Legal fraternity calls for urgent changes to labour laws

Sri Lanka’s archaic labour laws need urgent revisiting and amendment where possible, a panel of high-profile lawyers said, as bulk of the laws that are in effect are hardly useful at this point of time where the ongoing health crisis is observed to be taking a toll on both employers and employees across diverse sectors.

Share trading halted soon after reopen from lockdown

The Colombo Stock Exchange (CSE) yesterday closed trading in just 38 seconds when the market resumed trading following a 51-day break, with the S&P SL20 index breaching the 10 percent decline threshold amid the plunge in share prices, triggering circuit breakers.

Colombo prepares to re-open for business

Disinfection work was seen carried out in Colombo Fort area yesterday as Colombo prepares to re-open for business albeit partly under the health sector authorities’ strict guidelines.

Central Bank cuts policy rates further to support economy

The Monetary Board of the Central Bank of Sri Lanka, at a special meeting held yesterday, decided to reduce the Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points, to 5.50 percent and 6.50 percent, respectively, effective from the close of business on May 6, 2020.

Recovery of most listed firms to take more than one year: report

The full recovery of listed entities of Colombo Stock Exchange (CSE) is expected to drag up to June next year with anticipated long-term recovery of tourism, plantation, construction material and real-estate, consumer durables, apparel and retail sectors due to the prolonged impact of COVID-19 pandemic, Colombo-based First Capital Research said in a special report.

Banking sector sees deposit build up contrary to expectations

Contrary to the expectations that many would withdraw from their bank deposits to face the uncertain times created by the pandemic, the sector is seeing a build up of deposits, which the banks attributed to the limited spending opportunities available for people, although they received salaries for the months of March

March worker remittance income shows first signs of prolonged slowdown

Worker remittances to Sri Lanka fell sharply in March setting forth in what could be the beginning of a prolonged slowdown in the crucial foreign exchange income, which acted for decades as a buffer against massive foreign outflows on imports and the country’s fragile balance of payment (BOP).

SEC proposes joint committee to make stock market go fully digital

The Securities and Exchange Commission (SEC) is proposing to set up a joint committee with the Colombo Stock Exchange (CSE) to identify the mechanisms required for the country’s stock market to operate its core functions digitally and enable clearing and settlement activities electronically.

Budget delay could handicap fiscal measures required to soften COVID-19 impact: CB

The Central Bank (CB) has cautioned that the possible delays in presenting the government budget for 2020 would limit the space for implementing new fiscal measures for 2020, which are considered to be crucial to avert the adverse impact stemming from COVID-19 pandemic on fiscal policy and debt sustainability of the country.

SL seeks US $ 800mn under IMF’s Rapid Financing Facility

According to Moody’s Investors Service, Sri Lanka’s government has sought US $ 800 million from the International Monetary Fund (IMF) over the next two years, under the latter’s Rapid Financing Facility, as the government is reorienting its external funding lines towards multilateral and bilateral creditors, since the international capital markets have dried up.

CB forecasts economy to grow at 1.5% this year

The Central Bank (CB) expects Sri Lanka’s economic growth to decline to 1.5 percent this year from 2.3 percent in 2019, possibly avoiding a coronavirus-induced recessions, although with severe impacts across sectors causing hardships for all stakeholders.

Feb. number tells little of slump expected in worker remittances

The worker remittances were recorded at US $ 527.3 million for the month of February, slightly higher than US $ 500.5 million received a year ago, the Central Bank data showed.

SME apparel exporters plead for govt. assistance

Sri Lanka’s small and medium-scale apparel exporters regret that they are yet to receive the relief package announced by the Gotabaya Rajapaksa-led government and it has caused several cash-strapped SME exporters to run into difficulties in paying employee salaries for March and April.

Fitch downgrades SL’s rating over COVID-19 impact

Fitch Ratings yesterday downgraded Sri Lanka’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) to ‘B-’, from ‘B’ with a Negative Outlook, saying that the shocks from the coronavirus pandemic will aggravate the risks associated with the country’s debt sustainability.

