Upbeat Cabraal says exciting times ahead!

Despite the doom and gloom forecasts by global rating agencies and the second wave of COVID-19 reaching community level, the government is optimistic that the best is within reach.

Upbeat Cabraal says exciting times ahead!

Despite the doom and gloom forecasts by global rating agencies and the second wave of COVID-19 reaching community level, the government is optimistic that the best is within reach.

Economy hits nadir in 2Q; rebounds in 3Q to 1.5%

Hit by COVID-19, Sri Lanka’s economic growth contracted by a whopping 16.3 percent in the second quarter (April-June) of this year, recording the largest ever drop recorded in the country’s history but recovered to a growth of 1.5 percent in the third quarter (July-September), the Department of Census and Statistics (DCS) yesterday said.

Trade deficit narrows further in October

Improvement in Sri Lanka’s external sector performance continued in October as well with the trade deficit narrowing further largely due to restrictions imposed on non-essential imports, and the lower oil bill.

Foreign reserves fall by US$ 300mn to US$ 5.5bn in Nov.

Sri Lanka’s foreign reserves buffer fell over US$ 300 million to US$ 5,549.3 million by the end-November, from US$ 5,855.7 million by end-October, while the Central Bank continues to remain a net buyer of foreign exchange to prop up reserves as well as to prevent the rupee from overly appreciating.

Immediate implementation of budget proposals announced

The Finance Ministry this week announced the immediate implementation of a range of loan schemes proposed in Budget 2021, targeted at state and private sector employees, small and medium enterprises (SMEs) and dairy farmers.

IMF bailout inevitable for Sri Lanka, says Citibank

An International Monetary Fund (IMF)-backed deal is inevitable for Sri Lanka’s government that is in denial of the looming debt crisis, the research arm of Citibank, Citi Research said.

IIF highlights Sri Lanka’s funding needs for next year

Sri Lanka could manage the upcoming US $ 1 billion international sovereign bond (ISB) settlement in July, next year and current account deficit in the first half of the year, with US $ 500 million in net bilateral or multilateral funding while keeping reserve losses at manageable levels, according to the Institute of International Finance (IIF), a Washington-based global association of the financial services industry.

Cabinet grants US$ 300mn tax holiday for Chinese tyre plant

The Cabinet of Ministers has cleared tax holidays to the tune of US$300 million for the proposed tyre plant by China’s Shandong Haohua Tire Co. Limited in the industrial park within the Hambantota International Port.

SL cautiously gears up to welcome tourists from Jan.

As Sri Lanka is cautiously gearing up to welcome tourists come January, with the government planning to relax the border control measures, the Sri Lanka Tourism Development Authority (SLTDA) yesterday asserted the importance to impose strict health protocols, to ensure the safety of citizens as well as the international travellers.

Mortgage-backed housing loans at 7% from Thursday

The decision to cap mortgage-backed housing loan interest rates at 7.0 percent for salaried employees in both private and public sectors is now given life as the Monetary Board has instructed all licensed banks to disburse such loans from December 10.

COVID-19 could push people living in extreme poverty to over 1 bn by 2030:UNDP study

Severe long-term effects of the COVID-19 pandemic could push an additional 207 million people into extreme poverty on top of the current pandemic trajectory, bringing the total to over 1 billion by 2030, according to United Nations Development Programme (UNDP) latest findings.

SL’s alternative policy path not understood: CB chief

Central Bank Governor Professor W.D. Lakshman this week called out to the doomsayers, who fail to understand the alternative policy platform unleashed by the government and Central Bank, which is already showing some encouraging results.

SL Tourism has lot to get right, says expert

The local tourism sector yesterday was presented with the harsh reality that it simply isn’t doing enough to reach its aspirations as planned and to make any real progress it is essential for the authorities to smartly relook at the industry’s marketing mix.

President calls for bold investments from pvt. sector

As Sri Lanka explores avenues for greater economic prosperity amid pressing challenges that stem from the global front, in addition to those locally inherited, President Gotabaya Rajapaksa called for an enabling private sector, one that is bold and has high-risk tolerance to take the country to the next level.

