IMF forecasts Sri Lanka’s economy to shrink 4.6% this year

The International Monetary Fund (IMF) this week forecasted Sri Lanka’s economy to contract by 4.6 percent, significantly higher than a 0.5 percent contraction it predicted in April, as the coronavirus pandemic-related disruptions continuing to take a toll on the island nation’s fragile economy.

Export earnings top US$ 1bn in September

Sri Lanka’s earnings from merchandise exports crossed the US$ 1 billion mark again in September after July, indicating that the country’s export sector is recovering at a faster pace after the brief setback caused by the curfews imposed to contain the coronavirus outbreak in April and May.

Lankan apparel workers lost over 40% of their usual wages during March-May

Sri Lanka’s apparel workers have lost estimated 40.8 percent of their usual wages or total of Rs.4.64 billion during the March-May period, when the country went into a national lockdown to contain the threat of COVID-19, according to a recent report.

JKSB optimistic over SL’s ability to return to dollar bond market

John Keells Stock Brokers (JKSB) remains optimistic about Sri Lanka’s ability to return to international capital markets to raise funds it needs as the economy normalises after the coronavirus-related lockdowns dealt a severe blow from April through May, though the fiscal condition remains a concern.

‘Ghost island’ Phuket hunkers down in tourist-free Thailand

Phuket’s go-go dancers sit playing on their phones in empty bars lining deserted streets as the Thai tourist island reels from the ravages of the pandemic with little sign of any recovery soon.

Sri Lanka’s economy to shrink 6.7% this year: WB

Hit by COVID-19-related disruptions, Sri Lanka’s economy is projected to shrink by 6.7 percent this year, recording the third highest economic contraction among the South Asian region economies, after the Maldives (-19.5) and India (-9.6), the latest World Bank report titled ‘South Asia Economic Focus’, released yesterday said.

Pathirage confident of UL pushing Sri Lanka towards ‘regional airport’ status

SriLankan Airlines Chairman Ashok Pathirage expressed confidence in the national carrier SriLankan Airlines playing a key role in making Sri Lanka a ‘regional airport’, an effort that would require positioning Colombo as an economic centre and not just a tourist destination.

Sri Lanka not going for IMF bailout: Cabraal

The government has no intention of going for an International Monetary Fund (IMF) bailout programme as there is no need for such a move as the country’s debt services have been effectively managed, Minister of Finance, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal told Parliament yesterday.

CB officially launches LANKAQR eyeing less-cash society

With 50,000 merchants already onboard, the Central Bank (CB) yesterday officially launched LANKAQR, the national QR standard for local currency payments, which would be followed by a dedicated islandwide campaign, aiming to reduce currency printing costs, promote financial inclusiveness and to nudge the country’s large informal sector to the formal sector, ultimately leading towards a less-cash society. The CB in 2018 issued QR standards for the

CSE’s ASPI outperforms all other global indexes in September

The benchmark all share price index (ASPI) of the Colombo Stock Exchange (CSE) recorded significant gains outperforming all other main indexes around the globe during the month of September. The ASPI gained 12 percent in September and in value terms by Rs.279.6 billion.

Morison opens largest pharma manufacturing facility in Sri Lanka

Morison PLC, the largest oral solid dosage pharmaceutical manufacturer in Sri Lanka and a subsidiary of Hemas Holdings PLC, ceremonially opened their new state-of-the-art manufacturing plant and research & development facility in the presence of Prime Minister Mahinda Rajapaksa, yesterday.

PM reiterates SME support to fuel SL growth story

Prime Minister Mahinda Rajapaksa reiterated government’s support for the upliftment of small and medium enterprises (SME) so that the sector can be an active player in the country’s post-COVID-19 growth story.

Govt. says Moody’s failed to recognise SL’s recovery story

The government yesterday came up with a strong response against the recent sovereign rating downgrade by Moody’s Investors Service, stressing that the international rating agency had completely ignored the current ground realities and the ongoing economic recovery of the country, after the COVID-19-related lockdowns.

Moody’s rating action raises many eyebrows

A leading asset manager yesterday questioned Moody’s untimely downgrade of Sri Lanka’s sovereign rating by two notches to Caa1 from B2, while saying it could either be an over-reaction to remedy the rating agency’s failure to downgrade the country’s sovereign rating in May, when the other two international rating agencies did, or motivated by geo-political reasons.

Moody’s downgrades Sri Lanka; outlook changed to Stable

Moody’s Investors Service yesterday downgraded Sri Lanka’s long-term foreign currency issuer and senior unsecured ratings to Caa1, from B2 and changed the outlook to stable, after more than five months since the rating agency put the country’s sovereign rating under review for downgrade on April 17.

