Fresh boost for SMEs to enter European Union with launch of IPD hub

The local small and medium enterprises (SMEs) will receive fresh impetus to enter the European Union (EU) market, with Sri Lanka being selected as one of the four hubs to launch the Import Promotion Desk (IPD).

New inflation wave likely from April as one-off taxes take effect

Sri Lankans may need to brace for a new wave of consumer price pressures from around April with the one-off taxes proposed in the budget for this year coming into effect, according leading finance professionals and tax experts in the country.

Calls for transparency get louder over IPO share allocations

As a large amount of the initial public offering (IPO) shares of companies get often allocated to so-called undisclosed eligible investors, market participants are calling for the disclosure of such shareholders in a bid to bring in transparency to the whole IPO process.

Cabraal confident of settling US$ 1bn sovereign bond in July

Following the repayment of half a billion dollar bond last week, the Central Bank Governor Ajith Nivard Cabraal this week expressed confidence in settling the billion dollar sovereign bond maturing this July.

Small hydropower developers seek upward tariff revision

Sri Lanka’s Small Hydro Power Developers Association (SHPDA), which boats a combined installed capacity of 440MW, seeks a reasonable upward revision to feed in tariff to realise the remaining 150MW potential in the small and medium-scale hydropower sector, with 475MW worth of power projects being stuck at different levels, due to the government red tape over the past seven years.

Access to build SL’s largest warehousing complex with US$ 250mn investment

Access Engineering Group plans to build Sri Lanka’s largest warehousing complex in Ekala with an overall estimated investment of US$250 million, which will be leased out to a leading multinational company.

Fresh round of incentives from CBSL to up remittances

The Central Bank of Sri Lanka (CBSL) announced a fresh round of incentives to migrant workers this week, an effort to increase the flow of foreign exchange into the country.

CB hikes policy rates to fend off inflationary pressures, Fx crunch

The Central Bank yesterday tightened monetary policy for the second time in five months to tame the soaring consumer prices and also alongside took a host of other measures to ameliorate the foreign exchange situation, which fell to crisis proportions in recent times.

Govt. projects 20-25% output loss amid organic agriculture push

The government is projecting a 20-25 percent loss in the country’s agricultural output, as a direct result of its ill-thought-out, ambitious organic agriculture drive.

Power cuts frustrate exporter community

The country’s exporters yesterday expressed their frustration over continued challenges faced by them in carrying out day-to-day activities with unannounced power cuts.

SL averts immediate default; calls to engage with IMF get louder

As Sri Lanka avoided an immediate debt default, averting a massive crisis, the country’s policymakers should now make use of the breathing space provided by the Indian credit lines to the tune of US $ 1.9 billion to engage with its creditors,

Pharma Chamber warns of disastrous medicine shortage

The Sri Lanka Chamber of Pharmaceutical Industry (SLCPI) yesterday said importing of medicines to Sri Lanka is now done on the availability of foreign currency and not on the needs of the country or its patients.

S&P cuts SL’s rating deeper into junk territory

S&P Global Ratings (S&P) downgraded Sri Lanka’s sovereign credit rating yesterday, citing heightened conditions for a foreign debt default in the next 12 months, becoming the third rating agency to strike against Sri Lanka’s waning external financing position in the last three months.

President to inaugurate construction of East Container Terminal today

Marking a milestone in Sri Lanka’s shipping industry, President Gotabaya Rajapaksa is scheduled to inaugurate the construction of East Container Terminal (ECT) of the Port of Colombo today.

Private sector wants no govt. input in salary bargaining process

Sri Lanka’s private sector employers, led by the Employers’ Federation of Ceylon (EFC), yesterday urged the government to refrain from forcing them to pay the Rs.5000 allowance to their employees and said their financial difficulties have been worsened by the ongoing foreign exchange crisis and global supply issues.

