India seeks to counter China sway in Maldives with bridge project

India yesterday pledged US$ 500 million to build bridges and causeways in the Maldives, as New Delhi seeks to counter growing Chinese influence in the Indian Ocean.

Lankan blockchain firm secures Japanese funding

99X Technology yesterday said Tracified, a company incubated within its innovation center/accelerator StartupX Foundry, has received an equity investment from 360ip, a venture capital firm based in Tokyo.

NDB reports higher second quarter profits despite pandemic effects

The National Development Bank PLC (NDB), like any other lender felt the effects of the pandemic, that came by way of loss of revenues from loans subject to moratoria, compressed margins amid falling interests rates, higher provisions against possible bad loans and low business volumes as nearly half of the June quarter was in lockdown.

Sampath Bank 2Q subdued as bank provides moratoria for half of its loans

Sampath Bank PLC reported subdued performance for the three months ended June 30, 2020 (2Q20) as declining margins, moratoria and weak business volumes weighed on its revenues and profits.

Colombo Dockyard remains confident of global shipbuilding sector aiding its growth

Colombo Dockyard, Sri Lanka’s largest ship repair and building engineering facility said, it expects rapid changes in the global shipbuilding industry, where sector players would stand to benefit from the new direction.

Market lending rates continue to descend as banks vie for more biz

The lending rates continued their descend through last week, amid the borrowing cost reaching historically low levels, as banks are seen adjusting their lending rates in response to the aggressive monetary policy actions aimed at accelerating the country’s economic recovery.

Sri Lanka Insurance declares highest-ever life insurance bonus of Rs.8.2bn

Sri Lanka Insurance has declared a life insurance bonus of Rs.8.2 billion for the year 2020, to its life insurance policyholders, recording the largest life insurance bonus ever to be declared in the insurance industry of Sri Lanka.

SLPMA welcomes new state ministry for pharma manufacturing

The Sri Lanka Pharmaceutical Manufacturers’ Association (SLPMA) yesterday welcomed the newly-elected government’s decision to create a new state ministry for pharmaceutical manufacturing as a crucial positive step towards the strengthening of the local pharmaceuticals industry.

Ten-acre Beira Lake land to be handed over to UDA for a mixed development project

A ten-acre plot of land covering the Air Force Stadium, Slave Island Police Station and Helitours Ticket Office, reserved for a mixed development project, is to be handed over to the Management Board of the Urban Development Authority (UDA).

Apparel sector stands to benefit from US-China trade war: Teejay

The ongoing conflict between the USA and China could be in favour for nations such as Sri Lanka since global apparel companies are looking to expand their sourcing options, South Asia’s largest textile group and knit fabric provider, Teejay Group said. The textile group, which is also Sri Lanka’s only multinational mill, said that the trade war between the two giants has pushed the global apparel industry to actively look at alternate manufacturi

SL ranked 23rd riskiest country for money laundering and terrorist financing in Basel AML Index 2020

Sri Lanka has been ranked as the 23rd riskiest country for money laundering and terrorist financing, among 141 countries, according to Basel AML Index 2020.

ECONOMIC TEAM

Govt. to introduce new refinance scheme as ‘Saubhagya’ set to expire

As the Central Bank-launched loan refinance scheme ‘Saubhagya’ nears expiration by the end of August, the Finance Ministry is gearing to introduce another refinance scheme targeted at the micro, small and medium-sized enterprises (MSMEs) starting from September in a sign that authorities stand ready to support the economy beset by the COVID-19 pandemic.

Notice re-issued on Teejay Lanka over alleged sludge waste dumping

The Colombo Magistrate Court on Monday (10th) issued a fresh notice on Teejay Lanka PLC, one of the country’s leading textile manufacturers, to appear in court on the 19th of this month in an ongoing court case in connection to an alleged attempt to dump hazardous sludge waste, originated from a plant owned by the company, into the sea via Madampitiya pumping station, through a contracted party.

Overseas Realty says no premature lease terminations due to COVID-19

Overseas Realty Ceylon PLC said the company hasn’t so far seen any premature lease terminations at its World Trade Centre (WTC) or cancellation of sale agreements of its Havelock City residential properties despite the pandemic depressed business and incomes of many companies and individuals.

