Mangala highlights impact of natural disasters amid trade wars, high energy prices

Finance and Mass Media Minister Mangala Samaraweera yesterday appealed to the Commonwealth of Nations to redouble the efforts to support smaller nations to mitigate risks arising from increasingly frequent natural disasters in the backdrop of an uncertain global environment marked by trade wars and high energy prices.  Addressing the Commonwealth Finan

Sri Lanka to sell hotel stakes, possibly within six months

London (REUTERS): Sri Lanka plans to put two state-owned hotel companies up for sale within the next six months in a sale that could raise US $ 500 million for the island nation as it seeks to bolster its finances, the finance minister said on Tuesday.  

Jetwing chief calls for consensus among city hoteliers to raise room rates

Jetwing Group Chairman Hiran Cooray recently urged the Colombo city hoteliers to be united to increase the minimum hotel room rates in Colombo, as the room rates were getting depressed.  

Central Bank asserts role in financial system stability

The Central Bank of Sri Lanka (CBSL) is making the following statement in relation to the article titled “Rupee depreciation shows abdication of vital statutory duty by CB, Govt”, authored by former Central Bank Governor Ajith Nivard Cabraal, that appeared in Mirror Business on October 9.  

IMF cuts world economic growth forecasts

(Nusa Dua, Indonesia) REUTERS: The International Monetary Fund this week cut its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.

Price controls on foodstuffs —a political gimmick?

The price controls slapped on a number of foodstuffs are of limited value despite their popular rhetoric, given the low adherence of traders towards the administered prices and lax enforcement actions by authorities, a recent survey conducted in Colombo and a few of the suburbs, revealed.   

Budget 2019: Informal sectors must be included in tax net

The government gets set to unravel its fiscal policy plan for 2019 at a crucial juncture in time, as on the one hand it prepares for the much-anticipated elections at the end of next year and on the other, the Sri Lankan economy is under immense scrutiny and pressure to take bold and decisive steps to strengthen its place and course for the purpose  of development.

Sri Lanka, Armenia, Pakistan face greatest funding risks: Moody’s

(London) REUTERS: Sri Lanka, Armenia and Pakistan top the list of smaller emerging economies most vulnerable to refinancing risks, because they face a combination of large upcoming repayments and low foreign currency reserves, ratings agency Moody’s said yesterday.  

G-24 hopes to influence global agenda at IMF, WB Bali gathering: Mangala

Global finance and reserve bank chiefs will gather this week in Bali, Indonesia, for the annual gathering of the International Monetary Fund (IMF) and World Bank, amid the rising concern over trade war and risks of global economic crisis. Finance and Communications Minister Mangala Samaraweera is the Chair of the Groups of 24 (G-24) developing nations, which is active in lobbying international institutions on issues of concern in the global econo

Rise in electricity tariffs unlikely despite high generation costs

Fitch Ratings does not see the government raising electricity tariffs in the foreseeable future, but expects power generation costs to remain high in the next couple of years amid rising 

Rupee hits fresh low for 5th straight session

(Colombo) REUTERS:  The Sri Lankan rupee hit a record low for a fifth straight session yesterday on strong dollar demand from importers and foreign banks amid outflows from government securities, while stocks snapped a four-day winning streak and ended marginally weaker.

Remittance income continues falling streak aggravating external woes

Worker remittance to Sri Lanka continued its declining streak as Sri Lanka’s largest foreign income earner and one of the two current account stabilisers is facing the crucial test of rebalancing socio econom

Unemployment in second quarter accelerates to 4.6%

Sri Lanka’s unemployment rose to 4.6 percent in the second quarter of 2018 (2Q18) amid a fall of employment in the country’s agriculture and industries sector, the data released by the Department of Census and Statistics showed. 

MillenniumIT founder urges Lankans to shed ‘dog in the manger’ attitude

A highly successful local entrepreneur who made it to the global stage this week urged Sri Lankans not to become dogs in the manger for fellow Sri Lankans who aspire to progress and turnaround the country’s economy.

Govt. says putting final touches to new microfinance law

The government at the moment is putting final touches to a law covering microfinance, to save the borrowers from exorbitant and unnecessary charges and other malpractices, Finance and Mass Media Minister Mangala Samaraweera said yesterday.   

