Sri Lanka’s fiscal consolidation path challenging: Moody’s

Sri Lanka government’s efforts for fiscal consolidation will be challenging, given its ambitious revenue targets and election spending—which are difficult to do without—and their success will largely depend on policy effectiveness and faster economic growth, according to Moody’s Investors Services (Moody’s).

Govt. secures Rs.48bn JICA credit line for Malabe-Fort LRT

The Sri Lankan government yesterday signed a concessionary loan agreement with the Japan International Cooperation Agency (JICA) to borrow JPY 30,040 million (approx. Rs.48 billion) for engineering services and construction of a light rail transit (LRT) line between Malabe and Colombo Fort.

JKH inks agreement with BOI for US $ 14mn logistics centre

The Board of Investment (BOI) recently signed an agreement with the John Keells group subsidiary Logipark International (Pvt.) Ltd to construct, commission and operate a logistics centre to provide integrated logistic services, container freight station, multi-country consolidation and a range of local and international logistics solutions.The facility will be located within the Muthurajawela Logistics Zone in Kerawalapitiya, Wattala. The total v

Shares end at 5-1/2-year low, rupee falls ahead of budget vote

(Colombo) REUTERS: Sri Lankan shares ended at a 5-1/2-year low and the rupee fell yesterday as investors awaited a budget vote on Tuesday to assess the political stability of the government led by Prime Minister Ranil Wickremesinghe.

Fitch casts doubts over govt.’s ability to achieve ambitious fiscal targets

Echoing similar sentiments to that of Moody’s, Fitch Ratings Limited expressed doubts over the government’s ambitious fiscal consolidation agenda, which targets to shrink the budget deficit to 4.4 percent of GDP this year, from 5.3 percent in 2018.

Budget 2019 lacks focus, says economist

Perhaps levelling the sharpest criticism so far against the Budget 2019 presented last week, a top economist and a commentator of socio-political issues charged that the budget lacks clear direction as it tries to be everything for everyone and its attempt to micromanage the economy is futile with a bloated cabinet and an inefficient public sector.

NDB confident of meeting capital requirements following anticipated graduation to D-SIB status

As National Development Bank (NDB) is set to achieve a systematically important domestic bank status this year, reaching Rs 500 billion in assets, the top officials of the bank expressed their confidence on meeting increased capital adequacy requirements following the upgrade.

CSE to sign MoU with LSE for dual listing of foreign currency denominated govt. debt

The Colombo Stock Exchange (CSE) is expected to sign a memorandum of understanding (MoU) with London Stock Exchange (LSE) shortly, to explore the possibilities of dual listing of Sri Lankan government’s foreign currency denominated debt.

Norges Bank’s investments in Lankan stocks top US $ 98mn in 2018

Norway’s trillion dollar sovereign wealth fund, the world’s largest, managed by the Norwegian Central Bank, Norges Bank, had investments to the tune of US $ 98.3 million in Sri Lankan stocks by end of last year.

European tourists account for over half of arrivals in Feb.

Sri Lanka’s tourist arrivals for the month of February rose 7 percent year-on-year (YoY) to 252, 033, with visitors from Europe accounting for over half of the arrivals, the data released by the Sri Lanka Tourism Development Authority (SLTDA) showed.

French giant Mechelin eyes Lankan tyre sector

Eric Le Corre, Corporate Vice President Public Affairs, Michelin and Nandita Khurana, Zone Head – Legal, Michelin, met Export Development Board (EDB) Chairperson/CEO recently to explore opportunities in the Sri Lankan tyre sector. French Ambassador Eric Lavertu, Economic Counsellor Herve Sarnelli, SLAMERP President Prabhash Subasinghe and EDB Advisory Committee Member Ananda Caldera were also present at the discussion.

FedEx’s savvy founder - Fred Smith - still going strong after 48 years as CEO

Frederick Wallace “Fred” Smith (born August 11, 1944) is the founder, Chairman and CEO of FedEx, originally known as Federal Express. The company is headquartered in Memphis, Tennessee.

Sri Lanka Tourism unveils new documentary at ITB

The world’s leading travel and trade show, ITB opened in Berlin, Germany on Wednesday (6th) where Sri Lanka took center stage with the inauguration of its stand-out pavilion and country branding amidst much grandeur and fanfare.

Global quality expert to lead Sri Lanka’s consumer protection campaign

Sri Lanka’s national consumer protection is to be led by an internationally accredited quality professional and a leading academic in management science. “With this appointment, we leverage your local and international experience for our consumer protection,” said Industry Commerce Minister Rishad Bathiudeen, while handing over the letter of appointment to Dr. Lalith Senaweera (PhD in Management-USA, MBA-Colombo, BSc Hons- Sri Lanka), the ninth

Rs. 2,500 an interim measure: State Minister

The budget proposal to give an increment of Rs.2, 500 to State sector employees is an interim measure, State Minister of Finance Eran Wickramaratne said yesterday. The State Minister

International Women’s Day all female crew flight

In recognition of International Women’s Day, SriLankan Airlines operated its first all female crew flight from Colombo to Singapore and return. UL306 of 8th March ’19 landed in Singapore carrying more than 170 passengers onboard.

