www.dailymirror.lk https://www.dailymirror.lk/RSS_Feeds/business_24_7 The only Sri Lankan newspaper with round the clock news updates - Dailymirror Online Edition en-us [email protected] Copyright 2024 Inflation slows down to 5.9% in February https://www.dailymirror.lk/breaking-news/Inflation-slows-down-to-5-9%-in-February/108-277979 https://www.dailymirror.lk/breaking-news/Inflation-slows-down-to-5-9%-in-February/108-277979 The Colombo Consumer Price Index (CCPI), the official’s preferred inflation gauge deceased to 5.9 percent in February from the 6.4 percent recorded in January.

The CCPI contracted from 200.7 to 200.6 points, data from Department of Census and Statistics showed.

In February, annual inflation (point) in the food category increased to 3.5 percent Year-on-Year (YoY). In January 2024 it was recorded at 3.3 percent.

Meanwhile, the annual inflation (point) in non-food category for February 2024 eased to 7.0 percent as against 7.9 percent in January 2024.

The CCPI Core in February increased to 177.2 from 176.2 the previous month.

The general price level has increased to 100.6 percent compared to the index reference.

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The Colombo Consumer Price Index (CCPI), the official’s preferred inflation gauge deceased to 5.9 percent in February from the 6.4 percent recorded in January.

The CCPI contracted from 200.7 to 200.6 points, data from Department of Census and Statistics showed.

In February, annual inflation (point) in the food category increased to 3.5 percent Year-on-Year (YoY). In January 2024 it was recorded at 3.3 percent.

Meanwhile, the annual inflation (point) in non-food category for February 2024 eased to 7.0 percent as against 7.9 percent in January 2024.

The CCPI Core in February increased to 177.2 from 176.2 the previous month.

The general price level has increased to 100.6 percent compared to the index reference.

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_fac96f2107.jpg 2024-02-29 21:46:00
SLTDA provides extension for licence renewal https://www.dailymirror.lk/breaking-news/SLTDA-provides-extension-for-licence-renewal/108-277969 https://www.dailymirror.lk/breaking-news/SLTDA-provides-extension-for-licence-renewal/108-277969 Colombo, Feb 29 (Daily Mirror) - Tourism sector stakeholders are given an extension renewing their licenses with the Sri Lanka Tourism Development Authority (SLTDA).

"The renewal period for licenses will now be extended until March 31, 2024, for those who have already submitted the complete set of documents to the TDL unit before February 29, 2024," the Authority said in a notice.

This extension aims to ensure uninterrupted service for all stakeholders who comply with the renewal requirement.
 
The SLTDA said it also provides ample time for the completion of the renewal process.

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Colombo, Feb 29 (Daily Mirror) - Tourism sector stakeholders are given an extension renewing their licenses with the Sri Lanka Tourism Development Authority (SLTDA).

"The renewal period for licenses will now be extended until March 31, 2024, for those who have already submitted the complete set of documents to the TDL unit before February 29, 2024," the Authority said in a notice.

This extension aims to ensure uninterrupted service for all stakeholders who comply with the renewal requirement.
 
The SLTDA said it also provides ample time for the completion of the renewal process.

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_5def635a87.jpg 2024-02-29 16:21:00
Central Bank asked to provide report within one week https://www.dailymirror.lk/breaking-news/Central-Bank-asked-to-provide-report-within-one-week/108-277641 https://www.dailymirror.lk/breaking-news/Central-Bank-asked-to-provide-report-within-one-week/108-277641 Colombo, Feb 24 (Daily Mirror) - Amidst criticism over the exorbitant salary hike of the Central Bank employees, a top parliamentary committee has called for a report from the Central Bank on the legal provisions for such a salary increment without parliamentary approval.

Chairman of the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis MP Gamini Waleboda said the matter regarding the salary hike was raised during the committee meeting on Thursday when the Central Bank officials were present.

He said the Central Bank is expected to submit the report on the salary increment next week and after that, the Central Bank and its Monetary Board would be summoned before the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis.

He said the committee raised heavy criticism about the 70 per cent salary increase of the Central Bank employees amidst the economic crisis, and called it an immoral act.

“We instructed the Central Bank to provide a report by next week to justify the salary increase. They will need to provide the legal provisions that empower them to effect such an increment.