Rising oil prices, vehicle imports send July import bill higher, trade deficit wider

Sri Lanka’s merchandize trade deficit continued to expand as the fuel bill rose significantly amid increasing world oil prices and the import of personal vehicles, which more than doubled in July.    

Corrupt bureaucrats, uncompetitive local industries blocking trade liberalisation

The largely uncompetitive local industries and corrupt bureaucrats are exploiting the public perception to delay trade liberalisation and the necessary reforms for their personal gains, as the government and academics have so far failed to engage the public in a policy dialogue to properly communicate the benefits of free trade. 

Palm oil industry rejects vilification of crop as baseless and unscientific

The vilification of oil palm in Sri Lanka on the grounds of the crop’s purported adverse impact on the environment is completely unjustifiable, given that the extent of land under oil palm is just 1.1 percent of the extent under traditional crops – tea, rubber and coconut – an industry body has stated.  

Rupee depreciation shows abdication of vital statutory duty by CB, Govt.

As per the Monetary Law Act (MLA), it is a statutory duty of the Central Bank is to maintain “economic and price stability”. In so doing, the MLA requires the Monetary Board “to maintain the international stability of the Sri Lanka rupee”. Towards that end, the Monetary Board has to maintain an international reserve, which has to be “adequate to meet any foreseeable deficits in the International Balance of Payments&r

Rupee hits record low for 4th session; stocks gain

(Colombo) REUTERS: The Sri Lankan rupee hit a record low for a fourth straight session yesterday due to dollar demand from importers and foreign banks amid outflows from government securities, while stocks rose for a fourth consecutive session to a more than two-week closing high.  

Potential of Indian Ocean – Historical antecedents, present strategic importance

It  was reported in the local  news media  on October 7,  2018 that Sri Lanka will host a regional conference on the future of the Indian Ocean on October 11, 2018, which is expected to bring together countries that surround the this great body of water where Sri Lanka holds a  pivotal location.  

CEOs should lead, promote openness, retain humility: N-able Chief

Be it chief executives, managing directors or heads of organisations or departments, instead of managing, one should always focus on leading their organisations with a sense of openness and retaining humility, N-able Managing Director and Chief Executive Peter D’Almeida said.  Delivering the inaugural speech o

Banking sector asset quality hits new low

Sri Lanka’s banking sector asset quality fell to a new low in August after the non-performing loans increased, providing clear evidence that businesses and consumers continue to struggle in servicing t

SL retains 16th place in UNCTAD’s Liner Shipping Connectivity Index

Sri Lanka held on to the 16th best connected trading nation to others by sea status in 2018, according to the United Nations Conference on Trade and Development (UNCTAD)’s latest

Advocata says price controls on water bottles carry serious unintended consequences

The recent price controls slapped on bottled water could lower the quality of the water being sold at the market place and limit the choice the customers previously had, Advocata, a Colombo-based think tank that promotes free market ideas said in a statement.  In an extraordinary gazette notific

SL and B’desh to sign Coastal Shipping Agreement shortly

Sri Lanka and Bangladesh have finalised the much awaited Coastal Shipping Agreement, and it will be signed shortly, Development Strategies and International Trade Minister Malik Samarawickrama told a recent forum in Colombo.  The agreement will a

Malik claims CCEM was a ‘consultative process’

Development Strategies and International Trade Minister Malik Samarawickrama yesterday in statement averred that the now scrapped Cabinet Committee on Economic Management (CCEM) headed by Prime Minister Ranil Wickremesinghe was “thoroughly a consultative process.”   Referring to recent new

JLL Lanka hails deregulation of real estate market as boost for foreign investment

Real estate consultancy JLL Lanka this week commended the passing of the recent legislation pertaining to foreign ownership of land in Sri Lanka, noting that the move will

BOI terminates agreement with WCC to build Asia’s tallest building

The Board of Investment (BOI) has terminated the agreement with World Capital Centre (WCC) to build the Asia’s tallest building in Colombo with a US$ 2.4 billion investment.

IMF calls for more action in Pakistan, but no word on bailout

ISLAMABAD (AFP) - The International Monetary Fund has called on Pakistan’s new government to act fast to stabilise its teetering economy, warning growth will likely slow and inflation rise, but made no mention of a new bailout deal.