Port City to add US$ 30bn to Sri Lanka’s economic output

The Colombo Port City (CPC) project is estimated to add a mammoth US$ 30 billion in fresh economic output to Sri Lanka’s gross domestic product through 2041, propelling the country towards the developed country club, according to a study by PricewaterhouseCoopers (PwC). Sri Lanka’s current gross domestic product (GDP) is estimated to be around US$ 84 billion.

Local producers begin to feel rise in cost of production

Sri Lanka’s producers are beginning to feel higher cost of production, potentially activating what could be a vicious cycle of higher producer prices,

Rupee to stabilise at Rs.175- 180 range against dollar by year end: Cabraal

State Minister of Money & Capital Markets and State Enterprise Reforms, Ajith Nivard Cabraal expects Sri Lankan rupee to stabilise at Rs.175-Rs.180 range against US dollar by end of this year, supported by anticipated boost from proposed increase in International Monetary Fund’s (IMF) Special Drawing Rights (SDR) combined with expected improvements in the country’s external account.

Cabraal defends Colombo Port City Commission Bill

While dismissing claims on Colombo Port City (CPC) is on the verge of becoming a Chinese colony and concerns on potential money laundering activities, Money and Capital Markets and State Enterprise Reforms State Minister Ajith Nivard Cabraal defended the Colombo Port City Commission Bill, stressing that it is in line with the country’s Constitution and it will attract foreign investments to CPC to become an international business hub.

CB extends suspension on banks from buying sovereign bonds

The Central Bank has extended the suspension on banks from purchasing Sri Lanka-issued international sovereign bonds (SLISBs) till April 23 in a bid to ward off the pressure on the rupee.

Prime lending rate touches fresh low

The prime lending rate touched a fresh low last week after the Monetary Board said it would maintain the current accommodative monetary policy, reaffirming markets that low interest rates are required to further support the current revival seen in the economy.

Tourism industry stakeholders slam SLTDA over new Act

The key stakeholders of the local tourism industry yesterday slammed the Sri Lanka Tourism Development Authority (SLTDA) for pushing the drafting of a new Tourism Act, without consulting the private sector.

Central Bank keeps policy interest rates unchanged

The Monetary Board of the Central Bank yesterday left policy interest rates unchanged at current levels as the economy appears have responded positively to earlier measures taken to provide extraordinary support to individuals and businesses beset by the pandemic.

Port City law likely to be enacted before end of this month: PBJ

The government expects the legislation of the Colombo Port City Economic Commission Bill to be completed before end of this month, which will declare Colombo Port City (CPC) as a Special Economic Zone (SEZ), while granting sweeping powers to the proposed commission.

Govt.’s stance on palm oil could deter investments into agriculture sector

Sri Lanka’s oil palm growers seek clarity on the announced plan to uproot their cultivations, while cautioning such a policy reversal, which drastically undermines investor confidence, could paralyse the progress of the country’s agriculture sector.

UDA calls RFPs for Rs.15bn mixed development project in Dematagoda

The Urban Development Authority (UDA) has called request for proposals (RFPs) for a high-rise mixed-development project on the 1.47-hectare Dematagoda junction land (537 Watta), with an expected investment of Rs.15 billion.

Unemployment falls after hitting multi-year high in 3Q

Sri Lanka’s unemployment rate declined after reaching a multi-year high in the third quarter of last year, as companies started re-hiring people who were furloughed or had lost their jobs due to the pandemic as the economy gathers steam with virus fears and the resultant disruptions receding.

CEB to raise up to Rs.20bn on CSE via listed debt

State-owned power utility Ceylon Electricity Board (CEB), which is the country’s monopoly electricity transmitter and distributor, is gearing to raise up to Rs.20 billion through a listed debenture issue on the Colombo Stock Exchange (CSE).

BOC first Lankan bank to achieve Rs.3tn asset base

State-owned banking giant Bank of Ceylon (BOC) has crossed the Rs.3 trillion milestone in total assets, becoming the first Sri Lankan bank to achieve such a feat and cementing its undisputed leadership position in Sri Lanka’s financial sector.

