PUCSL asks exporters to settle electricity bills in dollars

28 Jun 2022 - 0     - 40

As a partial solution to find the required foreign currency to maintain power generation at the Norochcholai coal power plant, the Public Utilities Commission of Sri Lanka (PUCSL) is asking all exporters, including services exporters, to settle their monthly electricity bills in US dollars.

May tourism income halves deepening country’s forex crisis

27 Jun 2022 - 2     - 2939

Foreign exchange income from tourism, the largest services inflow to Sri Lanka after remittances, more than halved in May as the island nation’s economic crisis and the resultant social unrest appears to be getting worse.

First aerial mapping of SL petroleum resources to be presented at SEAPEX confab

25 Jun 2022 - 12     - 8198

Bell Geospace, the world leaders in gravity gradiometry, is gearing up to present the insights gathered from the first aerial mapping of petroleum resources in Sri Lanka at the prestigious South East Asia Petroleum Exploration Society (SEAPEX) Asia Pacific Conference in London.

Pressure mounts on Treasury yields again as economic woes run deeper

24 Jun 2022 - 0     - 53

Bucking the weeks-long trend, upwards pressure was seen again on Treasury yields this week as primary dealers and bond investors bid higher amid the worsening economic crisis, which has engulfed the entire country, bringing it to its knees.

Soaring interest rates seen forcing banks to delay or cancel bond issuances

23 Jun 2022 - 0     - 44

The soaring interest rates triggered by the jumbo key rate hike on April 8 have prompted the banks to either delay or cancel their corporate bond issuances as part of their Tier II capital enhancement journey, according to the banking industry sources.

Dollar crunch unravels SL’s decades-long transport crisis

22 Jun 2022 - 4     - 2731

Sri Lankans are in a catch-22 situation as they neither can use their private vehicles nor take public transport after decades of neglect and underinvestment in the latter, which was allowed to decay to its current dilapidated state, according to a transport sector expert.

Early fiscal data points to another year of blowout budget deficit in 2022

21 Jun 2022 - 0     - 39

The early data available on the government’s fiscal performance in the first two months of 2022 indicated signs of yet another year of blowout budget deficit in 2022, after three back-to-back years of gaping budget holes, which was partially responsible for the current seismic economic crisis.

Sri Lanka comes to grinding halt as fuel runs out

20 Jun 2022 - 0     - 4821

Sri Lankan economy comes to a complete standstill from today as the country has run out of fuel, bringing all economic activities to an abrupt halt as the government declared holiday for most State sector services, suspended schools and universities and asked the private sector to work-from-home.

WB expects SL economy to contract by 7.8% in 2022

18 Jun 2022 - 0     - 2212

The World Bank (WB) expects Sri Lanka’s economy to contract by 7.8 percent in the year 2022, a grim outlook, due to the country battling with severe shortages in electricity, food and fuel.

May PMI subdued as economic crisis batters manufacturing and services activities

17 Jun 2022 - 0     - 29

The economic crisis, which precipitated into an all out civil unrest, took massive toll on the country’s manufacturing and services activities in May with factories scaling down operations and people losing jobs in what appears to be a forerunner for a deeper contraction in the Sri Lankan economy in the scale that it has never seen before.

SL’s BOP hole deepens as foreign inflows run dry

16 Jun 2022 - 0     - 38

Sri Lanka more than doubled its deficit in the balance of payment (BOP) in the first four months compared to the same period in 2021, as imports raced, remittances sank, direct investments fizzled out and the expected borrowings didn’t come through.

April imports show stubbornly high food bill sparking SL’s food security concerns

15 Jun 2022 - 0     - 45

April external sector aptly demonstrated Sri Lanka’s over-reliance on imports for basic needs such as food, power and energy, and transport as expenditure on such categories stood out stubbornly high, making a strong case for the country to change its track if it is to emerge out of the current economic crisis, the worst in its post-independence history.

Remittance income up in May from April signalling positive trend

13 Jun 2022 - 2     - 4459

Worker remittances to Sri Lanka recovered from April levels, but still stand significantly below what the country received a year ago, reflecting the lingering challenges facing the authorities in restoring confidence in getting expatriates to use the official banking channels more when repatriating their moneys, which will directly help to import food, fuel, cooking gas and medicines.

Dhammika Perera exits boardroom to enter Parliament

11 Jun 2022 - 0     - 96

Ending weeks of speculation, business tycoon Dhammika Perera yesterday resigned from the director boards of a number of listed companies he controls, where he served in the capacity of Chairman or Co-Chairman, to make way for his entry into politics.

PUCSL says will not allow unfavourable PPAs with private sector developers

10 Jun 2022 - 0     - 37

Sri Lanka’s power sector regulator, the Public Utilities Commission of Sri Lanka (PUCSL) stressed that it would not allow the Ceylon Electricity Board (CEB) to enter into power purchase agreements (PPAs) with the private sector developers, including India’s Adani Group, violating the least cost principle.

