SL exits ’Restricted Default’ rating

Fitch Ratings has upgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ’CCC+’, from ’RD’ (Restricted Default).

Western province leads economic contribution to 2023 GDP with 43.7% share

The Western province continued to lead the provincial gross domestic product (GDP) in 2023, albeit slipping from the 2022 levels while the North Western and Central provinces following as the distant second and third in the provincial distribution of Sri Lanka’s total economic output.

New labelling, advertising rules leave confectionery industry in sticky situation

The confectionery industry expressed serious concerns over a new set of rules, introduced for labelling and advertising packaged food in the country, which is set to take effect from January 2025.

Govt. secures IMF nod to raise PAYE threshold to Rs.150,000

The government has reached an agreement with the International Monetary Fund (IMF) to raise the income tax-free threshold to Rs.150,000 per month, from the current Rs.100,000, a move aimed at providing relief to the lower-income groups.

Sri Lanka’s economy expands 5.5% in 3Q

Sri Lanka’s third quarter output expanded at a faster 5.5 percent in the third quarter ended in September 2024, compared to the same period last year.

November PMI signals continued expansion in manufacturing & services

Sri Lanka’s economic activities across both the manufacturing and services activities continued to expand during November.

SL wraps-up debt restructuring, setting country for rating upgrade 

Sri Lanka wrapped up its foreign currency debt restructuring last week with the announcement of the near full acceptance of the new bonds in exchange of the existing foreign currency bonds in default for over two years.

Private sector contributes to public sector corruption in SL: TISL

The private sector of Sri Lanka plays a prominent role in enabling corruption within the public sector of the country, a recent study conducted on corruption by Transparency International Sri Lanka (TISL) found.

Banks kick into fresh credit cycle while carrying lower provisions - Capital Trust Research  

Margins narrow on declining rates, but higher volumes from loans to support top-line 

Adani Ports pulls out of US funding for CWIT

Adani Ports noted that the project, which is a joint venture with John Keells Holdings (JKH) and the Sri Lanka Ports Authority (SLPA), would be financed through the company’s internal accruals and capital management plan.

Publishing industry faces bleak chapter as VAT threatens survival

Sri Lanka’s publishing industry yesterday raised serious concerns over the 18 percent Value Added Tax (VAT) imposed on books, which according to industry stakeholders has threatened the survival of the entire sector in the country.

Colombo Dockyard sees Japan’s Onomichi step back; seeks new investor

Colombo Dockyard PLC is preparing for a major shift after Japan’s Onomichi Dockyard Company Limited, its majority shareholder, stepped away from the management this week, to allow the company to bring in a new strategic investor.

Sri Lanka among top ten most improved in Basel AML Index 2024

Sri Lanka has secured a place among the top ten countries demonstrating the most progress in combating money laundering and terrorist financing, as highlighted by the 13th Basel AML Index 2024.

CEAT to take over Michelin’s Camso off-highway tyre division in US $ 225mn deal

Transaction will include business with revenues of around US $ 213mn (Rs.62bn) in CY 2023 and global ownership of Camso brand Camso brand will be permanently assigned to CEAT across categories after a 3-year licensing period

Assembly industry fears ecosystem disruption from CBU import policy

Sri Lanka’s Local Assembler’s Association, has raised concerns over the government’s decision to resume imports of completely built units (CBUs) from February next year.

Sri Lanka possibly losing two-thirds of border tax revenue due to corruption, says Shippers’ Council

The Sri Lanka Shippers’ Council claimed that the government coffers could be losing as much as two-thirds of potential border tax revenue, due to corrupt activities by the officials in key border agencies.

Sri Lanka’s merchandise export performance up 18% in October

Sri Lanka’s merchandise export earnings in October 2024 climbed to US$ 1.097 billion, marking an 18.22 percent year-on-year increase, driven by higher earnings from key export categories, including apparel and textiles, tea, rubber-based products, coconut-based products, and spices and concentrates.

CG Corp Global bets big on SL’s recovery and growth

Chaudhary Group (CG) Corp Global, a Nepal-based multinational conglomerate, reaffirmed its commitment to Sri Lanka yesterday, pledging to remain invested in the long term while identifying opportunities to expand further.

Colombo consumer prices fall deeper into deflation on cuts to fuel prices

Inflation in the Colombo district fell further into deflationary territory in November, as expected by the Central Bank last week, as non-food prices fell sharply while food prices decelerated from a month ago.

THASL urges rethink of policies to unlock full potential of Sri Lanka’s tourism sector

Sri Lanka’s tourism sector is in need of a robust set of policy, to allow it to unleash its full potential, The Hotels Association of Sri Lanka (THASL) said while asserting that the same old models on books may not work.

September quarter sees blowout corporate earnings

The listed companies reported some robust top and bottom-lines in the three months through September 2024 supported by cooler prices and lower interest rates which helped them to bring back more customers and stretch their margins, Capital Trust Research said.

CB shifts to single policy rate while effectively cutting rate by 50bps

While shifting towards a single policy interest rate structure, the Central Bank yesterday introduced what it calls the overnight policy rate (OPR) as its primary monetary policy tool and set it at 8.00 percent, effectively delivering a 50-basis-point cut in the monetary policy, as it targets the call money rate often used in the interbank market, which closed at 8.55 percent the day before.

SL launches ISB exchange following cabinet approval

Sri Lanka yesterday reached a significant milestone in its debt restructuring agenda with the official launch of the exchange of its outstanding International Sovereign Bonds (ISBs), totalling approximately US$12.55 billion as of November 25, 2024.

“Perfect timing” for sovereign sukuk, say alternative banking experts in Sri Lanka

Sri Lanka’s alternative banking sector experts yesterday expressed they are highly optimistic about the country issuing its first-ever sovereign sukuk, under the new government.

Government agrees to stay within main ‘guardrails’ of IMF programme: Senior Mission Chief

The Sri Lankan government has reached an agreement with the International Monetary Fund (IMF) to proceed with its US$ 3 billion Extended Fund Facility (EFF) programme, consenting to adjustments while adhering to the programme’s main “guardrails.”

Sri Lanka elected to UN Commission on International Trade Law

Sri Lanka was among thirty one (31) members elected to the United Nations Commission on International Trade Law (UNCITRAL) by the UN General Assembly, the Ministry of Foreign Affairs said.

National consumer prices continue to decline by 0.7% in October on lower fuel prices

Consumer prices measured by the National Consumer Prices Index fell further into negative territory in October after the index tipped into deflation in September due to repeatedly cutenergy prices.

President Dissanayake outlines three-pronged economic strategy

President Anura Kumara Dissanayake yesterday outlined a three-pronged economic strategy aimed at fostering rapid growth, inclusive participation, and equitable wealth distribution to stabilise the country’s economy.

SL targets US $ 36bn in annual exports by 2029

The government has set its sights on an ambitious annual export revenue target of US $ 36 billion to be achieved by 2029, according to the Export Development Board (EDB).

Strategic branding key to SL’s success in India’s wedding market: Vandana Mohan

Access to information and strategic branding are pivotal for Sri Lanka to emerge as a premier wedding destination for Indians, according to Vandana Mohan, India’s first female event manager and founder of the Wedding Design Company.