SLT privatisation opposed on national security concerns

The Sectoral Oversight Committee on National Security has opposed the government’s proposal to privatise Sri Lanka Telecom PLC (SLT), as such a move could be detrimental to national security.

Tea exporters concerned over government’s move to abolish SVAT scheme

Sri Lanka’s tea exporters yesterday expressed “deep concerns” over the government’s decision to abolish the Simplified Value-Added Tax (SVAT) system as they fear the move will create cash flow difficulties for them among several other issues.

Govt. urged to reopen social safety net registration to capture all vulnerable groups

As Sri Lanka is looking to support the poor and vulnerable population, which has significantly expanded since the pandemic and economic crisis, Colombo-based policy think tank LIRNEasia urged the government to reopen the registration of the new welfare scheme ‘Aswesuma’, so that the right candidates are captured in the system.

Govt. to boost tax revenue by removing VAT exemptions

The government is planning to boost tax revenue by 1.2 percent of gross domestic product (GDP) by removing most of the Value-Added Tax (VAT) exemptions and abolishing the Simplified Value Added Tax (SVAT) methodology.

Apparel industry to lose US $ 494mn if GSP Plus withdrawn: JAAF

Sri Lanka’s apparel sector would face a major setback if it fails to renew the GSP Plus tariff concession from the European Union (EU), the Joint Apparel Association Forum (JAAF) cautioned, as the collective loss for the industry would amount to about US $ 494 million in exports.

Private sector credit contraction moderates in sign of bottoming out

The months-long contraction in credit to the private sector somewhat moderated in April in a sign of bottoming out ahead of further easing in the interest rates in the months to come with the beginning of a monetary easing cycle set off last week.

Economy shows signs of improvement but recovery remains a challenge: IMF DMD

Sri Lanka’s economy is showing tentative signs of improvement, due to the implementation of critical policy actions, acknowledged visiting senior International Monetary Fund (IMF) official but noted recovery remains challenging.

Central Bank shifts gears to growth with surprise policy rate cut

The Central Bank yesterday delivered a surprise policy rate cut, bringing nearly two years long tightening cycle to a close and left open the door for further rate cuts in the next few months among other measures to ease remaining restrictions on imports to reverse the prolonged economic contraction.

ADB-backed initiative to improve Lankan SMEs’ access to bank loans

In a bid to support the country’s small and medium-sized enterprises’ (SMEs) access to commercial loans, the government is moving towards operationalising the Asian Development Bank (ADB)-backed National Credit Guarantee Institution (NCGI) initiative as a public-private partnership (PPP), with an initial capital infusion of around US $ 110 million.

Govt. mulls increasing debt ceiling to raise funds to maintain critical road infrastructure

The government is likely to raise the domestic debt ceiling for this year in the coming months in order to raise the required funds via selling government securities to rehabilitate and maintain the country’s critical road infrastructure that is in need of urgent attention.

ADB approves US $ 350mn special budget support loan for Sri Lanka

The Asian Development Bank (ADB) yesterday approved a US $ 350 million special policy-based loan to provide budget support to Sri Lanka for economic stabilisation. “The programme is part....

BOI ups FDI target to US$ 2bn amid growing investor interest

Sri Lanka’s Board of Investment (BOI) has increased the foreign direct investment (FDI) target to US$ 2 billion from earlier US$ 1.3 billion for the year as foreign investors are returning to the country following a troubled year and given the possibility of realising big ticket investment pertaining to an oil refinery in Hambantota.

Merchandise exports in April plunge amid global demand slowdown

Sri Lanka’s merchandise exports plunged 16.5 percent year-on-year (YoY) to US $ 814.1 million in April, bringing the cumulative export earnings for the first four months of 2023 to US $ 3.81 billion, an decrease of 9.78 percent YoY, data from the Export Development Board (EDB) showed.

