CEB engineers rattled by govt.’s unsolicited deal with US firm for LNG infrastructure

The Ceylon Electricity Board Engineers’ Union (CEBEU) said they are on high alert over a possible delay that could occur in obtaining the required LNG supply to the country in a transparent manner as the government is moving ahead to strike an unsolicited deal with a US-based company for a floating LNG terminal and pipeline amid a competitive tender process.

JKH records steady performance for 1Q

Sri Lanka’s premier blue chip John Keells Holdings PLC (JKH) recorded a steady performance for the June 2021 quarter (2Q22), as the impacts of the COVID-19-induced travel restrictions during the quarter were less pronounced on the group’s business compared to the previous year. For the quarter under review, JKH recorded earnings of Rs.1.16 a share or Rs.1.5 billion, on a revenue of Rs.38.8 billion, compared to a

Govt. to bring in laws to make 18 years minimum age of employment

The Labour Ministry has announced plans to bring in new laws and regulations and alter the existing laws within three months to prohibit anyone below 18 years of age being employed.

Cabraal assures new inflows; says reserves set to top US $ 7bn

Sri Lanka will have foreign reserves over US $ 7 billion within the next few months, even after the payment of US $ 1 billion sovereign bond settlement, which is due today, Finance State Minister Ajith Nivard Cabraal said.

Fitch sees divergent impact on biz from further tightening of import controls

Further tightening of import controls will have divergent impact across industries, depending on their reliance on imports for daily business, the extent to which they engage in import substitution and their essential nature as designated by the government, Fitch Ratings said as it looked at the potential impact if the import controls were further tightened amid depleting reserves.

Goldman Sachs confident Sri Lanka will “muddle through” near term debt challenges

Goldman Sachs Group Inc. says its calculations point to Sri Lanka “comfortably” meeting all its external obligations falling due in 2021, leaving the country with an estimated US$ 6.4 billion in external reserves by the year-end, although the trajectory beyond that could be more daunting without additional external financing.

Recovery in private credit expected on improving biz and consumer sentiment

Despite the recent moderation seen in the growth of private credit, ICRA Lanka expressed optimism that it might have gathered pace after the reopening of the economy from the final week of June, rekindling hopes that the overall growth momentum in the economy would pick up from the depths it fell to during the second quarter, due to the virus-related restrictions.

Fresh challenges predicted for SL’s external sector

The decline seen in the prices of key export commodities and the increase in the prices of imported industrial inputs could add significant pressure on Sri Lanka’s merchandise trade deficit and thereby the overall external sector, which is already under stress from the rising oil prices, according to ICRA Lanka.

Moody’s places SL’s Caa1 rating under review for downgrade

Moody’s Investors Service (Moody’s) yesterday placed the Government of Sri Lanka’s Caa1 foreign currency long-term issuer and senior unsecured debt ratings under review for downgrade.

SL’s January-May BoP surpasses billion dollars

Sri Lanka’s deficit in the Balance of Payment (BoP) surpassed the billion dollar mark during the five months through May 2021 from US$ 797 million in the corresponding period in the previous year and US$ 929 million in April 2021, as the trade deficit expanded for the third month in a row amid slow recovery in exports and higher oil prices.

Work on new social security fund for all employees deprived of a pension begins

As the initial step to setup towards guaranteeing all employees access to a pension at their golden age, a special tripartite committee, consisting of the representatives of labour unions, Employers’ Federation of Ceylon (EFC) and government, have been appointed to draft a preliminary for a new social security fund covering the employees deprived of pensions.

Most Lankan apparel workers, their families fell deep into poverty last year: AFWA

A vast majority of Sri Lanka’s apparel workers and their families fell deep into poverty last year driven by unprecedented job losses, lay-offs and various forms of pay-cuts triggered by COVID-19 pandemic, potentially increasing likelihood for inter-generational transmission of poverty, according to a latest survey.

Trade deficit expands for third consecutive month in May

Sri Lanka’s trade deficit expanded for the third consecutive month on a year-on-year (YoY) basis in May to US $ 716 million, from US $ 407 million a year ago, amid the rising global oil prices and recovery in imports.

