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.

Manufacturing and service sectors rebound in May

Sri Lanka’s manufacturing and service sectors made notable rebounds in May after hitting the rock bottom in April as the country started to gradually relax COVID-19 related mobility restrictions in the month, according to the Purchasing Managers’Index (PMI) published by the Central Bank (CB).

Global tourism promotion campaign likely next January

Sri Lanka Tourism Promotion Bureau (SLTPB) is planning to launch the long awaited multi-billion five-year global tourism promotion campaign next January, amid fears over possible shortage of funds, if tourism doesn’t bounce back to the pre-COVID level in two years.

Lanka IOC inks agreement with CEB to supply lubricants to Sapaugaskanda plant

Lanka IOC (LIOC) has secured business from Ceylon Electricity Board (CEB) to supply Servo branded lubricants to Sapugaskanda Power Station. This business was secured through competetive bidding by LIOC for the first time.

COVID-19 compounds stress on Sri Lankan banks: Fitch Ratings

The adequate capital buffers built, specially during the last three years, will soften the negative impacts on the banking sector stemming from the new coronavirus-driven economic damage, which has made the operating environment for banks challenging amid pressure on asset quality and earnings, according to Fitch Ratings.

Subjects on agri-tech proposed in curricular to promote technology adoption in farming

Subjects related to advanced agricultural technologies are proposed by the authorities to bridge the glaring lack of knowledge in technology use in agricultural activities and to promote its adoption, which will eventually result in precision in application of inputs, increase in agricultural output and quality of agri-products.

Apparel sector stresses need to up e-commerce game in post-COVID-19 era

The local apparel sector has stressed the need to establish a stronger online presence to ensure it anchors strong in the post-COVID-19 era and hold a sizable portion of the global fashion industry.

Pan Asia Bank partners with Swiss-based Symbiotics for first green bond issuance of US $ 7.75mn

Pan Asia Bank has become the proud recipient of a US $ 7.75 million (approx. Rs.1.5 billion) green bond launched by Switzerland-based Symbiotics, the leading market access platform for impact investing.

High-net-worth and institutional investor interest seen in LOLC shares

Several high-net-worth investors and local institutional investors, including Sohli Captain, Nimal Perera, Sri Lanka Insurance and Capital Trust, were believed to be among the buyers of LOLC Holdings PLC shares, in the last two trading sessions, amid foreign selling.

Emirates to begin outbound flights from Colombo on June 20

Emirates has announced the launch of outward-bound passenger flights from Sri Lanka, starting Saturday, June 20, 2020, to facilitate travel for foreign nationals as well as Sri Lankans, who need to return to families, jobs or education overseas.

Government agrees to settle construction sector pending payments by end-June

The repeated pleas from the construction sector for due payments from the state have finally been answered, with the government having decided to settle all certified invoices by end of June.

Canned fish industry eyes exports with govt. backing

Encouraged by the recent move to re-impose special commodity levy on canned fish imports, Sri Lanka’s canned fish manufactures say that the country could commence exporting canned fish products within two years with the right backing of the government.

Fairfirst Insurance wins locally and globally through empathy-based innovations

Fairfirst Insurance has become the proud recipient of the prestigious ‘Fairfax Presidents’ Innovation Award’. This award is special for Sri Lanka since Fairfax operates out of more than 18 countries across five continents through some of the largest insurance entities in the world such as Odyssey Group, North Bridge, Allied World, Crum & Forster, Brit Insurance and Zenith National.

1Q budget deficit slightly up on revenue slippage

Sri Lanka reported a slightly stretched budget deficit of 2.1 percent of the estimated gross domestic product (GDP) for the first quarter ended March 31, 2020, up from 1.8 percent recorded in the corresponding period in 2019, as State revenues slipped from the year earlier period, latest data showed.

FHA condemns Sunil Jayawardena’s murder

The Finance Houses Association of Sri Lanka (FHA Sri Lanka) in its capacity as the apex association of 41 registered licensed finance companies in Sri Lanka, has condemned the alleged murder of Self Employed Professionals’ Three-Wheeler Association Chairman Sunil Jayawardena, last week.

