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....

IMF team expected in Colombo next week

The International Monetary Fund (IMF) would evaluate Sri Lanka’s economic progress next week, with a team of officials expected to arrive in the country, the Finance Ministry said.

Public funds for bank recapitalisation only as last resort: CB Governor

Public funds would only be utilised as the last resort to meet the recapitalisation requirements of the banking sector to ensure stability within the financial system, the Central Bank said.

Exporters brace for a challenging 2024

Sri Lanka’s exporters are entering the new year with several concerns, National Chamber of Exporters (NCE) President Jayantha Karunaratne said, since given the current status of the local and global economic conditions, it is clear that the challenges are many. “It’s a challenging year. It will be challenging due to many reasons. As exporters, we find that the local costs have gone up significantly, which has increased our operational costs. Now

Sri Lanka stands firm among top emerging economies for investment: Ruchir Sharma

Sri Lanka has bounced back and stands firm among the top emerging economies for investment, a globally renowned investor....

Maersk pauses shipping through Red Sea after Houthi boats attack vessel

CNN: Maersk has imposed a 48-hour delay on its vessels moving through the Red Sea, following an attack on one of its merchant ships by Iranian-backed Houthi fighters based in Yemen. The US military said its helicopters responded to distress calls from the vessel — the Maersk Hangzhou — on Sunday and sank three boats operated by the Houthis, killing those aboard. A fourth boat fled the area, it said. The Danish company said in a statement that all

Central Bank resists calls to amend banks’ parate execution rights

The Central Bank recently asserted that banks’ right of parate execution must not be amended in favour of an insignificant number....

Dialog alerts consumers of price hike due to VAT increase

With revisions to the Value Added Tax (VAT) coming into effect from 1 January, telecom giant Dialog Axiata has notified its consumers of the increases that will be seen in their monthly bills.

Central Bank braces for expansionary credit cycle as worst seems behind

The Central Bank is bracing for an upcoming expansionary credit cycle, driven by the initiation of relaxed monetary policy measures, as the effects of consecutive policy rate cuts, targeted initiatives to expedite monetary policy transmission and a subdued inflation environment are gradually contributing to the easing of financial conditions.

Merchandise exports gain momentum in November

Sri Lanka’s merchandise export performance appeared to gain momentum in November compared to the previous month, signaling a potential turnaround, particularly with positive growth seen in the apparel export sector. Merchandise exports in November reached US$ 968.8 million, up 4.4 percent compared with the previous month’s performance.

B2C IT services and solutions to get expensive from Jan. 1: SLASSCOM

Procuring IT services and solutions is going to get expensive, with the Value Added Tax (VAT) coming into effect from January 1 and could create unfairness within the industry, the Sri Lanka Association for Software and Services Companies (SLASSCOM) cautioned.

VAT may push gem and jewellery industry underground: SLGJA

The imposition of an 18 percent Value-Added Tax (VAT) on Sri Lanka’s gem and jewellery sector poses a threat to its sustainability....

SLBA defends use of parate execution

Sri Lanka’s banking fraternity yesterday expressed serious concerns on certain segments of the business community advocating for the removal of parate execution, cautioning that any such move would weaken the value of depositors’ funds.

Timing of VAT hike raises concerns among tax experts 

As the government is leaving no stone unturned to increase tax revenue, experts in the field asserted that while doing away with Value Added Tax (VAT) exemptions is necessary, the authorities couldn’t have picked a worse time to implement the policy.

Tea exporters express grave concern over implementation of VAT on tea trade

The Tea Exporters Association (TEA) yesterday expressed grave concern over the introduction of the 18 percent Value Added Tax (VAT) on the industry and the practical issues it is bound to create, unless a mechanism is put in place to ensure the seamless functioning of the tea value chain, in light of the VAT issue.

Construction sector contraction continues despite modest overall economic rebound

Despite a modest rebound in the overall economy in the third quarter, Sri Lanka’s construction sector, a crucial segment known for generating significant employment across all levels, has continued to contract.

Growth in private sector credit extends to fifth consecutive month in October

Banks extended Rs.37.9bn in net credit to private sector in Oct., compared to Rs.70bn in Sept.

CB Governor makes sense of what predictability is for those who complain of its lack

For businesses and investors consistently concerned about the lack of predictability in tax rates and interest rates, Central Bank Governor Dr. Nandalal Weerasinghe had a straightforward response—what they perceive as predictability may not align with reality.

SL exits recession with 1.6% economic growth in 3Q

Sri Lanka has emerged from a nearly two-year recession that had impacted the economy and its people as the gross domestic product for the third quarter of 2023 recorded a 1.6 percent growth from the same period a year ago.

IMF wants SL to secure debt treatment deals with creditors ahead of second review in June

Sri Lanka needs to enter into agreements with its official and commercial creditors, prior to the second review of the US $ 3 billion International Monetary Fund (IMF) bailout, IMF Senior Mission Chief for Sri Lanka Peter Breuer told reporters via a virtual press conference, yesterday. According to Breuer, the second review is likely to be concluded by the end of the first half of next year. Following the Executive Board of the IMF, completing th

Sri Lanka ranks among top five most unequal nations in Asia Pacific region

Fragile and uneven economic recovery has further exacerbated income and wealth inequalities in the country, placing Sri Lanka among the top five most unequal countries in the Asia Pacific, according to the United Nations Development Programme (UNDP).

Dimantha Seneviratne to retire from NDB; Kelum Edirisinghe to take helm

National Development Bank PLC (NDB) yesterday announced the retirement of its Director/Group CEO Dimantha Seneviratne and the appointment of Kelum Edirisinghe as his successor. According to the stock market disclosures filed, NDB, following the expiration of his fixed-term contract on January 31, 2024, Seneviratne will step down from his roles as Group CEO/Executive Director, after having completed seven years with the bank. The filing said Senev

Concerns mount as SL considers removing VAT exemptions for local digital companies

As Sri Lanka moves closer to eliminating almost all Value-Added Tax (VAT) exemptions, concerns have been raised about....

ADB approves US $ 200mn concessional loan to SL

The Asian Development Bank (ADB) announced yesterday the approval of a US $ 200 million concessional loan to Sri Lanka, under the Financial Sector Stability and Reforms Programme.

Minimum Room Rate will not remain for long: Harin

Tourism Minister Harin Fernando this week signaled that the recently reintroduced Minimum Room Rate (MRR) for Colombo city hotels will not remain for long, and the industry is expected to operate based on market forces.

President calls for regular property valuation cycle to bolster tax system

President Ranil Wickremesinghe has advocated for a systematic property valuation cycle, to enhance Sri Lanka’s tax system, proposing assessments to be conducted every five years. He expressed this stance during the centenary celebration of the Government Valuation Department. Recognising the positive impact such assessments can have on tax collection, he commended the department’s strides in digitalisation, acknowledging the efforts made in thi

January-September budget deficit widens despite increased tax revenues

Despite increased tax revenues, Sri Lanka’s budget deficit widened in the first nine months to September 2023 compared to the same period last year, driven by a surge in expenses amid sharply rising prices.

November records highest tourist arrivals since pandemic outbreak

November has recorded the highest tourist arrivals for the year so far, bringing in a total of 151,496 international visitors. However, despite much confidence of the tourism authorities, the monthly target was missed by 25 percent.