Blackstone enters SL acquiring Piramal Glass for Rs.6.2bn

PGP Glass Private Limited, previously known as Pristine Glass, and a part of US-based private equity giant Blackstone Group, yesterday bought the controlling stake of Sri Lanka-based Piramal Glass Ceylon PLC in a Rs.6.2 billion deal.

Govt. grants sweeping powers to Port City Economic Commission

With the establishment of the Special Economic Zone in Colombo Port City (CPC), the government has granted sweeping powers to the proposed Economic Commission, for the promotion and regulation of CPC as a leading international business hub in the region, according to the Colombo Port City Commission Bill gazetted last week.

February private credit growth accelerates

Private sector credit growth, which reflects the speed of economic recovery, accelerated in February from a month with private individuals and businesses borrowing for consumption and investment.

Vehicle registrations record marginal recovery in Feb.

Sri Lanka’s vehicle registrations saw a marginal recovery in February, compared to the previous month, mainly driven by the high volumes of hand tractors in the commercial segment and an uptick in locally assembled vehicles.

Techno parks to be set up in Kandy and Galle this year

Sri Lanka’s Ministry of Technology is gearing to launch two techno parks in Kandy and Galle equipped with world-class facilities before end of this year.

Disgruntled tile importers slam government policy

Sri Lanka’s Tile and Sanitaryware Importers Association (TSIA) yesterday claimed that the current suspension on tile imports is indirectly paving the way for the creation of a duopoly in the country’s tile market, at the expense of the consumer, while potentially causing significant environmental pollution, which could threaten the sustainability of other industries such as tourism.

Feb. merchandise export earnings hit five-year high

Sri Lanka’s merchandise export earnings reached a five-year high barely missing the US$ 1 billion mark in February as exports recovered from the second COVID-19 wave that emerged in the final quarter of 2020.

CB Governor bats for stable and shared growth

As the economy is expected to recover from a contraction in last year to a positive growth of 3.3 percent this year, the Central Bank yesterday stressed that the country does not need an episode of high growth but rather stable and shared growth to be sustained over many years.

Deposit rates show signs of bottoming out

Deposit rates, which declined sharply throughout last year, appear to have ended their run, according to the latest available data for January 2021.

Rate caps hinder banks’ penetration into microfinance sector: HNB chief

The interest rate caps hinder the formal banking sector’s penetration into the microfinance sector, as the default risks in the sector have increased substantially, while the banking sector braces for a rise in general market interest rates, on the back of strong demand for private sector credit.

Central Bank says recent bond yield volatility unwarranted

The Central Bank rebuffed the recent uptick seen in Treasury yields, calling the development “unwarranted”, although the investors were beginning to wonder whether the current cycle of low interest rates is over, as inflation to raise its ugly head with the pickup in economic activities with the easing of pandemic-related disruptions.

SL looks to award initial 5G spectrum bands end of this year

The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) plans to award the initial 5G spectrum band slots to the country’s mobile operators towards the end of this year, under a new spectrum management framework that is currently being developed in consultation with the International Telecommunication Union (ITU).

Economy shrinks 3.6% in 2020 as virus bites

Sri Lanka’s Gross Domestic Product (GDP) contracted 3.6 percent in 2020 compared to 2.3 percent expansion in 2019, displaying the severity of the disruptions caused by the COVID-19 pandemic on the island nation’s economy, despite the last two quarters of the year recording positive growth rates.

Adani Group slated to become first Indian port operator in SL

Adani Ports and Special Economic Zones (APSEZ) Ltd., India’s largest private ports & logistics company and a key subsidiary of the diversified Adani Group yesterday said it has received a Letter of Intent (LOI) from the Ministry of Ports and Shipping and Sri Lanka Ports Authority, acting on behalf of the Government of Sri Lanka, pursuant to approval from the Sri Lankan Cabinet of Ministers for the development and operations of the West Container

Prime lending rate touches fresh low despite bond yield hike concerns

The prime lending rate, which indicates where the broader market lending rates are heading, touched a fresh low last week, a week after the Monetary Board doubled down their commitment for lower rates.

No loan default; China swap a confidence booster: Stockbroker