We will summon the Central Bank and its Monetary Board after receiving the report,’ he said.

Both government and opposition MPS in Parliament this week raised criticism over the Central Bank’s moves to increase their salary scales by 70 per cent. Chief Opposition Whip Lakshman Kiriella said the Central Bank Act had no provision to increase the salary of Central Bank employees without parliamentary approval and that it was illegal.

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Colombo, Feb 24 (Daily Mirror) - Amidst criticism over the exorbitant salary hike of the Central Bank employees, a top parliamentary committee has called for a report from the Central Bank on the legal provisions for such a salary increment without parliamentary approval.

Chairman of the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis MP Gamini Waleboda said the matter regarding the salary hike was raised during the committee meeting on Thursday when the Central Bank officials were present.

He said the Central Bank is expected to submit the report on the salary increment next week and after that, the Central Bank and its Monetary Board would be summoned before the Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis.

He said the committee raised heavy criticism about the 70 per cent salary increase of the Central Bank employees amidst the economic crisis, and called it an immoral act.

“We instructed the Central Bank to provide a report by next week to justify the salary increase. They will need to provide the legal provisions that empower them to effect such an increment.

We will summon the Central Bank and its Monetary Board after receiving the report,’ he said.

Both government and opposition MPS in Parliament this week raised criticism over the Central Bank’s moves to increase their salary scales by 70 per cent. Chief Opposition Whip Lakshman Kiriella said the Central Bank Act had no provision to increase the salary of Central Bank employees without parliamentary approval and that it was illegal.

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_af1450cd96.jpg 2024-02-24 07:27:00
Banks alarmed over parate execution suspension move https://www.dailymirror.lk/breaking-news/Banks-alarmed-over-parate-execution-suspension-move/108-277588 https://www.dailymirror.lk/breaking-news/Banks-alarmed-over-parate-execution-suspension-move/108-277588  

  • Move seen as caving to pressure from debt evaders’ intense lobbying
  • SLBA urges government not to play into the delaying tactics
  • Stress any move to amend parate rights of banks must be initiated with the financial sector regulator

Sri Lanka’s banking sector is on the edge of following the government’s decision to suspend parate execution rights. This move, seen as caving to pressure from debt evaders’ intense lobbying, is raising concerns about the sector’s ability to support economic recovery.

“The banks believe that this is an unnecessary intervention that  will weaken the strength of banks to perform their role in supporting the economic sectors that will revive the country,” the Sri Lanka Banks Association (SLBA) told Mirror Business, while pointing out they are “alarmed” by the statement made by the State Minister of Finance, Ranjith Siyambalapitiya, in parliament this week.

The SLBA urged the government not to play into the delaying tactics of these borrowers.

“Banks observe commercial failure, personal misfortune, or downright fraudulent intent furthered by the connivance and complicity of borrowers and parties with influence to pervert the course of the law by delaying the conclusion of debt recovery action/litigation,” it said.

With non-performing loans in the sector at 13 percent, the SLBA stressed the critical need to liquidate non-viable commercial ventures belonging to distressed borrowers expeditiously.

Over the past month, approximately Rs. 38 billion has been recovered from 557 borrowers through the parate remedy, constituting around 0.4 percent of the total loans. The SLBA deemed this amount is negligible in the broader context, considering that impaired loans total around Rs. 1.4 trillion, with only 1.7 percent of these loans been subjected to the remedy.

“The depositors must not be made to feel that their deposits are unsafe in banks. The rising proportion of non-performing loans at over 13 percent is a warning that non-paying borrowing businesses must be expeditiously revived if these are commercially viable. If not so, they must be expeditiously liquidated in an orderly manner with no continuing diminution of asset values,” the SLTA elaborated.

The SLBA stressed that any move to amend parate rights of banks must be initiated with the financial sector regulator (CB), led consultation process to ensure that all concerns are addressed in a fair and balanced manner.

The association also noted that the authorities should explore the option of coming up with a package with multilateral funding to help the sectors affected, which in turn would help the economy to revive.

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  • Move seen as caving to pressure from debt evaders’ intense lobbying
  • SLBA urges government not to play into the delaying tactics
  • Stress any move to amend parate rights of banks must be initiated with the financial sector regulator

Sri Lanka’s banking sector is on the edge of following the government’s decision to suspend parate execution rights. This move, seen as caving to pressure from debt evaders’ intense lobbying, is raising concerns about the sector’s ability to support economic recovery.