Non-bank finance sector NPLs hit over 16% of total loans

Asset quality troubles with Sri Lanka’s non-bank lenders could go deeper with their non-performing loans (NPLs) estimated to have reached 16-18 percent by end-June as the sector is reeling from a multitude of challenges exacerbated by the pandemic-induced hardships.

Sri Lanka Tourism extends open invitation to content creators

The Sri Lanka Tourism Promotions Bureau (SLTPB) this week extended an open invitation to content creators across the country to put forward photographs and video footages of the island nation to be used in future promotional campaigns.

Pandemic may force nearly 75% of biz to downscale office space: Survey

Close to three-quarters of Sri Lankan businesses say they might downscale utilisation of their office space during the next 12 months, since nearly 50 percent of the businesses are planning to keep all or some of their office-based staff working from home on a long-term basis, as the pandemic upended how companies view work.

LOLC becomes most profitable conglomerate two years in a row

LOLC Group (LOLC), the premier blue-chip conglomerate, concluded another financial year on a high note, as per the results for the year ended March 31, 2020.

ICCSL congratulates Prime Minister

The International Chamber of Commerce Sri Lanka (ICCSL), the domestic chapter of the Paris-based International Chamber of Commerce (ICC), in a statement yesterday congratulated President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa on their resounding success at the recently held parliamentary election.

Sri Lanka receives Safe Travels stamp from World Travel and Tourism Council

Recognising the safety protocols introduced by the Government of Sri Lanka along with the standards mandated by the Sri Lanka Tourism Development Authority (SLTDA) to ensure the safety of domestic and international travellers,

Jetwing boss calls for sustainable model to preserve tourist attractions before visitors return in numbers

Sri Lankan authorities were urged to devise a sustainable and practical model for operating hundreds of tourist sites before they start decaying and being inflicted with permanent damage, losing their natural or archaeological value, prior to visitors start returning in numbers as the pandemic dissipates and borders reopen.

Access Motors hopeful of resumption of auto imports towards end of 3Q

One of Sri Lanka’s top franchise holders of global automotive brands is hopeful of a gradual softening of the current stringent import restrictions on vehicles and other automotive components including spare parts into the country towards the end of the third quarter.

Budget deficit in first 5 months up as lockdowns hit revenue

Sri Lanka’s budget deficit for the five months up to May rose as the economic shutdown triggered by the pandemic hit the tax revenues, but the government cut public investments to keep the deficit from over-stretching.

Commercial paper issuers face rollover challenges as investors find safe haven in G-Secs

Commercial paper issuers in Sri Lanka found themselves in a fix at the height of the pandemic, as they found it difficult to find investors to roll over their debt instruments as investors had parked their funds in low-risk assets such as government securities, ICRA Lanka observed.

SMEs upbeat and hopeful of new govt.

Sri Lankan SMEs have strong, newfound hope on the incoming new administration for their long overdue revival, a statement by a trade chamber representing the country’s small and medium business said.

NCE pins hope on new govt. to develop export sector

The National Chamber of Exporters of Sri Lanka (NCE), which represents export fraternity of the country, has congratulated the newly concluded election and the great victory achieved, in the formation of a new government.

Cargills Bank puts off listing deadline to June 2021 as pandemic upsets plans

Cargills Bank Limited has deferred the timeline set for listing the company by more than a year to June 2021 as the bank doesn’t think the current atmosphere is appropriate to go public while dealing with its own issues such as higher non-performing loans and related challenges stemming from the pandemic.

Staff still shun London’s ‘ghost town’ finance hubs

Deserted streets, empty restaurants, shuttered stores: London’s financial districts remain largely abandoned by workers still worried about the pandemic and reluctant to return to office life.

Foreign reserves gain over US$ 400mn in July

Sri Lanka’s official foreign reserve, often used gauge external sector strength, increased by US$ 407.4 million during the month of July, bringing the total reserves position to US$ 7.1 billion by the end of the month as the Central Bank took receipt of US$ 500 million from Reserve Bank of India (RBI) through a swap arrangement.