Low oil prices and Sri Lanka’s lost opportunities

Lockdowns across the world have caused trade and travel to grind to a halt. The demand for oil has plunged and the prices have crashed; futures for West Texas Intermediate, a grade of oil, briefly turned negative, touching a low of minus US $ 40.32.

Post-COVID trade order: Only the fast and the nimble will survive

Now that Sri Lanka has achieved a notable success in containing the danger posed by the COVID-19 pandemic to the health of the nation, the time has come for a concerted and decisive focus on reviving the economy. This is particularly timely, now that the economy has been removed from its ‘induced coma’, with the elimination of daytime curfew throughout the island.

Sampath Bank secures US$ 45mn from banks in Middle East, South Asia

Sampath Bank PLC, one of Sri Lanka’s leading commercial banks, has successfully raised US$ 45 million via a medium-term syndicated facility.

1Q budget deficit slightly up on revenue slippage

Sri Lanka reported a slightly stretched budget deficit of 2.1 percent of the estimated gross domestic product (GDP) for the first quarter ended March 31, 2020, up from 1.8 percent recorded in the corresponding period in 2019, as State revenues slipped from the year earlier period, latest data showed.

FHA condemns Sunil Jayawardena’s murder

The Finance Houses Association of Sri Lanka (FHA Sri Lanka) in its capacity as the apex association of 41 registered licensed finance companies in Sri Lanka, has condemned the alleged murder of Self Employed Professionals’ Three-Wheeler Association Chairman Sunil Jayawardena, last week.

Private sector credit slumps in April, but money supply picks up

Private sector credit from the banking sector slumped during April to just over Rs.13 billion from a massive Rs.120 billion surge recorded in March as most of the economic actors went in to hibernation during COVID lockdowns from mid-March.

Rajiv Meewakkala to succeed Suresh Shah at Lion Brewery

Well known private sector executive Rajiv Meewakkala, who also has experience in the public sector, is to take reins from Suresh Shah to become the CEO of Sri Lanka’s largest brewer, Lion Brewery PLC.

SEC Chairman calls on CB Governor

Securities and Exchange Commission (SEC) Chairman Viraj Dayaratne PC paid a courtesy call on Central Bank Governor Professor W.D. Lakshman recently. He was accompanied by SEC Director General Chinthaka Mendis.

China’s foreigner ban leaves global businesses in limbo

China’s coronavirus travel ban is wreaking havoc among foreign companies and international schools, with many fearing for their future as executives, teachers and students are left stranded in their home countries.

Official reserves lose US$ 716mn in May

Sri Lanka’s gross official reserve lost US$ 715.92 million during May to end the month at US$ 6,493.6 million, but the rupee continued its ascend against the US dollar, alleviating concerns of a possible run on the rupee amid controls on certain imports and gradual pick up in export activities after lockdowns.

Thailand eyes ‘travel bubbles’ to resuscitate tourism

Thailand will open ‘travel bubbles’ with countries which have comparably low coronavirus infections, officials said yesterday, as the kingdom tries to claw back money for its battered tourism sector.

E-commerce giant JD raises US$3.9 bn in Hong Kong listing

Chinese e-commerce giant JD.com said yesterday it raised HK$30.1 billion (US$ 3.9 billion) in its Hong Kong initial public offering, making it the world’s second-biggest so far this year.

UK backtracks on post-Brexit import checks: reports

Britain will apply “light-touch” border checks on goods from the European Union when the Brexit transition period ends this year so as to help firms hit by the coronavirus crisis, reports said yesterday.

Heads of State to join biz leaders and UN chiefs to discuss crucial topics at Global Compact Leaders Summit

German Chancellor Angela Merkel and the Presidents of Botswana, Colombia, Costa Rica, Ethiopia will join dozens of Chief Executive Officers and UN chiefs at the United Nations Global Compact Leaders Summit next week to address the private sector’s response to three global crises – health, inequality and climate.

Equities stutter on economy, second wave fears

Equities and oil sank yesterday while the dollar rallied as investors ran for the hills following the worst Wall Street rout since March, fuelled by worries about the economic recovery and a second virus wave in the US.

