CB tells non-compliant banks to align interest rates with October targets

Banks, which have not yet aligned their interest rates with the October targets, have been explicitly notified to promptly make the necessary....

Bondholders raise transparency issues over SL’s debt deal with official creditors

Sri Lanka’s bondholders yesterday expressed concerns about the poor transparency on the debt restructuring agreement reached between the government and creditors and stressed the need for engagement.

Apparel exporters call for transparent cashless refund system amid plans to abolish SVAT

Sri Lanka Apparel Exporters Association’s (SLAEA) re-appointed chairman Indika Liyanahewage reiterated the significant challenge posed by the proposed abolition of Simplified Valued Added Tax (SVAT), asserting the need to bring in accepta

Treasury Secretary confident in achieving 2024 tax revenue target

Treasury Secretary Mahinda Siriwardana yesterday expressed confidence in the measures taken by the authorities to increase government revenue through taxation, bringing about a positive outcome next year. While the tax reforms implemented from the middle of last year caused a shock to the business community and public, Siriwardana emphasised that such measures were essential for fiscal consolidation. “Next year we are expecting growth to come to

President issues wake-up call to private sector; stresses need to break dependency cycle

President Ranil Wickremesinghe delivered a stern message to Sri Lanka’s private sector last evening at an event organised by the Ceylon Chamber of Commerce, questioning the nation’s prolonged dependence on seeking assistance from other countries.

October sees 20% decline in apparel exports

The apparel exports from Sri Lanka continued their downward trend, with October exports declining 20 percent year-on-year (YoY) to US $ 330.95 million, the data compiled by industry body Joint Apparel Association Forum (JAAF) showed.

CB chief shrugs off growth concerns from higher taxes

After cutting rates for the fourth time last week to spur economic growth, Central Bank Governor Dr. Nandalal Weerasinghe said he doesn’t think the higher taxes are going....

CB cuts rates further to spur growth as inflation remains anchored

Defying the expectations of market participants for a pause in the rate cuts at this week’s monetary policy meeting, the Monetary Policy Board delivered another 100-basis-point rate cut yesterday, bringing the total reduction in policy rates to 650 basis points since they initiated the rate-cutting campaign in June this year.

Prez charts bold vision for SL’s agriculture sector revitalisation

In a momentous speech delivered at the 25th Presidential Awards of the Export Development Board (EDB) held yesterday in Colombo, President Ranil Wickremesinghe unveiled an extensive plan to rejuvenate Sri Lanka’s agricultural sector for export. President Wickremesinghe emphasised the necessity of modernising agricultural practices and enhancing research capabilities. The proposed restructuring involves revamping existing agricultural research i

John Keells Group inks exclusive distribution deal with China’s BYD

Diversified blue-chip John Keells Group has been appointed as the exclusive distributor of BYD passenger vehicles in Sri Lanka.

SL says ready for BRI second phase; China keen on extending CMEC

Sri Lanka has conveyed its preparedness for the second phase of the Belt and Road Initiative, with China expressing a keen interest in extending the China-Myanmar Economic Corridor (CMEC) to include Sri Lanka.

National inflation slightly accelerates to 1% in October

Consumer prices, as measured by the National Consumer Price Index rose 1 percent in the 12 months through October 2023, a slight uptick from the 0.8 percent in September as inflation, having reached its lowest point last month due to higher base effects last year, may have bottomed out.

SL says ready for BRI second phase; China keen on extending CMEC

Sri Lanka has conveyed its preparedness for the second phase of the Belt and Road Initiative (BRI), with China expressing a keen interest in extending the China-Myanmar Economic Corridor (CMEC) to include Sri Lanka.

SL told to impose cash transaction cap to widen tax base

Among the various proposals suggested by experts to broaden the tax base, one recommendation that stood out was the potential....

November sees steep increase in tourist arrival rate

Sri Lanka tourism is witnessing an impressive performance in the fourth quarter of 2023 (4Q23), with tourist arrivals to the island nation increasing sharply in the first half of the month of November.

Drafting of new legislation underway to cement fiscal reforms: Treasury Secy.

