What APAC companies need to do to drive region into new ‘Asian age’

Asia’s economy dominated until the 19th century, before being knocked off its pedestal by Europe and then the US. Since then, while the region has grown to become home to more than half the world’s population and soon half of the world’s middle class, it has not yet retaken this financial crown.

COVID-19 impact on economy and possible opportunities

One of the biggest challenges seen due to the coronavirus outbreak is the socio-economic downfall with over 200,000 deaths around the world without any cure at the moment (by end April 2020) (Source: World Health Organization – WHO).

COVID-19 urgently needs global response

People all over the world are increasingly standing in solidarity with one another to beat the virus. The COVID-19 pandemic will inevitably wreak its worst on the people, communities, and countries that are least able to withstand the shock or to provide a defence against it.

Employers seek govt. help to tackle pandemic-driven labour issues

The Employers’ Federation of Ceylon (EFC) has put forward to the government a 10-point proposal that would help cushion the private sector from possible labour issues and ensure its ability to continue to operate amid the challenges the businesses are currently faced with, due to the economic fallout of the COVID-19 crisis.

Saudi triples VAT, suspends handouts in virus-led austerity drive

Saudi Arabia unveiled plans yesterday to triple its Value Added Tax (VAT) and halt monthly handouts to citizens as part of a series of austerity measures amid record low oil prices and a coronavirus-led economic slump.

Kerry Logistics expands operations to Sri Lanka

Hong Kong-based Kerry Logistics Network has announced a new joint venture, Kerry Logistics Lanka, with Sri Lanka’s IAS Holdings, to strengthen its international freight forwarding capabilities in South Asia.

Prospects for Ceylon Tea remain high amid less exposure to global challenges

Ceylon Tea commands higher prospects in 2020 and beyond as it remained one of the few commodities less prone to the economic downturn, although the pandemic dealt a crushing blow to many other industries and businesses, said John Keells PLC, a commodities broker specialised in the tea trade.

Decline in tourist arrivals tops 44% up to April

Sri Lanka recorded a 44.1 percent YoY decline in tourist arrivals during the first four months of the year, with no tourist arrivals in April, due to the termination of all passenger flight and ship arrivals into the country from March 18, to slow the spread of the COVID-19 disease.

MAS Holdings pins hopes on medical apparel to ride COVID-19 crisis

Local apparel giant, MAS Holdings, appears to be pinning its hopes on medical apparel to ride the economic fallout of the COVID-19 pandemic, as the firm has started producing a range of medical apparel to help the fight against the deadly virus.

Coronavirus adds huge flywheel to Lankan banks’ digitisation drive

Sri Lanka’s banks have seen a massive upsurge in their digital transaction volumes as the COVID-19 pandemic has upended how banking should be done and the banks are now refusing to go back to old ways, since they want to lock-in the low-cost business model.

Share trading halted soon after reopen from lockdown

The Colombo Stock Exchange (CSE) yesterday closed trading in just 38 seconds when the market resumed trading following a 51-day break, with the S&P SL20 index breaching the 10 percent decline threshold amid the plunge in share prices, triggering circuit breakers.

Colombo prepares to re-open for business

Disinfection work was seen carried out in Colombo Fort area yesterday as Colombo prepares to re-open for business albeit partly under the health sector authorities’ strict guidelines.

CSE to resume trading today; foreigners look to sell

The Colombo Stock Exchange (CSE) is scheduled to resume trading today as the market braces for heavy foreign selling despite anticipated weak buying interest amidst the impact of COVID-19, further exacerbated by its longest ever shutdown spanning for seven weeks along with the island-wide curfew to slow the spread of the pandemic.

Foreign reserves slip to US$ 7.2bn in April; still sufficient for debt repayments

Sri Lanka’s official reserves slipped by US$ 354 million during April to end with assets of US$ 7.2 billion as the foreign earnings from exports, services and inflows to the capital account slowed significantly, but the authorities expressed confidence in meeting foreign debt obligations due during the remainder of the year.

Sri Lanka Telecom gets Group CEO

State-controlled Sri Lanka Telecom PLC (SLT) has announced the appointment of a Group Chief Executive Officer two years after the former CEO Dileepa Wijesundera left the Group.

