Long shadow of govt. debt

Sri Lanka’s government debt burden is weighing heavily on the economy in respect of mounting debt service payments – a problem aggravated by steep depreciation of the rupee against major foreign currencies. In terms of the year-end exchange rate (Rs/US $), the rupee depreciated by 22 percent between 2016 and 2018.

Poverty-tackling trio win Nobel economics prize

(Stockholm) REUTERS: U.S.-based economists Abhijit Banerjee, Esther Duflo and Michael Kremer won the 2019 Nobel Economics Prize yesterday for their work in fighting poverty that has helped millions of children around the world.

Stocks hit near 6-week high; rupee weakens

(Colombo) REUTERS: Sri Lankan stocks rose for the seventh straight session yesterday to hit a near six-week high as beverage and banking shares rallied. However, the rupee ended weaker.

Sajith to formalise private sector input in economic policymaking

New Democratic Front presidential candidate Sajith Premadasa last week pledged to formalise the private sector consultative process for scientific and rational economic policymaking, under a revamped administration.

Paradigm shift in export financing urged for export sector revival

Sri Lanka’s banking sector is urged to make a paradigm shift in export financing by moving away from the outdated practices in lending and risk management to support the country’s exporters to break into new export markets while venturing into new product lines, in order to stimulate the economy.

MoU signed for Sri Lanka’s first cable car project

A memorandum of understanding (MoU) was signed on Sunday for Sri Lanka’s first cable car project, which is to be set up in Nuwara Eliya, targeting both local and foreign tourists.

August trade deficit narrows with continued decline in imports

Sri Lanka’s imports, supported by lower vehicle and gold imports, continued to decline while exports largely recovered from its recent decline to see the island nation’s trade deficit narrowing in August, the trade data released by the Central Bank showed yesterday.

Who will address issue of ageing time bomb?

All 35 presidential candidates need to address the ageing time bomb, which is facing Sri Lanka today.

Cigarette smuggling: Hype vs. reality

In the run up to elections, Sri Lanka is once again witnessing various news activities highlighting how the government is losing revenue due to increased consumption of illicit cigarettes and beedi. However, the wider government policy on tobacco control is aimed to reduce smoking rates and the related direct and indirect costs, which was estimated to amount to 6 percent of government revenue in 2015, through taxation.

Mahela, Sanga on board as SL’s brand ambassadors for Expo 2020 Dubai

Sri Lankan cricketing legends Mahela Jayawardena and Kumar Sangakkara have come on board as Sri Lanka’s brand ambassadors for Expo 2020 Dubai to be held from October 20, 2020 to April 10, 2021, in the UAE. Both Mahela and Kumar,

ComBank gets US$ 25mn Proparco loan to support local SMEs

Proparco, a subsidiary of the Agence Française de Développement (AFD) Group, dedicated to private sector financing, recently signed an agreement with Sri Lanka’s Commercial Bank of Ceylon PLC to support the island nation’s small and medium-sized enterprises

Nawaloka Hospitals rating downgraded

ICRA Lanka has cut Nawaloka Hospitals PLC’s credit rating to BBB from BBB + citing the company’s deteriorating liquidity position and the increase in the gearing level amid weak financial performance in the most recent financial year. The rating outlook has also been revised down to ‘Negative’ from ‘Positive’. Further, the rating agency has downgraded the company’s Rs.457.2 million senior debenture issue to the same level of the entity rating w

CA Sri Lanka’s 40th National Conference kicks off today

The 40th National Conference of Chartered Accountants organised by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) will be inaugurated today at Waters Edge, Battaramulla under the patronage of the Institute of Chartered Accountants in England & Wales (ICAEW) President Fiona Wilkinson. ICAEW is one of the oldest accountancy bodies in the world. Ceylon Chamber of Commerc

WB cuts SL’s economic growth forecast to 2.7%

In its latest edition of the South Asia Economic Focus, the World Bank expects Sri Lanka’s economic growth to decelerate to 2.7 percent by the end this year from earlier forecast of 3.5 percent in June amid security challenges and political un

SL eyes launch of US$ 500mn Samurai bond in early Nov.

Sri Lanka is likely to launch its maiden US$ 500 million (60 billion yen) 10 -year Samurai bond next month prior to the presidential election. The Cabinet of Ministers last week approved the appointment of Mizuho Securities Company Ltd., SMBC Nikko Securities Inc. and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. as the three joint lead managers

Forensic audit on bond scams, EPF deals by mid Nov.