In order to prevent the potential reversal of the progress achieved on the fiscal front and solidify the reforms implemented since last year, a string of new legislation is being drafted and some in their final stages before proceeding to parliament for approval, a top government official said.

Sri Lanka faces uphill battle in meeting 2024 budget targets: Fitch

The targets laid out in Sri Lanka’s 2024 budget, particularly with regards to revenue and fiscal defect, would be challenging to meet even with the economic recovery that is expected to continue next year, Fitch Ratings yesterday said.

Budget 2024 likened to a ‘fairy tale’ amid unrealistic revenue targets

President Ranil Wickremesinghe openly recognised the 2024 budget as an election-oriented one, though calling it different from previous election budgets.

Budget proposes slew of admin measures to boost tax revenues

The budget also said the government would introduce a special penal provision to prosecute those who have not submitted tax returns and information required by the tax officials. Further, the documentary evidence called by the tax officials but not submitted within a reasonable time period will also not be allowed to submit during the hearing at the Tax Appeals Commission.  “Relevant Provisions in the Tax Appeals Commission Act, No.23 of 2011, wi

Think tank calls for end to executive discretion to boost govt. revenue in 2024 budget

The Colombo-based economic think tank, Verité Research, has identified the removal of executive discretion over tax changes as a crucial measure that should be incorporated into the 2024 budget....

SL’s banking sector to get a boost with WB’s new US $ 150mn financing

Sri Lanka is set to receive fresh financing, with the World Bank’s Board of Executive Directors giving the nod to release US $ 150 million to strengthen the island nation’s resilience in the financial sector.

Property tax likely to be chosen over comprehensive wealth tax: KPMG

As Sri Lanka explores various avenues to enhance its tax revenue, it is likely that the country will opt for a property tax instead of implementing a comprehensive wealth tax, according to KPMG Sri Lanka.

U.S. DFC commits US $ 553mn to develop Colombo West International Terminal

U.S. International Development Finance Corporation (DFC) yesterday said it would lend US $ 553 million to develop Colombo West International Terminal (Pvt.) Ltd (CWT), a deep-water shipping container terminal in the Port of Colombo. India’s largest port operator Adani Ports and SEZ holds 51 percent of CWT, which it is developing with Sri Lanka’s premier blue chip John Keells Holdings PLC (JKH) and state-run Sri Lanka Ports Authority (SLPA). JKH

John Keells September quarter stung by heavy exchange losses

John Keells Holdings PLC (JKH) saw its revenues decline and bottom line turning to negative in the three months through September 2023 ....

Private credit expands for fourth straight month in September

Credit to the private sector expanded for the fourth consecutive month in September, in line with the expectations of the Central Bank, which has slashed the policy rates significantly to spur growth. As per the data released by the Centra Bank, private credit expanded by Rs.69.7 billion in September, significantly up from Rs.5.5 billion in August.

Sri Lanka continues to flout key principles of tax policy: economist

Although Sri Lanka’s tax system saw some improvement with the reforms implemented in 2022, the island nation still violates all key principles of tax policy, a senior economist said.

SL needs to create a culture of respecting CBSL’s operational independence: Dr. Coorey

The passage of the Central Bank of Sri Lanka Act is a significant milestone on the path to achieving good governance in the conduct of monetary policy but insulating the conduct of monetary policy from fiscal and political pressures, especially in the upcoming election year, would not be the responsibility of the monetary watchdog alone, asserted a top economist. Presidential Advisor and former International Monetary Fund Director Dr. Sharmini Co

High electricity tariffs, taxes keeping investors away from Sri Lanka: minister

The escalating cost of operations in the country is making Sri Lanka an unappealing destination for doing business, where now convincing investors to look at the island nation is a fresh challenge, the minister in charge of investment promotions said.

Economy still on a knife edge, leaving no room for policy reversals: Dr. Coorey

The economic crisis in Sri Lanka may seem to have mellowed from what it was when it erupted in 2022 but the island nation still stands on a knife edge and there’s simply no room for setting off policy reversals, asserted a top economist, yesterday.

Govt. to raise VAT to 18%  to meet IMF revenue targets

The government yesterday announced plans to hike Value-Added Tax (VAT) to 18 percent from the current 15 percent to meet the revenue targets set by the International Monetary....