Economy

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Fitch Rtgs: Sri Lankan Bank Lending Rate Cap May Not Support Loan Growth

October 8, 2019

The lending rate cap recently imposed by the Central Bank of Sri Lanka (CBSL) on rupee-denominated loans extended by Sri Lankan banks may not improve loan growth in the short term, Fitch Ratings says. To the extent banks cannot price for risk in order to make hurdle rates of return, they may extend less credit for riskier consumer and commercial loans that carry higher losses.

The western province continued larger contribution to GDP

September 28, 2019

The western province continued to account for the biggest share in 2018 as estimated by the Statistics Department of the Central Bank of Sri Lanka (CBSL) according to the Provincial Gross Domestic Product (PGDP). The second and third largest contributors, respectively, were the central and northwestern provinces.

Improving the efficiency of the transfer to market lending rates of recent policy decisions

September 24, 2019

Over the past eleven months, the Central Bank of Sri Lanka has taken a number of monetary and regulatory policy measures to induce a reduction in market lending rates. These measures include the reduction of the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 100 basis points in two steps,

Relief on Motor Vehicles Imported for Personal Use

September 24, 2019

The government has decided to declare a grace period for imported motor vehicles during the period from January 2015 to November 2017 and pending the Hambantota Port customs clearance, subject to the following requirements being met.

Sri Lanka Makes Stronger Presence at the Fine Food Australia – 2019

September 22, 2019

Ten coconut exporters from Sri Lanka were housed in the CDA Pavilion and four businesses from Ceylon Tea were under the Pavilion of the Tea Board. Furthermore, eight individual Sri Lankan exporters representing food industries participated in Find Food Australia 2019 and promoted Sri Lankan value-added food products.

2020-2025 Economic Acceleration Framework launches from Ceylon Chamber

September 19, 2019

The Ceylon Chamber of Commerce launched the working draft of their 2020-25 Economic Acceleration Framework, at the Sri Lanka Economic Summit (SLES) recently.  The Framework was introduced by Dr. Hans Wijayasuriya during the title keynote session, which focused on re-calibrating Sri Lanka’s economic trajectory.

Sri Lanka’s rough rice prediction bumped up to 4.6mn tones for Yala 2019

September 17, 2019

In 2019, Sri Lanka enhanced paddy (rough rice) output from both growing seasons to 4,613 million metric tons, up 5.5 percent from an initial estimate, and up 17 percent from last year, state agricultural officials said.

Sri Lanka’s forex reserves US$ 185mn In August

September 9, 2019

The forex reserves of Sri Lanka increased to 8,532.6 million US dollars in the month of August 2019, official information showed. The gross official reserves of Sri Lanka consist of both the central bank and the treasury's balances. Fiscal balances, which operate as debt raising and settlement,

Exports have increased from 13% to 20% of GDP since 2015

September 6, 2019

Sri Lanka's export turnover amounted to $9.5 billion during this year's first seven months, while the goal was $18.5 billion.

This month’s global tea marketing campaign will kick off

September 6, 2019

The much-anticipated worldwide tea marketing campaign would lastly get off the ground on September 25,

Abans Group Opens Trading at CSE to Celebrate 50th Anniversary

September 2, 2019

A market opening ceremony was organized at the Colombo Stock Exchange (CSE) to mark the 50thAnniversary of Abans Group, as part of a series of events organized by the company to celebrate its corporate milestone.

Bangladesh, Sri Lanka’s trade with Asia’s fastest-growing economy

August 18, 2019

Bangladesh, Sri Lanka's trade with Asia's fastest-growing economy, is set to rise when both countries meet later this year for ministerial trade talks-after nearly three years.

Manufacturing and Service Sectors continue expansion in July 2019

August 16, 2019

According to the Sri Lankan Purchasing Managers Index (PMI) published by the Central Bank's Statistics Department on Thursday, both manufacturing and service industries continued to expand last month after the terrorist attacks of April 21. Manufacturing operations continued to expand at a greater pace in July 2019, recording an index value of 55.7,

Pan Asia Bank extends green lending to Papaya cultivators

August 1, 2019

Pan Asia Bank, with its island-wide network of 85 branches, has been working closely with the agriculture sector in recognition of the significant contribution made by this community, which is engaged in agriculture and related businesses, to the growth of the country’s economy.

