China imposes anti-dumping measures on Australian wine

China yesterday said it would impose anti-dumping measures on Australian wine, in a further ramping up of tensions between Beijing and Canberra.

Italy to launch first Europe-US ‘virus-free’ flights

Italy is to offer Europe’s first coronavirus-free corridor with the United States for passengers who have tested negative for Covid-19, scrapping the obligation for new arrivals to quarantine.

Fitch downgrades Sri Lanka to ’CCC’

Fitch Ratings today downgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ’CCC’ from ‘B-‘ with ‘Negative’ outlook.

A normal budget for abnormal times

The 2021 Budget Speech delivered recently in Parliament by Sri Lanka’s Prime Minister cum Finance Minister outlines a development strategy, couched in the rubric ‘Vistas of Prosperity and Splendour’, for elevating a COVID-19 shattered economy. In many respects, the speech is heroic as it attempts to chart a course for making Sri Lanka a self-reliant, prosperous nation in the midst of a global pandemic.

Budget 2021 re-endorses ICTA vision

Multiple proposals of ‘Vision 2024 for ICTA: A digitally transformed Sri Lanka’ were echoed in the Budget 2021 proposals, the maiden of the present government, it was observed.

CB doubles down on dovish monetary policy

The Monetary Board of the Central Bank left its key policy rates unchanged yesterday, continuing with its dovish monetary policy stance by slapping interest caps on mortgage-backed housing loans and said lending targets would be introduced to licensed banks to channel funds into areas with high growth and earning potential.

expresses unease over accelerated decline in deposit rates

While it is natural for both lending and deposit rates to follow the key benchmark rates set by the Monetary Board, the Central Bank since of late appears to have been perturbed by the pace at which the deposit rates are coming down, compared to the lending rates.

CB says import controls in line with World Trade Organisation rules

Defending the temporary import restrictions imposed by the government, the Central Bank (CB) stressed that the restrictions are in line with the World Trade Organisation (WTO) rules.

October private credit growth loses momentum due to lockdowns

Private credit continued to grow in October, albeit at a slower pace from a month earlier, as virus-related lockdowns in key populous regions in the country posed a setback to economic growth. The total outstanding private sector credit grew by Rs.59.0 billion in October to Rs.6.055 trillion, after rising by Rs.78.3 billion in August and Rs.87 billion in September, as the economy rebounded after nearly two-month long lockdown that ended in mid-M

CB says delay in release of latest GDP data unacceptable

The Central Bank (CB) yesterday said that the delay in releasing the second quarter (2Q) GDP estimates by the Department of Census and Statistics (DCS) is unacceptable.

Asia Securities Wealth Management launches new money market fund

Asia Securities Wealth Management (Pvt.) Ltd, the investment management arm of Asia Securities, one of Sri Lanka’s leading investment firms, recently launched the Asia Securities Money Market Fund.

Nirmala Sitharaman to deliver keynote address at SLES 2020

India’s Finance and Corporate Affairs Minister Nirmala Sitharaman will deliver the keynote address at Sri Lanka Economic Summit (SLES) 2020.

Asia Capital to broad base shareholding to match minimum public float

Investment bank Asia Capital PLC (ACAP) will soon broad base its shareholding to be in compliance with the public floating requirements stipulated by the Listing Rules of the Colombo Stock Exchange (CSE), a company statement said.

Colombo port back on track after COVID-19 hit on workers

The Port of Colombo, which had its operations impacted last week due to some port workers testing positive for COVID-19, announced yesterday that it is getting back on track and returning to normalcy by taking the necessary precautions to prevent further shocks.

Oct. biz activity battered by virus resurgence

Purchasing Managers’ Index (PMI), a key barometer of the vibrancy of the economic activities across both manufacturing and services sectors, contracted in October, as the resurgence of COVID-19 in the country affected production.

Finance companies lose COVID-19-driven deposit boom to banks

Despite the massive customer deposit pile-up at banks, thanks to COVID-19 restrictions, Sri Lanka’s licensed finance companies have failed to have a piece of the pie or at least to cling on to their existing deposit base.