Banks to face capital declines without new injections: Moody’s

Moody’s Investors Service, in a report issued on the emerging market banks and insurance companies said yesterday that Sri Lankan banks would experience large capital declines without new capital injections over the next two years, due to asset quality concerns, lower profitability due to muted credit growth and thin margins.

Fitch downgrades Sri Lanka to ‘CCC’

Fitch Ratings yesterday downgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘B-‘ with ‘Negative’ outlook.

CB doubles down on dovish monetary policy

The Monetary Board of the Central Bank left its key policy rates unchanged yesterday, continuing with its dovish monetary policy stance by slapping interest caps on mortgage-backed housing loans and said lending targets would be introduced to licensed banks to channel funds into areas with high growth and earning potential.

Oct. biz activity battered by virus resurgence

Purchasing Managers’ Index (PMI), a key barometer of the vibrancy of the economic activities across both manufacturing and services sectors, contracted in October, as the resurgence of COVID-19 in the country affected production.

CB expected to hold rates steady tomorrow

First Capital Research (FCR) expects the Central Bank (CB) to maintain the current policy rates unchanged at the monetary policy review tomorrow amid recent improvements in private sector credit, rock bottom market interest rates and excess liquidity in the system, while retaining the monetary policy stance at “accommodative”.

Budget 2021 fails to impress Moody’s

Moody’s Investors Service in a report issued yesterday said, “Sri Lanka’s 2021 budget highlights the ongoing fiscal challenges and is unlikely to significantly boost growth,”indicating that the change of opinion between the government and the rating agencies at large over the country’s growth path, will continue post budget.

Freeze on tourism loans likely to be extended till Sept. 2021

The temporary payment holiday on tourism sector loans granted in view of the loss of business due to coronavirus is likely to be extended till September 30, 2021 from an earlier timeline of March 31, 2021.

Pvt. sector, professional bodies urged to ‘rise to the occasion’

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) organised the Annual Budget Seminar on November 19th which brought together a host of eminent speakers and panelists who shared their insights on the government’s National Budget for next year.

H’tota gets US$ 300mn tyre manufacturing plant

Shandong Haohua Tire Co. Ltd, a leading Chinese tyre manufacturer, is slated to invest US$ 300 million to set up a tyre manufacturing plant in Sri Lanka to cater to the export market.

Legal framework of Colombo Port City to Parliament in January

The government plans to present the proposed legal framework of Colombo Port City to Parliament in January, next year, with the tourism, foreign and commercial activities of the first phase of the project are scheduled to commence within the year.

Budget 2021 reflects govt.’s growth-oriented approach

The maiden budget of President Gotabaya Rajapaksa’s government presented yesterday in Parliament by Prime Minister Mahinda Rajapaksa, who is also the country’s Finance Minister, broadly aligned with the policies spelt out in the government’s policy framework ‘Vistas of Prosperity and Splendeour.’

Budget with proposals to boost revenue expected

Top economists in the country opine that the new government faces a daunting task in containing the rising fiscal deficit with credible revenue-enhancing measures while ensuring a speedier recovery of the coronavirus-battered economy, as it is scheduled to present its maiden budget for 2021 in Parliament today.

Worker remittances record 6th consecutive monthly increase in Oct.

Workers’ remittances registered the sixth consecutive monthly increase in October despite earlier forecasts cautioning significant decline in such earnings due to COVID-19 resultant job losses.

COVID-19 second wave stalls export run

Earnings from merchandise exports fell 14.9 percent in October to US$ 831.72 million compared to US$ 977. 3 million in October 2019 due to adverse impact of the second wave of COVID-19 pandemic that began in early October.

Colombo Port ranked as world’s 18th best-connected port

The Port of Colombo has improved five spots onthe United Nations Conference on Trade and Development’s (UNCTAD) Port Liner Shipping Connectivity Index becoming the 18th best-connected port in the world in the third quarter of this year.