March vehicle registrations keep up with Feb. recovery trend

Sri Lanka’s vehicle registrations were observed to be keeping up with the recovery witnessed in February this year, although March figures show a marginal month-on-month (MoM) dip of just two units.

Central Bank’s forex purchases hit seven-month high in March

The Central Bank’s net purchases of foreign currency from the domestic foreign exchange market reached the highest since August 2020 as the monetary authority continued to accumulate foreign exchange despite the recent volatility seen in the rupee against the dollar, in their pursuit to rebuild foreign reserves from non-borrowed sources.

UDA to call RFPs for 5 land plots around Beira Lake

Export earnings recover to near pre-pandemic levels in February

Earnings from merchandise exports flirted to near pre-pandemic levels in a sign of gradual recovery of international trade with the normalising of economic activities in Sri Lanka’s key export markets.

CB urged to offer higher rates for future SLDBs to induce rollover

While expressing full confidence on the government’s willingness and ability to honouring future debt obligations, a leading asset manager wants the Central Bank (CB) to consider offering higher interest rates for future US$-denominated Sri Lanka Development Bonds (SLDBs) to induce rollover of the record SLDB maturities scheduled for the year.

Oil rises above US $ 67 in fifth day of gains on demand hopes

Oil rose above US $ 67 a barrel yesterday, gaining for a fifth session, as a stronger demand outlook and signs of economic recovery in China and the United States offset rising COVID-19 infections in some other major economies

Asian markets rise after record China growth, Wall St surge

Asian markets rose yesterday as record Chinese economic growth reaffirmed the country’s strong recovery, while traders tracked a Wall Street surge fuelled by blockbuster reports on US consumer spending and jobless claims.

China GDP grows record 18.3% in first quarter in virus rebound

China’s economy expanded at a record pace in the first quarter as the country continued its rapid recovery from last year’s pandemic-fuelled slump, official data showed yesterday.

Maldives to offer holidaymakers vaccines on arrival

The Maldives will soon offer visitors vaccinations on arrival as part of its three-pronged initiative aimed at reviving the country’s hard-hit travel sector, according to its tourism minister.

Citigroup to exit consumer banking in 13 markets

Citigroup is closing its consumer banking operations in 13 markets across Asia, Europe and the Middle East. The US banking group will instead run these operations from four hubs in Singapore, Hong Kong, the United Arab Emirates and London.

Singapore Airlines to increase flight frequency to Sri Lanka

From May 1, 2021, Singapore Airlines will increase its flight frequency to Sri Lanka from three times to five times weekly, operating the Airbus 350-900MH aircraft.

Cabraal defends Colombo Port City Commission Bill

While dismissing claims on Colombo Port City (CPC) is on the verge of becoming a Chinese colony and concerns on potential money laundering activities, Money and Capital Markets and State Enterprise Reforms State Minister Ajith Nivard Cabraal defended the Colombo Port City Commission Bill, stressing that it is in line with the country’s Constitution and it will attract foreign investments to CPC to become an international business hub.

Rupee eases to Rs. 201.28 against US dollar

The Sri Lankan Rupee witnessed a recovery today by easing to Rs. 201.28 against the US dollar.

CB extends suspension on banks from buying sovereign bonds

The Central Bank has extended the suspension on banks from purchasing Sri Lanka-issued international sovereign bonds (SLISBs) till April 23 in a bid to ward off the pressure on the rupee.

Bond yields decline after US$ 500mn Chinese loan

The secondary market yields of the Sri Lanka issued International Sovereign Bonds (SLISBs) fell soon after the country secured the second tranche of the China Development Bank loan for budget support, propping up its reserves.

Manufacturing PMI hits 9-month high in March; services sector expands for 4th straight month

Sri Lanka’s manufacturing activities recorded a nine-month high in March while the services sector maintained its growth momentum for the fourth consecutive month, the Purchase Managers’ Index (PMI) released by the Central Bank showed yesterday.

Monetary Board issues fresh criteria for finance firms when borrowing from abroad

A fresh set of criteria was issued by the Monetary Board in respect of future borrowings made by the licensed finance company sector in foreign currency in order to minimise unwarranted volatilities in the sector and also to provide a risk management framework when dealing with such borrowings.

Container throughput at Colombo Port off to slow start

The container throughput at Port of Colombo recorded a slowdown in the first two months of the year driven by declines in domestic and transshipment volumes due to global developments and sluggish trade.

Deshal de Mel appointed to Janshakthi Insurance board

Economist Deshal de Mel has been appointed as an Independent Non-Executive Director of Janashakthi Insurance PLC with effect from April 15, 2021.

Confectionery industry says upward revision in prices likely due to expected palm oil shortage

The local confectionery industry will come under stress in the coming weeks as a shortage of palm oil, due to the overnight ban imposed by the government, will negatively impact the sector’s output and lead to a possible price increase for consumers.

February industrial production slips; but apparel and textiles continue to add gain

Industrial production, which primarily measures the manufacturing heft of local factories, slipped in February from the levels seen in January, but apparel and textiles manufacturing made stronger gains continuing the momentum set forth this year.

Maldives to offer holidaymakers vaccines on arrival

Maldives will soon offer visitors vaccinations on arrival as part of its three-pronged initiative aimed at reviving the country’s hard hit travel sector, according to its tourism minister.

Rupee dips to Rs. 204.62 against dollar

The Sri Lankan rupee dipped further today against the US dollar, as the selling rate of a dollar was recorded at Rs.204.62.

Sri Lanka and India to kick off joint research in science and tech

Sri Lanka and India have taken a progressive step to integrate expertise in the area of science and technology with scientists from both the nations gearing up to undertake joint research.

Swarnamahal Financial Services business suspended

The Monetary Board of the Central Bank has suspended the business of Swarnamahal Financial Services PLC (SFSP) with effect from 5.00 p.m. yesterday (April 12) due to the company’s deteriorating financial condition and non-availability of a viable revival plan.

Rupee plunges to new low against US dollar

The Sri Lankan rupee hit a new record low today against the US dollar, as the selling rate of a dollar was recorded at Rs.203.73.

Singapore Airlines to increase flight frequency to Sri Lanka

From 01 May 2021, Singapore Airlines will increase its flight frequency to Sri Lanka from 3 times to 5 times weekly, operating the Airbus 350-900MH aircraft.

No IMF bail-out though various other discussions ongoing: CB

While Sri Lanka frequently engages with the International Monetary Fund (IMF) for technical assistance, and the two parties are also planning for the upcoming Article IV consultations towards the end of this year, the Central Bank reiterated that no discussions are held to the effect of a programme in the style of Balance of Payment support.

Proceed with caution: Is Sri Lanka’s approach to import substitution sensible?

In the immediate aftermath of the onset of the COVID-19 pandemic and the unprecedented health and economic crises it unleashed, there was a widespread backlash in sentiment against globalisation and open economic policies. The greatly increased human mobility associated with these phenomena was blamed for the rapid spread of the virus to all parts of the globe.

Managing divergent recoveries

It is one year into the COVID-19 pandemic and the global community still confronts extreme social and economic strain as the human toll rises and millions remain unemployed.