Writ application against Port City dismissed

The writ application filed by the Centre for Environmental Justice against the Colombo Port City Project in 2015 was dismissed by the Court of Appeal, yesterday.

Asia-Pacific will lead the way in travel, says IATA

The International Air Transport Association (IATA) yesterday expressed optimism over the Asia-Pacific leading the way in navigating through the turbulent times and said the region would show governments across the world the recovery path to follow.

Calls on govt. to lift border restrictions

The International Air Transport Association (IATA) in a resolution yesterday called on governments across the world to reopen borders for travel, a move which would be possible by employing the association’s proposed systematic testing of international travellers.

SL secures US $ 165mn ADB loan as SME financing support

The Asian Development Bank (ADB) and Government of Sri Lanka (GOSL) yesterday signed a US $ 165 million loan agreement to provide immediate financing support for small and medium-sized enterprises (SMEs), which have been severely affected by the coronavirus disease (COVID-19) pandemic and long-term financing to underserved SMEs, including businesses led by women and tea smallholders.

THASL brands Budget 2021 as “pragmatic”

The Hotels Association of Sri Lanka (THASL) in a statement yesterday hailed Budget 2021 as a “pragmatic financial road map”, while praising the government’s moves to encourage local businesses via import substitution and for maintaining a stable tax regime.

Tea export volumes decline in October; but production up

Sri Lanka’s tea export volumes declined by 10.4 percent year-on-year (YoY) to 23.1 million kgs in October, despite a 2.1 percent YoY improvement in tea production in the month, according to the Tea Exporters Association (TEA).

Budget 2021 likely to worsen macroeconomic instability amidst COVID-19 pandemic

Budget Speech 2021 was presented at a time when the country is being severely hit by the COVID-19 pandemic. GDP growth is projected to be down to negative 2 percent this year. Despite this economic setback, the government envisages to maintain an inclusive GDP growth rate of 6 percent per annum over the medium-term while containing inflation to around 5 percent, according to its macroeconomic programme, ‘Vistas of Prosperity and Splendour’.

CB expected to hold rates steady tomorrow

First Capital Research (FCR) expects the Central Bank (CB) to maintain the current policy rates unchanged at the monetary policy review tomorrow amid recent improvements in private sector credit, rock bottom market interest rates and excess liquidity in the system, while retaining the monetary policy stance at “accommodative”.

Decline in interest rates brings in Rs.7.7bn windfall for banks holding treasuries

While descending interest rates are generally considered a bane for banks, the same phenomenon acted as a blessing for the sector bringing in billions worth of capital gains on government treasuries they held, potentially offsetting any negative impacts on their top line.

National prices hit 6-month low at 5.5% in Oct.

Sri Lanka’s national prices descended to a six-month low in October predominantly on some ease in food prices and non-food prices over the same month in 2019, the latest data on inflation measured by the National Consumer Price Index showed.

Sri Lanka Tourism Alliance and Good Life X announce grants for tourism resilience

With Sri Lanka’s tourism industry grappling to stay afloat amidst the ongoing COVID-19 pandemic, small and medium enterprises (SMEs) are scrambling to find ways to remain competitive and resilient.

European ride-hailer Bolt enters Sri Lanka

Bolt, the leading European transportation platform committed to make urban travel easier, quicker and more reliable yesterday announced its entry to the Sri Lankan market.

DoubleTree by Hilton opens first phase of Weerawila Rajawarna Resort

Sri Lanka’s hospitality sector recently saw the addition of a new luxury property to its portfolio with DoubleTree by Hilton opening the first phase of Weerawila Rajawarna Resort.

MAS Holdings awarded as top innovator in SA

Sri Lanka’s MAS Holdings put the island nation under fresh spotlight once again by receiving the ‘most influential’ innovators award in South and South East Asia by Clarivate, a global leader in providing solutions to accelerate the innovation lifecycle.