Rupee extends losses as fund outflow worries weigh

(Colombo) REUTERS: Sri Lanka›s rupee fell further yesterday to close at its lowest level in more than seven months, due to continued foreign fund outflows from government securities after a surprise rate cut last month.

No current parliamentarian issued with liquor license: FinMin

Although liquor licenses were issued to owners of hotels approved by the Tourist Board after 2015 with the intention of developing the tourism industry, none of the current parliamentarians h

A weakening global economy calls for a consensus on Sri Lanka’s priorities

Global stock markets seem jittery once again. After substantial rallies during the first half of 2019, stock markets have given back much of their gains over the last two months. Against fears over a global recession, an intensifying trade war between the US and China and an increased likelihood of a disorderly Brexit, stock markets plummeted in the US, Asia and Europe in August. Asian equities dropped by 4 percent during the month, whilst Europe

Airtel says geared for opportunities Sri Lanka has to offer

Sri Lanka’s telecommunication industry is now at an interesting juncture. With two existing players merging their operations and the regulator removing the floor price on voice calls, the industry appears to be heading for exciting times. In this backdrop, Mirror Business spoke to Jinesh Hegde, CEO of Airtel Lanka, a unit of India’s Bharti Airtel, which entered the Sri Lankan market a decade ago, to find out Airtel Lanka’s future plans and his ta

Why aren’t there more universities like SLIIT?

The education sector or more specifically the higher education sector is big business in Sri Lanka. One need not go far to understand its potential from an entrepreneurial point of view, as the Sunday papers are heavy with the number of special supplements on higher education with an information overload on the spread of choices available to students seeking degrees outside of state universities.

Winning over millennials for life insurance in Sri Lanka

Marketers have been trying to crack the code of how millennials purchase products. They’re perceived to be a baffling group of individuals whose purchasing decisions are uncanny and random.

One-day licence renewal service for tourism service providers

The Sri Lanka Tourism Development Authority (SLTDA) yesterday officially launched a five-step, one-day licence renewal service for the tourism industry service providers, an effort taken towards improving the standards of the industry and ensuring sooth operations. As an initiative to expedite the annual renewal of licences process and to deliver enhanced satisfaction to the tourism industry service providers, the SLTDA said it is now fully geare

Corporate leaders call for decisive leadership ahead of elections

Ahead of the upcoming election cycle, Sri Lanka’s corporate sector leaders stressed on decisive leadership, security, national economic policy, rule of law, increased R&D spending and educational reforms to transform the country to an export-oriented economy, in order to become a developed nation. “We need

Tourism authorities confident of achieving 2.1mn visitors this year

The Sri Lanka Tourism Development Authority (SLTDA) yesterday expressed confidence in achieving the 2019 year-end target of 2.1 million tourist arrivals, as the August figures indicate the industry is reaping the benefits of the post-Easter Sunday attack revival me

Govt. to invite investors to build convention centre, hospital, school in Port City

The government will call proposals to build a convention centre, hospital and an international school in the Colombo Port City. The Cabinet office said the National Agency for Public-Private Partnership would facilitate the process. The Cabinet of Ministers this week approved a proposal by Megapolis and Western Development Minister Champika Ranawaka to set up a negotiation committee and project committee for this purpose.

State institutions to buy shares to help SLT to comply with free-float rules

The state-run pension fund, insurance company and banks have been given the green light to buy the shares of Sri Lanka Telecom PLC (SLT), of which the government has a little over 54 percent stake, to comply with the 10 percent minimum public free-float requirement. State institutions A joint Cabinet paper to this end by Finance Minister Mangala Samaraweera and Telecommunication, Foreign Employment and Sports Minister Harin Fernando was approved

New SOE to commercialise Lotus Tower

The Cabinet of Ministers has given its approval to set up a state-owned enterprise (SOE) to commercialise the Lotus Tower, which is nearing completion. The tower, funded by Exim Bank of China, will be used for telecommunication and leisure activities. The construction of the tower is carried out by a Chinese firm and once completed, will be handed over to the Telecommunication and Regulatory Commission of Sri Lanka (TRCSL).

AmCham Sri Lanka urges government to consider MCC grant

The American Chamber of Commerce (AmCham) in Sri Lanka yesterday urged the government to consider approving the Millennium Challenge Corporation (MCC) Compact grant of US$ 480 million.

Australia says asylum seekers from Sri Lanka rising

(Negombo) REUTERS: The number of Sri Lankans trying to enter Australia illegally by sea is rising, an Australian general said yesterday, a day after Canberra said it had intercepted a 13th boat carrying asylum seekers from the Indian Ocean island.

