SL’s debt-to-GDP could hit 100% by 2023: Fitch Ratings

As Sri Lanka’s debt burden continues to mount alongside the pressures faced in reducing the implications of the COVID-19 crisis on the economy, Fitch Ratings said it expects the island nation’s debt to reach close to 100 percent of its gross domestic product (GDP) in the next two years, under the agency’s baseline, unless some major measures are in place.

Cinnamon Life post-COVID standard commended by health officials; construction resumes

Colombo’s iconic landmark and the single, largest, private mixed development investment in Sri Lanka, Cinnamon Life by the John Keells group, has resumed construction after a lockdown since March 2020.

Non-ideological strategy proposed for post-COVID-19 economic recovery

Sri Lanka’s post-COVID-19 economic recovery policies must prioritise mitigating the hardship on masses, restoring economic stability and improving the investment climate for business with pragmatic policies instead of giving into vested interests and ideological biases, as the country is more likely to experience a ‘U-shaped’ recovery with a period of flat growth, according to a latest report.

Foreign banks barred from repatriating profits; Share buybacks suspended for all banks

The Monetary Board last week sent instructions to Sri Lankan operations of foreign banks against repatriation of profits and suspended share buybacks for all banks until the end of this year.

NTB March earnings up on tax removals

Nations Trust Bank PLC (NTB) had been building its loan book, albeit slowly before the pandemic forced the businesses to shutter, which put a strain on its operating performance for the three months ended in March 31, 2020, but the taxes taken off from the industry lifted its bottom line.

Dialog March operating results broadly intact; forex losses weigh on earnings

Dialog Axiata PLC stood broadly intact during the quarter ended March 31, 2020 at the operating level, but said future revenues could be lower and profits could be sour from possible non-repayment of customer dues as the company extended credit and deferred payment due dates to keep its customers connected throughout the shelter-in-place conditions.

SLT records steady operating profits for March quarter

Sri Lanka Telecom PLC (SLT) reported steady revenues and strong operating profits for the three months ended March 30, 2020, although the telecom juggernaut is facing pressure on revenues, earnings and cash flows from delayed or at times no collections from subscribers who were provided with uninterrupted supply of services under regulatory instructions during the two-months long shelter-in-place conditions.

Fitch rates DFCC’s senior debt up to Rs.5bn at ‘AA-(EXP)(lka)’

Fitch Ratings has assigned DFCC Bank PLC’s (AA-(lka)/Negative) proposed Sri Lanka rupee-denominated senior unsecured, unlisted debentures an expected National Long-Term Rating of ‘AA-(EXP)(lka)’.

Pvt. sector credit gathered steam in March as economy was poised for growth

Credit extended by banks to the private sector gathered steam in March after making early gains in February, showing initial signs that the Sri Lankan economy was off to a robust recovery after years of stagnation before being struck by the China originated virus.

Bangladesh’s stock markets to remain closed until May end

Bangladesh’s two bourses — Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) —have extended the ongoing closure till May 30 after the government extended its shutdown of offices to stem the spread of COVID-19, local media reports said.

Sri Lanka’s FDI quandary: Profit repatriations exceed investment inflows!

The recently released 2019 Central Bank annual report reveals that repatriation of profit by foreign-owned firms or foreign direct investment (FDI)-backed firms in Sri Lanka continue to increase. Profit repatriation (or dividend outflows) in 2019 has reached US $ 599 million, compared to the US $ 494 million actual new FDI inflow into the country.

Another COVID-19 challenge: Saving Asia’s crucial infrastructure deals

The economic downturn caused by COVID-19 is the greatest economic calamity since the Great Depression and is disrupting the construction, operation and maintenance of infrastructure services globally. Throughout Asia and the Pacific, this could cause serious delays in the construction of roads, schools, hospitals, ports, airports and other critical pieces of infrastructure financed by public-private partnerships (PPPs).

Indonesia to hack the crown in US-China trade war

On the one hand, when the coronavirus is proving itself as a nightmare to the whole world, on the other, it stood as a stroke of luck for Indonesia.

Taiwan’s TSMC to build Arizona chip plant as U.S.-China tech rivalry escalates

Taiwan Semiconductor Manufacturing Co Ltd, the biggest contract chipmaker, said it plans to build a US$ 12 billion factory in Arizona in an apparent win for the Trump administration’s efforts to wrestle global tech supply chains back from China.

Asian shares down on week as U.S.-China tensions rattle sentiment

Asian stocks edged up yesterday but were on course to end the week lower as deteriorating U.S.-China relations add to uncertainties over how fast economies can recover as they start to emerge from lockdowns.