PM requests IMF to expedite rescue package as Sri Lanka runs out of cash

09 Jun 2022 - 0     - 70

Prime Minister Ranil Wickremesinghe in his capacity as the Finance Minister has requested International Monetary Fund (IMF) Managing Director Kristalina Georgieva Tuesday evening to expedite the process of staff-level agreement, which would then pave the way for the rescue package at least by September.

PM presents comprehensive reform package to emerge from worst crisis

08 Jun 2022 - 0     - 70

Presenting what appears to be a comprehensive reform package, Prime Minister Ranil Wickremesinghe yesterday charted a three-phased path for the country to emerge from the current economic abyss caused by the pandemic, which was then compounded by extremely poor economic management.

Daily guidance on dollar/rupee rate has brought in greater stability to forex market: CB

07 Jun 2022 - 0     - 2620

The Central Bank yesterday said the daily guidance rate released on the exchange rate between the United States dollar and Sri Lankan rupee is delivering the intended results by way of bringing in greater stability to the domestic foreign exchange market, which otherwise would have delivered disastrous implications, due to the rupee’s free fall.

Printing money similar to giving high dose of sugar to diabetic

06 Jun 2022 - 5     - 2870

Taking a swipe at Prime Minister Ranil Wickremesinghe’s repeated comments to the effect of the government having to rely on printed money to pay for essential government bills such as payment of salaries and pensions in the ensuing months, the former Central Bank Deputy Governor, Dr. W.A. Wijewardena likened it to giving sugar to a diabetes patient, to reflect the severity of the move in aggravating the current problems in the economy.

Crisis-struck SL can’t use US $ 1.5bn China swap: Coomaraswamy

04 Jun 2022 - 0     - 84

Crisis-struck Sri Lanka will not be able to access a US $ 1.5 billion credit line from China, as the latter is concerned the International Monetary Fund (IMF) could push for delays in repayments.

Shortage of imported beverages, new burning issue for tourism industry

03 Jun 2022 - 6     - 5440

Sri Lanka’s hard-hit tourism industry is faced with yet another hurdle in catering to its international guests, this time with the non-availability of imported liquor.

Govt. relaxes import controls to support biz

02 Jun 2022 - 0     - 2112

The Finance Ministry yesterday implemented two key actions with regard to importation of goods, paving the way for businesses to have access to the required raw materials, so that operations can proceed with minimal hindrance.

Govt. hikes tax rates to put fiscal house in order

01 Jun 2022 - 0     - 112

The Cabinet nod was granted this week to increase taxes to 2019 levels in three stages to collect an estimated Rs.125 billion additional income during this year and over Rs.292 billion additional income starting from next year.

CB says open account suspension won’t cause huge shortages

31 May 2022 - 0     - 43

Shrugging off concerns raised by various parties that the restrictions imposed on Open Account Payment Terms would lead to a large-scale shortage of essential food items, the Central Bank yesterday assured the public that it would ensure availability of foreign exchange through the banking system for the importation of essential goods, including food items.

CEB’s massive losses make case for sharp tariff hike

30 May 2022 - 2     - 2140

The interim results filed by the Ceylon Electricity Board (CEB) for the March quarter showed the dire straits the country’s power monopoly is in and the imminent need to raise tariffs for it to stay afloat at the minimum.

Tourism sector presents ‘Revival for Survival’ plan for quick recovery

28 May 2022 - 11     - 8146

The hard-hit tourism sector has formulated a strategy document, the ‘Revival for Survival’ plan, to help support the industry through the ongoing economic crisis and move towards a positive work trajectory at the earliest.

IMF seeks assurance of debt sustainability prior to any lending

27 May 2022 - 0     - 44

Following the conclusion of the IMF Staff virtual mission to Sri Lanka, the multilateral lender yesterday said Sri Lanka needs to restore debt sustainability prior to any kind of lending to the crisis-stricken island nation.

Premier says he will slash expenditure in new budget

26 May 2022 - 0     - 68

Sri Lanka’s new Prime Minister Ranil Wickremesinghe, who was also appointed as the country’s Finance Minister yesterday, said he would present an interim budget within six weeks, slashing infrastructure projects to reroute the funds into a two-year relief programme for the crisis-hit island nation.

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Sri Lanka returns to fuel pricing formula partially ending subsidy regime

25 May 2022 - 4     - 3990

With State-owned Ceylon Petroleum Corporation (CPC) struggling to finance fuel imports amid steep losses, Sri Lanka has returned to a cost-reflective fuel pricing formula partially ending an uneven subsidy regime after over two years, resulting in a record increase in fuel prices

Merchandise exports set new April record despite setbacks

24 May 2022 - 0     - 76

Despite the multiple challenges from fuel and power shortages to social unrest, Sri Lanka’s merchandise exports set a new record in April, recording the highest ever export value for the month supported by the floating of rupee exchange rate in the previous month.