Fresh blow to hotel sector as electricity tariffs rise again

The local hotel sector is facing another jolt with Sri Lanka announcing another electricity tariff increase, which came into effect on October 21.

Extra effort required from SL to draw FDI in current tough investment climate

Sri Lanka is expected to witness modest growth in the years ahead, but it will have to go the extra mile to not only retain existing investors but harder still, to attract fresh investments in the current....

Facilitating non-state HEIs can save Rs.50bn in forex annually: Think tank

Sri Lanka has not been entirely open to establishing non-state higher education institutions (HEIs), especially for the medical but facilitating such entities would help the island nation save about Rs.50 billion in foreign exchange annually, the Institute of Policy Studies (IPS) said.

Sri Lanka looks to strengthen trade ties with Asian nations for development and prosperity

Sri Lanka is looking to enter into more trade agreements with Asian nations to enhance its trade integration across South, Southeast and East Asia, as the country seeks to improve its economic prospects. The President’s of

Think tank calls for urgent policy action to tackle brain drain

As Sri Lanka continues to deal with the outflux of its talent pool, largely owing to the prevailing economic conditions, the Institute of Policy Studies (IPS) stressed the need to look at designing an appropriate mix of policies to address labour and skill shortages at the earliest.

Apparel exports decline drives down Sept. export earnings below US$ 1bn

Sri Lanka’s export performance continues to remain overshadowed by declining apparel exports, with merchandise export income in September plummeting by 12 percent year-on-year (YoY) to US$ 951.5 million, marking the first time it has fallen below the US$ 1 billion mark in four months.

CEB restructuring bill likely to reach Cabinet next week

Sri Lanka’s proposed power sector reforms may reach the Cabinet of Ministers by next week, as the Attorney General is expected to clear the bill to restructure the Ceylon Electricity Board (CEB) this week, Power and Energy Minister Kanchana Wijesekera said yesterday.

Sri Lanka-China FTA nears reality after decade of negotiations

Sri Lanka and China will finally ink the long-awaited Free Trade Agreement (FTA) that has been in the talks for nearly 10 years, paving the way for improved trade between the two nations. In a joint statement....

SL voices serious reservations regarding bondholders’ macro-linked bond proposal

The Finance Ministry this week said it does not find the statement made by the Ad Hoc Group of Bondholders last week acceptable, which proposed the provision of upfront debt relief, including the issuance of macro-linked bonds (MLBs).

ICC pledges support for Sri Lanka’s reform drive to address debt crisis

The International Chamber of Commerce (ICC) has pledged its commitment to support Sri Lanka in its domestic reform programme, with the aim of swiftly resolving the current debt crisis while minimising the impact o

Govt. calls for private sector participation in labour law reform for modernisation

While Sri Lanka is in the process of reevaluating its outdated labour laws, which do not align with the current global trends and developments, the Labour Ministry is urging the country’s private sector to actively engage in and support the forthcoming reforms.

Think tank warns of election-induced challenges to SL’s economic recovery

Colombo-based economic think tank, the Institute of Policy Studies (IPS), has issued a cautionary note in its latest publication, suggesting that the upcoming elections next year could potentially disrupt the necessary reforms required for the country to achieve a sustainable economic recovery. As Sri Lanka faces economic difficulties, with presidential elections approaching in 2024, there may be resistance to austerity and reform measures driven

Manufacturing slows amid sluggish demand, eased import restrictions

Sri Lanka’s manufacturing activities continued to contract in the month of September, amid sluggish consumer demand and increased availability of imported good in the market at competitive prices, presumably due to the phased lifting of import restrictions by the government. The Manufacturing PMI recorded an index value of 45.7 in September, indicating a contraction in manufacturing activities. An index value below 50 indicates a co

No new taxes in 2024 budget, confirms Siyambalapitiya

Sri Lanka will not be looking to impose new taxes on people in the upcoming budget to boost government revenue to meet the International Monetary....

SL bondholders sent US $ 12bn debt rework proposal to government- sources

Sri Lanka’s private creditors have sent a proposal on how to restructure US $ 12 billion of overseas debt, including a new type of bond designed to ease repayments in case of future economic pressure, said two sources with direct knowledge of the matter.