“The banks believe that this is an unnecessary intervention that  will weaken the strength of banks to perform their role in supporting the economic sectors that will revive the country,” the Sri Lanka Banks Association (SLBA) told Mirror Business, while pointing out they are “alarmed” by the statement made by the State Minister of Finance, Ranjith Siyambalapitiya, in parliament this week.

The SLBA urged the government not to play into the delaying tactics of these borrowers.

“Banks observe commercial failure, personal misfortune, or downright fraudulent intent furthered by the connivance and complicity of borrowers and parties with influence to pervert the course of the law by delaying the conclusion of debt recovery action/litigation,” it said.

With non-performing loans in the sector at 13 percent, the SLBA stressed the critical need to liquidate non-viable commercial ventures belonging to distressed borrowers expeditiously.

Over the past month, approximately Rs. 38 billion has been recovered from 557 borrowers through the parate remedy, constituting around 0.4 percent of the total loans. The SLBA deemed this amount is negligible in the broader context, considering that impaired loans total around Rs. 1.4 trillion, with only 1.7 percent of these loans been subjected to the remedy.

“The depositors must not be made to feel that their deposits are unsafe in banks. The rising proportion of non-performing loans at over 13 percent is a warning that non-paying borrowing businesses must be expeditiously revived if these are commercially viable. If not so, they must be expeditiously liquidated in an orderly manner with no continuing diminution of asset values,” the SLTA elaborated.

The SLBA stressed that any move to amend parate rights of banks must be initiated with the financial sector regulator (CB), led consultation process to ensure that all concerns are addressed in a fair and balanced manner.

The association also noted that the authorities should explore the option of coming up with a package with multilateral funding to help the sectors affected, which in turn would help the economy to revive.

]]>
https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_a8f92485c5.jpg 2024-02-23 00:10:00
SriLankan Airlines confirms safe return of UL 605 https://www.dailymirror.lk/business/SriLankan-Airlines-confirms-safe-return-of-UL-605/215-276852 https://www.dailymirror.lk/business/SriLankan-Airlines-confirms-safe-return-of-UL-605/215-276852 National carrier SriLankan Airlines confirmed that flight UL 605 from Melbourne to Colombo made a safe return back to the Melbourne Airport shortly after taking off at 18:16hrs (Melbourne time) today due to a technical issue.

“All passengers onboard disembarked safely. A team of engineers is currently assessing the aircraft and providing technical support. All passengers have been provided with hotel accommodation until the flight is rescheduled for departure,” Sri Lankan Airlines said in a statement a short while ago.

 

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National carrier SriLankan Airlines confirmed that flight UL 605 from Melbourne to Colombo made a safe return back to the Melbourne Airport shortly after taking off at 18:16hrs (Melbourne time) today due to a technical issue.

“All passengers onboard disembarked safely. A team of engineers is currently assessing the aircraft and providing technical support. All passengers have been provided with hotel accommodation until the flight is rescheduled for departure,” Sri Lankan Airlines said in a statement a short while ago.

 

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_3a361fdda1.jpg 2024-02-12 19:36:00
Central Bank relaxes restrictions imposed on standing facilities https://www.dailymirror.lk/breaking-news/Central-Bank-relaxes-restrictions-imposed-on-standing-facilities/108-276567 https://www.dailymirror.lk/breaking-news/Central-Bank-relaxes-restrictions-imposed-on-standing-facilities/108-276567 The Monetary Board decided this week to relax the restrictions imposed on the Standing Facilities to Licensed Commercial Banks (LCBs) under Open Market Operations (OMOs).

With effect from the reserve maintenance period commencing 16 February 2024, the restriction on the Standing Lending Facility (SLF) will be removed and the restriction on the Standing Deposit Facility (SDF) will be relaxed from five times (05) to ten times (10) during a calendar month.

The decision was taken at a special Monetary Board meeting held yesterday, after carefully reviewing the developments in the domestic money market, as well as the behaviour of LCBs in terms of market participation along with the improvements in liquidity, the Central Bank said.

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The Monetary Board decided this week to relax the restrictions imposed on the Standing Facilities to Licensed Commercial Banks (LCBs) under Open Market Operations (OMOs).