Shares fall to 5-1/2-year low; rupee steady

COLOMBO (Reuters) - Sri Lankan shares fell to a near 5-1/2-year low yesterday as investors sold large cap stocks, outweighing purchases by foreigners. The Colombo Stock Exchange index settled 0.52 percent lower at 5,722.25, its lowest close since Sept. 18, 2013. The benchmark stock index fell 1.63 percent for the week, recording its third straight weekly fall. It declined 2.9 percent in February, its second straight monthly fall. The turnover

Asian markets plunge as ECB, China fan global outlook fears

HONG KONG (AFP) - Asian markets tanked and the euro struggled to recover yesterday as the European Central Bank’s decision to slash its growth and inflation forecasts added to increasing pessimism about the global outlook.

Norway sovereign wealth fund, world’s biggest to dump oil and gas

OSLO (AFP) - Norway’s sovereign wealth fund, the world’s biggest and which is fuelled by petrodollars, will dump stakes in oil and gas exploration and production companies to reduce its exposure to black gold, the government said yesterday. While the decision was based solely on financial considerations and not on the environment or climate change, a divestment by an investor worth more than US$1 trillion was seen as a major blow to polluting fos

Sri Lanka raises US$ 2.4bn in dollar bond sale

(Hong Kong / Colombo) REUTERS: Sri Lanka sold US$ 2.4 billion in five-year and 10-year U.S. dollar-denominated bonds yesterday, according to a term sheet seen by Reuters, successfully tapping the international markets at a time the country is facing strains on its finances. Sri Lanka sold US$ 1 billion in five-year bonds

Sri Lanka raises US $2.4bn in dollar bond sale

Sri Lanka sold $2.4 billion in five-year and 10-year U.S. dollar-denominated bonds on Friday, according to a term sheet seen by Reuters, successfully tapping the international markets at a time the country is facing strains on its finances.

CSE and IFC ring bell for gender equality

Women in the country’s workforce were paid a tribute at the Colombo Stock Exchange (CSE) yesterday with the traditional ringing of the trading bell—a gesture by the corporate Sri Lanka to celebrate the Inte

Banks unconvinced over govt.’s interest financing subsidy loan schemes

Doubts were cast during a budget forum yesterday on the government’s ability to honour interest payments stemming from its much touted ‘Enterprise Sri Lanka’ subsidy loan scheme to the country’s banking sector,

Progressive budget; execution is key: ICCSL

The International Chamber of Commerce Sri Lanka (ICCSL) yesterday in a statement congratulated the government for maintaining policy consistency and continuing on its economic reforms agenda in the Budget 2019 presented on Tuesday. ICCSL Chairman Dinesh Weerakkody n

Luxury tax to hinder govt.’s plan to collect Rs.48bn from vehicle imports: VIASL

The proposed luxury tax on vehicles will hinder the government’s ambitious target of collecting Rs.48 billion in revenue from duties, as the proposed tax would lead to drastic decline in vehicle imports to the country,

Sri Lanka launches dollar bond sale, orders top US $3bn

(Hong Kong) REUTERS: Sri Lanka launched the sale of U.S. dollar-denominated bonds yesterday and orders topped US$3 billion, according to a term sheet seen by Reuters. It was not immediately cl

February tourist arrivals up 7%

Tourist arrivals to Sri Lanka during February rose 7 percent year-on-year (YoY) to 252, 033, Sri Lanka Tourism Development Authority said in a brief note. In February last year, 235,618 tourists visited Sri Lanka.

TEA says Budget 2019 “below expectation” of tea exporters

The Tea Exporters Association (TEA) yesterday said the proposals in Budget 2019 were “somewhat below the expectations of tea exporters”. “The reduction of the Economic Service Charge from 0.50 percent to 0.25 percent would certainly benefit the exporters, as it would ease the cash flow issue to some extent. The reduction of the Port and Airport Lev

Condo industry enjoys strong growth despite low urbanisation rates

Sri Lanka’s dull urbanisation rate, estimated by the United Nations, is to be at 18-18.2 percent, while the country’s Megapolis Ministry claims it to be at 42 percent, according to Indocean Developers (Pvt.) Ltd Director Pradeep Moraes. The real estate developer noted that taking an average of the two estimations would not suffice as Sri Lanka would still be below the global urbanisation average, which is around 50 percent.

SLASSCOM-Norway to collaborate on ICT development, start-up initiatives

The Sri Lanka Association of Software and Services Companies (SLASSCOM) and Norwegian Foreign Affairs Ministry expressed their intent to further collaborate in developing the information and communication technology (ICT) sector for sustainable employment generation in the future and to bring about innovation through knowledge transfer programmes. A letter of intent in this regard was signed by Norweg