Etihad Airways to resume regular services from Sri Lanka to key cities from June 20

Effective June 20, Etihad Airways will operate twice-weekly scheduled services for outbound passengers from Colombo, to key destinations on its global network via Abu Dhabi.

Cinnamon Hotels offer 1000 complimentary holiday packages for health workers

As a way of saying ‘Thank You’ to Sri Lanka’s courageous healthcare workers, Cinnamon Hotels & Resorts is offering 1,000 complimentary full board holiday packages, for two nights at nine of its properties in Sri Lanka.

Central Bank cuts Statutory Reserve Ratio to 2%

In another drastic move, the Monetary Board of the Central Bank yesterday slashed the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of licensed commercial banks by 200 basis points to 2 percent.

Tourism sector reopening day to be formally announced tomorrow

The government plans to formally announce the reopening day of the country’s coronavirus-battered tourism sector for foreign tourists, following a key stakeholder meeting tomorrow, which is likely to be August 1 or an even earlier date.

Sampath Bank secures US$ 45mn from banks in Middle East, South Asia

Sampath Bank PLC, one of Sri Lanka’s leading commercial banks, has successfully raised US$ 45 million via a medium-term syndicated facility.

SL among top ten travel destinations GCC keen to promote: Survey

Sri Lanka is among top ten destinations that the outbound tour operators of Gulf Cooperation Council (GCC) countries are planning to actively promote from July when air travel returns with the relaxation of COVID-19 related restrictions, a survey conducted by Germany based Aviareps showed.

Monetary Board approves new law to regulate moneylenders

In what could be termed as a long overdue regulatory reform to the country’s financial system, the authorities are now working to enact new laws to regulate the informal money lending business to protect people who often fall victim to those individuals and firms referred to as loan sharks.

Port City to resume construction in full swing from mid-July

The construction activities of the multibillion dollar Colombo Port City (CPC) is expected to resume work in full swing from mid-July onwards, as more workers return to work with the gradual easing of COVID-19-related restrictions in Sri Lanka.

Central Bank defends money printing

The Central Bank flat out rejected the notion propagated by certain parties with ideological bias that attempt to always showcase money printing as bad and said those were the ones who were ignorant of the role of the Central Bank.

Project company to pump in additional US $ 1bn to Port City

The Colombo Port City will witness the injection of an additional investment with its project developing company, China Harbour Engineering Company (CHEC), coming forward to pump in a further US $ 1 billion.

CB assures resilience of financial system

Central Bank Governor Prof. W.D. Lakshman issuing a special statement yesterday assured the resilience of Sri Lanka’s financial system and all possible measures taken by the Central Bank to ensure the safety of the deposits of the general public.

MAS becomes first in SA to complete drawdown under StanChart’s US$ 1bn COVID-19 financing commitment

Standard Chartered announced this week that MAS Intimates (Pvt) Ltd., a division of MAS Holdings, became the first company in South Asia to complete a drawdown under the bank’s US$ 1 billion COVID-19 financing commitment.

CB should take responsibility for collapse of financial institutions under its supervision: PM

The Central Bank of Sri Lanka (CBSL) should take the responsibility when financial institutions approved by it and under its supervision go into bankruptcy, Prime Minister Mahinda Rajapaksa said.

SOE losses narrow in 2019 due to lower global oil prices

Sri Lanka’s 52 key state-owned enterprises (SOEs) have reduced their combined losses substantially to Rs.2.4 billion in 2019, from Rs.28 billion recorded in 2018, due to the enhanced performance of Ceylon Petroleum Corporation (CPC), amid lower oil prices.

Apparel exports up to April decline over 28%

Sri Lanka’s cumulative apparel exports in the first four months stagnated to US $ 1.25 billion, recording a 28.2 year-on-year (YoY) decline, after the historical contraction in April apparel export earnings as the COVID-19 pandemic paralysed the retail sectors in the key export markets.

Trade deficit narrows by US $ 43mn in March

Sri Lanka’s trade deficit narrowed by US $ 43 million in March, driven by a sharp decline in imports amid the COVID-19 impact, decline in oil prices, import restrictions and low demand for export inputs, although export earnings recorded a sharper decline in percentage points compared to the import expenditure.