With effect from the reserve maintenance period commencing 16 February 2024, the restriction on the Standing Lending Facility (SLF) will be removed and the restriction on the Standing Deposit Facility (SDF) will be relaxed from five times (05) to ten times (10) during a calendar month.

The decision was taken at a special Monetary Board meeting held yesterday, after carefully reviewing the developments in the domestic money market, as well as the behaviour of LCBs in terms of market participation along with the improvements in liquidity, the Central Bank said.

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_cd59a73736.jpeg 2024-02-08 07:58:00
Sri Lanka to launch first-ever apparel roadshow in UK https://www.dailymirror.lk/business/Sri-Lanka-to-launch-first-ever-apparel-roadshow-in-UK/215-276512 https://www.dailymirror.lk/business/Sri-Lanka-to-launch-first-ever-apparel-roadshow-in-UK/215-276512 The Sri Lanka Export Development Board (EDB), along with SLASA, the Sri Lanka High Commission in the UK, and JAAF, will host the 'Sourced Sri Lanka – Textile & Apparel Roadshow' in London in June 2024.

The event will be held under the theme ‘Sourced Sri Lanka - Building Everlasting Relationships One Garment a Time’.

Set for early June, the event will feature fifty exhibitors and attract around a thousand foreign buyers and Sri Lankan trade visitors. The event aims to forge new connections and strengthen existing relationships with UK buyers.

In a statement to the media, the EDB said the roadshow is crucial given challenges, such as declining demand in key markets; US, UK, and Europe. It marks Sri Lanka's first standalone export promotion event in over twenty years, with plans to expand to other countries.

The goal is to boost apparel exports to the UK by USD 1 billion by 2026.

The event will highlight Sri Lankan craftsmanship, creativity, and sustainability, and aims to resonate with environmentally conscious UK consumers. It will also serve as a platform to educate potential buyers about Sri Lankan apparel attributes and market trends.

 

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The Sri Lanka Export Development Board (EDB), along with SLASA, the Sri Lanka High Commission in the UK, and JAAF, will host the 'Sourced Sri Lanka – Textile & Apparel Roadshow' in London in June 2024.

The event will be held under the theme ‘Sourced Sri Lanka - Building Everlasting Relationships One Garment a Time’.

Set for early June, the event will feature fifty exhibitors and attract around a thousand foreign buyers and Sri Lankan trade visitors. The event aims to forge new connections and strengthen existing relationships with UK buyers.

In a statement to the media, the EDB said the roadshow is crucial given challenges, such as declining demand in key markets; US, UK, and Europe. It marks Sri Lanka's first standalone export promotion event in over twenty years, with plans to expand to other countries.

The goal is to boost apparel exports to the UK by USD 1 billion by 2026.

The event will highlight Sri Lankan craftsmanship, creativity, and sustainability, and aims to resonate with environmentally conscious UK consumers. It will also serve as a platform to educate potential buyers about Sri Lankan apparel attributes and market trends.

 

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_658ec8c79f.jpg 2024-02-07 12:51:00
Mirror Biz Toon https://www.dailymirror.lk/business-news/Mirror-Biz-Toon/273-276489 https://www.dailymirror.lk/business-news/Mirror-Biz-Toon/273-276489

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_96c62b849a.jpg 2024-02-07 08:44:00
SEC introduces social media misconduct reporting mechanism https://www.dailymirror.lk/business/SEC-introduces-social-media-misconduct-reporting-mechanism/215-276347 https://www.dailymirror.lk/business/SEC-introduces-social-media-misconduct-reporting-mechanism/215-276347 The Securities and Exchange Commission (SEC), the regulator of the capital market, has introduced a system to report instances of misconduct on social media that could potentially affect the Colombo Stock Exchange (CSE).

With the rapid evolution of communication channels and the increase of social media influence in the financial markets, the SEC said it has recognised the need for proactive measures to identify and address potential social media wrongdoings that may impact investors and market stability.

“Considering these developments, the SEC has taken a significant step towards enhancing investor protection and market integrity with the launch of a dedicated webpage to report suspected market-related wrongdoing on social media,” the SEC said in a statement.

An online webpage, accessible through the SEC's official website, has been launched, offering a user – friendly, confidential, and streamlined process for submitting information related to potential market manipulation, fraudulent activities, and other securities-related misconduct.

