Manufacturing hindered by persistent subdued demand; services sustain growth

Despite the recent improvements observed in the macroeconomy, Sri Lanka’s manufacturing activity has not yet shown signs of recovery, whereas the services sector continues to exhibit growth.

CMTA deems Sri Lanka’s electric vehicle transition agenda unrealistic

As Sri Lanka embarks on an ambitious journey towards de-carbonising the economy, and adopting electric vehicles (EVs) is a crucial....

Unexpected travel advisory review by Australia rattles tourism industry stakeholders

In a surprise move, the Australian government has reviewed its travel advisory on Sri Lanka, where it urges its citizens to exercise a high degree of caution when visiting the island nation.

Tourism earnings surpass US$ 1bn milestone

Earnings from the tourism industry have crossed the US$ 1 billion mark with international visitors to Sri Lanka having spent US$ 219 million in July.

Govt. to engage private sector in setting up new universities

Amid the current human capital shortage, in particular the science, technology, engineering and mathematics (STEM) graduates increasingly looking to migrate, the government said it has plans to establish a number of new universities and vocational training centres with greater participation of the private sector on an urgent basis.

Minimum Room Rate for hotels starting from Oct.1

Sri Lanka’s hotel sector will no longer be able to slash prices as they see fit to lure foreign tourists because the hotly contested Minimum Room Rate (MRR) will come into effect from October 1, 2023.

Tea industry prospects in 2H depend on LKR stability: Tea broker

Improved prospects for the tea industry in the second half of 2023 (2H23) largely depend on how soon the Sri Lankan rupee would stabilise, Forbes & Walker Tea Brokers said. It noted that unless the remunerative rupee tea prices are achieved, farmer profits would be negated. This in turn would result in a lack of inputs and diminishing crops that certainly would be disastrous for an already ailing industry.

President unveils Revenue Authority plan to strengthen tax collection process

The government is planning to establish a Revenue Authority to plug tax loopholes and to strengthen the entire tax collection process to meet the envisaged fiscal targets.

Sri Lanka advances AML-CFT policy as Asia Pacific review looms

The Cabinet nod has been granted to implement the Anti-Money Laundering and Countering the Financing of Terrorism (AML-CFT) National Policy ahead of the third mutual evaluation conducted by Asia Pacific....

Aitken Spence to revive two garment factories in Koggala with US $ 3.6mn investment

Blue-chip conglomerate Aitken Spence has entered into an agreement with the Board of Investment (BOI) to kick off operations of two garment factories that halted operations recently, due to reduced orders. The BOI announced in a statement to the media that following its intervention, Aitken Spence is pumping in an investment of about US $ 3.6 million in the first phase to re-establish the two factories that are located in the Koggala Investment P

Banks reopen lending spigots as credit to private sector picks up in June after 12 months

Breaking one of the most severe and prolonged credit contractions in the Sri Lankan economy, banks witnessed an expansion in credit extended...

Asian Palm Oil Asso. renews call to SL govt. to reconsider oil palm cultivation ban

The Asian Palm Oil Association (APOA) renewed its call to the Sri Lankan government, urging it to reconsider the temporary ban on oil palm cultivation.

Stocks extend surge with net foreign inflow of Rs.1.5bn

The Colombo Stock Exchange maintained its upward momentum for the fifth consecutive session yesterday as foreign investors made significant contributions, resulting in the highest net foreign inflow to the market in recent times.

Malik and Dilhan Fernando appointed as Co-Chairs of MJF Holdings

Pursuant to the demise of MJF Holdings Founder and Chairman Merrill J. Fernando, his two sons, Malik J. Fernando and Dilhan C. Fernando, wish to express their deep appreciation to the overwhelming number of people who joined them in their grief and in laying their beloved father to rest. They reaffirm their commitment to building on the formidable legacy that Merrill J. Fernando built in tea and leisure, with kindness to people and nature. MJF

Corporate leaders to shape new investment policy for private sector-driven economy

In line with the government’s policy to focus on private sector-driven growth towards a strong export-oriented economy, a high-powered five-member committee comprising of well-known corporate leaders have been appointed to draft a new investment policy for the country.

Inflation drops to single-digit levels in July ending near two-year price spiral 

Inflation in the Colombo district retreated to what once appeared to be an elusive mid-single digit level in July, as food prices declined from a year ago, while the non-food prices eased to just above 10 percent, ending nearly two-year long price spiral, which pushed most Sri Lankans into once-in-a-generation cost of living crisis. The inflation measured by the Colombo Consumer Price Index dropped to 6.3 percent in the twelve months through

Sri Lanka eyes FTA talks with Malaysia and Vietnam

Sri Lanka is eyeing to ink free trade agreements (FTA) with two more ASEAN members, Malaysia and Vietnam, in line with the country’s plans...

ComBank announces plans to raise up to Rs.12bn via debenture issue

Sri Lanka’s largest private lender in terms of assets, Commercial Bank of Ceylon PLC, yesterday revealed plans to raise up to Rs.12 billion through a listed debenture issue

SL seeks six-fold duty-free increase in apparel exports to India under ETCA

Sri Lanka will be seeking a minimum six-fold increase in duty free access for its ready-made apparel products from India with no fabric sourcing conditions under the proposed Economic and Technology Co-operation Agreement (ETCA)

China-Sri Lanka FTA talks set to resume within next two months

The negotiations for the proposed China-Sri Lanka Free Trade Agreement (FTA) are expected to resume within the next one to two months after a six-year hiatus. “We are waiting for official communication from China on dates for the next round of FTA negotiations,” Sri Lanka’s International Trade Office Chief Negotiator K.J. Weerasinghe told a seminar organised by the National Chamber of Exporters, in Colombo, yesterday. Speaking to Mirror Business

Sri Lanka relaxes capital controls for first time in over 3 years

The government on Monday announced easing of certain restrictions hitherto slapped on outward remittances since April 2020, amid improvements seen in the country’s domestic foreign exchange market.

JKH June performance indicates fast normalising economy

Premier blue-chip company John Keells Holdings PLC reported modest top and bottom-line performance for the Krishan Balendra three months to June....

Unlicensed foreign traders pose serious threat to local gem and jewellery sector

The Export Development Board (EDB) yesterday said Sri Lanka’s gem and jewellery sector is under serious threat, due to a surge in foreign traders’ involvement in key gem markets without the required licences, threatening the sector’s integrity and sustainability.

CB chief issues ultimatum to banks to cut lending rates

The Central Bank last week issued an ultimatum to banks to reduce lending rates, which have only fallen disproportionately, compared to the plunge in deposit rates in response to the easing in the monetary....

CB Governor calls for consistency in reforms to avoid another DDO

It is essential for Sri Lanka to ensure it goes ahead with the current reform efforts, else it runs the risk of having to face another Domestic Debt Optimisation (DDO) exercise, the Central Bank cautioned yesterday

Next two years critical for Sri Lanka’s recovery: World Bank

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.

Industrial sector faces setback amid apparel industry struggle

Sri Lanka’s industrial sector heft took a surprising dive in May reflecting weaknesses in the apparel sector, which has been going....

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