Sri Lanka needs to boost entrepreneurship to overcome ongoing crisis: CB Governor

Sri Lanka needs to step up efforts in enticing a larger proportion of its population across all provinces towards embracing entrepreneurship so that the impacts of the ongoing economic crisis would lessen, the Central Bank asserted.

Sri Lanka fails to fulfil two IMF programme commitments due in April

Sri Lanka has failed to fulfil two of the International Monetary Fund (IMF) programme commitments that were due in April 2023, publicfinance.lk, a platform for public finance-related information in Sri Lanka run by Colombo-based think tank Verité Research, revealed.

Hotel price war hots up as tourist arrivals increase

Sri Lanka’s hotel sector is unable to fully reap the benefit of the increasing tourist arrivals as industry players have opted to slash rates in a bid to capture market share. The Hotels Association....

Nothing voluntary about proposed DDO, says top ex-central banker

Given the precarious state of the public finances, a former central banker warned that the proposed domestic debt optimisation (DDO) is unlikely to be implemented on voluntary terms, despite the assurances given by the Central Bank and Treasury.

Slump in private sector credit continues; credit to govt. up

The months-long descent in credit to the private sector turned more pronounced in March as such credit reported a net de-growth of Rs.107.6 billion, nearly doubling from the Rs.57.6 billion contraction...

Govt. mulls strict measures to rectify prices of imported goods to match rupee appreciation

The government is mulling strict measures to rectify the prices of imported goods, if the traders fail to pass down the benefits of the recent appreciation of the rupee against the US dollar to the consumer.

Rupee appreciates as CB takes breather from dollar purchases

Sri Lanka’s rupee further appreciated against the US dollar (US$) yesterday dropping below Rs.300 for the first time since April last year as the Central Bank (CB) took a breather from its dollar purchases to allow consumption to rebound.

SriLankan hopeful of completing re-fleeting process in 2-3 months

National carrier SriLankan Airlines is expecting to wrap up its re-fleeting exercise, which got the Cabinet approval last year, in the next two to three months, acquiring at least seven aircraft in the first phase, a top official said.

CEB still deep in red despite sharp tariff hikes

Despite the sharp upward revisions in electricity tariffs, the financial performance of the Ceylon Electricity Board (CEB) remains dismal....

IMF expects SL to complete debt restructuring exercise by September-October

The International Monetary Fund (IMF) expects Sri Lanka to complete the debt restructuring process by the first review of the country’s US $ 3 billion programme, which is scheduled for September-October.

BOI under spotlight as nearly half of projects become inactive

With the number of active Board of Investment (BOI)-approved companies falling by nearly 50 percent since the inception of the agency,,,,

Sri Lanka’s airline posts US $ 525mn annual loss

Cash-strapped Sri Lanka’s national airline announced a staggering US $ 525 million annual loss yesterday

SL to update colonial-era land policies to meet current development needs

President instructs officials to amend provisions of land management ordinances and introduce new regulations Stresses that archaic land policies established during the colonial era are no longer suited to modern development needs

Lubricant sales plunge to 13-year low in 2022

Sri Lanka’s lubricant consumption fell to a 13-year low in 2022, amid the severe forex crunch, which snowballed into a full-blown economic crisis, marked by hours-long power cuts, massive fuel shortages and runaway inflation.

May first week records lowest weekly tourist arrivals so far this year

The first week of May recorded the lowest weekly tourist arrivals since January 2023 with only 18,401 international visitors having entered destination Sri Lanka.

Sri Lanka to apply for GI for Ceylon Tea from EU this September

Sri Lanka plans to formally apply for Geographical Indication (GI) for Ceylon Tea from the European Union (EU) this September, with intentions to replicate the same move in other key markets of Ceylon Tea subsequently.

EPF’s high dependence on G-Secs exposes it to possible debt optimisation risks, says CB

The largest superannuation fund in the country, the Employees’ Provident Fund’s (EPF) heavier tilt towards the government securities....