Economy contracts by 3.1% YoY in 2Q23

Sri Lanka’s Gross Domestic Product (GDP) growth rate for the second quarter of 2023 (2Q23) contracted by 3.1 percent, the Department ....

Fitch downgrades SL’s Long-Term Local-Currency IDR to ‘Restricted Default’

Fitch Ratings announced yesterday it has downgraded Sri Lanka’s Long-Term Local-Currency (LTLC) Issuer Default Rating (IDR) to ‘RD’ (Restricted Default), from ‘C’.

EPF opts for Debt Exchange offer with long-term view under DDO

The Monetary Board, as the custodian of the Employment Provident Fund (EPF), yesterday announced that it has considered the options available and has decided to opt for the Debt Exchange offer with a long-term view in the best interest

Europe probes China’s electric car subsidies as imports soar

CNN: The European Union is launching an investigation into China’s state support for makers of electric vehicles as soaring imports of their cars stoke fears for the future of European auto manufacturers. Speaking to the European Parliament yesterday, European Commission President Ursula von der Leyen said Europe was open to competition but “not for a race to the bottom”.

Govt. delays SVAT system abolition to April 2025 due to strong opposition

Amidst strong opposition from exporters and the country’s business chambers, the government has decided to postpone the earlier decision to abolish the Simplified Value-Added Tariff (SVAT) system until April 1, 2025.

CB chief slams those trying to mislead public on DDO

The Central Bank chief yesterday slammed the misleading views repeatedly shared by different sections of the economy on the Domestic Debt Optimisation (DDO), doing more harm than good for the country. Central Bank Governor Dr. Nandalal Weerasinghe did not mince his words yesterday in calling out the entities and individuals who have contributed to the brewing of negative sentiments regarding the whole debt restructuring exercise, which has given

Ceylon Chamber urges govt. to reconsider SVAT abolition

The Ceylon Chamber of Commerce is urging the government to reconsider its recent decision to abolish the Simplified Value Added Tax (SVAT) system given the impact it will have on the functioning of the export industry.

evaluation policy to bring about predictable environment for economic development

Sri Lanka will be able to have a more predictable environment for economic and social development going forward, with the government yesterday setting in motion the much-awaited national evaluation policy framework.

SRU warns of potential delays as SOE divestiture progresses

Transaction advisors appointed for the divestiture of seven State-owned enterprises (SOEs) have already kicked off, the process,

Govt. to step up SOE governance and legislation

Sri Lanka is stepping up efforts to improve the governance and legislation framework of state-owned enterprises (SOEs), with the primary goal of significantly enhancing their performance and simultaneously mitigating the adverse impact of certain loss-making SOEs on the overall state finances.

No urgency for Sri Lanka to raise funds from int’l capital markets: CB chief

Although Sri Lanka’s access to international capital markets is expected to be restored “quite soon,” Central Bank Governor Dr. Nandalal Weerasinghe said there is no need for the government to explore that option.

Tea Board chief upbeat despite temporary setback

Despite the temporary setback in tea production in Sri Lanka, due to the dry weather in August, the Sri Lanka Tea Board (SLTB) expects the tea output to exceed 260 million kilos this year and the prices to stabilise with winter buying during the next four months. Addressing the Annual General Meeting of the Tea Exporters Association held in Colombo last Friday, SLTB Chairman Niraj De Mel acknowledged that the unusual “hot August” slowed down the

Sri Lanka in “pretty good shape” to face first IMF review: Dr.Coomaraswamy

Former Central Bank Governor and senior economist Dr. Indrajith Coomaraswamy sounded upbeat on the prospects of Sri Lanka satisfying the International Monetary Fund (IMF) in the upcoming review this month as it has exceeded expectations in certain aspects.

Tourist arrivals cross 900,000 milestone for first time since 2019

Sri Lanka tourism reached a new milestone on Wednesday with over 900,000 international visitors having visited the island nation.

Global campaign to market Sri Lanka as more than just a bucket list destination

Sri Lanka’s upcoming global tourism campaign is slated to showcase the island nation from a new perspective, highlighting a wider range of experiences to a broader audience. The concept of the global campaign, which was launched in the second week of August but shared with the media only on Tuesday (29), focuses on repositioning Sri Lanka as a destination worthy of revisits, instead of a mere bucket list destination.