By establishing this direct reporting channel, the SEC said it aims to strengthen collaboration with the public, including investors, market participants, and concerned citizens, to play an active role in maintaining the integrity of the securities market.

The SEC said it also encourages individuals to share information by post or send a fax.

 

 

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The Securities and Exchange Commission (SEC), the regulator of the capital market, has introduced a system to report instances of misconduct on social media that could potentially affect the Colombo Stock Exchange (CSE).

With the rapid evolution of communication channels and the increase of social media influence in the financial markets, the SEC said it has recognised the need for proactive measures to identify and address potential social media wrongdoings that may impact investors and market stability.

“Considering these developments, the SEC has taken a significant step towards enhancing investor protection and market integrity with the launch of a dedicated webpage to report suspected market-related wrongdoing on social media,” the SEC said in a statement.

An online webpage, accessible through the SEC's official website, has been launched, offering a user – friendly, confidential, and streamlined process for submitting information related to potential market manipulation, fraudulent activities, and other securities-related misconduct.

By establishing this direct reporting channel, the SEC said it aims to strengthen collaboration with the public, including investors, market participants, and concerned citizens, to play an active role in maintaining the integrity of the securities market.

The SEC said it also encourages individuals to share information by post or send a fax.

 

 

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_758d677fdd.jpg 2024-02-05 14:28:00
Sri Lanka Telecom announces second leadership transition in seven months https://www.dailymirror.lk/breaking-news/Sri-Lanka-Telecom-announces-second-leadership-transition-in-seven-months/108-276153 https://www.dailymirror.lk/breaking-news/Sri-Lanka-Telecom-announces-second-leadership-transition-in-seven-months/108-276153 Sri Lanka Telecom has seen its leadership change for the second time in about seven months with the entity affirming the appointment of a new Chairman.

The stressed state-owned telco, which has been making headlines this week for the changes in its Board, disclosed to the Colombo Stock Exchange (CSE) that upon the review and recommendation of the Nominations and Governance Committee, A.K.D.D.D. Arandara has been appointed as a Non-Independent Non-Executive Director and Chairman with effect from 1 February.

Earlier this week, Reyaz Mihular stepped down from his position as Chairman after the government said it would reconstitute the SLT Board. The decision was due to the latter refusing to withdraw the case against the proposed merger between industry leader Dialog Axiata and Airtel.

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Sri Lanka Telecom has seen its leadership change for the second time in about seven months with the entity affirming the appointment of a new Chairman.

The stressed state-owned telco, which has been making headlines this week for the changes in its Board, disclosed to the Colombo Stock Exchange (CSE) that upon the review and recommendation of the Nominations and Governance Committee, A.K.D.D.D. Arandara has been appointed as a Non-Independent Non-Executive Director and Chairman with effect from 1 February.

Earlier this week, Reyaz Mihular stepped down from his position as Chairman after the government said it would reconstitute the SLT Board. The decision was due to the latter refusing to withdraw the case against the proposed merger between industry leader Dialog Axiata and Airtel.

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_db19ec7ef0.jpeg 2024-02-01 21:24:00
Central Bank appoints six new Assistant Governors https://www.dailymirror.lk/business/Central-Bank-appoints-six-new-Assistant-Governors/215-276149 https://www.dailymirror.lk/business/Central-Bank-appoints-six-new-Assistant-Governors/215-276149 The Central Bank of Sri Lanka (CBSL) announced today the appointment of six new Assistant Governors by the Governing Board.

At a meeting held on 19 January, the Governing Board promoted Dr. C Amarasekara, W A Dilrukshini, Dr. P K G Harischandra, D S W Samaratunga, E H Mohotty, and R D T Gunasekara to the posts of Assistant Governors with effect from 22 January, the Central Bank said in a statement.

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The Central Bank of Sri Lanka (CBSL) announced today the appointment of six new Assistant Governors by the Governing Board.

At a meeting held on 19 January, the Governing Board promoted Dr. C Amarasekara, W A Dilrukshini, Dr. P K G Harischandra, D S W Samaratunga, E H Mohotty, and R D T Gunasekara to the posts of Assistant Governors with effect from 22 January, the Central Bank said in a statement.

