Turmeric sold at exorbitant prices due to massive shortage

Sri Lanka is currently facing a massive shortage in turmeric in the country leading traders to sell the processed spice via informal channels at prices that are over five fold higher than the government imposed maximum retail price (MRP).

First half tea production hits 20-year low

Sri Lanka’s tea output in the first half of 2020 hit a 24-year low amid severe drought, particularly in the first quarter, impacting the Low-Country tea production, which accounts for about 60 percent of the national tea output.

Fitch-rated firms here estimated to lose Rs.30bn in revenue to pandemic

Fitch Ratings has estimated that the Sri Lankan corporates rated by it could lose up to 7 percent or Rs.30 billion in revenues during the financial year ending in March 2021 from a year earlier, with the COVID-19 pandemic taking a toll on industries and businesses leaving only a few unscathed, before staging a recovery in the following year.

Lankan banks’ operating environment deteriorates

Fitch Ratings Lanka yesterday reminded that the operating conditions for the banking sector have weakened, exerting further pressure on banks’ ratings, after the rating agency downgraded the country rating in April, citing heightened public and external debt sustainability challenges caused by the pandemic-induced economic difficulties and the tax cuts late last year.

Merchandise exports rebound in June as exporters rise up to occasion

Sri Lanka’s merchandise exports recovered strongly in June, staging what looks like a V-shaped recovery in most of the sectors, as the country’s exporter community responded to the call to ramp up their contribution to support the economy and employment.

Iran proposes to operate direct flights to Sri Lanka

The Ambassador of the Islamic Republic of Iran, Hashem Ashjazadeh called on the Chairman of Civil Aviation Authority of Sri Lanka (CAASL) Upul Dharmadasa at the Civil Aviation Authority recently.

China’s 2Q GDP grows 3.2%, beats expectations

China’s economy returned to growth in the second quarter after a deep slump at the start of the year, but unexpected weakness in domestic consumption underscored the need for more policy support to bolster the recovery after the shock of the coronavirus crisis.

Right balance between credit growth and system stability urged

The extremely dovish monetary policy and liquidity injections into the system may be required to resuscitate the pandemic-hit economy, but that should not undermine the strength and stability of the financial institutions as excessive credit could increase credit risks of the system, specially at a time when certain rules on capital, liquidity and supervisory requirements are relaxed, according to ICRA Lanka.

Funding sources broadened, loans offered to lure more forex into Special Deposit Account

Sri Lanka broadened the funding sources that can be collected into the Special Deposit Account (SDA) and made possible cash-backed loans against such deposits, in a further attempt to lure foreign currency deposits, as the Monetary Board and government work together to bolster the country’s foreign currency reserves.

SL Police gets Rs.340mn Japanese grant to reinforce anti-narcotic activities

Based on a request by the Government of Sri Lanka (GoSL), the Government of Japan has agreed to provide a Japanese yen 200 million (approx. Rs.340 million) grant, under the Japanese non-project grant aid scheme, for provision of the necessary equipment to strengthen the investigation and detection capacities of drugs and related anti-narcotic activities of Sri Lanka Police.

Local value addition industries not denied of imports, says CB

It is inaccurate to say that import controls have hamstrung the local manufacturers and will impinge economic growth, as those who are engaged in domestic value addition industries can continue to import the required inputs, while essential industries such as agriculture and pharmaceuticals among others have also been freed from any restrictions, the Central Bank (CB) said.

CB approves Rs.60bn in loans for COVID-hit biz

The Central Bank of Sri Lanka (CBSL) had approved 22,306 loans amounting to Rs. 60, 250 million under the Saubagya COVID-19 renaissance facility as of yesterday with approval given for 2,066 new loans, amounting to Rs. 6,978 million during the week ended July 10, 2020.

CB expects economy to rebound in second half

The Central Bank (CB) anticipates a strong economic rebound in the second half of this year from the expected contraction in the second quarter due to COVID-19 related lockdown, although the growth projection of 1.5 percent could be subject to revisions in future.

Committee makes proposals to address irregularities in finance and leasing businesses

In view of the recent developments in the finance leasing business, Central Bank Governor Prof. W.D. Lakshman appointed a three-member committee to examine and report on the irregularities and illegal activities of the finance and finance leasing businesses and to make recommendations to curtail such activities.