Economist calls for debt default to avert hardships on people

Contradictory as it may sound, senior economist Dr. Nishan de Mel said the settlement of the dollar bonds would plunge Sri Lanka and its people into further abyss and therefore the government should default on its debt come due next week, as debt repayment neither solves the current shortages of essential items nor would raise the country’s junk credit rating.

Trade unions demand Rs.5,000 allowance to be extended to private sector

The key trade unions representing the private sector employees have requested Labour Minister Nimal Siripala De Silva to extend the Rs.5,000 allowance announced for the public sector last week to the private sector employees as well, through legislative measures.

Lankan dollar salary earners face forcible conversions by banks

A state of confusion appears to have been created by the instructions issued to banks by the Central Bank with regard to conversion of bank balances of resident Sri Lankans who earn in dollars and Lankan migrant workers who remit money to their foreign currency bank accounts.

SL risks runaway inflation with govt.’s mega relief package

Already entrapped in high inflation, Sri Lanka runs the risk of runaway prices in the coming months, as the government this week unveiled a surprise stimulus package worth of Rs.229 billion, without explaining how it will be financed.

Government’s New Year relief: A blessing or curse in disguise?

The government’s New Year bonanza to the people announced by the Finance Ministry this week could be looked at as a blessing at a time of hardship. However,​​ looking beyond the attractive packaging makes one question if it’s a curse that would eventually add to the mounting woes of the public.

Govt. announces mega New Year relief package

Finance Minister Basil Rajapaksa yesterday evening announced a massive relief package to the tune of Rs.229 billion (US $ 1.15 billion), aimed at easing the burden faced by the public, due to the soaring consumer prices and shortages of essential commodities.

Bourse ends 2021 as banner-year for IPOs

Year 2021 became a banner-year for Initial Public Offerings (IPOs) with 13 companies raising nearly Rs.12 billion in fresh equity on the Colombo Stock Exchange (CSE), while majority of them closed the year above offer prices last Friday.

Shares finish a splendid year at record levels

Sri Lanka’s shares closed at a record high yesterday, logging their best year since 2010, in a year battered by the COVID-19 pandemic, Reuters said in the stock market story.

Proposed coupon system detrimental to economy and people: Advocata

A section of the political fraternity has repeatedly called for Sri Lanka to opt for rationing system for food and fuel to ensure equal access.

Foreign reserves find way back to over US $ 3bn

In accordance with the repeated assurances given by the officials to their ability to increase the country’s foreign currency reserves up to US $ 3.0 billion by the end of the year, the Central Bank yesterday said that the reserves had reached to around US $ 3.1 billion as of December 29 and would remain at that level through the remainder of the year.

Banks ordered to surrender 25% of foreign currency receipts

The Central Bank yesterday ordered the licensed banks to surrender 25 percent of the foreign currency they receive from a variety of sources on a weekly basis, raising the hitherto prevailed requirement of 10 percent and 20 percent in certain cases.

Budget deficit hits Rs.1.33tn end of 3Q as revenue dries up

The fiscal deficit continued to expand in the nine months through September 2021 on the back of revenue shortfalls, which were sharper than expected due to the pandemic-induced economic restrictions and sweeping tax cuts in 2019, and the expenses which kept going up, despite some restraint seen over the same period last year.

Export proceeds repatriation rule takes hold as November figures double

The revised export proceeds repatriation and conversion rule that came into effect end of October appears to be bringing the desired outcomes as Central Bank is seeing the reparations of dollars from exports having doubled during November.

Private sector fires salvo at government

The authorities were urged yesterday to take immediate remedial actions to rectify the current foreign exchange crunch faced by Sri Lanka, as the country’s private sector appears to be running out of patience with the government’s mishandling of the situation.

Banks instructed to offer extra Rs.10 for hard foreign currency conversions

Licensed banks have been asked to offer extra Rs.10 for foreign currency notes “held in hand”, as part of a broader incentive package offered to encourage the general public to channel all their foreign currency through the formal banking system.