Resolute Central Bank cuts policy rates by 50bps

Amidst calls by various quarters to hold on to the current monetary policy stance due to possible inflationary fears, the Central Bank (CB) surprisingly cut its key policy rates by 50 basis points (bps) yesterday.

Apparel exporters insist on flexible labour laws, revisions to energy tariffs

Amendments to Sri Lanka’s electricity tariff structure and labour laws are being sought by Sri Lankan apparel exporters in order to facilitate apparel manufacture by lowering cost of production.

September tourist arrivals up 26%

Tourist arrivals to Sri Lanka in the month of September rose 26.2 percent from a year ago to 89 761, Sri Lanka Tourism Development Authority statistics showed. During the first nine months of 2013, the arrivals rose 15.5 percent Year-on-Year (YoY) to 801, 210.

Labour, next major challenge for apparel: Cabraal

Labour shortages as a result of Sri Lanka’s anticipated transition into a middle-income country status will be the next major challenge for the country’s apparel and manufacturing sectors, according to Central Bank of Sri Lanka (CBSL) Governor, Ajith Nivard Cabraal.

HSBC appointed primary dealer in govt. securities

The Central Bank has appointed The Hongkong and Shanghai Banking Corporation Limited – Colombo Branch Office (HSBC) of 24, Sir Baron Jayatilaka Mawatha, Colombo 01 as a primary dealer in government securities.

Finance companies call CB to revisit penal rate cut

Finance companies, supposedly the most penalised sector by the recent penal rate cut charged on default loans, have written to the Central Bank (CB) requesting to reconsider the new rule, Mirror Business learns.

Gas hopes!

Sri Lanka plans to strike a sales agreement with Cairn India within this year and hopes to join the natural gas producing nations club by 2017-2018, according to the head of Sri Lanka’s state-run petroleum exploration unit.

Mauritius keen to establish air links with SL

Mauritius, which is positioning itself to become an ocean economy, has expressed interest in signing an Air Services Agreement with Sri Lanka to boost bilateral trade between the two countries, a communiqué by Sri Lanka’s Industry and Commerce Ministry quoting Mauritius Foreign Minister Avin Boolell said.

IRCON to connect Pallai to Northern railway network soon

A ballast train reached Pallai, in Sri Lanka’s war-torn Northern Province achieving yet another milestone of the steadily progressing Northern Railway restoration project.

Sri Lanka will find difficult to borrow overseas in future: Economist

Sri Lanka will find it very difficult to borrow from abroad in the future due to the Fed’s stimulus tapering that is likely to happen sooner or later, which will pull back the excess liquidity in the global economy, according to a senior economist in the country.

Japan to continue aid to Sri Lanka; Basil receives grand welcome

Japan will continue to help Sri Lanka’s economic progress by developing her infrastructure and human resources.

IMF argues against import substitution

The International Monetary Fund (IMF) last week warned against the populist policy of import substitution as it has often proved ineffective in accomplishing economic prosperity.

Overseas remittance inflows heavily used for consumption: Economist

Migrant worker remittances received by Sri Lanka are almost entirely spent on consumption and are not mobilized in to investment generating activities, raising concerns over its ability to provide economic value addition in the long run.

T-bill yields flat; bids for short-term bills rejected

The Treasury bill yields remained more or less flat at yesterday’s auction with bids for three months and six months being rejected.

Japanese apparel market craving for more Lankan made supplies

Apparel exports must be expanded to cater to the growing demand for Sri Lankan made products in the Japanese market, according to Japan’s House of Councillors Member Yamatani Eriko.

Exxon, Shell may bid in Sri Lanka oil, gas block auction: Saliya

Oil majors Exxon Mobil Corp, Royal Dutch Shell PLC and France’s Total have shown interest in bidding for blocks offered in Sri Lanka’s current licencing round, the island nation’s upstream regulator said yesterday.

IMF wants policy rates on hold; calls for structural reforms

The International Monetary Fund (IMF) Staff Mission yesterday said Sri Lanka should keep the current policy rates on hold and called for structural changes in order to boost economic growth.

Imports race ahead of exports

Despite Sri Lanka’s July export earnings increasing 8 percent Year-on-Year, the highest in the first seven months, the import expenditure raced ahead, recording a 20.8 percent YoY increase, Central Bank statistics showed.

Jan - June Foreign Direct Investments top US $ 540mn

Foreign Direct Inflows (FDIs) in to Sri Lanka during the first half (1H) of 2013 is up 20 percent Year-on-Year (YoY) to US $ 540.211 million, Investment Promotion Minister, Lakshman Yapa Abeywardena said.

CB keeps September policy rates on hold

Sri Lanka’s monetary board yesterday decided to keep the key policy rates on hold for September, unchanged during the last four months. Hence both the repurchase and the reverse repurchase rate will be maintained at current levels of 7.00 percent and 9.00 percent respectively.

August tourist arrivals up 26%

Tourist arrivals increased by 26.1 percent year-on-year (YoY) to 100,244 visitors in August. The Western European region recorded the highest arrivals with 38,951 in August against 32,656 arrivals last year, with arrivals from the UK and Germany increasing by 6.9 percent YoY and 35 percent YoY, respectively to 12,353 and 8,318 arrivals each.

Plantation industry in fresh land ownership battle

Sri Lanka’s troubled plantation industry is facing fresh threats in the form of eroding land ownership rights, according to the outgoing Planters Association Chairman, Lalith Obeysekera.

Reconditioned car registrations continue upward trend: analysis

The reconditioned or pre-owned car market continued its recovery, recording 1,800 registrations during the month of August, against 510 registrations last year and 1,492 registrations in July 2013, an equities research firm analysis showed.

Banking sector asset quality deteriorates

Banking sector asset quality has deteriorated during the first half of this year due to the slowdown in economic activity. Sector profitability also has taken a hit from substantial impairment charges on gold loans as a result of tumbling gold prices, an earnings report showed.

Economy grows at 7% in 2Q

The Sri Lankan economy grew 7 percent in the second quarter (2Q) accelerating from the 6 percent growth reported in the first quarter of 2013, Central Bank Governor Ajith Nivard Cabraal said in an interview with Bloomberg in Hong Kong.

CB liquidity scheme for troubled finance companies

Acknowledging openly that there is a liquidity issue with Sri Lanka’s bloated finance sector, the Central Bank on Saturday said it would provide liquidity to any troubled finance company with immediate effect.

New all-time high for low grown teas

At the tea auctions held on September 3, 2013, an invoice of New J.S.P. BOPF achieved an all-time record price of Rs.760 per kg for the low grown category.

Israel mulls using SL’s FTAs to penetrate Asian markets

A visiting Israeli business delegation has expressed interest in harnessing Sri Lanka’s free trade agreements (FTAs) to carry out trade with the countries in the Asian region, a statement issued by the Board of Investment (BoI) said.

Aid comes with Chinese men: Dr. Kelegama

The most popular Chinese aid comes with the condition of Chinese labour being used in those projects and the interest rates of those loans are also on the high side comparable to some other multilateral donors, according to an eminent economist.

T-bill yields flat

Treasury bill yields remained flat at yesterday’s auction held to reissue Rs.9,000 million maturing bills, the Public Debt Department of the Central Bank said.