SOE sector: Promises of change on horizon?

With the harsh reality of a global recession slowly descending on Sri Lanka, questions about government expenditure and its allocation of resources have begun to dominate dinner table discussions. Fears of higher taxation to cover the losses earned and to sustain the blows from the impending recession, have started to emerge.

Global debt and economic recovery

International Chamber of Commerce Chairman Paul Polman speaking at a top-level UN summit last week noted that a US $ 5 trillion trade financing capacity will be needed in 2021, to restore global commerce to its pre-COVID-19 trend.

BOC eyes fresh US$ 300 mn facility to strengthen balance sheet

State-owned banking giant Bank of Ceylon (BOC) is set to receive a fresh injection of US$ 300 million from multilateral lenders within the year, an influx that would assist in further strengthening the bank’s balance sheet.

First Capital forecasts substantial policy rate cut

First Capital Research sees a higher probability for a substantial policy rate cut by the Central Bank at its upcoming Monetary Policy Review scheduled for July 20 to discourage banks’ utilisation of Standing Deposit Facility Rate (SDFR)‎ to park their excess liquidity in order to accelerate lending to COVID-19 hit businesses and individuals.

K.R. Ravindran to head top int’l charity foundation, Rotary

Sri Lankan business leader K.R. Ravindran will assume the Chairmanship of the Board of Trustees of Chicago-based Rotary Foundation today (July 1st).

Sri Lanka Insurance posts record Rs.8.2bn profit before tax

Sri Lanka Insurance (SLI) at the recently held Annual General Meeting declared that the company has closed year 2019 in a positive note recording a phenomenal growth with exceptional service innovations.

Sri Lanka’s computer ownership continues to fall

Households owning a desktop computer or a laptop have continued to decline in Sri Lanka during the three years from 2017 to 2019, but the shifting to home working in the aftermath of the coronavirus pandemic may have reversed the trend with people setting up home offices.

June national inflation declines on base effect

Headline inflation as measured by the year-on-year (yoy) change in the Colombo Consumer Price Index (CCPI) declined to 3.9 percent in June 2020 from 4.0 percent in May 2020.

Renewed thinking and focus to revive SL tourism

Sri Lanka ticks all the boxes of an irresistible tourism destination but repeated uncertainties have kept the island nation off the itineraries of its target audience on and off, for decades.

Navigating through pandemic: Apparel sector confident of braving the storm

The start of the coronavirus (COVID-19) pandemic in China last December sent ripples across the global economy but it certainly took time to realise that even the strongest industries would receive a painful hit from the club.

Biz community confused over govt.’s trade policies

The businesses operating in the country are observed to be largely confused as to how they should chart their way forward in the post-lockdown scenario, as the relevant government authorities have failed to be clear in their directives and communication with the business community, with regards to international trade.

Corporates brace for up to 20% earnings decline as dismal second quarter comes to an end

Sri Lanka’s listed corporates are expected to report between 15 percent to 20 percent decline in their earnings, as they prepare to close books on one of the worst quarters on record. Analysts are parsing data to understand each company’s operating leverage as most businesses remained either completely or partially shut for nearly two months.

Confectionery industry steps up efforts to use locally-sourced coconut oil substitutes

Sri Lanka’s confectionary industry yesterday said it is actively exploring the avenues to shift towards using locally produced coconut oil substitutes and move away from palm oil fats in their production processes, as directed by the government.

SLT likely to invest US $ 60mn in upcoming SEA-ME-WE 6 submarine cable system

The country’s national telecommunication provider, Sri Lanka Telecom (SLT) PLC, is likely to invest US $ 60 million in the upcoming South East Asia–Middle East–Western Europe 6 (SEA-ME-WE 6) submarine cable system, which is scheduled to be completed by end-2021.

Sri Lanka’s private healthcare sector faces acute shortage of trained medical professionals

The acute shortage of doctors, consultants, trained nurses and other medical staff, has pushed Sri Lanka’s private healthcare sector towards intense competition among the handful of players operating in the sector, leading to poaching and thereby negatively affecting their margins.

