Committee set up to expedite monetary policy transmission as lending rates lag policy rates

An internal committee has been set by the Central Bank to expedite the monetary policy transmission through the real economy and to smoothen out any bottlenecks, as some delay is observed in passing down the full extent of the rate cuts, specially to small business loans.

Nation Lanka Equities resumes stock broking activities

Nation Lanka Equities (Pvt) Ltd. has been re-admitted by the Colombo Stock Exchange as a Trading Member. This Securities and Exchange Commission (SEC) has also renewed Nation Lanka Equities’ licence to function in the capacity of a stockbroker. Nation Lanka Equities’ licence lapsed in 2017 following continued non-compliance with minimum mandatory capital adequacy requirements of the CSE.

Banking sector NPL ratio hits 5.6% in May

Sri Lanka’s banking sector asset quality measured by the gross non-performing loan (NPL) ratio increased to 5.6 percent at end-May from 5.1 percent at end-March, according to Central Bank provisional data.

Frontier market fund forecasts ‘lower-for-longer’ for Sri Lanka

Lower interest rates could stay for longer in Sri Lanka than in previous instances as Central Bank would be more cautious in changing track given the scale and magnitude of the economic shock dealt by the pandemic, says Tundra Fonder, the Swedish asset manager specialising in frontier and emerging market including Sri Lanka.

Aligning HR practices with new normal major challenge for local firms: PwC

The global pandemic pushed organisations to respond quickly to address the unforeseen changes and challenges, and restructuring human resource (HR) practices to align with the ‘new normal’ remains one of the biggest hurdles companies face, a PwC study revealed.

CB to pressure troubled finance firms to merge

The Central Bank (CB) plans to exert pressure on certain troubled licensed finance companies (LFCs) to merge with others under a new programme instead of cancellation of licences.

Tepid response for Special Deposit Account scheme

The Special Deposit Account (SDA), which was launched in April to seek assistance for the national effort to overcome the effects of COVID-19 outbreak in Sri Lanka has attracted an unimpressive US$ 86.9 million during the three-month period.Central Bank Governor, Prof. W. D. Lakshman yesterday said that the trend seen so far has not been promising.

The myth: Self-sufficiency guarantees food security

The novel coronavirus which drove cities and countries into lockdown has now sparked anxiety over a possible food crisis given the increase in export and import bans and disruption of global food supply chains.

Trends and growth of Sri Lanka’s e-commerce industry

The e-commerce industry in Sri Lanka has seen a rapid development over the last year, with a large percentage of shoppers venturing on to the digital platform.

Committee makes proposals to address irregularities in finance and leasing businesses

In view of the recent developments in the finance leasing business, Central Bank Governor Prof. W.D. Lakshman appointed a three-member committee to examine and report on the irregularities and illegal activities of the finance and finance leasing businesses and to make recommendations to curtail such activities.

Over 35,000 Lankan migrant workers still remain stranded in Gulf countries

Over 35,000 Sri Lankan migrant workers still remain stranded mainly in the Gulf countries, awaiting return to the country amid the job losses triggered by the coronavirus (COVID-19) pandemic, according to the Sri Lanka Foreign Employment Bureau (SLFEB).

Import controls likely to further hamper economic growth: Advocata

The state-imposed import controls are likely to further hamper the country’s growth prospects while advisedly impacting the businesses that rely on imported raw materials, including exporters, Colombo-based policy think tank Advocata Institute said.

SL gets Yen 800mn Japanese grant to fight COVID-19

The government of Japan has agreed to provide a grant of Yen 800 million (Rs.1,360 million) to Sri Lanka to support the country’s fight against COVID-19.

Aberdeen cautions investors over Lankan investments

Sri Lanka was singled out on the world stage yesterday when the leading global asset manager, Aberdeen Standard Investments advised the investors to “be careful” about frontier markets such as the island nation, even though Asia and emerging markets offer value at present.

