Labour Ministry in new initiative to eliminate child labour

The Labour Ministry seeks proposals to amend key laws and regulations on child labour, with a view to eliminate child labour from Sri Lanka.

Large banks most exposed to sovereign risk, says Fitch

Sri Lanka’s large banks, which hold the highest amount of foreign currency denominated government securities, have the most exposure to the sovereign credit risk and thereby the risk of deterioration in their credit profiles, according to Fitch Ratings.

Union Assurance Offers Vital Medical Equipment to Aid the Fight Against COVID-19

Union Assurance PLC offered vital medical equipment to four government hospitals as part of an initiative launched in response to combat the COVID-19 pandemic

Local firms cleared to raise dollars on CSE’s Multi-Currency Board

In a bid to support the expansion plans of local firms outside of Sri Lanka, the Cabinet of Ministers this week decided to relax the foreign exchange controls to allow local firms to raise foreign funds via foreign currency-denominated equity listings and debenture issuances on the Colombo Stock Exchange’s (CSE) Multi-Currency Board.

Credit growth expected to pick up in second half: Acuity Stockbrokers

The banking sector credit growth could start to pick up from the second half of this year (2H21) after a setback in the 2Q21 due to lockdown-like restrictions, which crippled most business and consumer activity for over two months, according to Acuity Stockbrokers Research.

CB dismisses claims of external sector crunch amid dwindling reserves

Central Bank Governor Prof. W.D. Lakshman in a fairly detailed statement issued yesterday dismissed the repeated concerns raised by certain quarters of an imminent external sector crisis brewing in the country, often citing weaker external reserves, ahead of the upcoming foreign currency debt obligations.

Paperless, & Affordable Protection with Clicklife from Union Assurance

Consumers can now buy protection online with a state-of-the-art buying experience. Clicklife by Union Assurance is a digital life insurance product which can be purchased under five minute

May private credit up despite lockdowns

Bank credit to the private sector continued in May, although losing momentum from the recent high in March, indicating that loan disbursements had continued despite a semi-dormant economy due to COVID-19 related lockdowns during the month.

Colombo real estate market shows signs of a rebound: JLL

With an extensive vaccination drive and easing travel restrictions, Sri Lanka’s economy has started to show signs of a positive outlook. The World Bank forecasts a 4 percent growth in GDP in 2021.

Sri Lanka getting ready to look beyond GSP Plus: Cabraal

Sri Lanka is preparing itself for a trade relationship sans GSP Plus with the European Union (EU), said Finance State Minister Ajith Nivard Cabraal, after the European Parliament recently adopted a resolution urging the EU Commission to withhold the benefit over the country’s alleged human rights practices.

Merchandise export earnings resilient in May

Despite the pandemic-related travel restrictions, Sri Lanka’s merchandise exports remained resilient in May, as exports recovered by 10.7 percent month-on-month (MoM) to US $ 884.2 million in the month from a five-month low in April, due to the initial shocks from the third COVID-19 wave, according to the Export Development Board (EDB).

Loss of GSP Plus could trim SL’s trade surplus with EU by US$ 700 mn

Sri Lanka stands to lose US$ 700 million in its trade surplus with the European Union (EU), if the EU decides to move ahead to halt the GSP Plus scheme to the country.

CSE and SEC set to introduce DVP mechanism to Lankan stock market

The Securities and Exchange Commission of Sri Lanka (SEC) and Colombo Stock Exchange (CSE) are gearing to introduce a Delivery vs Payment (DVP) system for stock market transactions.

Sri Lanka’s income inequality worsens in 2020: World Bank

Sri Lanka’s income inequality further worsened last year as the poorest suffered the largest proportionate earnings shock, while the smallest proportionate income losses were suffered by the rich due to mobility restrictions imposed to contain the COVID-19 pandemic, which resulted in unequal opportunities favouring higher income earners.

Fitch expects SL to meet all external debt maturities this year

Fitch Ratings expects Sri Lanka’s government to meet its remaining external debt maturities for the rest of the year, including a US $ 1 billion International Sovereign Bond (ISB) maturing in July, with the partial easing off external liquidity pressures in recent months while the medium-term debt service challenges persist undermining the country’s debt sustainability.

