Latest electricity tariff hike sends shock waves through Sri Lanka

The move by Sri Lanka’s electricity regulator to approve another tariff hike sent shockwaves across the island nation yesterday, not sparing even the country’s largest gross export earner, the apparel sector.

No immediate plans to sell ECT: Ports Minister

Contradicting with the earlier plans to handover the East Container Terminal (ECT) to Japan, Ports, Shipping and Aviation Minister Nimal Siripala de Silva hinted that the government plans to retain the control of the ECT of the Port of Colombo while inviting the private sector to invest in the proposed Colombo North Port development project.

Cabinet gives green light for new Central Bank law

The Cabinet greenlight has been granted for the draft Monetary Law Act to be published in the government gazette and thereafter to be tabled it in parliament, which is a key prior action required by the International....

Sale of SOEs presents best option for Sri Lanka to avert potential DDR

The disposal of the state-owned enterprises (SOEs) presents the best option for Sri Lanka to avert a possible domestic debt restructuring (DDR) scenario, while it could become a catalyst to develop a vibrant capital market to exploit the current market opportunities, where the investors are rallying back to emerging and frontier markets.

Tourism off to encouraging start as January income tops US$ 160mn

Earnings from tourism trade continued its months-long ascent in tandem with the encouraging arrival numbers, which topped over 100,000 in January, a feat which became possible after almost a year.

Financing assurances obtained by SL thus far inadequate to proceed with EFF: IMF

With the dawn of the new year, Sri Lanka made significant progress in obtaining financing assurances from its creditors to help unlock the International Monetary Fund (IMF) bailout package; however, according to the multilateral funding agency, what the island nation has managed to bag so far is not enough.

SL still has US$ 3.2bn in external debt to settle this year despite standstill

Sri Lanka appears to be still having roughly US$ 3.2 billion worth foreign currency obligations to be settled this year even after announcing a debt standstill on selective debt last year until creditors agree to restructure them.

President lays out economic blueprint for Sri Lanka premised on IMF reform path

President Ranil Wickremesinghe made his second throne speech in Parliament yesterday to reinforce his blueprint to put the economic back on track and made clear that his government has no role in private businesses except for creating a conducive environment for the private sector to drive the economy.

Sri Lanka one step closer to securing IMF funding with Paris Club’s nod

After India, Paris Club creditors have provided financing assurances, placing Sri Lanka a step closer to secure approval from the Executive....

China confirms attendance at IMF’s first-ever creditor-debtor roundtable in India

The nations that are in debt with the People’s Republic of China will have the opportunity to negotiate firsthand the debt restructuring agenda, as the world’s second largest economy has confirmed its attendance at the first-ever creditor-debtor roundtable organised by the International Monetary Fund (IMF).

CB begins banks’ asset quality review to identify stresses in the system

The Central Bank has kicked off an asset quality review of the country’s banking sector to identify possible stresses in different pockets of banks’ balance sheets as they provided enormously on possible bad loans and other financial asset losses in 2022 with the final stretch of moratoria expiring early this year.

Prez. confident in SL rising up and building back a stronger economy

As Sri Lanka celebrates its 75th year of independence from British rule today, while grappling with the worst economic crisis faced in history, President Ranil Wickremesinghe expresses confidence in the country rising up from the current turmoil and coming back stronger.

Paris Club to “soon” provide financing assurances to help SL unlock IMF funding

The Paris Club of creditor nations is ready to provide financing assurances to Sri Lanka, a key step needed to unlock a US$2.9 billion bailout by the International Monetary Fund (IMF), Reuters reported yesterday quoting two unnamed sources.

Tourist arrivals cross 100,000 mark in January

The tourist arrivals to Sri Lanka crossed the 100,000 mark in January for the first time since March 2022.

Trade deficit hits 12-year low in 2022 amid sharp decline in imports

Sri Lanka’s trade deficit hit a 12-year low in 2022 as a result of resilient export performance, particularly industrial exports, and the sharp decline....