Dedicated apparel zone area

August 1, 2019

Rehan Lakhany, Chairman of the Sri Lankan Apparel Exporters Association, said key stakeholders in the Sri Lankan apparel industry are in discussions with the government to create a specialized manufacturing area in the apparel industry.

In the first half of 2019, exports grew 11.4%.

July 24, 2019

In the first half of this year Sri Lanka's exports rose 11.4 percent, at $8.4 billion, compared with the corresponding $7.5 billion of last year's era.

Laugfs Gas from Sri Lanka in discussions with LPG’s strategic buyers, hotels

July 20, 2019

Sri Lankan Laugfs Gas is now entering into discussions with strategic investors to make an investment in its energizing and leisure businesses from a domestic cooking gas supplier to regional traders and hotels, President W.K.H. Wegapitiya said.

Softlogic Group’s sales growth is 14%

July 18, 2019

The Group's resilience and uncompromising atmosphere represent the 14 percent development in revenues, with a turnover of Rs. 75 billion per capita in the year and a moderating economy development combining acquisitions and company development, "said Chairman / General of the Softlogic Group Ashok Pathirage.

Macroeconomic fundamentals 4th Q growth to be favorable: Governor Dr. Indrajith Coomaraswamy

July 11, 2019

Governor of Central Bank Dr. Indrajith Coomaraswamy said the macro-economic fundamentals of the country were in a pretty good form yesterday, with growth for the fourth quarter favored. "We raised enough funding too, almost by the middle of next year, to fulfill our commitments," he said.

Overnight target rate of Sri Lanka decreased 84 bp since floor rate decreased

July 10, 2019

The central bank of Sri Lanka supported overnight prices at around twenty basis points above its policy level, which on 31 May fell 50 basis points and, from the last policy conference, official information showed that the de facto target rate had dropped to a further eighty-one basis points.

Govt complies with more than 60% of budget suggestions-Mangala

July 9, 2019

The Minister stated that a total of 84 suggestions had been submitted, with only 16 being enacted. Samaraweera said that today's world concentrates more on global warming, environmental conservation, wildlife protection, reforestation of forests, reduction of emissions and, in particular, polyethylene and plastic dumping.

The Prime Minister of Sri Lanka is fighting anti-freeholders

July 9, 2019

Premier Ranil Wickremesinghe of Sri Lanka said that he is fighting in court for anti-freeholders to give titles to peasants and others who, through multiple programs, are granted less certain land rights from the state. Wickremesinghe was cited at a lecture in Ampara as stating "There are some groups that oppose the privileges of the freehold through court actions.

Rupee closes weaker in Sri Lanka with easier bond yield.

July 5, 2019

Sri Lanka's rupee opened up to the US dollar softer on the ground on Friday at 176.15/21, while bond returns decreased and shares opened up 0.5% higher.

Sri Lanka’s first quarter income tax revenue was significantly greater

July 2, 2019

Although the general government revenue of Sri Lanka dropped in the first quarter of 2019 as imports slowed down, with a fresh internet collection scheme and better enforcement, income tax profits were noticeably greater, the Treasury said.

In the first quarter of 2019, the Sri Lankan Ports Authority made Rs10.5bn profit.

July 1, 2019

In the first four months of 2019, the Sri Lankan Ports Authority, which operates the island's merchant shipping harbors, produced a profit of 10.5 billion rupees, the finance ministry said, as cargo volumes rose sharply.

Exports of tea are gaining in May.

July 1, 2019

Sri Lankan tea exports totaled 26.6 M / kgs for the month of May 2019, demonstrating an increase of 3.5 M / kgs compared to 23.07 M / kgs for May 2018.

