Dwindling foreign reserves, increased money printing to exert pressure on rupee

Sri Lanka’s rupee is expected to feel the pressure from the dwindling official foreign reserves combined with the impacts from the increased money printing towards the latter part of the year, when the demand rebounds from the current sluggish levels.

Bourse rebounds after two days of losses

The Colombo Stock Exchange (CSE) rebounded yesterday after two days of losses, with the benchmark All Share Price Index (ASPI) increasing by 2.81 percent or 119.30 points to close at 4,367.25 points while the S&P SL20 index also increased by 2.59 percent or 43.70 points to close at 1,729.15.

SL’s ban on pepper imports leads to sharp fall in imports to India

Sri Lanka’s temporary ban on the importation of pepper has contributed to a sharp decline in pepper imports to India, according to an Indian media report.

Sampath Bank 1Q20 indicates economy was gathering steam before pandemic

Sampath Bank’s interim results released for the March quarter (1Q20) showed that the economy was gathering steam from the lower interest rates and tax cuts, as the loans had begun to rise and earnings got a boost before it hit a wall when the country went to lockdown to prevent the spread of China-originated COVID-19.

SLPA looks to go digital to up efficiency, curb corruption

The Sri Lanka Ports Authority (SLPA) yesterday stressed the urgent need for the entity to go digital but said it is faced with a major hurdle in doing so, as its workforce is resisting the changes in that direction.

Lanka IOC March quarter in red; but record-low oil prices could help turn fortunes

Despite higher revenues, Lanka IOC PLC swung to a loss during the three months to March 2020 (4Q), as the prices relevant for oil deliveries through March-end remained elevated, before they crashed recently amid the demand slump caused by the shuttered economies since mid-March, due to the coronavirus.

Asian equities mixed, fears of second wave keep traders on edge

Asian markets were mixed yesterday but investors remain on edge after Donald Trump’s top virus adviser warned that easing lockdown measures too early could spark another dangerous wave of infections and batter the economic recovery.

Shares fall as consumer, industrial stocks weigh

Sri Lankan stocks closed sharply lower yesterday, weighed by consumer discretionary and industrial stocks, as investors returned to stock markets this week after a long shutdown imposed to curb the spread of coronavirus infections.

Tea industry urges sector players to maintain end product quality

Although Sri Lanka’s tea industry has been able to brew a strong cuppa amid the global pandemic, the sector representatives caution that the industry should look at maintaining high standards in terms of quality to sustain the demand.

Sri Lanka removed from European Union’s money laundering list

Sri Lanka has been removed from a list of high-risk countries for money laundering and terror financing by the European Commission from May 07, the Central Bank (CB) said yesterday.

IRD issues instructions to settle income tax obligations

The Inland Revenue Department (IRD) has issued instructions for individuals, partnerships and partners in a partnership and companies to settle the fourth quarter income tax instalment on or before May 15.

ICRA Lanka sceptical of sustained higher tea prices

When all else seemed gloomy and commodities prices were set to take a plunge from the coronavirus-induced economic damage, one commodity stood out unscathed, i.e. Ceylon Tea, but analysts said all is not well with it as many factors were at play and thus questioned the sustainability of the record high prices going forward.

Global stocks down on fears over second wave as lockdowns ease

Fears of a second wave of coronavirus infections in some parts of the world weighed on equities yesterday, bringing a dose of hard reality to markets after weeks of rallies fuelled by the easing of lockdown measures and hopes for economic recovery.

Employers seek govt. help to tackle pandemic-driven labour issues

The Employers’ Federation of Ceylon (EFC) has put forward to the government a 10-point proposal that would help cushion the private sector from possible labour issues and ensure its ability to continue to operate amid the challenges the businesses are currently faced with, due to the economic fallout of the COVID-19 crisis.

Saudi triples VAT, suspends handouts in virus-led austerity drive

Saudi Arabia unveiled plans yesterday to triple its Value Added Tax (VAT) and halt monthly handouts to citizens as part of a series of austerity measures amid record low oil prices and a coronavirus-led economic slump.

Kerry Logistics expands operations to Sri Lanka

Hong Kong-based Kerry Logistics Network has announced a new joint venture, Kerry Logistics Lanka, with Sri Lanka’s IAS Holdings, to strengthen its international freight forwarding capabilities in South Asia.