SL to negotiate preferential trade deal with Bangladesh

The Cabinet nod has been received to commence negotiations for a preferential trade agreement (PTA) with Bangladesh to bolster trade flows between the two countries.

Low tax regime made meaningless as people confront soaring prices

The continuous COVID-19-related restrictions are making the government’s low tax regime completely useless, as the consumer and producer prices have surged significantly, adding a much higher tax on people than a true legislated tax imposed on them.

CMTA wants same LC logic on MPs’ luxury vehicles applied for its members

The Ceylon Motor Traders Association (CMTA) has expressed its concerns on the government’s decision to import 400 vehicles—including 227 luxury SUVs–to a value of Rs. 3.7 billion through the Bank of Ceylon.

SL gets US $ 40mn additional WB funding to improve water and sanitation services

The World Bank’s Board of Executive Directors has approved US $ 40 million in additional financing for Sri Lanka to expand water supply, sanitation and hygiene services in seven districts through the Water Supply and Sanitation Improvement Project (WASSIP).

Fiscal deficit blowout likely as restrictions erase tax revenues

The government is likely to end up with a blowout in the fiscal gap this year with the deficit potentially reaching double digits amid slowing tax income due to COVID-19 related restrictions and heightened expenditure on virus control and welfare spending on those affected by the pandemic.

CB directs NBFI sector to extend relief to borrowers

The Central Bank this week extended relief to the borrowers of finance and leasing companies, nearly two weeks after it decided to give relief to the borrowers of the banking sector, as the economic fallout of the extended lockdowns are reaching disproportionate levels.

PM stresses need for non-loan foreign exchange

The government yesterday asserted it would explore all possible opportunities to reach its ambitious development targets, while taking a cautionary approach with regard to foreign borrowings when realising its growth agenda.

Prez Gotabaya promises investor-friendly Sri Lanka

The Government of Sri Lanka yesterday went all out to lure investors by showcasing a series of unique selling propositions while making a number of pledges, which included the affirmation of attractive and sustainable returns to those who are willing to take the plunge by investing in the country, in its current position.

Banks wary of long-term loan facilities amid potential hike in interest rates

Appetite of local banks to facilitate the corporate sector with new loan facilities to reprice their existing debt stocks to long-term fixed-rated loans under the current low-interest rate regime is waning amid concerns over interest rate risks and tightening net interest margins.

President wants production of organic fertiliser expedited

A number of programmes are being planned to expedite the production of organic fertiliser required for the Maha season, a media communiqué from the President’s Media Division this week said.

Expressway to be listed on CSE via State-owned biz entity

The government is planning to list the country’s expressways and related assets via a State-owned business entity in the Colombo Stock Exchange (CSE) similar to Selendiva Investments Limited, which was established to hold key State-owned real estate and properties in Colombo, as part of the government’s broader framework to bring reforms into the State-owned enterprise sector.

Virus-related restrictions push over half a million Sri Lankans into poverty

The pandemic-related restrictions have pushed over 500,000 people in Sri Lanka into the depths of poverty in 2020 alone, while the disastrous implications of the most recent round of controls on people’s lives and livelihoods are yet to be assessed and counted.

Multilateral or bilateral credit lines may not be sufficient to pay back loans: S&P Global Ratings

Despite the government’s recent success in securing funding from multilateral or bilateral partners to build up the country’s foreign exchange reserves, S&P Global Ratings this week warned that such credit lines and budgetary assistance alone may not be sufficient to cover all external financing requirements over the next one-year period under the extremely challenging external environment.

LOLC Group creates history with Rs.57bn PBT for FY21

Globally diversified financial conglomerate LOLC Group posted a record-breaking performance for the financial year ending on March 31, 2021, achieving unprecedented Rs.57 billion in profit before tax (PBT) and a profit after tax (PAT) of Rs.53 billion, a first for any corporate in the country.

Private credit loses momentum in April

In what appears to be the beginning of a spell of poor economic readings, the credit consumed by the private sector lost momentum in April, largely due to virus related restrictions and partly to New Year holidays.