CB begins process to develop PoC of blockchain-based shared KYC facility

The Central Bank of Sri Lanka (CBSL) yesterday entered into agreements to begin the process of developing blockchain technology-based shared know-your-customer (KYC) proofs of concept (PoCs).

Dart Global to set up US $ 3mn logistics fulfilment centre in Muthurajawela

Dart Global Logistics (DGL) has signed an agreement with the Board of Investment (BOI) to set up a US $ 3 million state-of-the-art logistics fulfilment centre, at the Muthurajawela Industrial Zone, located in Kerawalapitiya, Wattala.

Loans under CB liquidity support scheme gather steam

Loans under the Central Bank liquidity support scheme to assist pandemic-affected businesses gathered steam as of late as the banking sector regulator granted approval for 6,314 new applications for Rs.25.3 billion worth loans at 4 percent during the eight days from June 25 to July 2.

President tells bankers to go grassroots

In order to develop villages, the banking service in the country should understand the rural economy and the needs of the people, President Gotabaya Rajapaksa emphasized.

January-April vehicle registrations plunge

Vehicle registrations fell by nearly 40 percent during January through April as import controls went into effect from mid-March and the lockdowns prevented new registrations during April, according to Department of Motor Traffic data.

WB announces new Country Manger for Sri Lanka

The World Bank has announced Chiyo Kanda as the new Country Manager for Sri Lanka.

World Bank announces new Country Director for Sri Lanka

The World Bank yesterday announced the appointment of Faris Hadad-Zervos as the World Bank’s new Country Director for Sri Lanka, the Maldives and Nepal, effective from July 1, 2020.

BOC eyes fresh US$ 300 mn facility to strengthen balance sheet

State-owned banking giant Bank of Ceylon (BOC) is set to receive a fresh injection of US$ 300 million from multilateral lenders within the year, an influx that would assist in further strengthening the bank’s balance sheet.

Biz community confused over govt.’s trade policies

The businesses operating in the country are observed to be largely confused as to how they should chart their way forward in the post-lockdown scenario, as the relevant government authorities have failed to be clear in their directives and communication with the business community, with regards to international trade.

Post-COVID recovery depends on effective execution of public-private vision: CCC

As Sri Lanka looks for avenues to move towards a positive growth trajectory, the Ceylon Chamber of Commerce (CCC) stressed that an accelerated post COVID-19 recovery will be predicated on the effective execution of a public-private shared vision for economic revival and social sustenance.

SriLankan converts wide-body passenger aircraft into dedicated cargo carrier

In its quest to continuously support Sri Lanka’s export industries and to keep the country connected with the global economy during the pandemic, the national carrier SriLankan Airlines has converted a wide-body passenger aircraft into a dedicated cargo aircraft.

JKH secures US$ 175mn IFC funding for supermarkets, hotels

Premier blue chip John Keells Holdings PLC (JKH) has secured a US$ 175 million long-term finding line from IFC, a member of the World Bank to mainly fund the expansion of its supermarket chain and to refurbish/expand its hotel properties in Sri Lanka and Maldives.

SriLankan eyes recovery with leaner operation

National carrier SriLankan Airlines expects to go forward as a leaner operation in the post-COVID-19 environment while trimming its debt exposure running into a billion dollars, according to its Chairman Ashok Pathirage.

Merchandise exports bounce back in May

Merchandise exports for the month of May 2020 has bounced back to US$ 602 million, compared to the previous month of April, which was only US$ 277 million, according to Customs provisional statistics.

President seeks new investments from EU to revive post-COVID economy

President Gotabaya Rajapaksa this week met EU ambassadors at the Presidential Secretariat for discussions centered on rebuilding the Sri Lankan economy after passing the COVID-19 crisis.

The Finance depositors stage protest

The depositors of The Finance Company PLC (TFC) staged a protest outside the Presidential Secretariat yesterday urging authorities to settle their payments immediately. The Central Bank on May 22 cancelled TFC’s licence to operate as a finance company owing to serious erosion of liquidity.