Shares fall as financials slide

Sri Lankan shares ended lower yesterday, driven by a slide in financial services and consumer discretionary stocks.

Rs.1,000 minimum wage for estate sector comes into effect from March 5

The Rs.1,000 minimum daily wage for tea and rubber plantation workers has come into effect from the fifth of this month, the Labour Ministry announced yesterday.

Fitch continues to peddle fears over Lankan banks’ access to foreign funding

In back-to-back reports on the banking sector issued within days, Fitch Ratings peddled fears over the ability of the Sri Lankan banks to raise foreign funds for lending purposes, as they believe that Sri Lanka’s sovereign rating cut in December 2020 would hurt their chances to secure such funding lines.

Foreign employment agencies and Labour Minister in bitter battle

While expressing willingness to cooperate in a forensic or technical audit on cross-border transactions, Sri Lanka’s licensed foreign employment agencies this week accused Labour Minister Nimal Siripala de Silva of conspiring to jeopardise the country’s largest foreign exchange earner, the foreign employment industry.

People’s Bank reports highest ever balance sheet growth in 2020

People’s Bank yesterday announced the results for its year ended December 31, 2020 reporting consolidated net loan growth of Rs.315.7 billion, representing 21.6 percent growth year-on-year (YoY), and accounting for close to one third of overall net sector credit extended during the period.

Govt. to expedite setting up of Millewa pharma zone

The Cabinet of Ministers this week granted approval to expedite the setting up of the proposed pharmaceutical zone in Millewa in Horana.

Shares slip as industrials weigh

Sri Lankan shares ended modestly lower yesterday, led by a decline in industrial stocks.

Fitch expects State banks to continue to record higher loan growth relative to private banks

Fitch Ratings said the two State-owned licensed commercial banks—Bank of Ceylon (BOC) and People’s Bank—would continue to lead credit growth compared to their closest private lending giants—Commercial Bank, Hatton National Bank and Sampath Bank— as they assume a higher risk appetite, while the State directed lending for pandemic-affected would keep the loan growth ticking.

Economic growth in 1Q21 will be at least 3.5%: Cabraal

Money & Capital Market and State Enterprise Reforms State Minister Ajith Nivard Cabraal yesterday said Sri Lanka’s gross domestic product (GDP) growth is expected to be around 3.5 percent in the first quarter of 2021 and minimum of 20 percent in the second quarter due to the low base in the previous year.

New company under Salu Sala to directly promote batik and handlooms

The Cabinet of Ministers’ nod has been received to form a new company as a fully-owned subsidiary of Lanka Salu Sala Limited to promote other local products including batik, handloom textiles and local apparel products directly, by setting up a strong international network.

Working remotely in the age of COVID: Who is left behind?

The COVID-19 pandemic which was first reported in Sri Lanka in January 2020 has distressed the country’s labour market. According to the Department of Census and Statistics, with the onset of the pandemic, the labour force participation has decreased and the unemployment rate has increased, indicating reduced job openings.

Smoke engulfs entry of cinnamon cigarette

The advent of a locally manufactured tobacco-free cinnamon cigarette into the market stirred much interest and controversy in recent weeks.

Empower one woman and you empower a whole community

It is aptly said that when a woman becomes financially independent she sets off a chain reaction of positive outcomes within her family and wider community. In my long journey of working with women right from the grassroots right up to the higher corporate echelons in Sri Lanka, this reality is evident.

Jan. export earnings record slight slowdown

Sri Lanka’s merchandise export earnings recorded a slight slowdown in January, following the strong rebound in export earnings in December 2020, due to Brexit and impacts from the second wave of the COVID-19 pandemic extending to 2021.

IFC and CSE ring bell for gender equality

Celebrating the International Women’s Day, IFC, a member of the World Bank Group, yesterday joined the Colombo Stock Exchange (CSE) for the sixth consecutive year to ‘Ring the Bell for Gender Equality’.

