Dwindling foreign reserves, increased money printing to exert pressure on rupee

Sri Lanka’s rupee is expected to feel the pressure from the dwindling official foreign reserves combined with the impacts from the increased money printing towards the latter part of the year, when the demand rebounds from the current sluggish levels.

Bourse rebounds after two days of losses

The Colombo Stock Exchange (CSE) rebounded yesterday after two days of losses, with the benchmark All Share Price Index (ASPI) increasing by 2.81 percent or 119.30 points to close at 4,367.25 points while the S&P SL20 index also increased by 2.59 percent or 43.70 points to close at 1,729.15.

SL’s ban on pepper imports leads to sharp fall in imports to India

Sri Lanka’s temporary ban on the importation of pepper has contributed to a sharp decline in pepper imports to India, according to an Indian media report.

Sampath Bank 1Q20 indicates economy was gathering steam before pandemic

Sampath Bank’s interim results released for the March quarter (1Q20) showed that the economy was gathering steam from the lower interest rates and tax cuts, as the loans had begun to rise and earnings got a boost before it hit a wall when the country went to lockdown to prevent the spread of China-originated COVID-19.

SLPA looks to go digital to up efficiency, curb corruption

The Sri Lanka Ports Authority (SLPA) yesterday stressed the urgent need for the entity to go digital but said it is faced with a major hurdle in doing so, as its workforce is resisting the changes in that direction.

Lanka IOC March quarter in red; but record-low oil prices could help turn fortunes

Despite higher revenues, Lanka IOC PLC swung to a loss during the three months to March 2020 (4Q), as the prices relevant for oil deliveries through March-end remained elevated, before they crashed recently amid the demand slump caused by the shuttered economies since mid-March, due to the coronavirus.

Asian equities mixed, fears of second wave keep traders on edge

Asian markets were mixed yesterday but investors remain on edge after Donald Trump’s top virus adviser warned that easing lockdown measures too early could spark another dangerous wave of infections and batter the economic recovery.

Business cannot wait until vaccine found

World leaders wanting to end the lockdown and allow their people to move about and contribute to the national economy because many are drowning in bills as they remain shut due to the COVID-19 lockdown, will have to monitor closely for new infections and adjust the health controls they have in place until there is a proper vaccine for COVID-19.

The next challenge in lockdown education — Examinations

The COVID-19 lockdown has been a great leveler, as various sectors across the world struggle to maintain status quo.

Rebooting economy during COVID-19

Economies across Asia and the Pacific—like in much of the world—have been hit hard by the coronavirus outbreak. To slow the spread of the virus, many governments have chosen to impose lockdowns and travel bans. While vital, these measures have also had severe economic impact. The Asian Development Bank estimates that Asia is likely to lose 68 million jobs, if the pandemic goes on until September.

Brewing up change under COVID-19: Transforming how tea is bought and sold in Sri Lanka

Picking, sorting, processing and grading tea leaves make up the fabric of life in Sri Lanka. And ensuring that people around the globe get their daily cups of chai, Earl Grey, English Breakfast or Orange Pekoe, is crucial to the local economy and jobs.

Recommendations for ‘virtual work life’

I recently attended a large virtual meeting. The topic was timely but several things went wrong: the host joined late, we were entertained by background ‘home’ noises, people interrupted each other, the chat feature wasn’t used and the host left the meeting before us!

Legal fraternity calls for urgent changes to labour laws

Sri Lanka’s archaic labour laws need urgent revisiting and amendment where possible, a panel of high-profile lawyers said, as bulk of the laws that are in effect are hardly useful at this point of time where the ongoing health crisis is observed to be taking a toll on both employers and employees across diverse sectors.

Shares fall as consumer, industrial stocks weigh

Sri Lankan stocks closed sharply lower yesterday, weighed by consumer discretionary and industrial stocks, as investors returned to stock markets this week after a long shutdown imposed to curb the spread of coronavirus infections.

Tea industry urges sector players to maintain end product quality

Although Sri Lanka’s tea industry has been able to brew a strong cuppa amid the global pandemic, the sector representatives caution that the industry should look at maintaining high standards in terms of quality to sustain the demand.

