Dairy sector makes fresh bid to reconsider VAT rollout

Sri Lanka’s dairy stakeholders urged the government to reconsider the decision to increase the Value Added Tax (VAT).

January tourism revenue soars to pre-pandemic peak

In a promising sign for Sri Lanka’s economy, tourism earnings soared to a pre-pandemic peak of US$ 341.8 million in January....

MSMEs accuse Central Bank of misleading government on parate execution standoff

The Sri Lankan Micro Small and Medium Chamber of Commerce continues to remain irked with the Central Bank for its strong position on parate execution and this time took a step further by alleging the governor is misleading the government and public in this regard. The chamber asserted that Central Bank Governor Dr. Nandalal Weerasinghe is painting the wrong picture regarding the execution data, w

Banks welcome move to ease Standing Facilities restrictions

Sri Lanka’s banking sector yesterday welcomed the move by the Central Bank to relax the restrictions imposed on Standing Facilities to Licensed Commercial Banks (LCBs) under Open Market Operations (OMOs) as it will help improve liquidity. Sri La

Prez pledges debt restructuring framework within six months

As Sri Lanka strives to come out of its debt vulnerability, the government assured efforts are underway to implement a debt restructuring framework within the first half of the year 2024. President Ranil Wickremesinghe, while detailing out the progress achieved in the nation’s economy since he took leadership, noted that the restructuring plan is poised to form the foundational framework for restoring Sri Lanka’s economy to normalcy. “It will ser

Outdated maritime laws hampering Sri Lanka’s hub goals: Dr. Gunasekara

Sri Lanka’s aspirations to become a maritime hub are facing setbacks due to delays in ratifying crucial maritime conventions and updating national legislation, according to a prominent maritime law expert.

Sri Lanka tourism booms in January

Sri Lanka’s tourism industry marked a resounding start to the new year by receiving more than 200,000 international visitors throughout the month of January.

Untax the readers! Sri Lanka’s book industry rebels against 18% VAT

Sri Lanka’s book industry yesterday came on to one platform and asserted that the imposition of an 18 percent Value Added Tax (VAT) on books is no different from slapping a tax on reading. The industry collectively called for an immediate reversal of the decision to tax the sale of books, as it serves as a direct barrier to gaining knowledge. Associations representing local publishers, printers, booksellers, importers, writers and academics highl

SOE legislation to be enacted within first half of 2024: SOERU Chief

Marking another milestone in Sri Lanka’ State Owned Enterprises (SOEs) reform journey, plans are afoot to enact the draft SOE Act by the first half of 2024, granting the much needed legislative authority and operational effect to the SOE reform pr

Low export earnings, high import expenditure widen December trade deficit

Sri Lanka’s merchandise trade deficit widened in December 2023 when compared with the corresponding month in 2022, due to the combined impact of low export earnings and high import expenditure. The data released by the Central Bank showed that the deficit in the merchandise trade expanded to US $ 487 million in December 2023, from US $ 358 million in December 2022. In November 2023, the deficit in the merchandise trade account narrowed to US $ 39

IMF backed high tax regime could give further rise to informal economy: Dr. Palmer

A top free market capitalist this week cautioned that the current International Monetary Fund (IMF)-backed high tax regime could give further rise to informal economy​ in Sri Lanka, thereby slowing down the economic recovery and ultimately narrowing the tax base.

Export sector shows dampened growth in 2023

The cumulative merchandise exports during the January to December 2023 period dipped to US $ 11.85 billion when compared to the corresponding period in 2022. The island nation saw its total exports reach US $ 14.94 billion in 2023, including merchandise exports (US $ 11.85 billion) and estimated service exports (US $ 3.08 billion), the Export Development Board (EDB) said. While the monthly exports were showing some signs of momentum gained in No

Colombo Stock Exchange poised to become one of top performing frontier markets

Despite a lackluster start, the Colombo Stock Exchange is on track to become one of the top-performing frontier markets. According....

Sri Lanka cannot simply walk away from IMF: Ranil

Sri Lanka cannot simply dismiss its engagement with the International Monetary Fund (IMF), President Ranil Wickremesinghe emphasised while citing the complexities that could arise, if a decision is made to do so.