CB revises down private sector credit growth target for 2020

The Central Bank has slashed its expectations for private sector credit for 2020 amid expected reduction in spending and investment activities by individuals and corporates alike due to coronavirus-induced economic and financial difficulties.

ICRA Lanka highlights finance company liquidity concerns

The outlook for finance companies is expected to be more challenging compared to banks in the post-confinement period as asset quality, liquidity and higher capital standards could weigh on the sector’s recovery, but the regulatory response aimed at containing the full impact of the crisis could take some pressure off from the sector, ICRA Lanka said.

apparel exporters jittery over possible bankruptcy of Victoria’s Secret

A potential bankruptcy filing by the US-based premium lingerie brand Victoria’s Secret (VS), which accounts for around 20 percent of Sri Lanka’s apparel exports, is threatening the country’s overall apparel export performance and the bottom lines of top apparel exporters.

EDB urges govt. to make exports national priority

As Sri Lanka looks to steer though the pandemic with lowest impact possible, the Export Development Board (EDB) called on the government to create a more enabling policy environment and place exports as a national priority.

Central Bank expects V-shaped recovery amid pent-up demand

Countrywide inflation slows to 5.9% in April on lower food prices, base effect

Headline inflation as measured by the year-on-year (YoY) change in the National Consumer Price Index (NCPI, 2013=100) decreased to 5.9 percent in April 2020 from 7.0 percent in March 2020.

John Keells expects “material” impact on its biz from COVID-19

Premier blue chip John Keells Holdings (JKH) expects the impact of COVID-19 pandemic on its businesses to be “material” in the first and the second quarters of the financial year 2020/21, particularly on the group’s tourism focused businesses.

April merchandise exports record historic decline

Sri Lanka’s April merchandise exports have fallen to their lowest levels since April 2002, recording a historical drop of 64 percent year-on-year (YoY) to US $ 277.4 million, driven by a record 81.8 percent YoY decline in apparel exports with tea exports regaining the top export status after decades, due to the impacts stemming from the COVID-19 crisis.

MAS joint venture firm announces VRS

The world’s biggest narrow fabric and elastics supplier to the garments industry, Stretchline Holdings, of which Sri Lanka’s MAS Holdings is a joint venture partner, has announced a voluntary retirement scheme (VRS) at one of its plants in Sri Lanka, as the apparel exporters renew the call to the government to amend the existing labour laws to allow a 30 percent cut in employment, to survive during the COVID-19 crisis period.

Cinnamon Life post-COVID standard commended by health officials; construction resumes

Colombo’s iconic landmark and the single, largest, private mixed development investment in Sri Lanka, Cinnamon Life by the John Keells group, has resumed construction after a lockdown since March 2020.

Non-ideological strategy proposed for post-COVID-19 economic recovery

Sri Lanka’s post-COVID-19 economic recovery policies must prioritise mitigating the hardship on masses, restoring economic stability and improving the investment climate for business with pragmatic policies instead of giving into vested interests and ideological biases, as the country is more likely to experience a ‘U-shaped’ recovery with a period of flat growth, according to a latest report.

Tea auction sees strong demand; 5.4 MnKg tea offered

The Colombo Tea Auction saw a total of 5.4 MnKg comprising of 9,304 lots come under the hammer this week, a dip compared to the 6.5 MnKg offered to the corresponding sale in 2019.

Sri Lanka eyes confidence building measures to bring back global travellers

As Sri Lanka is eagerly looking forward to open its borders to get the national economy back on track, much of the efforts should be in positioning the country as a safe destination for which the airports must take effective measures to build confidence among global travellers and airlines that it delivers what is promised, the country’s Airport and Aviation Services chief said.

CB implements extraordinary regulatory measures to pump in more liquidity to banks

The Central Bank (CB) yesterday announced the implementation of extraordinary regulatory measures aimed at strengthening the liquidity positions of the licensed banks, to ensure the continued supply of credit and to meet the urgent liquidity needs of banks, given the current position of the industry.