July monetary policy on hold; long-term lending rates to ease

The Monetary Board of t he Central Bank (CB) yesterday decided to keep the current monetary policy on hold leaving the repurchase rate and the reverse repurchase rate at 7 percent and 9 percent, respectively.

Hambantota Port receives only 24 vessels during 2011-12

Magampura Mahinda Rajapaksa Port (MMRP) in Hambantota has received only 24 vessels in total during the years 2011 and 2012, the latest Committee on Public Enterprises (COPE) Annual Report disclosed.

Morocco looking for more trade, JVS with Sri Lanka

Morocco has shown keen interest to boost trade and industrial cooperation with Sri Lanka.

Sri Lanka's first Common ATM Switch, 'Lanka Pay' launched

Lanka Pay, Sri Lanka’s first Common ATM Switch connecting Bank of Ceylon and People’s Bank ATM networks was launched yesterday.

No real economic transformation: Expert

The extremely low level of unemployment and the single digit poverty in Sri Lanka have been achieved not due to a real transformation of the economy but as a result of higher temporary migration and the ever bloating public sector, a top economist in the country said.

Sri Lanka welcomes half a million tourists in first six months

Sri Lanka crossed 512,281 tourist arrivals in the first half of 2013 (1H13) edging closer to the targeted 1.25 million arrivals by the end of this year.

CB signals another rate cut in Sep/Oct

Nearly two months into a policy rate cut in May, the Central Bank Governor, Ajith Nivard Cabraal has signaled again another round of monetary easing in September or October, a decision that appears to be dependent on inflation expectations.

Reconditioned vehicle registrations outperform brand new: Analysis

Registrations of reconditioned vehicles in Sri Lanka continued to recover parallel to a decline in brand new registrations during the month of June.

VAT on retailers begins to pinch business value chains

The imposition of the value-added tax (VAT) net has eroded the margins of wholesale and retail businesses in the country and the impact has now begun to be felt through the value chains as the producers too have had to bear some of the impact, Mirror Business observes.

Industrialists worried by changes to land ownership, taxes

The restrictions on land ownership by foreigners brought in by the government this February has disturbed the country’s industrialists the most, as fears of such restrictions would hamper foreign investments in the manufacturing sector, according to Sri Lanka’s apex industrial body.

IMF cautions govt of changing debt dynamics

The International Monetary Fund (IMF) yesterday cautioned the government of the changing debt dynamics, which could have unfavourable repercussions in the years to come and called for immediate fiscal adjustments.

Mechanism set up to remedy issues faced by EU investments

The European Chamber of Commerce of Sri Lanka (ECCSL) recently launched the European Union-Sri Lanka (EUSL) Investor Dialogue, to identify barriers and constraints faced by the European investors in Sri Lanka and find solutions to these issues.

Rupee slips on importer demand

The Sri Lankan rupee edged down to a near eight-month low in early trade yesterday as the Central Bank asked banks not to buy dollars beyond 130.60 with the local currency remaining under pressure on concerns of further foreign outflows.

Adverse weather dampens tea production: Planters

Prolonged heavy showers and strong gale force winds have drastically impacted tea production with some estates having recorded only 40 percent of their estimated average yield in the past two months, Planters' Association said in a statement.

Japan overtakes China as largest lender to Lanka

Overtaking China, Japan became the single largest development finance provider to Sri Lanka during the first four months.

State enterprises’ outstanding debt expands to Rs.333bn

The total outstanding debt of t he country’s non-financial state-owned business enterprises (SOBEs) has swollen by as much as Rs.12 billion during the first five months to Rs.333.3 billion by the end of May 2013, Mirror Business observes.

CB disagrees with Moody's assessment of economy

Hot on the heels of Moody's downgrading the outlook on Sri Lanka; the Central Bank (CB) expressed its displeasure over the rating action by the international rating agency and said it actually warrants an upward revision given the constructive policy measures taken by the authorities.

H'tota tank farm pre-commissioning begins

M.V. Leon - M fuel tanker from Singapore called at the Magam Ruhunupura Mahinda Rajapaksa Port (MRMRP) recently with several loads of Marine Gas Oil for testing and pre-commissioning of the bunker facilities of the port, upon completion of its Phase I.

Moody's cut SL's B1 rating outlook to stable

International rating agency, Moody's has slashed outlook on Sri Lanka's B1 sovereign rating from positive to stable due to slow growth of the country's foreign reserve position and higher debt burden

Oceanpick to introduce marine fish farming to Sri Lanka

Oceanpick is set to embark on Sri Lanka’s first ever oceanic farm for finfish this August with an investment of approximately US$ 2.5 million.

Inflation may exceed 10%

Aggressive policy rate cut in May followed by a reduction of the Statutory Reserve Requirement (SRR) by commercial banks may insert inflationary pressure, pushing headline inflation even beyond 10 percent over the next 12 months, a local stockbrokerage warned.

New CCC chief calls for improved private sector cooperation

Newly elected Chairman of the Ceylon Chamber of Commerce (CCC), Suresh Shah called for improved cooperation among private sector entities in order to respond to both economic and socio-political challenges besetting Sri Lanka.

CB cuts bank reserve ratio to encourage lending

The Central Bank of Sri Lanka (CBSL) will be reducing the Statutory Reserve Requirement (SRR) on all rupee deposit liabilities of commercial banks by 2 percent to 6 percent with effect from July 1, 2013, in a bid to induce banks to cut lending rates.

Electricity price hike to dim corporate earnings

The recent electricity tariff hike is expected to hinder the corporate earnings of most listed companies during the June quarter and the early part of the September quarter this year, with companies having to absorb the rising cost in the immediate short term, according to a research arm of a local stockbrokerage.

Long term T-bill yields down

The long term Treasury bill yields fell at the T-bill auciton held yesterday to re-issue Rs.12 billion maturing bills, the Public Dept Department of the Central Bank said

More FDIs, tax revenue critical for growth to continue: Mathai

International Monetary Fund (IMF) resident representative Koshy Mathai reiterated the need to attract Foreign Direct Investment (FDI) to the country in order to continue the growth path Sri Lanka has set herself with the end of the 30-year long conflict.

Customs Dept. to step up role as facilitator: DG

Sri Lanka Customs is looking to improve facilitation procedures in order to support trade and boost revenue, according to Director General, Jagath Wijeweera.

Inflation eats into Sri Lankan chicken sales

The consumer demand for chicken dampened in the first quarter this year due to a drop in purchasing power hindered by the inflation, which remained elevated towards high single digit levels, according to John Keells Stock Brokers (Pvt) Ltd. (JKSB).

T-bill yields steady

Treasury bill yields remained steady at today’s T-bill auction held to reissue Rs.12 billion maturing bills, despite 3-month bill yields edging down by one basis point to 8.66 percent

Chinese investor to fund ‘Port City’

A Chinese investor has secured the deal to create the proposed 500 acre ‘Port City’ on reclaimed land on the sea off the Galle Face Green, of which the first stage is believed to cost US $ 700 million, a top Ports Authority official confirmed.