Sri Lanka removed from European Union’s money laundering list

Sri Lanka has been removed from a list of high-risk countries for money laundering and terror financing by the European Commission from May 07, the Central Bank (CB) said yesterday.

IRD issues instructions to settle income tax obligations

The Inland Revenue Department (IRD) has issued instructions for individuals, partnerships and partners in a partnership and companies to settle the fourth quarter income tax instalment on or before May 15.

ICRA Lanka sceptical of sustained higher tea prices

When all else seemed gloomy and commodities prices were set to take a plunge from the coronavirus-induced economic damage, one commodity stood out unscathed, i.e. Ceylon Tea, but analysts said all is not well with it as many factors were at play and thus questioned the sustainability of the record high prices going forward.

Global stocks down on fears over second wave as lockdowns ease

Fears of a second wave of coronavirus infections in some parts of the world weighed on equities yesterday, bringing a dose of hard reality to markets after weeks of rallies fuelled by the easing of lockdown measures and hopes for economic recovery.

What APAC companies need to do to drive region into new ‘Asian age’

Asia’s economy dominated until the 19th century, before being knocked off its pedestal by Europe and then the US. Since then, while the region has grown to become home to more than half the world’s population and soon half of the world’s middle class, it has not yet retaken this financial crown.

COVID-19 impact on economy and possible opportunities

One of the biggest challenges seen due to the coronavirus outbreak is the socio-economic downfall with over 200,000 deaths around the world without any cure at the moment (by end April 2020) (Source: World Health Organization – WHO).

COVID-19 urgently needs global response

People all over the world are increasingly standing in solidarity with one another to beat the virus. The COVID-19 pandemic will inevitably wreak its worst on the people, communities, and countries that are least able to withstand the shock or to provide a defence against it.

Employers seek govt. help to tackle pandemic-driven labour issues

The Employers’ Federation of Ceylon (EFC) has put forward to the government a 10-point proposal that would help cushion the private sector from possible labour issues and ensure its ability to continue to operate amid the challenges the businesses are currently faced with, due to the economic fallout of the COVID-19 crisis.

Saudi triples VAT, suspends handouts in virus-led austerity drive

Saudi Arabia unveiled plans yesterday to triple its Value Added Tax (VAT) and halt monthly handouts to citizens as part of a series of austerity measures amid record low oil prices and a coronavirus-led economic slump.

Kerry Logistics expands operations to Sri Lanka

Hong Kong-based Kerry Logistics Network has announced a new joint venture, Kerry Logistics Lanka, with Sri Lanka’s IAS Holdings, to strengthen its international freight forwarding capabilities in South Asia.

Prospects for Ceylon Tea remain high amid less exposure to global challenges

Ceylon Tea commands higher prospects in 2020 and beyond as it remained one of the few commodities less prone to the economic downturn, although the pandemic dealt a crushing blow to many other industries and businesses, said John Keells PLC, a commodities broker specialised in the tea trade.

Decline in tourist arrivals tops 44% up to April

Sri Lanka recorded a 44.1 percent YoY decline in tourist arrivals during the first four months of the year, with no tourist arrivals in April, due to the termination of all passenger flight and ship arrivals into the country from March 18, to slow the spread of the COVID-19 disease.

MAS Holdings pins hopes on medical apparel to ride COVID-19 crisis

Local apparel giant, MAS Holdings, appears to be pinning its hopes on medical apparel to ride the economic fallout of the COVID-19 pandemic, as the firm has started producing a range of medical apparel to help the fight against the deadly virus.

Coronavirus adds huge flywheel to Lankan banks’ digitisation drive

Sri Lanka’s banks have seen a massive upsurge in their digital transaction volumes as the COVID-19 pandemic has upended how banking should be done and the banks are now refusing to go back to old ways, since they want to lock-in the low-cost business model.

Share trading halted soon after reopen from lockdown

The Colombo Stock Exchange (CSE) yesterday closed trading in just 38 seconds when the market resumed trading following a 51-day break, with the S&P SL20 index breaching the 10 percent decline threshold amid the plunge in share prices, triggering circuit breakers.