Passing the baton!

A fun-packed event themed ‘Passing of the Baton’ was held last week to mark Kasthuri Chellaraja Wilson taking over as the Group CEO of diversified conglomerate Hemas PLC from October 1, 2020. The picture shows the outgoing Group CEO Steven Enderby passing the baton to Kasthuri, signifying the handing over of responsibilities.

EDB proposes export stimulus reward scheme for exporters

The commendable performance of Sri Lankan exporters and the resilience shown during an unprecedented COVID-19 pandemic are to be rewarded by the Sri Lanka Export Development Board (EDB) of the Ministry of Trade, through a proposed export stimulus reward scheme.

USAID-funded SL@100 launched to assist Sri Lankan mid-market firms

In an effort to make Sri Lanka a high-income earning country within 100 years of Independence, the international development agency of the United States yesterday pledged its support launching the Sri Lanka@100 initiative that is expected to contribute to the ongoing efforts of the island nation achieving equitable and inclusive growth.

Foreign employment agencies seek access to govt.’s COVID-19 relief

Battling bankruptcy amid the coronavirus crisis, Sri Lanka’s foreign employment agencies this week urged the government to extend the COVID-19 relief package granted to the tourism industry to them as well, to ensure the welfare of 1.5 million Sri Lankan migrant workers, future sustainability of worker remittance inflows and job security of their employees.

Transhipment volumes recover to pre-pandemic levels at Colombo Port

The transhipment container volumes at the Port of Colombo recovered to pre-pandemic levels in July, ending the declining trend recorded since March and leading to an overall recovery of container volumes, according to Central Bank data.

National inflation in August edges up to 6.2% on higher food prices

Prices at national level trended up during August, as the prices of food items and to a lesser degree the prices of non-food items rose, albeit the average prices at the broader economy still remain largely benign.

RPCs to launch new campaign for productivity-based wage model

With multitude of challenges hampering the plantation sector, the Regional Plantation Companies (RPCs) last week vowed to launch a renewed effort to migrate into a productivity-based wage model linked to the commodity price replacing the current outdated model.

Capital market told to step out of comfort zone and think big

The government yesterday did not mince its words to clearly lay out what is expected from the country’s capital market as the stakeholders were told to venture out from their comfort zones and work judiciously towards the development and expansion of the market.

Govt. says import restrictions imposed to honour debt repayments will pay off in long-term

The government expects the “tough” decision to honour the country’s external debt servicing commitments imposing import restrictions, which has come at the expense of living standards of the people amid a shortfall in foreign inflows due to the COVID pandemic, would be recognised by the international community including international markets.

Palihapitiya in US$ 4.8bn SPAC deal to take SoftBank-backed Opendoor public

SoftBank-backed home-selling platform Opendoor is going public through a merger with a blank-check company led by venture investor Chamath Palihapitiya in a deal that will value the combined entity at US$ 4.8 billion, the companies said yesterday.

CB takes LANKAQR countrywide

The Central Bank, together with financial institutions and LANKAQR, last weekend launched the Ratapuraama LANKAQR public awareness campaign in Matale, under the theme of ‘Mataleta LANKAQR’ (Taking LANKAQR to Matale). The chief guest of this inaugural ceremony was Deshamanya CB Governor Prof. W.D. Lakshman.

Enterprise Development Advisory Board established to support local industries

State Minister of Money, Capital Markets and State Enterprises Reforms Ajith Nivard Cabraal has appointed an Enterprise Development Advisory Board to make local industries competitive in the international market while protecting and empowering them.

WB supports Sri Lanka with US$56mn to lessen COVID-19 impacts

The World Bank has reallocated US$ 56 million from ongoing projects in Sri Lanka to protect the most vulnerable in the agriculture sector, improve COVID-19 protection measures on public transport, facilitate tele-education for school children, and provide digital solutions to improve delivery of public services. This new financing complements the US$ 128.6 million Sri Lanka COVID-19 Emergency Response and Health System Preparedness Project, whic

Lankans return to savings in record pace during pandemic

Sri Lankans have returned to save more during and in the immediate aftermath of the pandemic-induced lockdowns as they appeared to have become little more frugal in spending habits, restrained by the limited mobility and social distancing practiced to contain the virus spread.

PM tells banks to go easy on borrowers

Prime Minister Mahinda Rajapaksa, who is also the Finance Minister, has told Sri Lanka’s bank chiefs to follow a lenient policy when giving out loans.