CB insists on staying on reform path regardless of election outcome

Central Bank Governor Dr. Nandalal Weerasinghe said regardless of the future elections, he wants to see a continuation of the economic reform path the country has embarked on, as it is the only way to come out of the current crisis.

Economy likely to shrink by 3.5%-4% this year: President

As Sri Lanka is yet to tackle issues from the domestic and international fronts that are impacting its economy, President Ranil Wickremesinghe....

Ceylon Chamber expects economy to fare better this year though consumption expected to contract

Sri Lanka’s economy will fare better this year than it did in the previous year, where the economy is estimated to have contracted by about 9 percent but consumption is expected to contract till about the second half of the year, the Ceylon Chamber of Commerce (CCC) said in its Sri Lanka Economic Outlook 2023.

CB employees stage protest against govt.’s tax policy

Central Bank employees yesterday staged a protest supporting the ‘Black Week’ already announced against the increased income tax rates, which came into effect from this month, calling such steeply high tax rates are unbearable and unjust. Last week, Central Bank’s Executive Officers’ Union wrote to the Treasury Secretary saying that the new tax regime is extremely burdensome and done with no proper analysis.

CB stands pat as it sees more room for yields, market rates to ease

The Central Bank yesterday left its key policy rates at their elevated levels for the fourth consecutive month, as it awaited the recently implemented measures to put further downward pressure on yields and short-term rates, while inflation expectations also remain anchored.

CB chief signals end to debt moratoria

As businesses across diverse sectors are still hoping for some relief by way of debt moratoria, the Central Bank yesterday indicated that it does not encourage the continuity of such packages as that could take a heavy toll on the banking sector.

Tourist arrivals in first three weeks of January top 70,000

The tourist arrivals to Sri Lanka in the first three weeks of January have topped 70,000, indicating the island nation’s tourism industry is firmly on the recovery path.

Exim Bank letter renews SL’s hope for China’s backing to unlock IMF funding

Sri Lanka is hopeful of China extending its financing assurances to unlock the bailout package from the International Monetary Fund (IMF), the Ministry of Finance said, as the creditor has taken the first step in affirming its commitment to the island nation’s attempt to restructure its debt.

Rift in PUCSL likely to pave way for proposed electricity tariff increase

Public Utilities Commission of Sri Lanka (PUCSL) Chairman Janaka Ratnayake yesterday alleged that the country’s political authorities have influenced three commission members to revise the earlier unanimous decision to reject the interim and retrospective electricity tariff hike proposed by the Cabinet of Ministers.

Services liberalisation bogged down by lack of data, stakeholder engagement

Due to insufficient data and lack of industry engagement, Sri Lanka’s free trade agreement (FTA) negotiators are faced with the daunting task of service sector liberalisation as the country prepares to resume negotiations for proposed comprehensive FTAs with India and China over the next two months.

Opposition to higher taxes comes from within Central Bank

The Central Bank Executive Officers’ Union expressed its strong objection against the higher personal income taxes, which came into effect from the beginning of this month and condemned the manner in which they were implemented without a proper analysis.

Delay in public sector salaries as govt. moves away from money printing

For the first time in the country’s history,the government yesterday announced that salaries to public sector employees may get delayed....

Potential issues with CB’s move to limit banks’ access to standing facility windows highlighted

As the limits on accessing the Central Bank’s standing facility windows by the licensed commercial banks came into effect from this week,

Private sector credit crash continues to sixth straight month as economy teeters

Sri Lanka’s private credit fell again in November for the sixth consecutive month, reflecting the deepening contraction seen....

Excise Dept. approves production of new alcoholic beverages locally for export markets

With the aim to boost foreign exchange earnings from locally produced alcoholic beverages, the Excise Department has granted approval to produce cider and milk punch, with local ingredients, for export markets.