Five forensic audit reports on alleged bond scams and Rs.2.2 trillion Employees’ Provident Fund (EPF) transactions will be completed by mid next month, the Central Bank (CB) said. “The forensic audit reports cover both bond issuances and EPF transactions. Once the reports are handed over to us, the Monetary Board will consider and it was decided to seek Attorney General’s (AG)

China sets timetable to end finance ownership caps

BEIJING (AFP) - China’s securities regulator has set a timetable to remove foreign ownership limits in finance companies next year, as Beijing seeks to attract overseas investment to boost a slowing economy.

US aviation authority blasted over of 737 MAX redesign approval

WASHINGTON (AFP) - US aviation regulators were slammed yesterday for allowing design changes to Boeing’s 737 MAX aircraft that have been implicated in two crashes causing the deaths of more than 300 people.

Stocks hit five-week high; foreigners exit

REUTERS: Sri Lankan stocks rose for the sixth straight session yesterday to hit their five-week high led by banking and beverage shares, but foreign investors exited from risky assets with the start of presidential poll campaigning. The rupee currency ended weaker.

Business registrations from home

The incorporation of a new company in Sri Lanka is now possible from the comfort of one’s own home. “Name reservation of companies could be obtained online. Company registrations and incorporations could be done online and there is no need for physical attendance at the Department of Registrar of Companies,” said the Minister of Industry and Commerce Rishad Bathiudeen in Parliament on October 8.

Abans Group appoints Weerakkody to Board of Directors

Abans Group recently announced the appointment of Dinesh Weerakkody as a Non-Executive Director to Abans Retail Holdings.

Oil spikes on Iranian tanker blasts

LONDON (AFP) - Oil surged yesterday after an Iranian tanker was hit by suspected missile strikes off the coast of Saudi Arabia, sparking fresh conflict fears one month after attacks on Saudi oil facilities that were blamed by Washington on Tehran.

Small businesses provide most jobs in under developed, developing nations: ILO

More than two-third of total employment in under-developed and developing countries is provided by small economic units, the International Labour Organization’s latest report has found.

CB keeps rates steady to stabilize inflation

The Monetary Board of the Central Bank (CB) yesterday decided to maintain policy interest rates at their current levels, awaiting for materialisation of various measures aimed at accelerating subpar economic growth in the country, while being cautious on the implications of the public sector salary hike scheduled for next year.

WB urges banks to adopt multifaceted approach to be development enablers

With nearly one-third of Sri Lanka’s adult banking population considered to be inactive account holders and many facing significant constraints in accessing finance, the World Bank (WB) urges the country’s banks to position themselves as development enablers by adopting a multifaceted approach to further promote financial inclusiveness in the country. “Having a bank account isn’t enough; it must be used. The challenge in Sri Lanka is less about

CB tells banks to prepare for sweeping industry changes with new Banking Act

The Central Bank (CB) wants Sri Lanka’s banking sector to start preparing for the anticipated transformation of the current banking industry landscape as the new Banking Act is set to come into effect in 2021 with the regulator gaining more ‘teeth’ to impose monetary penalties on errant banks. The Central Bank (

EU scheme to reduce Greek bad loans

ATHENS (AFP) - The European Commission yesterday approved a Greek scheme to reduce bad loans weighing down the country’s banks, limiting new credit and holding back economic recovery.

New regulations to restrict cross holdings among banks

The Central Bank (CB) is to introduce new regulations to restrict cross holdings among banks to enhance corporate governance in the banking sector. “We are looking

Stocks end tad firmer near four-week high; foreigners exit

COLOMBO (Reuters) - Sri Lankan stocks rose for the fifth straight session yesterday to hit their near four-week high led by beverage shares, but foreign investors exited from the risky assets with the start of presiden

John Keells Hotels provides Rs.2.45bn corporate guarantee to People’s Bank

John Keells Hotels provided a corporate guarantee for Rs.2.45 billion to People’s Bank on Wednesday, in respect of a long-term loan facility obtained by its subsidiary, Ceylon Holiday Resorts Ltd, for redevelopment of Cinnamon Bentota Beach. “The said loan facility was obtained by Ceylon Holiday Resorts to partially finance the redevelopment cost of hotel Cinnamon Bentota Beach,” the company stated in stock filing yesterday. Cinnamon Bentota Be