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.

ETCA talks set to resume towards end of October

Chief FTA Negotiators from both countries hold virtual meetings to discuss resumption Previous negotiations....

Vehicle importers decry govt.’s planned exclusive electric vehicle tariff exemption

Sri Lanka’s vehicle importers this week cried foul of the government’s move to permit electric and hybrid electric vehicle imports with zero tariff to one company, under the guise of electric and hybrid vehicle assembling in the country, which they claimed could deprive the state coffers billions of rupees while causing a massive foreign exchange outflow during the next two-year period.

IMF chief receives firsthand insights from Ranil on SL’s debt restructuring progress

International Monetary Fund (IMF) chief Kristalina Georgieva yesterday received firsthand insights on Sri Lanka’s progress in its reforms efforts with President Ranil Wickremesinghe sharing details on key economic matters.

US-SL TIFA discussion puts spotlight on need for improved transparency to boost FDI

In a bid to further strengthen trade relations between Sri Lanka and the United States, both nations asserted the need to improve transparency and efficiency in approving foreign direct investment (FDI) in the island nation.

Subdued apparel export performance continues into month of August

Dampened performance continues for Sri Lanka’s apparel sector with exports proceeding to move along the negative growth trajectory. For the month...

US TIFA talks affirm resilience of Sri Lanka: US Ambassador Chung

The United States (US) coming to Sri Lanka to discuss bilateral trade and investment speaks not only to the resilience of the Sri Lankan people but also to the hard work of Sri Lanka’s dedicated public servants, US Ambassador to Sri Lanka Julie Chung said. Addressing the 14th Council Meeting of the Trade and Investment Framework Agreement (TIFA) in Colombo yesterday, Chung noted that the challenge looking ahead for Sri Lanka is not just one of su

Economy contracts by 3.1% YoY in 2Q23

Sri Lanka’s Gross Domestic Product (GDP) growth rate for the second quarter of 2023 (2Q23) contracted by 3.1 percent, the Department ....

Fitch downgrades SL’s Long-Term Local-Currency IDR to ‘Restricted Default’

Fitch Ratings announced yesterday it has downgraded Sri Lanka’s Long-Term Local-Currency (LTLC) Issuer Default Rating (IDR) to ‘RD’ (Restricted Default), from ‘C’.

EPF opts for Debt Exchange offer with long-term view under DDO

The Monetary Board, as the custodian of the Employment Provident Fund (EPF), yesterday announced that it has considered the options available and has decided to opt for the Debt Exchange offer with a long-term view in the best interest

Europe probes China’s electric car subsidies as imports soar

CNN: The European Union is launching an investigation into China’s state support for makers of electric vehicles as soaring imports of their cars stoke fears for the future of European auto manufacturers. Speaking to the European Parliament yesterday, European Commission President Ursula von der Leyen said Europe was open to competition but “not for a race to the bottom”.

Govt. delays SVAT system abolition to April 2025 due to strong opposition

Amidst strong opposition from exporters and the country’s business chambers, the government has decided to postpone the earlier decision to abolish the Simplified Value-Added Tariff (SVAT) system until April 1, 2025.

CB chief slams those trying to mislead public on DDO

The Central Bank chief yesterday slammed the misleading views repeatedly shared by different sections of the economy on the Domestic Debt Optimisation (DDO), doing more harm than good for the country. Central Bank Governor Dr. Nandalal Weerasinghe did not mince his words yesterday in calling out the entities and individuals who have contributed to the brewing of negative sentiments regarding the whole debt restructuring exercise, which has given

Ceylon Chamber urges govt. to reconsider SVAT abolition

The Ceylon Chamber of Commerce is urging the government to reconsider its recent decision to abolish the Simplified Value Added Tax (SVAT) system given the impact it will have on the functioning of the export industry.

evaluation policy to bring about predictable environment for economic development

Sri Lanka will be able to have a more predictable environment for economic and social development going forward, with the government yesterday setting in motion the much-awaited national evaluation policy framework.

