KPMG advises banks to align biz model to cater to ongoing crisis

The local banking sector will continue to witness further challenges in its path towards any progress. However, despite the hurdles faced, the industry must look at supporting businesses and individuals by aligning its current operating model to the ongoing crisis, global advisory firm KPMG said.

Stock market’s S&P SL20 Index marks second historic gain in a week

The S&P SL20 Index of the Colombo Stock Exchange (CSE) gained 6.28 percent during trading yesterday, bettering the record for the highest ever daily percentage gain of the index which stood at 5.25 percent, set on May 18, 2020.

Prime Group sets benchmark for real estate industry with credit rating

Prime Group has made history becoming the first institution in the Sri Lankan real estate industry to receive a prestigious issuer rating of [A-] Stable from ICRA Lanka, a group company of Moody’s Investors Service.

Positive investor response for proposed Eravur fabric park: BOI

Sri Lanka’s Board of Investment (BOI) says positive foreign investor response has been received for the fabric processing park to be setup in Eravur, Batticaloa to source fabrics locally for apparel exporters.

Sri Lanka may benefit from early buyback of US$ 1bn ISB maturing in October

Sri Lanka may benefit from an early buyback of US$1 billion dollar-denominated international sovereign bond (ISB) maturing this October, although buying back ISBs which are maturing in medium to long-term remains unfeasible considering the country’s limited foreign exchange reserves, an economist opined.

John Keells expects “material” impact on its biz from COVID-19

Premier blue chip John Keells Holdings (JKH) expects the impact of COVID-19 pandemic on its businesses to be “material” in the first and the second quarters of the financial year 2020/21, particularly on the group’s tourism focused businesses.

Stock market was not closed. It was not possible to open it

In his first interview with the media, the newly appointed Securities and Exchange Commission (SEC) Chairman Viraj Dayaratne PC talks about the unprecedented challenges he and his new Commission Members had to face and the tough decisions they had to make on the country’s already lagging stock market, amid the COVID-19-induced curfews and economic slowdown.

Ceylon Chamber proposes multisectoral approach for post-COVID-19 economic revival

The Ceylon Chamber of Commerce submitted its multi-sectoral proposals to the Task Force for Economic Revival and Poverty Alleviation. This was building on the submission made to the President on a Shared Vision for Post-COVID-19 Economic Recovery.

Recovery for Lanka corporates only beyond 2020 horizon: Fitch

Recovery is beyond the 2020 horizon for Sri Lankan corporates and expected is a sharp decline in revenue for most sectors, credit rating agency Fitch Ratings said.

ComBank reduces lending rates in quick response to COVID-19 crisis

Commercial Bank of Ceylon has announced a reduction of lending rates across the board in response to the present needs of individual and corporate borrowers and in line with the downward trend of interest rates in Sri Lanka.

Ceylon Cold Stores concludes a stronger March quarter

Ceylon Cold Stores PLC (CCS) reported strong top and bottom line performance for the three months to March 2020, with increased consumer spending amid tax cuts and lower interest rates.

NDB operating profits steady in March

National Development Bank PLC’s (NDB) operating profits held steady during the three months to March 31, 2020, despite the pressure on margins and higher credit costs stemming from the coronavirus-linked additional provisions against possible bad loans.

Human development on course to decline this year for first time since 1990: UNDP

Global human development, which can be measured as a combination of the world’s education, health and living standards, could decline this year for the first time since the concept was introduced in 1990, the United Nations Development Programme (UNDP) warned, yesterday.

S&P cuts Sri Lanka’s rating on weakened fiscal position

Standard & Poor’s (S&P) yesterday lowered Sri Lanka’s sovereign rating to ‘B-’ on the country’s weakened fiscal position amid COVID-19 recession while kept the outlook ‘Stable’ as the island nation still has access to sufficient resources to meet its debt obligations over the next 12 months.

April merchandise exports record historic decline

Sri Lanka’s April merchandise exports have fallen to their lowest levels since April 2002, recording a historical drop of 64 percent year-on-year (YoY) to US $ 277.4 million, driven by a record 81.8 percent YoY decline in apparel exports with tea exports regaining the top export status after decades, due to the impacts stemming from the COVID-19 crisis.

