ADB forecasts 22% drop in worker remittances

The Asian Development Bank (ADB) forecasts a 21.9 percent drop in worker remittance inflows to Sri Lanka this year, under the worst-case scenario, driving many remittance recipient households into poverty.

Asian markets sink as dour US data reinforces worries over virus

Asian markets struggled and the dollar extended losses yesterday as data showing the US suffered its worst quarter on record highlighted the impact of the virus on the global economy.

Pro-rate wages pact likely to be further extended: EFC

The tripartite agreement applicable to all industries that was extended till September is likely to be further extended as private sector businesses that were dealt a crippling blow by the pandemic have appealed for further assistance in dealing with their workforce.

JKH 1Q succumbs to pandemic-related biz disruptions

John Keells Holdings PLC (JKH) succumbed to the pandemic-induced business disruptions during the April-June 2020 quarter (1Q21), as the lockdowns, which remained for half of the quarter, erased nearly a third of its revenues, plunging the group deep into red.

Slowdown in worker remittances puts dampener on growth: Moody’s

The slowdown in worker remittances resulted from the pandemic could weigh on economic growth of countries heavily dependent on the foreign income flow as it could cut into the incomes, consumption and thereby the investments of recipient economies raising their credit risk, cautioned Moody’s Investors Service.

Freight rates spike seen cooling off

The freight rates out of Colombo, which hit an all-time high during the islandwide lockdown, are observed to be tapering down close to pre-COVID-19 levels, the Sri Lanka Logistics and Freight Forwarders Association (SLLFFA) said.

Decline in private sector credit decelerates in June

The decline in the private sector credit in June decelerated from May indicating that the banking sector is ramping up fresh credit to the private sector under both the Central Bank’s refinance credit scheme and from their own funds.

Vying to become safe tourist destination

A woman sunbather sitting along a beach in the Gulf emirate of Dubai yesterday, while the Burj al-Arab hotel is seen behind.

Turmeric sold at exorbitant prices due to massive shortage

Sri Lanka is currently facing a massive shortage in turmeric in the country leading traders to sell the processed spice via informal channels at prices that are over five fold higher than the government imposed maximum retail price (MRP).

First half tea production hits 20-year low

Sri Lanka’s tea output in the first half of 2020 hit a 24-year low amid severe drought, particularly in the first quarter, impacting the Low-Country tea production, which accounts for about 60 percent of the national tea output.

Fitch-rated firms here estimated to lose Rs.30bn in revenue to pandemic

Fitch Ratings has estimated that the Sri Lankan corporates rated by it could lose up to 7 percent or Rs.30 billion in revenues during the financial year ending in March 2021 from a year earlier, with the COVID-19 pandemic taking a toll on industries and businesses leaving only a few unscathed, before staging a recovery in the following year.

Lankan banks’ operating environment deteriorates

Fitch Ratings Lanka yesterday reminded that the operating conditions for the banking sector have weakened, exerting further pressure on banks’ ratings, after the rating agency downgraded the country rating in April, citing heightened public and external debt sustainability challenges caused by the pandemic-induced economic difficulties and the tax cuts late last year.

Merchandise exports rebound in June as exporters rise up to occasion

Sri Lanka’s merchandise exports recovered strongly in June, staging what looks like a V-shaped recovery in most of the sectors, as the country’s exporter community responded to the call to ramp up their contribution to support the economy and employment.

Iran proposes to operate direct flights to Sri Lanka

The Ambassador of the Islamic Republic of Iran, Hashem Ashjazadeh called on the Chairman of Civil Aviation Authority of Sri Lanka (CAASL) Upul Dharmadasa at the Civil Aviation Authority recently.

China’s 2Q GDP grows 3.2%, beats expectations

China’s economy returned to growth in the second quarter after a deep slump at the start of the year, but unexpected weakness in domestic consumption underscored the need for more policy support to bolster the recovery after the shock of the coronavirus crisis.

