What are Sri Lanka’s economic prospects in 2021?

2020 was a year of ultimate disruptions across a widest spectrum, that no expert saw coming: the virus and its devastating impact on lives, livelihoods, society and governments.

Tea output projected to recover this year

Sri Lanka’s tea output is projected to recover this year, following an estimated 10 percent or 30 M/Kgs year-on-year (YoY) decline in the output in 2020, mainly due to the adverse weather conditions prevailed in the country, according to Forbes & Walker Tea Brokers.

CSE’s ASPI forges ahead crossing 7,000-point mark first time since 2015

The Colombo Stock Exchange’s (CSE) benchmark All Share Price Index (ASPI) crossed the 7,000-point mark yesterday for the first time since November 24, 2015, closing the trading day on 7,036.76 points.

Maldives records over half a million tourist arrivals in 2020

The Maldivian government revealed that across the year 2020, a total of 555,399 tourists had arrived in the archipelagos.

Cabinet clears path for gem mining on leased lands

The Cabinet of Minister has approved measures to seek the Parliamentary approval to liberalise the country’s gem mining licence scheme, enabling activity even on leased lands.

Pasan Wanigasekara assumes duties as BOI Director General

Multi-disciplined corporate leader Pasan Wanigasekara has been appointed as the new Director General of the Board of Investment (BOI), the country’s state-run apex investment promotion body.

Jit Gunaratne joins CIC board

Jitendra Romesh Gunaratne, who recently retired from the John Keells group, has been appointed as an Independent Non-Executive Director to CIC Holdings PLC, with effect from January 6, 2021.

Royal Ceramics to commission new tile making plant targeting price-sensitive market segment

Dhammika Perera-controlled Royal Ceramics Lanka PLC plans to commission a new tile manufacturing plant, targeting the more price-sensitive segment of the market and increasing the company’s tile production capacity by 20 percent.

Central Bank hopeful of PayPal’s arrival in Sri Lanka

The Central Bank remains hopeful of the prospects of PayPal Holdings Inc., the US-based international payment gateway company, to open access to Sri Lanka to facilitate Internet-based payments.

Govt. to enter new accord with S. Korea to obtain US $ 500mn in development financing

The Cabinet of Ministers this week approved a proposal to enter into a new framework agreement with the government of South Korea, to obtain concessional loans up to US $ 500 million for the implementation of infrastructure projects recognised within the period of 2020-2022.

Central Bank hopeful of PayPal’s arrival in Sri Lanka

The Central Bank remains hopeful of the prospects of PayPal Holdings Inc., the US-based international payment gateway company, to open access to Sri Lanka to facilitate Internet-based payments.

Pasan Wanigasekara to assume duties as BOI Director General

Multi-disciplined corporate leader Pasan Wanigasekara has been appointed as the new Director General of the country’s State-run apex investment promotion body, Board of Investment (BOI)

ASPI crosses 7, 000-point mark after six years

The benchmark All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) surpassed the 7, 000-point mark a while ago with increased market activity in certain counters such as Browns Investments PLC and Expolanka Holdings PLC.

World Bank forecasts 3.3% economic growth for Sri Lanka this year

The World Bank projects Sri Lanka’s economy to grow at the modest rate of 3.3 percent this year before decelerating to 2 percent in 2022, the global lender said in its January 2021 Global Economic Prospects report released this week.

Central Bank to issue fixed rate, multi-currency development bonds

In a deviation from the practice of issuing dollar denominated Sri Lanka Development Bonds (SLDBs) only at floating rates linked to London interbank offered rate (Libor), the Central Bank this week announced that it would henceforth start issuing fixed rate bonds in currencies other than the United States dollar.

Murali Prakash resigns from Ambeon

Ambeon Holdings PLC Group Managing Director/CEO has resigned with effect from January 31, 2021.

Unemployment hits 5.8% in 3Q despite economic rebound

The unemployment rate in Sri Lanka touched a high of 5.8 percent in the third quarter ended in September even though the economy showed a quick rebound with 1.5 percent growth in the same quarter.

CB extends exchange controls by another six months

The Central Bank yesterday extended the current exchange controls by another six months from January 2, 2021.These restrictions were first imposed in April 2020 and gazetted in June.

Suspension on Perpetual Treasuries extended

The Monetary Board of Sri Lanka yesterday extended the suspension of primary dealer Perpetual Treasuries Limited’s business by another six months.

Cabinet gives approval to draft Colombo Ports Commission Bill

The Cabinet of Ministers this week approved a proposal to instruct the Legal Draftsman to draft the Colombo Ports Commission Bill to enable Colombo Port City to become a competitive investment hub in the region.

Govt. borrowings from banking system record drastic decline in October

State borrowings from the banking system fell substantially in November from October highs while the net credit to public sector enterprises also recorded a decline.

Ceramics and Glass Council seeks govt. intervention to create level-playing field

Sri Lanka Ceramics and Glass Council (SLCGC) yesterday sought government intervention to update Sri Lanka Customs’ (SLC) ‘Test book’ value of key ceramic products imported into the country in the absence of a proper mechanism to implement the Anti-Dumping and Countervailing Duties Act of 2018 to protect local producers from unfair competition.

Focus more on developing tea, rubber, coconut & minor export crop plantation sector

According to generally accepted economic theories and their practical application, boosting economic growth has been seen as the best way to create job opportunities and raise living standards of people.

Ceylon Planters Society celebrates 84th year of serving plantations industry

The Ceylon Planters Society (CPS) consists of working planters on plantations and in the corporate offices of the RPCs who were serving in the plantation before.

Pelwatte Dairy continues to extend support to dairy farmers

Pelwatte Dairy Industries stands in support of Sri Lankan farmers with regard to the ongoing Maha Oya land issue that has reportedly put the dairy farming community at stake.

Central Bank sees need for continuous interventions to support economy

With Sri Lanka’s economy estimated to have recorded a contraction in 2020, the country’s Central Bank (CB) yesterday assured continuous monetary and fiscal interventions to support the economy to regain its “lost momentum” to the COVID-19 pandemic and to return to the envisaged high growth path.

Comprehensive monetary policy report from second half

The Central Bank yesterday announced the plans to publish a comprehensive monetary policy report (MPR) under the Forecasting and Policy Analysis System (FPAS), commencing in the second half of this year.

CB eyes 14% private credit growth; hints at remaining dovish throughout 2021

The Central Bank wants the banking sector credit to the private sector to grow by a robust 14 percent this year, reinforcing its lending bias to power the economy, while hinting that the Monetary Board is likely to remain dovish throughout the year.

Four drafted amendments to P’ment today to up minimum employment age to 16 from 14

Labour Minister Nimal Siripala de Silva is expected to present four drafted amendments to Parliament today (5th), to amend the existing laws and regulations in order to increase the minimum age of employment from 14 to 16 years of age.

Perfect way to open SL yet to be found, but open we must, says hard-hit tourism sector

Sri Lanka’s tourism industry yesterday stressed the need to welcome international travellers without further delay to uplift the economy and service providers, who have firsthand witnessed the harsh reality of the pandemic, while strictly adhering to the health guidelines.