SL’s financial system poised for recovery with asset quality gains, stronger capital buffers

Sri Lanka’s financial system is poised for improvement, with asset quality expected to rise and capital buffers to strengthen, while risks are prudently managed, the Central Bank of Sri Lanka (CBSL) said in its Financial Stability Review 2024.

Central Bank bans 19 entities in crackdown on pyramid schemes

The Central Bank of Sri Lanka (CBSL) has cracked down on a total of 19 entities found to have been operating and promoting fraudulent pyramid schemes in the country.

Sri Lanka’s untapped export potential widens to US$ 10bn: WB

Sri Lanka’s untapped export potential has grown to an estimated US$ 10 billion annually, according to the World Bank, signalling missed opportunities for economic growth.

Fitch evaluates SL’s rating with debt restructuring in final stages

Fitch Ratings has signalled that it may move Sri Lanka’s Issuer Default Rating (IDR) out of ‘Restricted Default’ (RD), once the country completes its commercial debt restructuring, which the agency believes would restore its relationship with the international financial community.

Best option for SL is to stick with IMF plan: IPS Chief

Sri Lanka should stay committed to the fiscal framework set by the International Monetary Fund (IMF) until the country achieves the macroeconomic stability required for a sustained recovery, a top economist asserted.

Confectionery sector braces for price hikes as supply chain disruptions loom

The prices of the confectionery items in Sri Lanka, which have gradually decreased following the economic downturn, are now facing the risk of rising again, due to the potential supply chain disruptions caused by the developments in the Red Sea, the Lanka Confectionery Manufacturers Association (LCMA) said.

Tourism earnings reach US$ 2.35bn

Sri Lanka is seeing continuous headway in its tourism trade through September as both the arrivals and earnings made progress in the months, although there was some easing from a month ago.

IMF stresses continued reform as key vulnerabilities linger in Sri Lanka

The International Monetary Fund (IMF) emphasised that Sri Lanka must maintain its reform trajectory, warning that “important vulnerabilities” and “uncertainties” remain, despite the significant progress in key macroeconomic indicators.

Gem and Jewellery sector fast losing shine as reforms stall

The Sri Lanka Gem and Jewellery Association (SLGJA) has renewed its call for urgent reforms as the domestic industry faces a downturn, driven by surging gold prices and policy challenges that have hindered growth.

Shipping industry urges regulatory reforms under new government

Sri Lanka’s shipping sector has called on the newly elected government, led by President Anura Kumara Dissanayake, to introduce regulatory reforms focused on digitalisation and transparency, to strengthen the country’s position as a leading maritime hub in the Indian Ocean.

Merchandise trade account expands with faster increase in imports

Sri Lanka’s exports reached the highest levels so far this year, buttressed by the recovery seen in garment exports as of late but the deficit in the merchandise trade account expanded due to the faster increase in imports.

Boost in key sectors pushes August exports up 4.18% YoY

Sri Lanka’s export performance expanded 4.18 percent year-on-year (YoY) in August, recording a revenue amounting to US $ 1.16 billion.

Private sector credit jumps in August

Credit to the private sector which is used as one of the key barometers to determine the health of the economy grew at a brisk pace in August from a month ago, continuing the months-long growth in credit to the real economy.

Central Bank leaves policy rates unchanged as previous cuts take hold

The Central Bank left the key policy rates unchanged yesterday at its fifth monetary policy review for the year, as inflation remains well below its medium-term target of 5.0 percent, while the previous rate cuts are doing their job by way of converting into lower lending rates and credit, helping to further support the economic growth.

August consumer confidence down marginally in lead up to Presidential election

Sri Lanka’s Consumer confidence dropped marginally in August 2024 in lead-up to Presidential election, the Institute for Health Policy (IHP) survey showed.

President Dissanayake sets economic stability and IMF talks as top priorities

President Anura Kumara Dissanayake in his inaugural address to the nation last evening pledged to prioritise economic stability and restore confidence in the country’s recovery. Dissanayake announced that his government would immediately initiate negotiations with the International Monetary Fund (IMF) to proceed with the activities under the extended credit facility programme. As the island nation continues to recover from the severe economic cri

Construction chamber calls on President Dissanayake to drive sector rebound

Sri Lanka’s construction industry, still struggling to regain momentum despite modest growth, said the newly elected president faces the challenging task of steering the sector’s recovery and reshaping its development path. In a congratulatory message to President Anura Kumara Dissanayake, the Chamber of Construction Industry of Sri Lanka (CCI) outlined key areas requiring urgent intervention to make the local construction industry more efficient

Colombo bourse signals favourable response to new administration

The Colombo bourse yesterday closed in green in continuing with the bullish sentiment, signalling a favourable response to the new President Anura Kumara Dissanayake, who was sworn in yesterday.

Sri Lanka’s capital market awaits President-Elect Dissanayake’s policy signals

Sri Lanka’s capital market is expected to adopt a cautious approach as it anticipates President-elect Anura Kumara Dissanayake’s inaugural speech, with investors seeking clarity on the future policy direction under his leadership.

Air China to begin daily flights to Sri Lanka

Air China, one of China’s largest airlines, is set to launch daily flight operations to Sri Lanka, starting from October 2024.

Bondholders breakthrough before Presidential election

Sri Lanka managed to make a significant breakthrough just days before the presidential election as it reached an agreement inSri Lanka managed to make a significant breakthrough just days before the presidential election as it reached an agreement in principle with the bondholders principle with the bondholders.

Tourist arrivals below expectation: SLTDA

The hit on Sri Lanka’s tourism sector is expected to only further aggravate, with a proper solution yet to be implemented.

Economic growth hits 4.7% in 2Q24

Sri Lanka’s economy is experiencing a ‘Goldilocks’ moment, with growth accelerating while inflation remaining subdued and the external sector strengthening. Robust inflows from exports, tourism, and remittances have bolstered the country’s economic recovery.

CSE pauses LTL’s Rs.20bn IPO

The Rs.20 billion initial public offering (IPO) of LTL Holdings Ltd, which was scheduled to be opened yesterday, was postponed, as the Colombo Stock Exchange (CSE) sought further clarification to review the fresh information submitted by the company on the legal matters.

Listed entities report strong earnings in 2Q

Corporate earnings of Sri Lanka’s public quoted companies more than doubled indicating a strong performance in the second quarter of 2024/2025 FY facilitated by a notable growth in the top-line and steep reduction in finance costs, according to CAL Research.

Tour operators face cancellations as visa issues remain unresolved

Sri Lanka’s tour operators are witnessing a spike in cancellations, as the ongoing visa delays frustrate tourists and this is threatening the country’s tourism recovery.

Revised import duties set to boost local trade and industries

Sri Lanka’s local business community stands to gain from a major revision of the country’s import tax structure, with the government announcing new measures to reduce costs and boost domestic production.

Debt expert warns of “intergenerational sin” in Sri Lanka

Sri Lanka could be committing an “intergenerational sin” by accumulating excessive sovereign debt, potentially leaving future generations unable to manage the country’s financial future, warned University of Edinburgh Honorary Professor Lee C. Buchheit.

Visa issues jeopardise Sri Lanka’s tourism: Industry cautions

Sri Lanka’s tourism industry is at risk of a winter season collapse due to delays in reactivating the Electronic Travel Authorisation (ETA) system, stakeholders warned this week.

FTZMA demands urgent BOI intervention to resolve business visa delays

The Free Trade Zone Manufacturers’ Association (FTZMA), in a strongly worded letter to the Board of Investment (BOI), called for immediate intervention to resolve the issues in obtaining business visa to Sri Lanka for foreign nationals.