Foreign purchaser of ETIFL assets dumps Swarnamahal Financial out of deal

The buyer of the troubled ETI Finance Limited’s (ETIFL) assets has decided to refrain from purchasing Swarnamahal Financial Services, thereby bringing down the value of the deal to US$ 70 million from the original US$ 75 million. “There is an issue regarding the

Tough market conditions, weak consumer demand hurt Nestlé Lanka performance

Nestlé Lanka PLC reported lower revenues and profits for the quarter ended December 31, 2018 (4Q18), as the local unit of the world’s largest food company suffered from tough market conditions and weak consumer demand. Nestlé Lanka reported earnings of Rs.16.11 a share or Rs.865.6 million in total earnings for the October-December period compared to Rs.21.95 a share or Rs.1.18 billion in total earnings made during the correspondin

SLTDA’s new unit commences registering nearly 2200 tourist establishments in informal sector

Sri Lanka has commenced registering nearly 2200 tourist establishments in the informal sector amounting to a 50,000 room stock under the newly established enforcement unit of Sri Lanka Touris

Govt. to engage rating agencies for upgrade following IMF deal

Sri Lanka will start discussions with credit rating agencies for a rating upgrade after reaching a staff level agreement with the International Monetary Fund (IMF) for the 5th instalment of the US $1.5 loan facility.

Harsha calls for paradigm shift in country’s labour pool

Economic Reforms and Public Distributions Minister Dr. Harsha de Silva lashed out at his own government last week for its lackluster efforts in getting the local talent pool up to mark, and stressed a more proactive approach is mandatory to bring the national economy on track, so that it can have the edge to compete on the world stage. Asserting the island nation “will

SL recalibrates borrowing strategy towards ISBs

Sri Lanka has recalibrated its borrowing strategy back to dollar denominated international sovereign bonds (ISBs) with the country’s yield curve normalising to below pre-political crisis level. “The yields have

So Sri Lanka IRONMAN 70.3 Colombo Expo launched

The much anticipated So Sri Lanka IRONMAN 70.3 Colombo Expo will showcase a range of health and wellness products from across the world, and is held from February 21st to the 24th, at the Shangri-La Hotel Colombo, Lotus Ballroom. The timings for the Expo would be Thurs

Russia indicts big US investor for fraud: lawyer

MOSCOW (AFP) - Russian investigators formally charged US investor Michael Calvey with fraud on Thursday following his controversial arrest, his lawyer said. Investigators presented Calvey with the indictment on the charge of large-scale fraud as part of an organised group, which can be punished by up to 10 years in prison. “He has refused to admit his guilt or give any testimony” before consulting with his defence, lawyer Dmitry Kletochkin told

Australia plays down reports of Chinese coal ban

SYDNEY (AFP) - Canberra yesterday played down reports a major Chinese port had banned coal imports from Australia, as fears grow that worsening diplomatic tensions are damaging the nations’ crucial trading relation

Months-long slide in German business morale deepens

FRANKFURT AM MAIN (AFP) - Confidence among business leaders in Germany fell for the sixth month in a row in February, a closely-watched survey showed yesterday, as global trade struggles cast a pall over Europe’s powerhouse economy. The Munich-based Ifo institute’s busin

Rupee, stocks end largely flat after Central Bank’s reserve ratio cut

COLOMBO (REUTERS) - The Sri Lankan rupee and the main stock index ended little changed yesterday after the Central Bank surprisingly reduced commercial banks’ statutory reserve ratio (SRR) by 100 basis points with effect from March 1, market sources said. Sri Lanka’s Central Bank reduced com

Most Asian stocks dip with Wall St, dealers await trade talk news

HONG KONG (AFP) - Asian stocks mostly rose yesterday as early concerns about weak US data were replaced by hopes for success in the China-US trade talks. With high-level negotiations between the w

BMW, Daimler to invest 1 bn euros in joint carsharing scheme

BERLIN (AFP) - German auto giants BMW and Daimler said yesterday they would invest one billion euros (US$1.1 billion) in combining and extending their carsharing schemes DriveNow and Car2Go, in future offering a slew of ‘mobility services’, including for electric cars. “We are pooling the strength and e

CB cuts Statutory Reserve Ratio to inject Rs. 60 bn

The Monetary Board of the Central Bank (CB) decided to reduce the Statutory Reserve Ratio (SRR) to inject Rs. 60 billion to the domestic money market, aiming to support economic growth and addres

Eran attributes slow policy implementation to poor public service

Finance State Minister Eran Wickramaratne recently acknowledged the continuing lag in the implementation efforts in the country and said if at all there is an area to be picked for change, it would be the public service.

