Shares end near 5-1/2-year low, rupee edges higher

(Colombo) REUTERS: Sri Lanka’s share index fell yesterday, hovering near a 5-1/2-year low and recording its sixth straight weekly drop, as investors sold risk assets while they awaited the impact of 2019 budget proposals, market sources said.

China approves foreign investment law, possible US olive branch

(Beijing) AFP: China’s rubber-stamp parliament approved a foreign investment law yesterday that may serve as an olive branch in trade talks with the United States, but it received a lukewarm welcome from business groups.

Australia to launch Indian Ocean military exercises from Colombo

(Colombo) AFP: Australia will launch a seven-nation Indian Ocean military exercise next week, starting in Sri Lanka where China has invested in strategic ports and loaned huge amounts to build other infrastructure, Canberra’s envoy said yesterday.

Majority condo buyers local, says developer; expects increase in expat buying

The statistics obtained by John Keells Properties Sector Head Nayana Mawilmada revealed that the majority of the Colombo-based condominium buyers are local, standing at 65 percent, while 27 percent are expatriates.

WB approves US $ 70mn to improve local services in rural Sri Lanka

The World Bank Board of Directors yesterday approved a US $ 70 million credit to improve the quality of life of around one million people living in the Northern, North Central, Eastern and Uva Provinces in Sri Lanka.

Eighth EU-SL investor dialogue consolidates economic relations, resolves important matters

The eighth EU-Sri Lanka investor dialogue was held at the Development Strategies and International Trade Ministry recently. Many of the earlier outstanding matters had been resolved through dialogue and the joint efforts of the Sri Lanka and European Union (EU) authorities.

PM affirms govt.’s commitment to labour reforms

As emerging technologies are disrupting the world of work creating winners and losers, Prime Minister Ranil Wickremesinghe said his government is committed to carry out labour market reforms for a smooth and inclusive transition towards a competitive social market economy.

SL urged to get FDI fundamentals right

As Sri Lanka grapples with the issue of attracting sufficient amount of Foreign Direct Investment (FDIs) to spur economic growth, a global strategy consulting firm pointed out that authorities must put more emphasis on getting the basic fundamentals right to attract higher FDI.

Separation of Chairman/CEO roles only after public consultations: SEC

The Securities and Exchange Commission (SEC) this week said corporate governance provisions for the separation of Chairman and Chief Executive Officer (CEO) roles in listed firms will only be introduced after stakeholder consultations.

French firm Boccard to develop dairy farming and processing in SL

Agriculture, Rural Economic Affairs, Livestock Development, Irrigation and Fisheries and Aquatic Resources Development Ministry has signed a contract agreement with French company Boccard to develop dairy farming and processing in the presence of the Ambassador of France to Sri Lanka and the Maldives Eric Lavertu. The programme includes the complete modernization of six mini dairy processing plants managed by six dairy entities that are served b

Shares recover from 5-1/2-year low, rupee firms

(Colombo) REUTERS: Sri Lankan shares recovered from a 5-1/2-year low yesterday on bargain hunting after four straight sessions of losses, but concerns over economic and political stability kept the gains in check.

Vehicle registrations slump in February

Vehicle registrations slumped in February, ahead of duty concession expectations from Budget 2019 and amid impending election, the monthly vehicle registrations tracker by JB Securities, a leading stockbroker and equities research house showed.

Fitch assigns SL’s dollar bonds final ‘B’ rating

Fitch Ratings has assigned a final rating of ‘B’ to the bonds issued by Sri Lanka on March 7, 2019—US $1 billion (6.85 percent) bond due in 2024 and US $ 1.4 billion (7.85 percent) bond due in 2029. This replaces the expected rating of ‘B (EXP)’ that Fitch assigned on 6 March 2019. The ratings are in line with Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘B’ with a Stable Outlook. The ratings would be sensitive to any cha

Sunshine, CIC mull combining healthcare business

Sunshine Holdings PLC and CIC Holdings PLC yesterday said they have agreed in principle to combine their healthcare businesses. Sunshine Holdings will have 60 percent of the shareholding of the combined business and the effective management control while CIC Holdings will have the remaining 40 percent shareholding. “The terms of this transaction are under negotiations and are subject to due diligence findings,” Sunshine Holdings Group Managing Di

Linking disaster risk management into economic policy planning in Sri Lanka

As several districts in Sri Lanka continue to recover from the prolonged drought last year, recurring floods and landslides hamper economic activities in the country. Sri Lanka was ranked as the second most affected country by the impacts of weather-related losses in 2017, according to the Global Climate Risk Index 2019.