Dialog Axiata successfully trials Voice over 5G (VoNR) service for first time in Sri Lanka

Dialog Axiata PLC, the first telecommunications service provider in the South Asian region to demonstrate 5G capabilities in 2018, announced the successful completion of the first-ever trial of the Voice over New Radio (VoNR) se

Ceylon Chamber and IT industry stakeholders raise concern over sluggish Digital ID progress

The Ceylon Chamber of Commerce, together with the IT industry stakeholders, yesterday expressed concern over the continued delays in implementing the Digital ID system, which they said could propel the transformation of the Sri Lankan economy.

Advocata says SOEs Trojan horses of corruption, not national assets

Colombo-based free market think tank Advocata Institute yesterday asserted that despite being marketed as national assets, Sri Lanka’s State-Owned Enterprises (SOEs) are in fact, vehicles for corruption, akin to a Trojan horse. Rehana Thowfeek, a Research Associate at the Advocata Institute, highlighted that the primary objective of SOEs is to deliver affordable and fair services. However, in practice, these entities are structured to favour poli

Move to designate INR yet to spark interest among importers and exporters

Despite Sri Lanka making the Indian rupee (INR) a designated currency in August and several local banks opening up INR nostro accounts, the demand for INR among Lankan importers and exporters remains tepid, according to Central Bank Governor Dr. Nandalal Weerasinghe.

Unemployment up at 5.2% in 2Q; labour force participation slips

Sri Lanka may need additional policy support and favourable economic environment to create more job opportunities Sri Lankans ....

Sri Lanka races against time to avert greylisting by FATF

Sri Lanka runs at the risk of being designated as a greylisted/blacklisted country, if it fails to implement all the recommendations put forward by the Financial Action Task Force (FATF) before March 2025, the Financial Intelligence Unit (FIU) of the Central Bank said.

CB expects completion of IMF review by Oct-Nov. despite signs of delay

The Central Bank yesterday said it will stick to the timelines already announced for the completion of the first review of th

Dissent continues over Minimum Room Rate

The sharp division within Sri Lanka’s tourism industry on the implementation of the Minimum Room Rate (MRR) became even more apparent yesterday, as the key industry stakeholders voiced their profound discontent about the move, charging that it was implemented to cater to the “vested interests” of certain hoteliers. Holding a press conference in Colombo, yesterday, they slammed the Sri Lanka Tourism Development Authorities (SLTDA) for not taking

CB confident of swift IMF review completion and second tranche disbursement

The Central Bank is confident the successful completion of the first review of the Extended Fund Facility (EFF) shortly would ensure ....

WB raises Sri Lanka’s growth forecast, but says significant downside risks remain

While revising Sri Lanka’s growth forecast upwards for next year, the World Bank (WB) yesterday called for improved revenue mobilisation for sustainable fiscal stability, as significant downside....

Tourist arrivals surpass 100K in Sept.; China ranks second in tourist traffic

Sri Lanka reached the 100,000 tourist arrival mark in September, marking the eighth month of 2023 this milestone was achieved.

IMF unveils 16-point plan to address governance challenges in Sri Lanka

The International Monetary Fund (IMF) has recommended sixteen priority actions in its recently released Governance Diagnostic Assessment (GDA) on Sri Lanka to address systematic and severe governance....

Some Sri Lanka creditors seeking debt restructuring deal minus China: Bloomberg

Some members on the committee of Sri Lanka’s official creditors are pushing to reach a deal to restructure the nation’s debt without....

Exports top US$ 1bn in August, yet apparel sector slump continues

Despite total merchandise export income surpassing US$ 1 billion, the export lag persisted into August, primarily attributable to the lackluster performance of Sri Lanka’s largest industrial export sector, apparels & textiles.

Lubricant market shrinks in 2Q as economic activity yet to pick up pace

Sri Lanka’s lubricant market contracted in the second quarter of the year on a year-on-year (YoY) and a quarter-on-quarter (QoQ) basis, reflecting the reduced activity level in economy, following the unprecedented economic crisis that gripped the country last year.