President Wickremesinghe envisions SL as key player in global confectionery industry

President Ranil Wickremesinghe this week expressed unwavering confidence in Sri Lanka’s potential to play a pivotal role in the global confectionery industry. Emphasising the need for local stakeholders to broaden their horizons, he urged concerted efforts to position Sri Lankan chocolates as world-class products, akin to the distinguished reputation of the country’s tea and cinnamon. Speaking at the 30th Annual General Meeting of the Lanka Confe

Colombo Port sees modest recovery in container throughput despite global uncertainties

The container throughput at the Port of Colombo experienced a modest recovery in 2023, rebounding from the effects of the economic crisis and political and social unrest of the preceding year.

Central Bank maintains key policy rates amidst inflation concerns

In line with widespread predictions, the Central Bank opted to keep its key policy rates unchanged at 9 and 10 percent during its inaugural Monetary Policy announcement for the year.

Apparel industry sees significant performance contraction in 2023

Sri Lanka’s largest industrial exporter, the apparel sector, saw its performance for the whole of 2023 dip significantly, with its earnings contracting by 19 percent year-on-year (YoY).

IMF reminds Sri Lanka to seal agreements with creditors before second review

Sri Lanka’s reform initiatives garnered positive feedback from the visiting International Monetary Fund (IMF) team during their recent routine assessment. However, despite this encouraging development....

IMF applauds Central Bank’s triumphs over inflation but urges prudent policy ahead

Leveraging the effectiveness of the Central Bank of Sri Lanka on the control over inflation, the International Monetary Fund (IMF) emphasised the importance of maintaining a prudent approach in future monetary policy decisions.

COPF slams Finance Ministry, IRD for failure to collect taxes from major corporations

The Committee on Public Finance (COPF) slammed the Ministry of Finance and the Inland Revenue Department for failure to collect foregone taxes from major corporations connected to the sugar scam as outlined in the forensic report by the

Ceylon Tea cuppa to face short-term constraints in 2024: Industry outlook

The Ceylon Tea cuppa is expected to face short-term constraints as it steers through 2024 but the regulatory initiatives and global trends are expected to shape the industry’s outlook, the tea brokers said. The enforcement of the B60 programme, which mandates the tea growers and manufacturers to adhere to enhanced standards for green leaf production, is anticipated to temporarily constrain the availability of tea, according to the insights from

Sri Lanka tourism records stellar performance: Over 100,000 visitors flock in first 15 days of January

Tourist arrivals to Sri Lanka crossed the 100,000 milestone within the first 15 days in January, signaling a remarkable spike in global interest in the island nation.

Central Bank Chief challenges notion of development banks for SME support

The banks are set to receive guidelines for the establishment of business revival units, aimed at assisting the small and medium enterprises (SMEs) affected by the recent crises.

Central Bank to review existing capital account restrictions on foreign exchange

The Central Bank will review the remaining restrictions on the outflows from the capital account and gradually start lifting them by taking into account the domestic market foreign exchange liquidity condition improvement. “With the observed improvements in the liquidity position of the domestic foreign exchange market, the Central Bank would review the existing restrictions on certain capital foreign exchange outflows on a priority basis, with a

VAT exemption for DMCs under consideration

The government expressed confidence in the International Monetary Fund (IMF) exhibiting flexibility by overturning the elimination of VAT exemption for Destination Management Companies (DMCs)

CBSL maintains easing stance amid stable inflation, lingering growth concerns

The Central Bank yesterday said it does not see the need to change the course of the current monetary policy path set off in June last year, as inflation remains well anchored, despite the near-term blips in the price indices, due to the recent hike in the Value Added Tax.

Colombo Port sees transshipment volumes surge with Red Sea crisis

The Port of Colombo is experiencing a surge in transshipment container volumes as it emerges as a transit point in the short term for major shipping lines to reroute their vessels around the Cape of Good Hope, a move opted to avoid disruption to shipments following the recent attacks on vessels in the Red Sea.

Japan urges SL to speed up inking MoU with creditors

Japan, one of Sri Lanka’s main creditors, asserted the need for Sri Lanka to speed up efforts in inking the memorandum of understanding (MoU) with its creditor nations on debt restructuring at the earliest.

Jaffna biz community set to receive fresh boost

Business in Jaffna is expected to receive a fresh boost this year with President Ranil Wickremesinghe assuring that their grievances will be addressed without fail. Wickremesinghe....