Support for the growth of digital infrastructure for the freelance community

June 26, 2019

The government is making an effort to provide necessary legal or infrastructure support to develop the freelancing community as well as the startup culture in Sri Lanka,

The Governor of the Central Bank focuses on growth rates

June 25, 2019

In a recent discussion with the KPMG team, Central Bank Governor Dr. Indrajit Coomaraswamy affirmed that if Sri Lanka continues on this favorable route,

Inflation drop in month of May

June 24, 2019

Headline inflation as measured by the year-on-year change in the National Consumer Price Index (NCPI, 2013=100)1 dropped from 3.6% in April 2019 to 3.5% in May 2019

Nominations are now open for e-Swabhimani 2019

June 18, 2019

The Digital Social Impact Awards launched e-Swabhimani calling for apps for 2019. E-Swabhimani is now in the process of acknowledging digital applications/solutions that have a favorable social impact, in line with the government's policy on digitizing the economy.

YoY inflation in May reached 5%

June 6, 2019

YoY inflation as measured by CCPI is 5 percent in May 2019 and 4.5 percent in April 2019.

Governor Advices on the Financial Discipline

May 30, 2019

Central Bank Governor, Dr. Indrajit Coomaraswamy yesterday said, Sri Lanka should maintain tight financial discipline over the next few years to strengthen the country’s financial situation and take the country forward as the Easter Sunday bomb attacks have already taken its toll on the economy. However, he said but Sri Lanka has been able to manage the negative impact in the aftermath of the attacks.

The CWG Failed Bid Incurs a Massive Loss.

May 30, 2019

The Auditor General had examined the expenses of the CWG Hambantota 2018 (Pvt.) Ltd from November 23, 2010, to May 31, 2013, its initial share capital, financial donations to it, its financial statements and legal matters in relation to its liquidation.

Hela Clothing Attracts More Investors.

May 30, 2019

Sri Lankan apparel manufacturer, Hela Clothing Group, announced it has completed the balance raise of $3.6 million from its Series A funding round bringing the total equity raised to $10 million,

Sri Lanka set goals to raise US$2 billion

May 23, 2019

Central Bank Governor Dr. Indrajit Coomaraswamy said Sri Lanka's goal is to raise another $ 2 billion ahead of a presidential election in December.

Sri Lanka’s Inflation Rises Up To 3.6%

May 22, 2019

Sri Lanka's nationwide inflation in April 2019 determined under the National Consumer Price Index (NCPI) rose to 3.6 percent from 2.9 percent recorded in March on a year-on-year basis, the Department of Census and Statistics reported Tuesday

Lanka to Attract Business Worth USD 1 million from Japan.

May 16, 2019

Sri Lankan ICT, BPM delegation at Japan IT Week expects to attract USD 1 mn worth of business by end of 2019.

Increment of Foreign Grants up to 12.5 Billion

May 10, 2019

From 8 billion in 2017, the total foreign grants received by Sri Lanka from multilateral and bilateral sources increased drastically to 12.5 billion in 2018.

Central Bank Launches A Roadmap For Sustainable Finance

April 12, 2019

On the 10th of April 2019, the Central Bank of Sri Lanka Launched the Roadmap for Sustainable Finance in Sri Lanka at the Sustainable Banking Network Global Meeting

Government Stabilizes 1.5% of the ISB Interest Rate.

March 14, 2019

Resulting in an increase of 1.5% in the interest rate on International Sovereign Bonds (ISBs), the forming of a 52-day illegitimate Government has amounted a loss of Rs. 6.4 Billion in the recent issue of ISBs, Finance Minister, Mangala Samaraweera said yesterday.

Three Major Policy Priorities Established In Order, To Rebuild Economy

February 25, 2019

Mangala Samaraweera, Finance and Media Minister reported that the government is looking forward to and focusing on rebuilding and re-positioning the island with three major economic policy priorities; namely,

Govt Tailored To Change The Direction Of The Economy

February 6, 2019

The state administration has taken up the challenge of re-rooting the path of the major economic indicators of the country, Eran Wickramaratne, State Minister for Finance and Media said the 60th AGM of the National Chamber of Commerce of Sri Lanka recently.

SL Economy To Maintain 3.75% Growth This Year – Governor

January 23, 2019

Sri Lanka will maintain economic growth of around 3.75% in 2019, said Central Bank Governor Dr. Indrajit Coomaraswamy at the Sri Lanka Economic Association (SLEA) annual session held in Colombo last Friday.