Imports shrink; trade gap narrows

Sri Lanka's export earnings in the month of July fell 17.4 percent year-on-year to US$ 794.4 million, while expenditure on imports also fell 24.9 percent YoY to US$ 1.3 billion. The trade gap also narrowed 33.8 percent YoY to US$ 534.6 million, the lowest level recorded in 17 months.

Rupee to steady at 130-132: Report

The Sri Lankan rupee (SLR) will stabilize at Rs.130-132 against the US dollar by the end of 2012, depreciating 16 percent year-on-year (YoY) and is likely to depreciate from 2 to 3 percent in 2013, a recent report by a local stockbrokerage said.

Outgoing TEA Chief makes final call for ‘tea hub’

Outgoing Chairman of the Tea Exporters Association (TEA), Niraj De Mel, made a final appeal to tea industry stakeholders and policy makers, in defense of the ‘tea hub’ concept, at the recently concluded TEA Annual General Meeting.

Sri Lanka drought may cut growth to 6.7%- Jayasundera

Sri Lanka’s economic growth this year may range between 6.7 percent and 7.2 percent depending on the impact of a drought that has lasted since the beginning of t he year, Treasury Secretary P.B. Jayasundera said.

Tax rates & regulations, inflation, corruption impeding Lanka's biz growth - GCR

Tax rates have been identified as the most problematic factor for doing business in Sri Lanka with tax regulations following closely, the findings of the latest Global Competitiveness Report (GCR) by World Economic Forum showed.

Cement shortage looming?

Sri Lanka’s construction sector is likely to experience a cement shortage in the near future, with certain cement importers and dealers trying to hoard cement in the wake of a possible price hike, Mirror Business learns.

Colombo Dockyard strengthens services for offshore vessels

Colombo was the automatic choice of Global Offshore Services Ltd. India, for their conversion / repair requirements to ready the offshore support vessel (OSV). Shergar, to meet with the stringent Petobras charter requirements. This project was awarded to Colombo Dockyard as a result of successful completion of OSV. Kailash also owned by the same owners during June 2011.

Government eServices project launched today

The launch of the Government eServices Project aimed at making public service efficient and people-friendly will take place today at 5.00 p.m.

“Tea hub” debate heats up; India shows concern over cheap tea re-export

An Indian Parliamentary Standing Committee on Commerce has expressed concern over the issue of re-exports of lower quality tea from India under the brand of Indian origin tea at a time where Sri Lanka’s own resurfaced debate on a ‘tea hub’.

Government debt tops Rs.5900bn in May

Sri Lanka’s total outstanding government debt stood at Rs.5902.2 billion as at end of May 2012, against Rs.4800.9 billion reported during the same period of 2011, the latest data released by the Central Bank showed.

Spice traders call for national action plan to rescue industry

In the backdrop of lowered spice production in Sri Lanka, Chairman of the Spices and Allied Producers and Traders Association, Viren Ruberu, called for the formation of a national action plan to develop the industry.

First half trade balance widens; June gap narrows

Sri Lanka’s trade gap for the first half of the year 2012 widened 11.8 percent Yearon-Year to US $ 4.7 billion, a statement released by the Central Bank noted.

Manpower snag to hit mega construction projects

Manpower shortfall in the construction industry will be a pivotal issue to be addressed by policymakers, particularly at a time when mega social and physical infrastructure projects are happening all over Sri Lanka, President of Chamber of Construction Industry (CCI) stated.

Consumer spending drops amidst cost increases - Nielsen

Consumer spending dipped during the second quarter of this year as inflation hit 9.8% in July, despite an annual average inflation of approximately 6%, according to a report from the research firm, ACNielsen.

Central Bank sees rupee firming helped by inflows

Sri Lanka's Central Bank believes the rupee can strengthen to around 125 per U.S. dollar due to high foreign inflows into the economy, the head of the country's monetary authority said yesterday.

Basil directs BOI to find suitable locations for proposed pharma hub

Minister of Economic Development, Basil Rajapakse has directed the Board of Investment (BoI) to explore possible sites for the setting up of a pharmaceutical hub.

Focus on global pharma market- India tells Lanka

In its first-ever official level discussions with Sri Lanka on the proposed pharmaceutical manufacturing hub, which has now excited the Lankan private sector, India has given a strong, structured recommendation on the way forward for Sri Lanka’s dream: ‘Focus on the huge global market first’.

Clothing giant pulls out from SL

International trade unions warned that Sri Lanka should correct serious violations of codes of conduct after the global clothing giant J Crew pulled out its future orders from the local suppliers.

WP’S contribution to GDP marginally drops

The total share of t he Western Provinces’ contribution to Sri Lanka’s gross domestic product ( GDP) lowered slightly from 44.8% in 2010 to 44.4% last year, while the Northern Province emerged as the top GDP performer, the latest statistics from the Central Bank of Sri Lanka showed.

T-bill yields up

Treasury bill yields rose at yesterday’s auction held to reissue Rs.18 billion maturing bills, the Public Debt Department of the Central Bank said.

Sri Lanka building platform for faster growth - Cabraal

Sri Lanka’s efforts to narrow its trade deficit and contain inflation will place the island on a platform for faster economic growth, Ajith Nivard Cabraal, governor of the Central Bank of Sri Lanka said yesterday.

India agrees on fair play, aims to double bilateral trade

India is committed to provide special preferential treatment for Sri Lanka ‘without seeking any reciprocity,’ a high ranking Indian politician has told a forum held in Colombo.

Country branding vital to lure investments - Martin Roll

The Sri Lankan government needs to explore country branding through the utilization of relationships with local private enterprises, in order to boost exports and attract more investment to the country, according to Senior Advisor to the BursonMarsteller Global Strategy Team, Martin Roll.

India plans big time investments in SL

India is to set up a mega manufacturing and export zone for engineering and manufacturing auto parts and also a pharmaceutical hub in Sri Lanka, India’s Trade and Commerce Minister stated.

Ad agencies battle for US$ 9mn Ceylon Tea contract today

Four advertising industry powerhouses will battle it out today with the aim of securing a US$ 9 million contract, which will provide the winner with the task of promoting the Ceylon Tea brand, an advertising industry official stated.

PBJ, market stakeholders try to keep media at bay

Although the meeting market stakeholders had with Treasury Secretary P.B. Jayasundara, reportedly bore no real result, it was decided to issue an official statement by the Finance Ministry about the outcomes of the meeting, to curb contradictory media reports.

US$ 20mn invested in Lanka’s first space academy

Sri Lanka’s first space academy is to be built next year through an investment of US$ 20 million, through a joint venture between Supreme Satellite Private Limited Colombo and Great Wall Industry Corporation of China (CGWIC).

CB’S credit ceiling stumps smaller banks

The profitability of the smaller banks in the country is likely to get hit as a result of the credit ceiling the Central Bank imposed in February this year to cut credit growth, analysts opined.

‘Port City’ work to begin this year

The construction work of the ‘Port City’ development project that will reclaim the Galle Face beachfront will commence during the latter part of this year, Sri Lanka Ports Authority (SLPA) said in a statement.

May exports, imports fall; trade gap grows 2.1%

Sri Lanka’s exports in the month of May fell 15.1 percent year-on-year (YoY) to US$ 710 million, while imports also slowed down 6.4 percent YoY to US$ 1.5 billion, the data released by the Central Bank showed.