Prospects for Ceylon Tea remain high amid less exposure to global challenges

Ceylon Tea commands higher prospects in 2020 and beyond as it remained one of the few commodities less prone to the economic downturn, although the pandemic dealt a crushing blow to many other industries and businesses, said John Keells PLC, a commodities broker specialised in the tea trade.

Decline in tourist arrivals tops 44% up to April

Sri Lanka recorded a 44.1 percent YoY decline in tourist arrivals during the first four months of the year, with no tourist arrivals in April, due to the termination of all passenger flight and ship arrivals into the country from March 18, to slow the spread of the COVID-19 disease.

MAS Holdings pins hopes on medical apparel to ride COVID-19 crisis

Local apparel giant, MAS Holdings, appears to be pinning its hopes on medical apparel to ride the economic fallout of the COVID-19 pandemic, as the firm has started producing a range of medical apparel to help the fight against the deadly virus.

Coronavirus adds huge flywheel to Lankan banks’ digitisation drive

Sri Lanka’s banks have seen a massive upsurge in their digital transaction volumes as the COVID-19 pandemic has upended how banking should be done and the banks are now refusing to go back to old ways, since they want to lock-in the low-cost business model.

CSE to resume trading today; foreigners look to sell

The Colombo Stock Exchange (CSE) is scheduled to resume trading today as the market braces for heavy foreign selling despite anticipated weak buying interest amidst the impact of COVID-19, further exacerbated by its longest ever shutdown spanning for seven weeks along with the island-wide curfew to slow the spread of the pandemic.

Foreign reserves slip to US$ 7.2bn in April; still sufficient for debt repayments

Sri Lanka’s official reserves slipped by US$ 354 million during April to end with assets of US$ 7.2 billion as the foreign earnings from exports, services and inflows to the capital account slowed significantly, but the authorities expressed confidence in meeting foreign debt obligations due during the remainder of the year.

Sri Lanka Telecom gets Group CEO

State-controlled Sri Lanka Telecom PLC (SLT) has announced the appointment of a Group Chief Executive Officer two years after the former CEO Dileepa Wijesundera left the Group.

Tea sales average hits all-time high in April 2020

The Ceylon Tea cuppa for the month of April recorded an impressive sales average reaching the highest ever gain, a development that is much welcome for the industry that is determined to steer forward amidst new challenges brought about by the global pandemic.

Elpitiya Plantations to move ahead with US$4mn ESCAPE theme park project despite COVID-19 impact

Sri Lanka’s Elpitiya Plantations PLC is planning to move ahead with the development of US$ 4 million ESCAPE theme park in the Galle district later this year with Sim Leisure Group Ltd, Singapore Stock Exchange listed leading theme park developer and operator based in Malaysia, despite the COVID-19 pandemic which has adversely impacted the company’s performance and the country’s tourism industry.

Tourism sector appeals for further assistance from govt.

Sri Lanka’s strongly hit tourism sector has once again reached out to the government seeking further assistance, and the latest appeal is to extend short and long-term relief packages for the affected entities and self-employed persons.

Emirates airline reports rise in annual profit, coronavirus hits final quarter

Emirates, one of the world’s biggest long-haul airlines, reported a 21percent rise in full-year profit yesterday, but warned the outbreak of the new coronavirus hit its performance in the fourth quarter of the financial year.

Losses mount at Hayleys Fabric, but company returns to full capacity with shift in production

Losses at Hayleys Fabric PLC swelled in the three months ended March 2020, as sales plunged while the operations were suspended two weeks prior to the end of the quarter as the world was engulfed in the worst pandemic in a century forcing all its foreign clients too to shutdown their operations.

ADB provides guarantee for US $ 25mn trade loan to SPC to purchase medical supplies

The Asian Development Bank (ADB) has provided a guarantee for a US $ 25 million trade loan to State Pharmaceuticals Corporation of Sri Lanka (SPC) to purchase medical supplies, as part of the country’s response to the novel coronavirus (COVID-19) pandemic.

Footwear sales to drive recovery of DSI Samson Group: Fitch

Fitch Ratings forecasts a faster recovery for Sri Lanka’s DSI Samson Group’s (DSG) footwear segment, from the disruption caused by the slowdown in economic activity precipitated by the COVID-19 pandemic, while its tyre segment will have to brace for a long and painful path to recovery.