Rent-free concession assured for all imported containers

Sri Lanka Ports Authority (SLPA) assures that all imported containers at Colombo Port are free of any terminal rent from March 16, 2020 to April 9 and in addition SLPA-operated Jaya Container Terminal has also exempted their imported containers from penal charges up to April 30.

Manning Market in Pettah remains closed

A Colombo Municipal Council worker sprays disinfectant at the Manning Market in Pettah, which now remains closed, in order to prevent the spread of COVID-19. Sri Lanka has so far reported over 320 confirmed coronavirus positive patients -Pic by Pradeep Pathirana

Tourism sector to embark on COVID-19 recovery plan

As tourism sector stakeholders are adopting measures to stay afloat, authorities have been capitalising on the time available to chart out comprehensive plans that aim at redefining the industry in the face of the COVID-19 outbreak that has dealt a crippling blow to the travel and tourism sector globally.

Over 50,000 migrant workers awaiting to return to country

Over 50,000 Sri Lankan migrant workers stranded mainly in the Gulf countries are anxiously awaiting to return to the country amid health risks, job losses and pay cuts caused by the coronavirus (COVID-19) pandemic, according to the latest reports.

CCC calls for broad economic recovery plan

The Ceylon Chamber of Commerce (CCC) has called for a broad economic recovery plan based on a shared vision of public and private sectors aimed at an accelerated post-COVID-19 recovery of the country’s economy.

RPCs remain wary of plantation sector outlook despite improved tea prices

Sri Lanka’s Regional Plantation Companies (RPCs) remain wary of the sector’s outlook due to whopping crop losses which has led to increased cost of production despite recently improved tea auction prices.

“Let’s be realistic on way forward,” says EDB chief

COVID-19 could alter SL’s strategic economic focus to food security & agriculture: Report

As Sri Lanka’s early but extreme actions to contain the spread of the new coronavirus is bearing fruit and the government is contemplating on reopening the economy by at least from May or even before, the pandemic could easily alter the country’s strategic economic focus to food security and agriculture and such sectors would attract revived attention in the coming decade, according to Softlogic Capital PLC.

Supply lines continue uninterrupted

Essential goods being taken to wholesalers in Pettah during curfew hours yesterday. The government announced that the curfew in Colombo, Gampaha, Kalutara, Puttalam and Kandy districts will continue to be in effect until further notice. Pic by Pradeep Pathirana

Extended curfew leads apparel sector to crumble further!

Sri Lanka’s apparel sector is crumbling further as the prolonged curfew in place to contain the coronavirus outbreak, has placed the industry at a disadvantage with buyers choosing to divert orders to competitors due to lack of clarity as to when operations would resume.

Govt. urged to negotiate fresh loan facility with IMF

Sri Lanka should engage with the International Monetary Fund (IMF) and explore other debt inflows to the country to retain the investor confidence on the economy as the selling rate of the US dollar crossed Rs.200 for the first time in the country’s history, leading economists in the country urge the government.

First-ever online tea auction sees high demand for all teas

The Colombo Tea Auction saw high demand for teas in its first-ever online auction kicked off last Saturday with prices soaring across all types of teas amid an uptick in global tea consumption.

CB Governor still hopeful of 3% growth

Despite the negative growth largely expected for the first quarter, the Central Bank does not think the coronavirus pandemic will completely decimate the economy beset by the lockdowns and would still be able to register at least 3.0 percent growth for 2020.

CB warns banks of stern action

In what could be termed as the most blunt message issued so far, the Central Bank Governor Prof. W.D. Lakshman today asked banks to pass on the announced relief measures to their customers forthwith or face legal action.

CB cuts policy rates by further 25bps

The Monetary Board of the Central Bank has decided to further reduce its key policy interest rates by 25 basis points (bps) in a bid to cushion the impact of COVID-19 to the island nation’s economy.

Stock investors on margins to get relief till end-June

The Securities and Exchange Commission (SEC) yesterday asked brokers and margin providers to refrain from charging interest and to provide a moratorium for the investors who have purchased stocks on margin facilities.