Rupee weakens amid fund outflows; stocks edge up

(Colombo) REUTERS: Sri Lanka’s rupee closed weaker yesterday, hovering near a seven-month closing low hit last week, as continued foreign fund outflows from government securities after a surprise rate cut last month weighed on the currency. Foreign investors sold net Rs.12.3 billion worth of government securities in the week ended Aug. 28, the second worst weekly outflow in eight months.

Hemas to delist Morison for Rs.573 mn

Morison PLC, the pharmaceutical manufacturing and distribution subsidiary of Hemas group yesterday informed its board decision to delist its shares from the official list of the Colombo Stock Exchange (CSE).

SL to overshoot 2019 fiscal deficit target despite spending cuts

Sri Lanka could overshoot its budget deficit target by much as 100 basis points this year, pushing its fiscal deficit to its highest in three years, as spending cuts have failed to offset shortfalls in revenues, th

Finance Ministry rubbishes People’s Bank privatization claims

The Finance Ministry yesterday emphasized that the proposed amendments to the People’s Bank Act are not aimed at privatizing the State-owned bank, and rubbished claims made otherwise as baseless and politically-motivated.

No good reason to back out of US $ 480mn MCC grant

Sri Lanka is at risk of losing a US $ 480 million Millennium Challenge Corporation (MCC) grant due to a campaign of misinformation and political differences among the ruling ‘coalition’. The MCC grant represents the largest grant from a single source Sri Lanka has ever received and presents a valuable opportunity to fix some of the country’s constraints to economic growth.

SL wants to source Indonesian fabric to maximise GSP Plus gains

As the GSP Plus concessions are set to expire in 2023, following Sri Lanka’s recent graduation to the higher-middle-income category, the government has requested the European Union (EU) to expedite the approval to source high-quality fabrics from Indonesia, in order to maximise apparel exports to the EU under the concessionary scheme.

CSE proposes to revise Listing Rules to improve IPO process

The Colombo Stock Exchange (CSE), in consultation with the Securities and Exchange Commission of Sri Lanka, is proposing to revise the regulatory framework governing the initial listing of shares on the CSE.

Odel wants import duties slashed to make SL top shopping destination

Sri Lanka’s leading fashion and lifestyle retailer Odel PLC, a unit of diversified Softlogic group, says it is lobbying the government to reduce duty on imports to make Sri Lanka an attractive shopping destination for tourists.

SL-Maldives sign new visa facilitation pact

The Maldives and Sri Lanka yesterday signed a new visa facilitation agreement to grant a free 90-day visa on arrival for the visitors between the two countries.

Rupee weakens amid fund outflows; stocks down

New railway line from Katunayake airport to Veyangoda

The government is looking at the possibility to build a new railway line between Bandaranaike International Airport in Katunayake and Veyangoda to promote tourism. Transport and Civil Aviation Minister Arjuna Ranatunga said a new railway line between Katunayake and Veyangoda would allow tourists as well as locals to travel to places like Kandy, Badulla, Jaffna and Trincomalee directly from the airport, without coming to Colombo.

Fitch affirms and withdraws rating on BOC’s proposed debt issue

Fitch Ratings has affirmed and withdrawn the rating on Bank of Ceylon’s (BOC) proposed Basel III-compliant subordinated debenture issue, as the issuance has not taken place. BOC in July revealed plans to raise as much as Rs.12 billion through a private placement of subordinated debentures to beef up its capital base to meet the regulatory requirements stipulated under the Basel III accord.

Union Bank says weighing options for finance subsidiary

Union Bank of Colombo PLC yesterday said it is weighing the strategic options for its underperforming finance subsidiary UB Finance (UBF) as the bank is engaging in talks with identified investors for the possible divestment of the licensed finance company.

Lifting Sri Lanka’s ‘state of emergency’

Four months on from the brutal Easter Sunday terror attacks, Sri Lanka finally lifted its national state of emergency on August 22, 2019. While there has been much hype about what this means for economic productivity and tourism gains, the move has also sent a strong message about the state of peace and security within the nation.

Elephant House eyes int’l recognition with Warner Bros partnership

Elephant House Ice Cream, the famous and iconic household brand for ice cream in Sri Lanka, has taken yet another giant leap through their historic partnership with Warner Bros.

Higher credit costs and taxes to put banking sector profitability under pressure: Moody’s

Higher credit costs amid worsening asset quality and higher taxes are set to impact the profitability of Sri Lanka’s banking sector negatively, according to a new report by Moody’s Investors Service.