Parakrama to take over from Brito as Aitken Spence Dy. Chairman/MD

Dr. Parakrama Dissanayake will be taking over from J.M.S. Brito as the Deputy Chairman/Managing Director of Aitken Spence PLC with effect from March 15, 2019, the company said in a stock market disclosure. Brito, who will be retiring with effect from March 15, will continue as a non-executive director of the company. Dr. Dissanayake is currently serving as the Secretary to Ports, Shipping and Southern Development Ministry. Before being a

Big change in govt. spending and policies to improve competition urged to avert middle-income trap

A policy combination enhancing competitiveness of businesses and structural changes in State expenditure supporting Sri Lanka’s transformation to a knowledge-based and high-tech driven economy will be crucial for the country to escape a potential middle-income trap, a recent forum in Colombo was told. Central Bank Deputy Governor and Deputy Secretary General of National Economic Council (NEC), C.J.P. Siriwardana pointed out that the government n

Economic liberalization programme to go unhindered: Mangala

Finance and Mass Media Minister Mangala Samaraweera yesterday vowed that the government’s economic liberalization programme will press ahead undeterred and the delayed shipping industry liberalization is ve

SLTPB plans interim promo campaign in Germany

The Sri Lanka Tourism Promotion Bureau (SLTPB) is planning an interim tourism promotional campaign in Germany with an emphasis on subways and TV advertising, to coincide with the launch of Sri Lanka Tourism’s global promotional campaign at ITB Berlin, next month. “We are hoping to get several top

January national inflation up at 1.2%

Sri Lanka’s countrywide consumer prices as measured by year-on-year (YoY) change in the National Consumer Price Index (NCPI) rose to 1.2 percent in January 2019 from 0.4 percent in December 2018, driven by base effect and increased non-food prices.

SL told to negotiate more realistic budget deficit target with IMF

The Sri Lankan government and International Monetary Fund (IMF) may need to negotiate a more realistic and acceptable budget deficit target that allows the economy to grow at a higher pace, according to Standard Chartered Bank’s global research team.

UDA and SLTDA partner to develop master plans for 7 tourism hubs

The Urban Development Authority (UDA) has entered into a partnership with the Sri Lanka Tourism Development Authority (SLTDA) to develop a tourism development master plan, to promote sustainable tourism development activities in seven existing as well as emerging tourism hubs—Kalpitiya, Arugam Bay, Ella, Pinnawala, Nuwara Eliya, Beruwala and Hikkaduwa.

Central Bank seen keeping rates steady as political tensions ease

(Colombo) REUTERS: The Central Bank is expected to leave its key interest rates steady tomorrow, a Reuters poll showed, as the island’s economy slowly recovers from a political crisis that sparked credit downgrades by all three major global rating agencies.

Sampath Bank Rs.7bn debenture issue snapped up on opening day

Sampath Bank PLC yesterday said its Rs.7 billion Basel III-compliant debenture issue was oversubscribed on the opening day.

Rupee ends higher as banks sell dollar; stocks at near 4-mth low

(Colombo) REUTERS: The Sri Lankan rupee rose 0.2 percent yesterday in a lacklustre trade on dollar sales by banks, market sources said. The stock market fell for the third straight session to a near four-month low as foreign investors exited from the island nation’s risky assets. The rupee ended at 179.50/70, compared with Monday’s close of 179.80/180.00, market sources said. Markets were closed on Tuesday for a public holiday.

MTD Walkers further enjoined till Mach 7 preventing transfer of shares

The Colombo Commercial High Court yesterday further enjoined MTD Walkers PLC, until March 7, from transferring its shares in the name of third parties. At the outset of the inquiry, the counsel for D.L.M. De Seram, appearing on behalf of the defendant MTD Walkers PLC of No 18, St. Michaels Road,

Mirror Biz Toon

Demographic changes and economic growth

The world is getting older. The number of people over 65 years is set to triple in 2050. Thanks to science, healthcare and pharmaceuticals, people have longer life spans. Competition, technology and modern lifestyle have resulted in the fertility rates declining.

Softlogic 3Q hit by weak retail sales, currency depreciation and import restrictions

Softlogic Holdings PLC recorded a net loss of Rs. 346.6 million for the quarter ended December 31, 2019 (3Q19) from a profit of Rs.77 million in the year earlier period, as the group’s top line slowed amid rupee weakness, import restrictions and slowdown in consumer discretionary expenditure. The group reported negative earnings of 29

TAD Group ropes in Japan’s Odakyu Group to invest Rs.4.5bn in Sri Lanka

Sri Lanka’s TAD Group has entered into an exclusive partnership with Japan’s Odakyu Group to facilitate investments to the tune of Rs.4.5 billion in Sri Lanka. Being one of the largest conglomerates in Japan, Odakyu Group together with its consortium partners Stacia Capital and UDS, has interests in transport, real estate, hospitality and retail sectors.