the Central Bank showed yesterday.

Monetary Board issues fresh criteria for finance firms when borrowing from abroad

A fresh set of criteria was issued by the Monetary Board in respect of future borrowings made by the licensed finance company sector in foreign currency in order to minimise unwarranted volatilities in the sector and also to provide a risk management framework when dealing with such borrowings.

Container throughput at Colombo Port off to slow start

The container throughput at Port of Colombo recorded a slowdown in the first two months of the year driven by declines in domestic and transshipment volumes due to global developments and sluggish trade.

Deshal de Mel appointed to Janshakthi Insurance board

Economist Deshal de Mel has been appointed as an Independent Non-Executive Director of Janashakthi Insurance PLC with effect from April 15, 2021.

Confectionery industry says upward revision in prices likely due to expected palm oil shortage

The local confectionery industry will come under stress in the coming weeks as a shortage of palm oil, due to the overnight ban imposed by the government, will negatively impact the sector’s output and lead to a possible price increase for consumers.