Sri Lanka’s first dedicated SME listing board launched

The Securities and Exchange Commission of Sri Lanka (SEC) together with the Colombo Stock Exchange (CSE) yesterday launched ‘Empower – a dedicated listing platform for small and medium enterprises (SMEs) in a bid to provide much-needed equity for high growth potential SMEs.

Treasury Secy. reveals shocking state of State-owned enterprises

Successive Sri Lankan governments have pumped in a colossal Rs.1, 150 billion for the upkeep of the strategically-important State-owned Enterprises (SOEs) up to 2017, the Finance and Mass Media Ministry Secretary Dr.R.H.S. Samaratunga said.  He said this during a conference held for the chairmen

Dr. Dinusha Panditaratne appointed Verité Research advisor

Dr. Dinusha Panditaratne was recently appointed as an Advisor to Verité Research. 

Dhammika proposes govt. to re-evaluate investment policies

The government may need to re-evaluate the effectiveness of the recently introduced targeted capital allowances under the new Inland Revenue Act that replaced the tax holidays to attract both local and foreign investments, Vallibel One PLC Chairman and business tycoon Dhammika Perera said. 

Sarath Ganegoda appointed as Dipped Products acting MD

The Hayleys group long-timer Sarath Ganegoda has been appointed as the acting Managing Director of Dipped Products PLC, a Hayleys group subsidiary, effective from July 1, 2018. Ganegoda was appointed to the board of directors of Hayleys in September 2009. 

June tourist arrivals up 19%

Buoyed by higher tourist arrivals from India and China, Sri Lanka’s total tourist arrivals during the month of June rose 19 percent year-on-year (YoY) to 146,828, the data released by the country’s tourism office showed.

Credit to private sector moderates in May but spike in SoE debt seen

Private borrowings have shown some respite in recent months as such borrowings from the banking sector have moderated substantially during April and May, after the spike seen in the month before. 

Govt. to borrow 100bn yen from Japan’s MUFJ Bank for Central Highway

Sri Lanka is to borrow 100 billion yen (approximately US $ 936 million) from Japan’s MUFJ Bank to construct a 32.5km distance of the Central Highway from Potuhera to Galagedara, under the phase three of the highway project. 

Govt. to award 10MW solar power contract to Didul

The government has decided to award a 10 MW solar power plant contract to Didul (Pvt.) Ltd. A proposal by Power and Renewable Energy Minister Ranjith Siyambalapitiya in this regard has been approved by the Cabinet this week. 

Shares hit 15-month closing low on foreign selling

(Colombo) REUTERS: Sri Lankan shares extended losses yesterday to hit their lowest close in more than 15 months as continued foreign selling in blue-chip stocks dampened sentiment.

Foreign DIrect investments – Global tendencies and issues

In the year 2017, the global flows of foreign direct investment (FDI) dropped by 23 percent, in spite of the growth recorded on the macroeconomic aspects and trade. On an overall basis, there is a substantial drop in the return on FDIs, over the last five years. There is a decrease in mergers and acquisitions and the said downturn was more experienced by the developed and transition economies. 

Govt. sanctions study on infrastructure sharing to expedite digitization

Sri Lanka is to set up a committee of experts to study the possibility of sharing the infrastructure facilities for the deployment of high-speed broadband services and electricity in a bid to fast-track the digitization of the country. 

China in our hand

There seems to be a big hoo-ha and a ding-dong going on in the media in the last few days, about Chinese investments in Sri Lanka. The primary cause for this appears to be the recent New York Times article, which pointed towards the Rajapaksas getting election campaign money via project funding. The story has taken sensational proportions probably due to its timing, as once again the country is on the verge of going into election season.

Central Bank seen on hold but rate hike not ruled out

(Colombo) REUTERS: Sri Lanka’s Central Bank is likely to keep key interest rates unchanged at its policy review on Friday but a rate hike cannot be ruled out as the authorities struggle to ease depreciation pressure on the rupee currency. 

Bangladesh blames Sri Lanka for slow progress in proposed FTA

The Bangladeshi government blamed Sri Lanka’s “unstable political situation” for the slow progress in the proposed Sri Lanka-Bangladesh Free Trade Agreement (SLBFTA). 