Right balance between credit growth and system stability urged

The extremely dovish monetary policy and liquidity injections into the system may be required to resuscitate the pandemic-hit economy, but that should not undermine the strength and stability of the financial institutions as excessive credit could increase credit risks of the system, specially at a time when certain rules on capital, liquidity and supervisory requirements are relaxed, according to ICRA Lanka.

Funding sources broadened, loans offered to lure more forex into Special Deposit Account

Sri Lanka broadened the funding sources that can be collected into the Special Deposit Account (SDA) and made possible cash-backed loans against such deposits, in a further attempt to lure foreign currency deposits, as the Monetary Board and government work together to bolster the country’s foreign currency reserves.

SL Police gets Rs.340mn Japanese grant to reinforce anti-narcotic activities

Based on a request by the Government of Sri Lanka (GoSL), the Government of Japan has agreed to provide a Japanese yen 200 million (approx. Rs.340 million) grant, under the Japanese non-project grant aid scheme, for provision of the necessary equipment to strengthen the investigation and detection capacities of drugs and related anti-narcotic activities of Sri Lanka Police.

Local value addition industries not denied of imports, says CB

It is inaccurate to say that import controls have hamstrung the local manufacturers and will impinge economic growth, as those who are engaged in domestic value addition industries can continue to import the required inputs, while essential industries such as agriculture and pharmaceuticals among others have also been freed from any restrictions, the Central Bank (CB) said.

CB approves Rs.60bn in loans for COVID-hit biz

The Central Bank of Sri Lanka (CBSL) had approved 22,306 loans amounting to Rs. 60, 250 million under the Saubagya COVID-19 renaissance facility as of yesterday with approval given for 2,066 new loans, amounting to Rs. 6,978 million during the week ended July 10, 2020.

CB expects economy to rebound in second half

The Central Bank (CB) anticipates a strong economic rebound in the second half of this year from the expected contraction in the second quarter due to COVID-19 related lockdown, although the growth projection of 1.5 percent could be subject to revisions in future.

Committee makes proposals to address irregularities in finance and leasing businesses

In view of the recent developments in the finance leasing business, Central Bank Governor Prof. W.D. Lakshman appointed a three-member committee to examine and report on the irregularities and illegal activities of the finance and finance leasing businesses and to make recommendations to curtail such activities.

CB begins process to develop PoC of blockchain-based shared KYC facility

The Central Bank of Sri Lanka (CBSL) yesterday entered into agreements to begin the process of developing blockchain technology-based shared know-your-customer (KYC) proofs of concept (PoCs).

Dart Global to set up US $ 3mn logistics fulfilment centre in Muthurajawela

Dart Global Logistics (DGL) has signed an agreement with the Board of Investment (BOI) to set up a US $ 3 million state-of-the-art logistics fulfilment centre, at the Muthurajawela Industrial Zone, located in Kerawalapitiya, Wattala.

Loans under CB liquidity support scheme gather steam

Loans under the Central Bank liquidity support scheme to assist pandemic-affected businesses gathered steam as of late as the banking sector regulator granted approval for 6,314 new applications for Rs.25.3 billion worth loans at 4 percent during the eight days from June 25 to July 2.

President tells bankers to go grassroots

In order to develop villages, the banking service in the country should understand the rural economy and the needs of the people, President Gotabaya Rajapaksa emphasized.

January-April vehicle registrations plunge

Vehicle registrations fell by nearly 40 percent during January through April as import controls went into effect from mid-March and the lockdowns prevented new registrations during April, according to Department of Motor Traffic data.

WB announces new Country Manger for Sri Lanka

The World Bank has announced Chiyo Kanda as the new Country Manager for Sri Lanka.

World Bank announces new Country Director for Sri Lanka

The World Bank yesterday announced the appointment of Faris Hadad-Zervos as the World Bank’s new Country Director for Sri Lanka, the Maldives and Nepal, effective from July 1, 2020.

BOC eyes fresh US$ 300 mn facility to strengthen balance sheet

State-owned banking giant Bank of Ceylon (BOC) is set to receive a fresh injection of US$ 300 million from multilateral lenders within the year, an influx that would assist in further strengthening the bank’s balance sheet.