Fitch downgrades Sri Lanka to ‘CCC’

Fitch Ratings yesterday downgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘B-‘ with ‘Negative’ outlook.

CB doubles down on dovish monetary policy

The Monetary Board of the Central Bank left its key policy rates unchanged yesterday, continuing with its dovish monetary policy stance by slapping interest caps on mortgage-backed housing loans and said lending targets would be introduced to licensed banks to channel funds into areas with high growth and earning potential.

Oct. biz activity battered by virus resurgence

Purchasing Managers’ Index (PMI), a key barometer of the vibrancy of the economic activities across both manufacturing and services sectors, contracted in October, as the resurgence of COVID-19 in the country affected production.

CB expected to hold rates steady tomorrow

First Capital Research (FCR) expects the Central Bank (CB) to maintain the current policy rates unchanged at the monetary policy review tomorrow amid recent improvements in private sector credit, rock bottom market interest rates and excess liquidity in the system, while retaining the monetary policy stance at “accommodative”.

Budget 2021 fails to impress Moody’s

Moody’s Investors Service in a report issued yesterday said, “Sri Lanka’s 2021 budget highlights the ongoing fiscal challenges and is unlikely to significantly boost growth,”indicating that the change of opinion between the government and the rating agencies at large over the country’s growth path, will continue post budget.

Freeze on tourism loans likely to be extended till Sept. 2021

The temporary payment holiday on tourism sector loans granted in view of the loss of business due to coronavirus is likely to be extended till September 30, 2021 from an earlier timeline of March 31, 2021.

Pvt. sector, professional bodies urged to ‘rise to the occasion’

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) organised the Annual Budget Seminar on November 19th which brought together a host of eminent speakers and panelists who shared their insights on the government’s National Budget for next year.

H’tota gets US$ 300mn tyre manufacturing plant

Shandong Haohua Tire Co. Ltd, a leading Chinese tyre manufacturer, is slated to invest US$ 300 million to set up a tyre manufacturing plant in Sri Lanka to cater to the export market.

Legal framework of Colombo Port City to Parliament in January

The government plans to present the proposed legal framework of Colombo Port City to Parliament in January, next year, with the tourism, foreign and commercial activities of the first phase of the project are scheduled to commence within the year.

Budget 2021 reflects govt.’s growth-oriented approach

The maiden budget of President Gotabaya Rajapaksa’s government presented yesterday in Parliament by Prime Minister Mahinda Rajapaksa, who is also the country’s Finance Minister, broadly aligned with the policies spelt out in the government’s policy framework ‘Vistas of Prosperity and Splendeour.’

Budget with proposals to boost revenue expected

Top economists in the country opine that the new government faces a daunting task in containing the rising fiscal deficit with credible revenue-enhancing measures while ensuring a speedier recovery of the coronavirus-battered economy, as it is scheduled to present its maiden budget for 2021 in Parliament today.

Worker remittances record 6th consecutive monthly increase in Oct.

Workers’ remittances registered the sixth consecutive monthly increase in October despite earlier forecasts cautioning significant decline in such earnings due to COVID-19 resultant job losses.

COVID-19 second wave stalls export run

Earnings from merchandise exports fell 14.9 percent in October to US$ 831.72 million compared to US$ 977. 3 million in October 2019 due to adverse impact of the second wave of COVID-19 pandemic that began in early October.

Colombo Port ranked as world’s 18th best-connected port

The Port of Colombo has improved five spots onthe United Nations Conference on Trade and Development’s (UNCTAD) Port Liner Shipping Connectivity Index becoming the 18th best-connected port in the world in the third quarter of this year.

Not having PayPal costs Sri Lanka substantial loss of foreign income: Study

Further delays in getting the worldwide online payment system PayPal into Sri Lanka limits the country’s potential in facilitating inward payments, an area that requires urgent intervention, as the economy is in dire need of foreign exchange to improve its balance of payment (BoP) position.

