The next two years would be critical for Sri Lanka’s recovery, the World Bank (WB) Country Director for Sri Lanka said, while cautioning that there are further significant headwinds that need to be closely monitored. WB Country Director for the Maldives, Nepal and Sri Lanka Faris Hadad-Zervos asserted that while improvements are seen in the economic and social landscape in the island nation, it is not the end of the road.
With the foreign currency condition in the domestic market seeing a gradual improvement, the Central Bank (CB) appears to have taken a further conciliatory approach for imports, as it has recommended relaxing another batch of 900 goods but without vehicles.
Analysts expect a further reduction of 100-200 basis points in policy interest rates by the Central Bank in the coming months, aiming to provide additional support for economic recovery, as inflation is projected to stabilise at the desired mid-single-digit levels, surpassing the initial expectations.
Amid the growing concerns among bank deposit holders regarding the potential negative consequences during the progress of the Domestic Debt Optimisation (DDO) initiative, senior economist and Verité Research Executive Director Dr. Nishan de Mel said such fears appear to be unwarranted.
Barely into a year since the present administration opted for an International Monetary Fund (IMF)-assisted fiscal reset by raising taxes and rationalised spending, the budget is still running a higher deficit than....
There is a widespread expectation of an upcoming policy rate cut announcement by the Central Bank on Thursday (6th) to further relax the financing conditions in the market to support the economic recovery, as inflation expectations remain well-anchored at their desired levels.
The food prices measured on a monthly basis rose for the second month in a row in June, albeit at a slow pace from a month ago, reflecting that the inflationary impulses still remain abound in the economy and the bulk of the heavy lifting in bringing down the annual headline inflation is done by the massively high base effects of last year.
Given the anticipated shortfall in state revenue from the targeted levels, a former Central Banker casted doubts on the narrow scope in the proposed Domestic Debt Optimisation (DDO) strategy providing sufficient leeway for the government to get the fragile budgetary situation under control, while raising concerns on the disproportionate impact on the low-income earners.
The sluggish performance of Sri Lanka’s merchandise exports continued for the fifth straight month in May, as Sri Lanka’s main industrial export, apparel and textile products, dipped amid the slowdown in demand from the key markets.
Sri Lankan banks which took little interest towards deposits when interest rates were going up appear to have suddenly woken up to aggressively cut rates on such deposits when the rates are on their way down, leaving the hapless savers devastated from still red-hot prices in the economy.
The Colombo Stock Exchange (CSE) investors took the impending Domestic Debt Optimisation (DDO) announcement positively, as both indices closed in green, with investors particularly showing interest in banking stocks, a sector many feared would be impacted negatively by the DDO
Sri Lanka’s apparel sector, the largest foreign exchange earner and a key contributor to the debt-ridden economy, yesterday said it is “dismayed” by the zero revisions made to industrial electricity tariff rates by the Ceylon Electricity Board (CEB), despite having the allowance.
Given that half of the population living in poverty in Sri Lanka is not covered by social protection schemes, the World Bank stressed it is essential to have increased transparency, inclusion, adaptability and accountability mechanisms to ensure the establishment of an improved welfare system. “As Sri Lanka works to recover and reset from its worst economic crisis in decades, now is the time to turn crisis into an opportunity to build a resilient
Sri Lanka Banks Association (SLBA) representing all commercial banks in the country yesterday stressed the urgent need for the development of an effective insolvency regime in response to the sharp rise in loan defaults in the country.
Sri Lanka needs to make efforts to use the ongoing global economic slowdown as an opportunity to rethink its growth strategy, as its economy is highly vulnerable and remains at a disadvantage compared to many of its competitors and peers, asserted an international economist.
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