Trade deficit expands over US $ 10bn in 2018

Sri Lanka’s trade deficit expanded over US $ 10 billion in the year 2018 despite a significant decline in the December trade deficit with a notable deceleration in the import expenditure, the data released by the Central Bank showed.

John appoints 14-member Tourism Advisory Committee

With an eye on achieving the targeted three million tourist arrivals this year, a newly constituted Tourism Advisory Committee has been appointed by Tourism Development, Wildlife and Christian Religious Affairs Minister John Amaratunga.

PPP process not functioning properly, says govt.’s PPP boss

The Finance Ministry’s Public-Private Partnership (PPP) unit chief yesterday pointed out that the PPP process is not functioning at its best capacity and the relevant stakeholders could look at exploring new options in improving the situation that in-turn would help boost the overall economic growth

Shares fall for 4th straight session on economic and political stability, rupee weakens

(Colombo) REUTERS: Sri Lankan shares fell for a fourth straight session yesterday, hovering near 5-1/2-year low, as investors sold blue chips amid concerns over economic and political stability.

Japanese-Lankan consortium to handle Fort-Malabe LRT project

A consortium consisting of Japanese and Sri Lankan firms will be awarded the contract for planning, procurement assistance, construction, supervision and project management of the Fort-Malabe Light Rail Transit

Government to implement price formula on imported milk

The Cabinet of Ministers has given its approval to implement a price formula on imported milk.

How India’s economy has fared under Modi

When Narendra Modi became Prime Minister in May 2014, his Bharatiya Janata Party formed India’s first majority government in almost 30 years. Modi’s tenure ends in May 2019. By then, elections involving more than 900 million people will have chosen 543 members of the lower house of the Indian Parliament and, therefore, a new government. This will be the biggest electoral exercise in the world.

Is Budget 2019 different from other budgets?

Finance Minister Mangala Samaraweera presented his second budget last week. This was also the first budget of the United National Party-led government, after the end of the uneasy coalition government with President Sirisena’s Sri Lanka Freedom Party.

Mirror Biz Toon

Michelin delegation holds talks with BOI

A delegation from Michelin, the French tire manufacturing giant met with the Board of Investment (BOI) Chairman Hemasiri Fernando and Director General Champika Malalgoda recently.

Govt. revenue goal challenging amid slow GDP growth trajectory: National Chamber

The National Chamber of Commerce of Sri Lanka (NCCSL) observed that it’s challenging for the government to increase total revenue by 20 while keeping the budget deficit at 4.4 percent of Gross Domestic Product (GDP) this year amidst a slow GDP growth trajectory.

Malaysia to decide fate of Malaysia Airlines ‘soon’, PM says

KUALA LUMPUR (Reuters) - The Malaysian government is considering whether to shut, sell or refinance national carrier Malaysia Airlines (MAB), Prime Minister Mahathir Mohamad said yesterday.

Shares, rupee fall ahead of budget vote

(Colombo) REUTERS: Sri Lanka’s shares fell for a third straight session to a more than 5-1/2-year low yesterday as investors awaited a budget vote later in the day to assess the political stability of the government led by Prime Minister Ranil Wickremesinghe. Sri Lankan Finance Minister Mangala Samaraweera last week presented the 2019 budget that raises spending while setting an ambitious goal to reduce the country’s large fiscal deficit. An inte

Tourist Police arrests 36-year old in connection to Mirissa incident

Sri Lanka Tourist Police yesterday said they arrested a 36-year old in connection to the alleged harassment of a tourist in Mirissa, which went viral on social media recently.

IFS poised to scale up operations in Sri Lanka

Sweden-based leading enterprise software solution provider, IFS, is poised to increase its workforce by 23 percent in Sri Lanka this year as the firm is shifting a large chunk of its overseas support functions to Sri Lanka, betting on the country’s “cost effective and innovative” talent pool.