Oil palm cultivation ban costs millions for Malwatte Valley Plantations

The government’s sudden policy decision to ban the cultivation of oil palm incurred a loss of Rs.75 million for Malwatte Valley Plantations PLC and Regional Plantation Companies (RPCs) are pursuing litigation measures against the ban, which is based on a disputed report by the Central Environment Authority (CEA).

SL ranked second among 250 global start-up ecosystems for affordable talent

Sri Lanka is ranked second among 250 global start-up ecosystems for affordable talent, securing the top spot in the Asia Pacific region, according to the 2020 Global Startup Ecosystem Report (GSER) by Startup Genome and the Global Entrepreneurship Network.

World Economic Forum nominates Talal as Young Global Leader 2021

Talal Rafi has been nominated by the World Economic Forum as a Young Global Leader 2021.

Leading corporates believe WFH is here to stay

It’s hard to draw positives from a global crisis such as COVID-19, one that has taken hundreds of thousands of lives and impacted millions more globally but the reality of crises such as this is that they are, more often than not, some of the greatest catalysts for global change.

ILO and EY assess key bottlenecks for private sector investments in Northern Province

Ernst & Young (EY) was commissioned to conduct an assessment on the key bottlenecks for private sector investments in the Northern Province in agriculture and fishery sectors, amidst significant progress made by the International Labour Organisation (ILO) and its constituents, implementing the LEED project since 2011 in the Northern Province of Sri Lanka.

CB begins process to develop PoC of blockchain-based shared KYC facility

The Central Bank of Sri Lanka (CBSL) yesterday entered into agreements to begin the process of developing blockchain technology-based shared know-your-customer (KYC) proofs of concept (PoCs).

Budget deficit in first four months expands to 2.9%

Sri Lanka’s budget deficit for January through April expanded to 2.9 percent of gross domestic product (GDP), from 2.3 percent in the corresponding period, last year, as the coronavirus lockdowns sapped the tax revenues while the government had to step up spending on containing the virus and keeping the essential services up and running.

Sri Lanka among few markets to avoid contraction in insurance biz this year: Allianz Global

While Sri Lanka would be among the few markets in Asia to avoid a contraction in its insurance business this year, the industry will make a swift recovery from 2021 and could clock in a 10 percent growth every year on average in the next 10 years to 2030, as the country’s least developed market conditions provide room for faster recovery and higher growth.

Govt. says no change to senior citizen FD rates

The government refutes the claims on any changes to the special interest scheme for senior citizens’ fixed deposits while assuring the scheme would continue with the prevailed interest rate up to now.

SL Tourism receives fresh impetus with BBC no-cost partnership

Sri Lanka tourism has received a much-required impetus for revival with the British public service broadcaster, the British Broadcasting Corporation (BBC) having come on board to promote the island nation to the world.

Tourism authorities lobby for inclusion in travel corridors

Sri Lanka Tourism yesterday said they were working closely with the Foreign Affairs Ministry to include Sri Lanka in developing travel corridors for travel with no quarantine overseas, for returning tourists or visiting Sri Lankans.

Import controls - out of control?

As the COVID-19 virus forced much of the world into lockdown, the scale of interdependence and reliance on trade across nations was apparent by the global urgency to re-open economies as soon as possible.

How should governments regulate technology in post-pandemic world?

Even before the COVID-19 pandemic struck, a combination of technological breakthroughs had been rapidly reshaping the way we lived and worked.

India’s rising infections and falling economic growth

On 2 July 2020, India’s Ministry of Health announced 226,947 active cases of COVID-19, with 17,400 lives lost.

Dart Global to set up US $ 3mn logistics fulfilment centre in Muthurajawela

Dart Global Logistics (DGL) has signed an agreement with the Board of Investment (BOI) to set up a US $ 3 million state-of-the-art logistics fulfilment centre, at the Muthurajawela Industrial Zone, located in Kerawalapitiya, Wattala.

SL faces significant deterioration in debt affordability: Moody’s

Sri Lanka is facing the second most significant deterioration in debt affordability among the non-investment grade sovereigns, amid the erosion in its revenue base and upcoming external debt maturities, according to Moody’s Investors Services.