UNDP’s HackaDev launches Innovation Challenge to crowdsource ideas for COVID-19 recovery

With the emergence of COVID-19 in Sri Lanka, the country has seen far reaching social and economic consequences affecting the livelihoods of many individuals. Every country needs to act immediately to prepare, respond, and recover; and innovative minds can become a bridge in overcoming these challenges.

SEC appoints joint committee with CSE to boost capital market awareness

The Securities and Exchange Commission (SEC) has made a move to broad base the Colombo bourse, and as a first step it set up a joint committee comprising the regulator and market operator.

COVID-19 economic impact could reach US$ 8.8 trillion globally: ADB

The global economy could suffer between US$ 5.8 trillion and US$ 8.8 trillion in losses—equivalent to 6.4 percent to 9.7 percent of global gross domestic product (GDP)—as a result of the novel coronavirus disease (COVID-19) pandemic, says a new report released by the Asian Development Bank (ADB).

February trade gap widens as exports languish; imports up

Sri Lanka’s trade deficit in the month of February widened by US$ 574 million as exports languished and imports rose, latest data released by the Central Bank showed.

Tea auction sees strong demand; 5.4 MnKg tea offered

The Colombo Tea Auction saw a total of 5.4 MnKg comprising of 9,304 lots come under the hammer this week, a dip compared to the 6.5 MnKg offered to the corresponding sale in 2019.

Ceylon Tobacco says cigarette sales down 13% in March quarter

Sales at Sri Lanka’s monopoly cigarette player, Ceylon Tobacco PLC (CTC), fell during the March quarter (1Q20) due to excise-led price increases and business interruptions caused by COVID-19 lockdowns.

Teejay Lanka ventures into PPE manufacturing as customers push back orders

Weft-knitted fabric maker Teejay Lanka PLC has ventured into the manufacturing of Personal Protection Equipment (PPE) to cater to the growing demand in local and international markets as key apparel brands have pushed back orders by several months amid the COVID-19 crisis.

Eshana appointed NDB Chairman

Eshana De Silva has been appointed to the board of National Development Bank PLC (NDB) with effect from May 14, 2020, and the board of directors thereafter appointed him as Chairman of the Board.

Keells Foods exploring new avenues to maintain sales volume

Although the impact on Keells Food Products PLC (KFP) by the coronavirus-induced business interruptions during the three months to March 2020 was modest, the company anticipates some deeper implications for the sale of its processed meat as the virus has decimated the HoReCa sector, which accounts for a considerable segment of its business.

PUCSL issues guidelines to grant grace period to settle electricity bills

The Public Utilities Commission of Sri Lanka (PUCSL) has issued fresh guidelines in consultations with the Ceylon Electricity Board (CEB) and Lanka Electricity Company (LECO) to grant a grace period for consumers to settle their accumulated electricity bills during the curfew period while also ensuring that concessionary rates are applied when issuing monthly electricity bills.

ComBank March quarter showed signs of strong economic recovery before pandemic grounded it to a halt

Commercial Bank of Ceylon PLC’s (ComBank) March quarter performance showed consumption had picked up in economy after taxes were cut, interest rates were reduced and sentiments turned positive following the presidential election last year, as the bank witnessed a stellar start to the year with strong rebound in new loans and higher earnings on the back of lower taxes.

Informal sector leads direct-to-consumer market over established channels during lockdowns

Informal sector appears to be making the most of the direct-to-consumer model,which flourished during the two-month long shelter-in-place conditions as the branded and more established players with their e-commerce platforms and delivery channels failed to fully capitalize on the opportunity afforded by the pandemic, a survey found.

Sri Lanka eyes confidence building measures to bring back global travellers

As Sri Lanka is eagerly looking forward to open its borders to get the national economy back on track, much of the efforts should be in positioning the country as a safe destination for which the airports must take effective measures to build confidence among global travellers and airlines that it delivers what is promised, the country’s Airport and Aviation Services chief said.

Repatriation and replacement of lost foreign jobs: Handling labour migration in Sri Lanka during COVID-19

Sri Lanka, which has been sending workers abroad for employment for decades, is now faced with the formidable challenge of repatriating large numbers of migrant workers affected by COVID-19.

CB implements extraordinary regulatory measures to pump in more liquidity to banks

The Central Bank (CB) yesterday announced the implementation of extraordinary regulatory measures aimed at strengthening the liquidity positions of the licensed banks, to ensure the continued supply of credit and to meet the urgent liquidity needs of banks, given the current position of the industry.