Apparel exports lead decline in July merchandise exports

Continuing the declining trend in exports, Sri Lanka recorded US$ 1.02 billion export earnings for the month of July, down 11.79 percent year-on-year....

Visa to launch its govt. solutions in SL to enhance payment infrastructure

Global digital payments leader Visa plans to launch its Visa Government Solutions (VGS) in Sri Lanka, to help improve the nation’s payment infrastructure. The VGS is expected to bring technologies to Sri Lanka, which will focus on transparency and the manner in which the government deals with its finances.

CB resorts to dual approach to drive interest rates down

In a bid to quicken the decline in lending rates in the economy in line with the recent policy rate cuts, the Central Bank has directed banks to cut rupee loan rates by 250 basis points by October-end and by a further 100 basis points by December-end from the levels as of July-end in addition to announcing interest rate caps on select lending products.

Technical, economic challenges in the way of SL deploying offshore wind generation: WB

Sri Lanka has a clear opportunity to deploy offshore wind generation, the World Bank (WB) said; however, there are important technical and economic challenges and risks that can make the opportunity less attractive to investors and project developers.

CB imposes lending rate caps to drive interest rates down

The Monetary Board of the Central Bank yesterday slapped banks with administrative measures to reduce the notable spread between market deposit rates and lending rates despite the substantial easing in the policy interest rates.

Thailand’s ex-central bank Governor optimistic about SL’s economic recovery

Sri Lanka will come out of the crisis situation it is faced with now, as it has the key requisites to steer the economy towards revival, according to former Bank of Thailand Governor Dr. Veerathai Santiprabhob.

Landmark 100 MW solar project by WindForce, Lakdhanavi, and The Blue Circle to shape SL’s future power pricing

The 100 MW solar power generation project undertaken by the consortium comprising WindForce PLC, Lakdhanavi, and Singapore’s The Blue Circle, is set to become a significant milestone in Sri Lanka’s power sector as it aims to establish benchmark pricing for upcoming power generation ventures conducted by the private sector.

National inflation cools to 4.6% in July giving wiggle room for further rate cuts

Sri Lanka’s overall inflation rate, as measured by the National Consumer Price Index (NCPI), experienced a significant decline in July, dropping to 4.6 percent on a year-on-year (YoY) basis, against 10.8 percent in June.

Transshipment volumes at Colombo Port rebound in 1H

Transshipment container volumes at the Port of Colombo rebounded in the first half of the year, ending the nearly one-year declining trend, as main shipping lines restoring services back from alternative routes on renewed confidence on the stability of country.

Efforts rolled out to urgently amend Inland Revenue Ordinance to boost tax collection

As Sri Lanka strives to improve its revenue collection, especially in terms of tax, the required efforts have been rolled out to amend the Inland Revenue Ordinance, the Sectoral Oversight Committee on National Economic and Physical Planning said.

Skytanking MD and team visit BOI 

Skytanking Holding GmbH Managing Director Amir Ibrahim and the team met with the Chairman and officials of the BOI, Airport and Aviation to discuss potential opportunities for investment in Sri Lanka. Skytanking provides aviation fuelling services including into-plane fuelling, aviation fuel storage and hydrant management, investment in aviation fuel facilities at airports and engineering. Founded in 1998, the company is a subsidiary of Prime Fli

Manufacturing hindered by persistent subdued demand; services sustain growth

Despite the recent improvements observed in the macroeconomy, Sri Lanka’s manufacturing activity has not yet shown signs of recovery, whereas the services sector continues to exhibit growth.

CMTA deems Sri Lanka’s electric vehicle transition agenda unrealistic

As Sri Lanka embarks on an ambitious journey towards de-carbonising the economy, and adopting electric vehicles (EVs) is a crucial....

Unexpected travel advisory review by Australia rattles tourism industry stakeholders

In a surprise move, the Australian government has reviewed its travel advisory on Sri Lanka, where it urges its citizens to exercise a high degree of caution when visiting the island nation.

Tourism earnings surpass US$ 1bn milestone

Earnings from the tourism industry have crossed the US$ 1 billion mark with international visitors to Sri Lanka having spent US$ 219 million in July.