Tea sales average hits all-time high in April 2020

The Ceylon Tea cuppa for the month of April recorded an impressive sales average reaching the highest ever gain, a development that is much welcome for the industry that is determined to steer forward amidst new challenges brought about by the global pandemic.

Elpitiya Plantations to move ahead with US$4mn ESCAPE theme park project despite COVID-19 impact

Sri Lanka’s Elpitiya Plantations PLC is planning to move ahead with the development of US$ 4 million ESCAPE theme park in the Galle district later this year with Sim Leisure Group Ltd, Singapore Stock Exchange listed leading theme park developer and operator based in Malaysia, despite the COVID-19 pandemic which has adversely impacted the company’s performance and the country’s tourism industry.

Tourism sector appeals for further assistance from govt.

Sri Lanka’s strongly hit tourism sector has once again reached out to the government seeking further assistance, and the latest appeal is to extend short and long-term relief packages for the affected entities and self-employed persons.

Emirates airline reports rise in annual profit, coronavirus hits final quarter

Emirates, one of the world’s biggest long-haul airlines, reported a 21percent rise in full-year profit yesterday, but warned the outbreak of the new coronavirus hit its performance in the fourth quarter of the financial year.

Losses mount at Hayleys Fabric, but company returns to full capacity with shift in production

Losses at Hayleys Fabric PLC swelled in the three months ended March 2020, as sales plunged while the operations were suspended two weeks prior to the end of the quarter as the world was engulfed in the worst pandemic in a century forcing all its foreign clients too to shutdown their operations.

Oil palm industry – Not understood and utilised to potential

Consequence to COVID-19, Sri Lanka is now compelled to ban imports, restrict imports or increase import taxes to manage its valuable foreign exchange reserves. Though such short-term actions are timely and inevitable to face a crisis situation, they would invariably cause hardships to consumers, industrialists and eventually to the public.

ADB provides guarantee for US $ 25mn trade loan to SPC to purchase medical supplies

The Asian Development Bank (ADB) has provided a guarantee for a US $ 25 million trade loan to State Pharmaceuticals Corporation of Sri Lanka (SPC) to purchase medical supplies, as part of the country’s response to the novel coronavirus (COVID-19) pandemic.

Footwear sales to drive recovery of DSI Samson Group: Fitch

Fitch Ratings forecasts a faster recovery for Sri Lanka’s DSI Samson Group’s (DSG) footwear segment, from the disruption caused by the slowdown in economic activity precipitated by the COVID-19 pandemic, while its tyre segment will have to brace for a long and painful path to recovery.

Stocks advance as virus restrictions are eased

Most equities rose again yesterday as investors grew increasingly, but cautiously, hopeful that the worst of the coronavirus had passed and as countries begin to slowly open up from lockdown.

EFC highlights plight of employers to govt.

The Employers’ Federation of Ceylon (EFC) has reached out to the government seeking short-term relief for the private sector as the stoppage of work for over six weeks has crippled businesses, making it difficult for many to pay even the basic salary component.

Coronavirus exerts pressure on Lankan banks’ ratings

Fitch Ratings yesterday cut the ratings of three Sri Lankan banks to reflect the sovereign rating, which was downgraded a few weeks ago to ‘B-’ with a ‘Negative’ outlook, citing heightened public and external debt sustainability challenges from the new coronavirus emerged out of China.

Union Bank undertakes to infuse fresh capital if UB Finance fails to court outside investor

UB Finance Limited (UBF) has yet again failed to meet the extended timeline given by the Central Bank, which lapsed on March 31, 2020, to meet the various statutory thresholds, including the one to bring in fresh capital to meet the minimum capital level required to operate as a finance company.

Several new asset classes categorised to support liquidity positions of banks

The Central Bank (CB) has categorised several new assets held by the banking sector as liquid assets, in considering the potential adverse impact on the liquidity position of licensed commercial banks and licensed specialised banks from the COVID-19 pandemic-induced economic slowdown.

Central Bank cuts policy rates further to support economy

The Monetary Board of the Central Bank of Sri Lanka, at a special meeting held yesterday, decided to reduce the Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points, to 5.50 percent and 6.50 percent, respectively, effective from the close of business on May 6, 2020.

An election in the time of pandemic in Sri Lanka

Despite the fact that electoral democracy in Sri Lanka faced many challenges in pre and post-independence eras, the country has managed to conduct periodical elections in national level.