Private sector credit slumps in April, but money supply picks up

Private sector credit from the banking sector slumped during April to just over Rs.13 billion from a massive Rs.120 billion surge recorded in March as most of the economic actors went in to hibernation during COVID lockdowns from mid-March.

Rajiv Meewakkala to succeed Suresh Shah at Lion Brewery

Well known private sector executive Rajiv Meewakkala, who also has experience in the public sector, is to take reins from Suresh Shah to become the CEO of Sri Lanka’s largest brewer, Lion Brewery PLC.

SEC Chairman calls on CB Governor

Securities and Exchange Commission (SEC) Chairman Viraj Dayaratne PC paid a courtesy call on Central Bank Governor Professor W.D. Lakshman recently. He was accompanied by SEC Director General Chinthaka Mendis.

China’s foreigner ban leaves global businesses in limbo

China’s coronavirus travel ban is wreaking havoc among foreign companies and international schools, with many fearing for their future as executives, teachers and students are left stranded in their home countries.

Official reserves lose US$ 716mn in May

Sri Lanka’s gross official reserve lost US$ 715.92 million during May to end the month at US$ 6,493.6 million, but the rupee continued its ascend against the US dollar, alleviating concerns of a possible run on the rupee amid controls on certain imports and gradual pick up in export activities after lockdowns.

Thailand eyes ‘travel bubbles’ to resuscitate tourism

Thailand will open ‘travel bubbles’ with countries which have comparably low coronavirus infections, officials said yesterday, as the kingdom tries to claw back money for its battered tourism sector.

E-commerce giant JD raises US$3.9 bn in Hong Kong listing

Chinese e-commerce giant JD.com said yesterday it raised HK$30.1 billion (US$ 3.9 billion) in its Hong Kong initial public offering, making it the world’s second-biggest so far this year.

UK backtracks on post-Brexit import checks: reports

Britain will apply “light-touch” border checks on goods from the European Union when the Brexit transition period ends this year so as to help firms hit by the coronavirus crisis, reports said yesterday.

Heads of State to join biz leaders and UN chiefs to discuss crucial topics at Global Compact Leaders Summit

German Chancellor Angela Merkel and the Presidents of Botswana, Colombia, Costa Rica, Ethiopia will join dozens of Chief Executive Officers and UN chiefs at the United Nations Global Compact Leaders Summit next week to address the private sector’s response to three global crises – health, inequality and climate.

Equities stutter on economy, second wave fears

Equities and oil sank yesterday while the dollar rallied as investors ran for the hills following the worst Wall Street rout since March, fuelled by worries about the economic recovery and a second virus wave in the US.

ETI Investigation Committee meets President

The inquiring committee appointed to investigate alleged irregularities in the ETI Investments met President Gotabaya Rajapaksa at the Presidential Secretariat this week.

People’s Bank’s SDA to drive inward remittances, boost investments

People’s Bank has stepped forward to boost the government’s efforts to rebuild Sri Lanka while providing eligible individuals and organisations with a significant investment opportunity by introducing the People’s Bank Special Deposit Account (SDA).

New study estimates massive social and environmental cost of Norochcholai power plant

The total externality cost (social and environmental damage) due to the emission of greenhouse gases by (GHGs) by Lak Vijaya Coal Power Plant (LVPP) in Norochcholai has reached Rs.36.6 billion (US$ 244 million) per annum, while burdening the local economy with a cost between Rs.15.7 billion to Rs.16.7 billion per annum, a study showed.

Build buffers to cushion against future disasters, stresses former CB Governor Coomaraswamy

As Sri Lanka is highly vulnerable to external shocks, such as those stemming from climate change and natural disasters, senior economist and former Central Bank Governor Indrajit Coomaraswamy stressed it is essential for the country to look at building buffers instead of choosing to continue to live on the edge.

Stocks sink on dark Fed outlook, second wave fears

World stock markets sank anew yesterday as the US Federal Reserve warned over the “highly uncertain” economic outlook due to the coronavirus pandemic -- and investors eyed fears of a second wave of the killer disease in the United States.