Shares hit by continued foreign selling

(Colombo) REUTERS: Sri Lankan shares extended falls yesterday to a 15-month closing low as continued foreign selling in blue chips, political uncertainty and concerns about lower economic g

Final decision on Kerawalapitiya LNG plant delayed until SC verdict on FR case

President Maithripala Sirisena yesterday directed the Cabinet to delay the final decision on the controversial tender for 300 MW Kerawalapitiya LNG power plant until the Supreme Court’s verdict on a f

Rupee slips; dollar selling by State bank caps fall

(Colombo) REUTERS: The Sri Lankan rupee edged lower for a second straight session yesterday in moderate trade, as importer dollar demand outpaced inflows from inward remittances, while a State bank helped ease downward pressure by selling the U.S. currency, dealers said.

Brush maker BPPL invests in new Rs.180mn filament extrusion plant

Listed brush maker, BPPL Holdings PLC said it has invested Rs.180 million in a new monofilament extrusion plant, which is expected to be commissioned by July/August this year.

Sri Lanka’s external debt stock rises to US$ 31.6bn by end of April

Sri Lanka’s total outstanding external debt stock has increased by 23.3 percent year-on-year (YoY) to US $ 31.6 billion at the end of April this year, compared to US $ 25.61 billion at the end of April 2017, according to 2018 Mid-Year Fiscal Position Report of the Finance and Mass Media Ministry.  The overall outstanding 

Waning finance company asset quality under spotlight

The asset quality of the non-bank finance sector is not something which often comes to the fore or commented on. But with the economic conditions getting tougher, it is slowly coming into the spotlight. 

ComBank announces appointments of new MD, COO

Commercial Bank of Ceylon PLC has announced the appointments of Sivakrishnarajah Renganathan and Sanath Manatunge, two career bankers, who have served the bank for 37 years and 29 years, respectively, as Managing Director and Chief Operating Officer, effective July 27, 2018.

Shares post worst fall in 28 months on foreign selling

(Colombo) REUTERS: Sri Lankan shares fell over one percent yesterday, the sharpest in nearly 28 months, as continued foreign selling and concerns about lower economic growth hurt sentiment, stockbrokers said.

Lion Brewery urges govt. to restore 12% concessionary tax rate on exports

Sri Lanka’s largest brewery, Lion Brewery (Ceylon) PLC, has urged the government to restore the concessionary rate of income tax on its export profits.

Will Asia grow old before it becomes rich?

Asian countries have traditionally enjoyed large demographic dividends—i.e. increases in labour supply and savings—that have boosted economic growth. But this decade, the share of working-age population, most notably in the People’s Republic of China (PRC) and Republic of Korea, has started to shrink, following in Japan’s demographic footsteps.

CPC introduces low-emission Euro 4 fuel to Sri Lanka

Ceylon Petroleum Corporation (CPC) yesterday unveiled the country’s first Euro-spec fuel dispenser and launched European Emission Standard Euro 4 fuel, at a launch ceremony held at C.F. De Mel & Sons Filling Station, in Colombo 2.

Rupee edges lower on thin importer dollar demand

(Colombo) REUTERS: The Sri Lankan rupee closed slightly weaker yesterday in dull trade as thin dollar demand from importers and banks outpaced little inflows from inward remittances, dealers said. The rupee ended at 158.35/45 per dollar, compared with Friday’s close of 158.20/35.

Estimating cyber risk for financial sector

Cyber risk has emerged as a significant threat to the financial system. An International Monetary Fund (IMF) staff modelling exercise estimates that the average annual losses to financial institutions from cyberattacks could reach a few hundred billion dollars a year, eroding bank profits and potentially threatening financial stability.

What kind of ‘liberals’ are these?

On June 19, Advocata Institute and Echelon Magazine’s Think series hosted Singaporean economist Razeen Sally at the Sri Lanka Foundation Institute to speak on ‘Capitalism in Asia and what it means for Sri Lanka’. 

Sri Lanka running out of input-led ‘perspiration’ growth in a changing Asia: Razeen Sally

Shortages of labour, land and an ageing population mean that Sri Lanka’s opportunities for rapid catch-up growth are diminishing and institutional transformation is needed for innovation and output-led growth, a top economist has said.