CB recommends further relaxing of import controls sans vehicles

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.

Tax authorities to crack down on evaders as SL misses revenue targets 

Sri Lanka has met all interim targets agreed with the International Monetary Fund (IMF) in return for the Extended Fund Facility....

SL keen on seeing Indian rupee used as much as US dollar

The Sri Lankan government would want to see the Indian rupee used as much as the dollar, President Ranil Wickremesinghe said

DDO could upend EPF fund mgt. with govt. requiring less debt: CB

With the government issuing less debt than before under the domestic debt optimisation (DDO) proposed recently

Government finalises transaction advisors for divestment of 7 SOEs

The government has finalised transaction advisors to assist in the proposed divestiture of seven state-owned enterprises (SOEs) as part of its SOE...

Analysts expect CB to slash rates further to spur growth

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.

Private credit shrinks for 12th straight month; CB expects gradual turnaround

Credit extended by commercial banks to businesses and individuals has continued to contract for the 12th consecutive month in May amid Central Bank’s expectations that credit conditions should ease...

Prez Wickremesinghe calls on South Asia to look beyond domestic tourism

President Ranil Wickremesinghe this week called for more collaborative efforts among the regional peers, so that South Asia can boost its tourism sector.

CB delivers back-to-back rate cuts amid softer than expected inflation prints

The Central Bank slashed policy rates again by another 200 basis points yesterday, after delivering a 250 basis point cut in June

Economist calls for calming fears over bank deposits during DDO

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.

Budget deficit expands despite higher taxes and expenditure cuts

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....

Anticipation grows for possible policy rate cut on Thursday

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.

Real prices contradict sharp deceleration in inflation rate

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.

Ex-Central Banker casts doubts on adequacy of proposed DDO strategy

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.

Sluggish exports continue for fifth straight month in May

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.

Banks seen slashing deposit rates while lending rates lag big time

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.

Stock market positive as assurances on DDO boost investor confidence

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

DDO has no impact on banking sector stability, customer deposits: CB chief

Central Bank Governor Dr. Nandalal Weerasinghe strongly affirmed yesterday that the forthcoming domestic debt optimisation (DDO), set to be announced this week, will have absolutely no adverse effect....

JAAF dismayed by zero revisions made to industrial electricity tariff

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.

Stitching setback: May apparel export earnings down 14%

The declining trend in apparel exports from Sri Lanka amid demand slowdown in key markets extended to the month of May, as earnings from such exports fell 14.17 percent year-on-year (YoY) to US$ 383.17 million.

WB urges SL to develop social protection system that serves its poor

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

Tea exports turn positive in May breaking months-long negative trend

Ceylon Tea exports have moved towards a positive growth trajectory in May, breaking the downward trend witnessed in the first four months of the year. Provisional data released....

Misinformation hurting tea industry reputation: RPCs

Local and international media highlighting the plight of the estate sector workers, particularly in light of the economic crisis, have adversely impacted the reputation of Sri Lanka’s tea industry, as an incorrect portrayal....

Banks call for urgent development of insolvency regime as loan defaults soar

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.

HSBC forecasts Central Bank to slash key rates by 500bps over next 12 months

HSBC Global Research has forecast further 500 basis points rate cut in Sri Lanka over the next four quarters after the country’s Central Bank.....

Sri Lanka told to use global economic slowdown to rethink growth strategy

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.

Economy contracts 11.5% in first quarter

Sri Lanka’s Gross Domestic Product (GDP) is estimated to have contracted 11.5 percent in the first quarter of 2023 from a year ago amid high interest rates, increased input prices, import restrictions and lower earnings from apparel exports, the Department of Census and Statistics (DCS)

SOE restructuring focuses on market failures, not profits and losses: Shah

The state-owned enterprises (SOEs) should be unchained from government control, regardless of whether they are profit or loss-making, if the benefits arising from their performance are to flow into the national economy, said Suresh Shah, the head of the SOE Restructuring Unit.

Customs revenue below target amid import ban on vehicles

Sri Lanka Customs officials this week told a parliamentary committee that it may not be able to achieve the revenue target set in the budget due to import restrictions slapped on certain categories of goods...

Sri Lanka will record positive economic growth in 4Q: Siyambalapitiya`

Despite various negative projections by multilateral agencies and even by the country’s Central Bank, Sri Lanka would record positive economic growth in the final quarter of this year, Finance State Minister Ranjith Siyambalapiriya said.