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_3bc6ee8c26.jpeg 2024-02-01 20:50:00
Asia on-track to deliver two-thirds to global growth in 2024: IMF https://www.dailymirror.lk/international/Asia-on-track-to-deliver-two-thirds-to-global-growth-in-2024:-IMF/107-276126 https://www.dailymirror.lk/international/Asia-on-track-to-deliver-two-thirds-to-global-growth-in-2024:-IMF/107-276126  

  • Says region's prospects for a soft landing have improved
  • Regional growth forecast for 2024 upgraded to 4.5%

The year 2024 is expected to be one of prosperity for Asia with the International Monetary Fund (IMF) expecting the region to maintain its momentum in delivering two-thirds to global growth.

Providing a snapshot of the regional economic outlook, Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department noted that the region's prospects for a soft landing have improved.
”The good news is that we have revised growth upward for both 2023 and 2024,” he said addressing a press conference this week.

For 2023, the IMF estimates growth at 4.7 percent, compared to the 4.6 percent projection in October. China and India account for most of the upward revision. In China, growth was supported by higher spending on disaster reconstruction and resilience projects. In India, strong domestic demand underpinned another increase in our growth estimate.

The Fund has also upgraded the regional growth forecast for 2024 to 4.5 percent, from 4.2 percent in October.

Srinivasan justified the upward projection stating that a positive dynamic from last year carries over into 2024. A more supportive external environment, notably robust growth in the United States, reinforces domestic resilience, he said. Further, demand for technology—computers, electronics, and optical products—has picked up in recent months, which benefits economies such as Korea and Singapore.

Also, countries like China and Thailand have announced sizeable policy stimulus, which is positive.

The regional average, however, hides significant divergence between countries.

In Japan, the IMF expected growth to remain above potential but to slow from about 2 percent in 2023 to about 1 percent in 2024, as one-off factors that supported activity last year fade—including a depreciated yen, strong tourism, and a recovery in business investment.

Growth in India, on the other hand, is expected to remain strong at 6.5 percent in both 2024 and 2025.

“For 2025, we project growth in the region to decelerate mildly to 4.3 percent, reflecting to a large extent China’s growth slowdown,” said Srinivasan

On inflation, the news has also been mostly positive, which improves the prospects for a soft landing, he added.

 

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  • Says region's prospects for a soft landing have improved
  • Regional growth forecast for 2024 upgraded to 4.5%

The year 2024 is expected to be one of prosperity for Asia with the International Monetary Fund (IMF) expecting the region to maintain its momentum in delivering two-thirds to global growth.

Providing a snapshot of the regional economic outlook, Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department noted that the region's prospects for a soft landing have improved.
”The good news is that we have revised growth upward for both 2023 and 2024,” he said addressing a press conference this week.

For 2023, the IMF estimates growth at 4.7 percent, compared to the 4.6 percent projection in October. China and India account for most of the upward revision. In China, growth was supported by higher spending on disaster reconstruction and resilience projects. In India, strong domestic demand underpinned another increase in our growth estimate.

The Fund has also upgraded the regional growth forecast for 2024 to 4.5 percent, from 4.2 percent in October.

Srinivasan justified the upward projection stating that a positive dynamic from last year carries over into 2024. A more supportive external environment, notably robust growth in the United States, reinforces domestic resilience, he said. Further, demand for technology—computers, electronics, and optical products—has picked up in recent months, which benefits economies such as Korea and Singapore.

Also, countries like China and Thailand have announced sizeable policy stimulus, which is positive.

The regional average, however, hides significant divergence between countries.

In Japan, the IMF expected growth to remain above potential but to slow from about 2 percent in 2023 to about 1 percent in 2024, as one-off factors that supported activity last year fade—including a depreciated yen, strong tourism, and a recovery in business investment.

Growth in India, on the other hand, is expected to remain strong at 6.5 percent in both 2024 and 2025.

“For 2025, we project growth in the region to decelerate mildly to 4.3 percent, reflecting to a large extent China’s growth slowdown,” said Srinivasan

On inflation, the news has also been mostly positive, which improves the prospects for a soft landing, he added.

 

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https://bmkltsly13vb.compat.objectstorage.ap-singapore-1.oraclecloud.com/cdn.sg.dailymirror.lk/assets/uploads/image_1f98000ea6.jpg 2024-02-01 10:36:00