Govt. to set up 400-acre pharma manufacturing zone in Hambantota

The Cabinet of Ministers this week approved a proposal to establish a 400-acre special pharmaceutical manufacturing zone equipped with modern facilities in Hambantota.

Banks asked to extend debt moratorium by further 6 months

The Central Bank yesterday directed banks to extend the debt moratorium to COVID-19-affected businesses and individuals for a further six months, commencing from October 1, 2020.

CSE launches action plan to revamp listing process

The Colombo Stock Exchange (CSE) has launched an action plan to address key areas relating to the process of listing a company on the CSE with the objective of enhancing its efficiency thereby better serving the funding requirements of companies belonging to both State and private sectors.

Momentum sustained; ASPI stays over 6,000-point mark

The indices at Colombo Stock Exchange gained further yesterday after the benchmark index crossing the 6, 000-point threshold on Thursday as local investors appeared to be determined to keep the momentum going despite new COVID-19 cases in the country.

Market regains ground; ASPI crosses 6, 000-point mark

The main All Share Price Index (ASPI) of the Colombo Stock Exchange (CSE) yesterday crossed the 6, 000-point threshold as investors reacted positively to the government’s decision to lift police curfew in the Western province on Monday and implying that further lockdowns unlikely despite continuous discovery of new COVID-19 cases.

Economic centres reopen

The Narahenpita Dedicated Economic Centre, along with the other economic centres in Ratmalana, Hokandara and Veyangoda, was reopened yesterday,

October export earnings resilient despite virus snags

Sri Lanka’s export sector has once again shown its resilience to help keep the economy humming, as it generated near billion dollar earnings for the fifth consecutive month, albeit some slowdown was seen compared to the previous couple of months.

1Q GDP underwhelmed by measurement lapses: CB

The disappointing first quarter gross domestic product (GDP) estimates were caused by large lapses in the measurement of the economic activities, as the lockdowns stymied data collection while the traditional collection methods were unequipped to capture the activities that went digital.

Moody’s expects fresh FDI wave for Port City, export zones

Moody’s Investors Service remains optimistic that the current lackluster record of foreign direct investment (FDI) flows to Sri Lanka would turn a corner with start-of-the-art affiliated projects in the Colombo Port City and the construction of investment and export zones near ports over the coming years, amid emerging signals that the two sites are already on investors’ radar.

Escalating freight charges pose fresh challenge for exporters

Sri Lanka’s struggling export sector is faced with an emerging challenge with freight charges reaching a new high, trimming the much-required foreign exchange fetched during the ongoing global health crisis.

United States support promised for SL’s development needs

US Secretary of State, Mike Pompeo, who met with President Gotabaya Rajapaksa yesterday at the Presidential Secretariat, has expressed the intent of the United States government to support Sri Lanka to fulfill its economic development needs, a media release issued by the President’s Media Division said.

INSEE Cement to buy dolomite from State Engineering Corp.

The leading cement manufacturer in the country, INSEE Cement Sri Lanka has signed a landmark agreement with the State Engineering Corporation (SEC) to purchase dolomite, which is used as raw material in the cement manufacturing process.

Tripartite deal to prorate wages extended till Dec. 31

The national tripartite agreement to prorate wages will be extended until December 31, 2020—a decision that was reached taking into account the recent spike in the number of COVID-19-infected persons in the country, leading to partial closure of businesses.

Prime lending rate falls below 6% for first time in recent history

The prime lending rate fell by a steeper 79 basis points (bps) last week, pulling the benchmark rate below 6.0 percent for the first time in recent history after the Monetary Board decided to keep policy rates unchanged last Thursday, while reiterating its commitment towards a dovish monetary policy.

MILCO now a profit making venture, says Chairman

MILCO (Pvt) Ltd, a State–owned business engaged in dairy production, has started to make profits after suffering annual losses for the past three years, its Chairman Lasantha Wickramasinghe said.