SRU warns of potential delays as SOE divestiture progresses

Transaction advisors appointed for the divestiture of seven State-owned enterprises (SOEs) have already kicked off, the process,

Govt. to step up SOE governance and legislation

Sri Lanka is stepping up efforts to improve the governance and legislation framework of state-owned enterprises (SOEs), with the primary goal of significantly enhancing their performance and simultaneously mitigating the adverse impact of certain loss-making SOEs on the overall state finances.

No urgency for Sri Lanka to raise funds from int’l capital markets: CB chief

Although Sri Lanka’s access to international capital markets is expected to be restored “quite soon,” Central Bank Governor Dr. Nandalal Weerasinghe said there is no need for the government to explore that option.

Tea Board chief upbeat despite temporary setback

Despite the temporary setback in tea production in Sri Lanka, due to the dry weather in August, the Sri Lanka Tea Board (SLTB) expects the tea output to exceed 260 million kilos this year and the prices to stabilise with winter buying during the next four months. Addressing the Annual General Meeting of the Tea Exporters Association held in Colombo last Friday, SLTB Chairman Niraj De Mel acknowledged that the unusual “hot August” slowed down the

Sri Lanka in “pretty good shape” to face first IMF review: Dr.Coomaraswamy

Former Central Bank Governor and senior economist Dr. Indrajith Coomaraswamy sounded upbeat on the prospects of Sri Lanka satisfying the International Monetary Fund (IMF) in the upcoming review this month as it has exceeded expectations in certain aspects.

Tourist arrivals cross 900,000 milestone for first time since 2019

Sri Lanka tourism reached a new milestone on Wednesday with over 900,000 international visitors having visited the island nation.

Global campaign to market Sri Lanka as more than just a bucket list destination

Sri Lanka’s upcoming global tourism campaign is slated to showcase the island nation from a new perspective, highlighting a wider range of experiences to a broader audience. The concept of the global campaign, which was launched in the second week of August but shared with the media only on Tuesday (29), focuses on repositioning Sri Lanka as a destination worthy of revisits, instead of a mere bucket list destination.

Apparel exports lead decline in July merchandise exports

Continuing the declining trend in exports, Sri Lanka recorded US$ 1.02 billion export earnings for the month of July, down 11.79 percent year-on-year....

Visa to launch its govt. solutions in SL to enhance payment infrastructure

Global digital payments leader Visa plans to launch its Visa Government Solutions (VGS) in Sri Lanka, to help improve the nation’s payment infrastructure. The VGS is expected to bring technologies to Sri Lanka, which will focus on transparency and the manner in which the government deals with its finances.

CB resorts to dual approach to drive interest rates down

In a bid to quicken the decline in lending rates in the economy in line with the recent policy rate cuts, the Central Bank has directed banks to cut rupee loan rates by 250 basis points by October-end and by a further 100 basis points by December-end from the levels as of July-end in addition to announcing interest rate caps on select lending products.

Technical, economic challenges in the way of SL deploying offshore wind generation: WB

Sri Lanka has a clear opportunity to deploy offshore wind generation, the World Bank (WB) said; however, there are important technical and economic challenges and risks that can make the opportunity less attractive to investors and project developers.

CB imposes lending rate caps to drive interest rates down

The Monetary Board of the Central Bank yesterday slapped banks with administrative measures to reduce the notable spread between market deposit rates and lending rates despite the substantial easing in the policy interest rates.

Thailand’s ex-central bank Governor optimistic about SL’s economic recovery

Sri Lanka will come out of the crisis situation it is faced with now, as it has the key requisites to steer the economy towards revival, according to former Bank of Thailand Governor Dr. Veerathai Santiprabhob.

Landmark 100 MW solar project by WindForce, Lakdhanavi, and The Blue Circle to shape SL’s future power pricing

The 100 MW solar power generation project undertaken by the consortium comprising WindForce PLC, Lakdhanavi, and Singapore’s The Blue Circle, is set to become a significant milestone in Sri Lanka’s power sector as it aims to establish benchmark pricing for upcoming power generation ventures conducted by the private sector.

National inflation cools to 4.6% in July giving wiggle room for further rate cuts

Sri Lanka’s overall inflation rate, as measured by the National Consumer Price Index (NCPI), experienced a significant decline in July, dropping to 4.6 percent on a year-on-year (YoY) basis, against 10.8 percent in June.