MAS joint venture firm announces VRS

The world’s biggest narrow fabric and elastics supplier to the garments industry, Stretchline Holdings, of which Sri Lanka’s MAS Holdings is a joint venture partner, has announced a voluntary retirement scheme (VRS) at one of its plants in Sri Lanka, as the apparel exporters renew the call to the government to amend the existing labour laws to allow a 30 percent cut in employment, to survive during the COVID-19 crisis period.

Govt. reiterates commitment to meeting all its financial obligations

Responding to the inferences made in recent media reports questioning the government’s ability to honour its debt service obligations, the Central Bank yesterday reiterated the government’s commitment to meeting all its financial obligations.

G-20 debt freeze won’t fix eligible sovereigns’ liquidity pressures or medium-term debt challenges: Moody’s

The G-20 debt suspension initiative is unlikely to ease the significant credit challenges that the coronavirus pandemic has amplified in some frontier market sovereigns, particularly in Africa, Moody’s Investors Service said in a report this week.

No return to pre-crisis air traffic before 2023: IATA

Airline passenger traffic is not expected to return to pre-crisis levels until 2023 at the earliest and may suffer even more if new health rules impose an excessive cost burden, the International Air Transport Association (IATA) said.

It’s about next normal for tourism, not new normal!

In an effort to allow global travel and tourism space to bounce back at a faster pace, from the crisis brought about by the ongoing pandemic, a senior representative of the United Nations World Tourism Organisation (UNWTO) highlighted it is imperative for governments and key authorities to define the form of recovery sought in the post-COVID-19 scenario.

HNB Finance makes CSE trading debut today

HNB Finance Limited will commence trading on the Colombo Stock Exchange (CSE) today after an initial public offering (IPO) and an introduction by the company.

First Capital moves needle a bit as economic reopening delayed on prolonged lockdowns

Sri Lanka’s economy is expected to contract by an estimated 1.4 percent in 2020, the first time since the economy shrank in 2001, while First Capital Research recalibrated its earlier assessment to a dourer scenario, as the lockdowns prolonged and the full reopening of the economy was delayed by at least a month from the earlier expectations.

Leading your biz through turbulent times of COVID

If there is one thing consistent about business, it’s the inconsistent dynamics of the environment.

How SRI LANKA can thrive as an ideal higher education destination

With Sri Lanka being commended for its highly successful measures in containing the novel coronavirus, which led to a global pandemic, whilst many developed nations failed to do so, it’s an ideal moment for the country to be positive and turn this crisis into an opportunity, especially when it comes to higher education.

HNB reports modest operating performance for March; Tax cuts boost bottom line

Hatton National Bank PLC (HNB) reported modest operating performance for the March quarter (1Q20) while the bottom line received a strong boost from the removal of some taxes on financial services. HNB reported a 12 percent decline in the net interest income at bank level to Rs.11.4 billion, during the three months to March 2020 from the same period last year, on declining interest rates.

US facing severe crisis, but not a depression: Fed’s Powell

The US is facing a severe economic downturn amid the global pandemic, but will not suffer another Great Depression and will see a recovery begin later this year, Federal Reserve Chair Jerome Powell said Sunday. The world’s top economy was strong before the COVID-19 outbreak hit, like a natural disaster, causing nationwide business shutdowns, Powell said. And the banking system had been rebuilt stronger since the global financial crisis.

Singer March revenues below expectations; expects retail operations to normalise from Sept. quarter

Singer Sri Lanka PLC’s March 2020 top line came in at below the previous year’s levels but reported higher operating profits, possible from reduced selling and administrative costs, as the consumer durables juggernaut failed short of its targets amid the COVID-19 outbreak forced businesses to shutter a couple of weeks into March, hurting all its business lines.

Prioritise support for MSMEs during COVID-19 crisis: ICC

The International Chamber of Commerce (ICC) has called on governments across the globe to prioritise micro, small and medium enterprises (MSMEs) and stressed the necessary efforts must be taken to fully tailor to support such entities, in the context of the COVID-19 pandemic.

Sri Lanka bonds win fans after becoming worst in Asia

BLOOMBERG: Sri Lanka’s dollar bonds have been the worst-performing sovereign notes in Asia this year. But BNP Paribas Asset Management and Union Investment Privatfonds GmbH say it might now be time to buy.

Manufacturing and services activities hit rock bottom in April

The COVID-19-induced downturn in the Sri Lankan manufacturing sector deepened during April as reflected by further contraction in the Manufacturing PMI, which recorded at an index value of 24.2, with a fall of 5.8 index points from the previous month, reaching the lowest level since the beginning of the survey.