HNB witnesses rapid increase in digital remittances

Sri Lanka’s most technologically innovative bank HNB PLC reported a smooth transition to contactless remittance transactions parallel to rising demand for digital remittances and cardless withdrawals during the coronavirus lockdown.

Six people killed in attack on Pakistan Stock Exchange

At least six people were killed when gunmen attacked the Pakistan Stock Exchange in Karachi yesterday, with a policeman among the dead after the assailants opened fire and hurled a grenade at the trading floor, police said.

Treasury and Central Bank should consider credit guarantees for COVID-19 distressed bank loans

Even though Sri Lanka’s economy has opened up, businesses are still recovering from the dual shock of the locally imposed curfew as well as the global fallback from the coronavirus. A vast majority of Sri Lankan businesses are in need of support if they are to survive the next few months.

Outgoing WB Country Director highlights strengths, opportunities, challenges ahead for Sri Lanka

Outgoing World Bank Country Director for the Maldives, Nepal and Sri Lanka Idah Z. Pswarayi-Riddihough speaks about the highlights of her four years in Colombo. She also shares her thoughts on the opportunities she sees for Sri Lanka and wishes the people of the country the very best as they contend with the impacts of the global pandemic.

Regional Plantation Companies celebrate 27th anniversary

The 27th anniversary of the establishment of Regional Plantation Companies fell on June 23.

Hilton owner to delist shares from CSE

Hotel Developers (Lanka) PLC, the owner of Hilton Colombo, has announced that the State-owned entity will delist its shares from the official list of the Colombo Stock Exchange (CSE) in compliance with applicable regulations and procedures.

Credit guarantee and interest subsidy scheme announced to boost lending

The Central Bank (CB) yesterday announced a credit guarantee and interest subsidy scheme with a view to further accelerate lending by the banking sector to COVID-19 hit businesses in the country.

CB settles over US$ 1 bn debt since April using foreign reserves

Sri Lanka has settled foreign currency loans up to US$ 1,007 million during the three months from April 8 to June 22 using foreign currency reserves as liquidity became challenging due to sour external market conditions and slower foreign earnings resulting from the COVID pandemic.

Dumith Fernando to succeed Ray Abeywardena as CSE Chairman

The Colombo Stock Exchange (CSE) yesterday announced the appointment of Dumith Fernando as the Chairman of CSE Board of Directors with effect from July 1, 2020.

BOC to ink deal with China Development Bank for US$ 140 mn facility

State-owned banking giant, Bank of Ceylon (BOC) and China Development Bank (CDB) are set to enter into a US$ 140 million long-term facility, where drawdown will be under tranches of US$ 70 million each.

Vajira Kulatilaka appointed to Sampath Bank board

Vajira Kulatilaka, who recently retired from the NDB Group, has been appointed as a Non-Executive, Independent Director of Sampath Bank PLC with effect from June 25.

August 1 scheduled airport reopening likely to get delayed

The government is likely to delay the re-opening of the country’s borders as previously planned for August 1, to facilitate the return of Sri Lankan workers stranded abroad due to COVID-19 pandemic.

Worker remittances rebound in May

Income from migrant workers recorded a rebound from the depths it hit in April—may be an indication that the worst is over for the country’s largest source of foreign currency earnings— with work gradually returning to normalcy amid easing of lockdowns and lifting of restrictions on businesses and human movement.

Second stage of compensation payment to TFC depositors begins on July 2

The Central Bank of Sri Lanka (CBSL) has taken measures to commence the second stage of compensation payment to The Finance Company PLC (TFC) depositors with effect from July 2, 2020.

Post-COVID recovery depends on effective execution of public-private vision: CCC

As Sri Lanka looks for avenues to move towards a positive growth trajectory, the Ceylon Chamber of Commerce (CCC) stressed that an accelerated post COVID-19 recovery will be predicated on the effective execution of a public-private shared vision for economic revival and social sustenance.