CPC to float int’l tenders for US$ 3bn new refinery in 4Q

The Ceylon Petroleum Corporation (CPC) plans to float international tenders for the construction of the proposed new oil refinery adjoining its existing oil refinery in Sapugaskanda as a public-private partnership (PPP) project either on build–operate-transfer (BOT) or build–own–operate–transfer (BOOT) basis in the fourth quarter of this year.

High and rising food inflation an added blow to poor: Dushni

The high and rising price inflation related to food during the pandemic adds to the list of concerns of the national economy, as the ongoing trend in food prices would have serious implications on poverty, senior economist Dr. Dushni Weerakoon said.

CPC records whopping Rs.45bn loss for January-April period

The Ceylon Petroleum Corporation (CPC) reported a net loss of Rs.45 billion during the first four months through April 2021, and the subject Minister had said the losses mounted to Rs.57 billion by May as oil prices in the global markets climbed, while CPC incurred foreign exchange losses on the foreign borrowings it had made.

Sri Lanka records 4.3% economic growth for 1Q

Sri Lanka’s economy grew 4.3. percent during the first quarter of 2021, compared to a contraction of 1.8 percent in the first quarter of 2020, the data released by the Department of Census and Statistics (DCS) showed.

CB leaves policy interest rates unchanged to support recovery

As broadly expected the Monetary Board left the current accommodative monetary policy stance unchanged yesterday to further support the economy beset by the pandemic-induced restrictions.

Over US $ 8bn worth of foreign financing yet to be disbursed: FinMin

Sri Lanka is sitting on US $ 8.0 billion worth of foreign financing from multilateral and bilateral partners to be utilised during the next three to five years, while the country is negotiating several other deals to the tune of US $ 2.5 billion worth of balance of payment (BoP) support during the remainder of the year, in a bid to ward off undue pressure on the currency and foreign reserves.

Govt. revenue in first half slumps amid lockdowns

Government revenue during the first half of the year trailed sharply below the targets due to imposed island-wide travel restrictions to contain the third COVID-19 wave in the second quarter.

Govt. expects US $ 2.5bn new inflows in next few months

The government expects the current abnormalities in the local foreign exchange market to ease off within the next few months, amid the new inflows expected to the tune of US $ 2.5 billion into the country’s foreign exchange reserves.

Glimmer of hope for tourism industry!

The tourism sector received the nod from President Gotabaya Rajapaksa over the weekend to resume operations starting today (July 5) with limited capacity.

Labour Ministry in new initiative to eliminate child labour

The Labour Ministry seeks proposals to amend key laws and regulations on child labour, with a view to eliminate child labour from Sri Lanka.

Large banks most exposed to sovereign risk, says Fitch

Sri Lanka’s large banks, which hold the highest amount of foreign currency denominated government securities, have the most exposure to the sovereign credit risk and thereby the risk of deterioration in their credit profiles, according to Fitch Ratings.

Union Assurance Offers Vital Medical Equipment to Aid the Fight Against COVID-19

Union Assurance PLC offered vital medical equipment to four government hospitals as part of an initiative launched in response to combat the COVID-19 pandemic

Local firms cleared to raise dollars on CSE’s Multi-Currency Board

In a bid to support the expansion plans of local firms outside of Sri Lanka, the Cabinet of Ministers this week decided to relax the foreign exchange controls to allow local firms to raise foreign funds via foreign currency-denominated equity listings and debenture issuances on the Colombo Stock Exchange’s (CSE) Multi-Currency Board.

Credit growth expected to pick up in second half: Acuity Stockbrokers

The banking sector credit growth could start to pick up from the second half of this year (2H21) after a setback in the 2Q21 due to lockdown-like restrictions, which crippled most business and consumer activity for over two months, according to Acuity Stockbrokers Research.

CB dismisses claims of external sector crunch amid dwindling reserves

Central Bank Governor Prof. W.D. Lakshman in a fairly detailed statement issued yesterday dismissed the repeated concerns raised by certain quarters of an imminent external sector crisis brewing in the country, often citing weaker external reserves, ahead of the upcoming foreign currency debt obligations.

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May private credit up despite lockdowns

Bank credit to the private sector continued in May, although losing momentum from the recent high in March, indicating that loan disbursements had continued despite a semi-dormant economy due to COVID-19 related lockdowns during the month.