CSE withdraws circulars convinced of “practical challenges” faced by brokers

The Colombo Stock Exchange (CSE) yesterday retracted two circulars issued in January and February, which asked the stockbrokers to furnish their credit information on a weekly basis, changing from the usual practice of furnishing such information every fortnight.

Life insurance industry achieves 16% growth despite pandemic-infused challenges

Sri Lanka’s life insurance industry achieved a 16 percent year-on-year (YoY) overall growth, with the total gross written premium (GWP) topping the Rs.100 billion mark in 2020, despite the COVID-19 pandemic-infused challenges, including a low interest rate regime.

UK eclipses China to become top direct investor in Sri Lanka

While almost everyone was immersed in the pandemic, the United Kingdom (UK) stumped China to become the top investor in Sri Lanka in 2020.

Fuel Stabilisation Fund likely to come into play if global oil prices continue to rise

As global crude oil prices hit US $ 70 a barrel, Sri Lanka is likely to make use of what is called the ‘Fuel Stabilisation Fund’ established last year when the oil prices slumped in 2020, amid the slowdown in economic activities due to COVID-19.

Brent cracks US $ 70 for first time since pandemic began

Brent crude futures jumped above US $ 70 a barrel yesterday for the first time since the COVID-19 pandemic began, while U.S. crude touched its highest in more than two years, following reports of attacks on Saudi Arabian oil facilities.

Govt. to allow tile imports with increased cess

The tile and bath ware importers will soon be able to let out a sigh of relief, with the government agreeing to lift the import ban in the coming months, however, on the condition that the cess tax will be increased by over twofold.

International Women’s Day 2021@ Octopus BI- “She Challenges Technology”

Octopus BI is one of the leading Australian Data and Learning analytics company, focusing on the education space.

Stock market investors hold “wide-ranging discussion” with Capital Market Minister

A few high net worth stock market investors met with State Minister of Money & Capital Markets and State Enterprise Reforms, Ajith Nivard Cabraal last week to discuss a sustainable way forward for the country’s capital market, which saw increased investor participation in recent times, largely due to lower interest rates and limited options for other investments.

FTZMA claims mandatory dollar conversion rule likely in breach of IMF member obligations

Sri Lanka’s Free Trade Manufactures’ Association (FTZMA) claims that the recently imposed mandatory dollar conversion rule is in breach of Sri Lanka’s obligations as an International Monetary Fund (IMF) member, and urges the Central Bank (CB) to take a more consultative approach on the matter, as it would place additional pressure on the country’s already struggling export sector.

Labour Minister proposes to reclaim 39, 000 hectares of RPC land

Labour Minister Nimal Siripala de Silva has proposed that 39,000 hectares of uncultivated and abandoned lands under the management of Regional Plantation Companies (RPCs) should be distributed among estate workers and others for cultivations.

Credit card spend finally turns the corner after four months

Total outstanding credit card balance, a measure of card spend, finally turned the corner in December 2020 after four months of continuous decline since August.

NDB eyes higher growth trajectory with Norfund’s equity investment

National Development Bank PLC (NDB) last week expressed confidence in their ability to achieve improved growth in the immediate future, as increased focus will be on meeting the Tier I & II requirements, two areas where the entity requires attention to progress its overall position amongst competitors.

Finance companies less important to parents despite large shareholding: Fitch

Fitch Ratings last week showed that finance and leasing companies (FLCs), which are part of larger financial groups are less important to the parent due to limited synergies in products they offer, modest contributions to group top and bottom lines and their weaker performances.

Central Bank imposes 20% small biz lending target for banks

The Monetary Board of the Central Bank wants licensed banks to lift their loans to the small business sector by a minimum of 20 percent in 2021, as it is not satisfied with the pace of the loan growth to the private sector, specifically to priority sectors.

Border closures and virus scare hurt Odel Dec. quarter

Border closures and repeated requests to stay indoors, due to the pandemic, resulted in upmarket retailer Odel PLC recording depressed resulted for the December 2020 (3Q21) quarter, the interim financial accounts released to the Colombo Stock Exchange showed.