ETI Investigation Committee meets President

The inquiring committee appointed to investigate alleged irregularities in the ETI Investments met President Gotabaya Rajapaksa at the Presidential Secretariat this week.

People’s Bank’s SDA to drive inward remittances, boost investments

People’s Bank has stepped forward to boost the government’s efforts to rebuild Sri Lanka while providing eligible individuals and organisations with a significant investment opportunity by introducing the People’s Bank Special Deposit Account (SDA).

SL among top ten travel destinations GCC keen to promote: Survey

Sri Lanka is among top ten destinations that the outbound tour operators of Gulf Cooperation Council (GCC) countries are planning to actively promote from July when air travel returns with the relaxation of COVID-19 related restrictions, a survey conducted by Germany based Aviareps showed.

Brewing a fresh Ceylon Tea cuppa: Private sector to lead way forward

Sri Lanka’s tea industry that has been in existence for over 150 years has certainly captured the world with its rich aroma. However, it continues to follow its old ways and that has led to a slowdown.

Monetary Board approves new law to regulate moneylenders

In what could be termed as a long overdue regulatory reform to the country’s financial system, the authorities are now working to enact new laws to regulate the informal money lending business to protect people who often fall victim to those individuals and firms referred to as loan sharks.

New study estimates massive social and environmental cost of Norochcholai power plant

The total externality cost (social and environmental damage) due to the emission of greenhouse gases by (GHGs) by Lak Vijaya Coal Power Plant (LVPP) in Norochcholai has reached Rs.36.6 billion (US$ 244 million) per annum, while burdening the local economy with a cost between Rs.15.7 billion to Rs.16.7 billion per annum, a study showed.

Build buffers to cushion against future disasters, stresses former CB Governor Coomaraswamy

As Sri Lanka is highly vulnerable to external shocks, such as those stemming from climate change and natural disasters, senior economist and former Central Bank Governor Indrajit Coomaraswamy stressed it is essential for the country to look at building buffers instead of choosing to continue to live on the edge.

Stocks sink on dark Fed outlook, second wave fears

World stock markets sank anew yesterday as the US Federal Reserve warned over the “highly uncertain” economic outlook due to the coronavirus pandemic -- and investors eyed fears of a second wave of the killer disease in the United States.

CB’s top researcher reveals how external agencies forecast doomsday scenarios

Central Bank’s top researcher recently revealed how external agencies, including that of the World Bank, International Monetary Fund (IMF) and rating agencies project doomsday scenarios for the Sri Lankan economy even when the country is rapidly returning to normalcy after the COVID-19 outbreak.

UN webinar on using data to better position SMEs in post-COVID-19 context

The immense health crisis created by COVID-19 has also rapidly caused a global economic crisis, threatening small, and medium sized enterprises (SMEs) and the livelihoods of workers in Sri Lanka and around the world.

Govt. nod for hotel industry wage support scheme and utility concessions

The Hotels Association of Sri Lanka (THASL) yesterday thanked the government and particularly Sri Lanka Tourism for granting a wage support scheme for employees of the hotel industry and concessions for the payment of utilities.

Maldives brings forward reopening date to July

The Maldives is reopening to visitors but while anyone with a super yacht or private jet can already head to the Indian Ocean destination, normal travellers will have to wait a few more weeks.

ADB study shows dampened employment prospects for Sri Lanka due to COVID-19

Businesses across all sectors in the country have massively cut down or completely frozen job postings in the recent months and despite the economy being reopened for nearly four weeks, no real recovery is seen in industries creating job opportunities.

Piramal Glass incurs Rs.450mn sales loss due to production stoppage

Piramal Glass Ceylon PLC (PGC) said it incurred a loss of sales to the tune of Rs.450 million, including exports worth of Rs.200 million, during the month of March, due to the closure of operations amid COVID-19 lockdowns.

ADB approves US $ 3mn grant to assist SL’s response to COVID-19

The Asian Development Bank (ADB) has approved a US $ 3 million grant from its Asia Pacific Disaster Response Fund (APDRF), to further assist Sri Lanka in its response to the novel coronavirus disease (COVID-19) pandemic.