Exports down for second month in Nov. as global economic slowdown bites

Sri Lanka’s earnings from exports declined for the second consecutive month in November while the trade deficit widened from the previous month, as the global economy slows down amid decades-high inflation and rise in interest rates to tackle the surging prices.

Digitalisation of financial services, a game changer for Sri Lanka: CB chief

As South Asian economies have been focusing on digitalisation efforts to uplift the overall government and financial sector infrastructure, the Central Bank of Sri Lanka asserted that improving focus in this arena....

Central Bank to review single borrower limits to cut banks’ exposure to sovereign

The Central Bank this week said it would review the single borrower limits in a bid to cut the excessive exposure of some banks,

CB lays out policies to restore price stability, macroeconomic strength

The Central Bank yesterday laid out its short to medium-term policy path and a slew of other measures that it intends to roll out primarily to restore price stability and to maintain the financial system’s health, as Sr Lanka struggles to emerge from the worst economic crisis since its independence.

Central Bank announces measures to reactivate inter-bank market

The Central Bank this week announced changes to open market operations to start the year by limiting licensed commercial banks’ access to its Standing Deposit and Lending Facility windows, which together determines the overnight liquidity level in the money market.

Tourism ends 2022 on high note with December recording third highest monthly tourist arrivals

Sri Lanka tourism ended the year 2022 on a positive note, as the arrivals of international visitors to the country for the final month of the year crossed the 90,000 mark, while the total arrivals for the year topped 700,000.

Foreign interest in Lanka’s reform story fizzles out as G-Sec holdings plateau

Last year saw foreign investors returning to the rupee denominated bills and bonds, specially towards the end of August amid the optimism....

Colombo inflation eases for third month in December

Colombo inflation, measured on an annual basis, eased for the third consecutive month in December, continuing the disinflation path envisaged by the Central Bank after the consumer prices peaked in September.

Banking sector profitability plunges as crisis takes toll on credit costs, growth

Sri Lanka’s banking sector, which is usually resilient and generates consistent profits across economic cycles took a heavy beating this year, causing the sector to fall out of favour with the investor community.

Govt. told to opt for least cost power generation mix to prevent shock tariff hikes

At a time when the entire country is up in arms against the proposed monster power tariff hike in less than five months into the first one in August, Sri Lanka’s national management accounting body,

Proposed tariff hike threatens to electrocute hotel industry

Sri Lanka’s hotel industry yesterday condemned the proposed move by the government to further hike electricity tariffs, asserting....

Jan-Sept govt. revenue gets boost from red-hot prices, higher taxes

Sri Lanka’s nine-month government revenue this year rose compared to last year’s levels, as the economy inflated amid the runaway prices and tax revenue started flowing, as a result of the hike in the indirect taxes such as the Value Added Tax (VAT), under the first round of tax increases came into effect from June.

Government says ready to be flexible on tax policies

While stressing the tax policies are not written in stone, the government said it is ready to be flexible to amend such policies, given that there are pragmatic alternative proposals to collect tax revenue foregone.

Export outlook for 2023 first quarter not encouraging : EDB chief

The outlook for Sri Lanka’s export sector in the first quarter of 2023 doesn’t appear encouraging, the Export Development Board (EDB) said, as global economic conditions are expected to be grim in the upcoming year.

SL told to revisit dividend tax policy to rectify double taxation

As Sri Lanka’s dividend tax policy is inhibiting risk-taking, entrepreneurship and timely restructuring activities in the corporate sector, a top investment professional called upon the government to take corrective actions to rectify the unfair double taxation on profits when distributing dividends to investors.

Draft Central Bank law gets Cabinet approval

The Cabinet of Ministers this week green lighted the draft of the new Monetary Law Act clearing the only remaining prior action required by the International Monetary Fund (IMF) to unlock its US$ 2.9 billion....

Tea exporters set record straight on export proceeds repatriation and conversion

Sri Lanka’s tea exporters joined the bandwagon in clarifying its stance on the issue revolving around repatriation and conversion of export proceeds, pointing out they have been abiding by the relevant rules and regulations.

Construction sector suffers worst contraction in 3Q 

The slump in construction sector activities deepened in the third quarter of 2022, declining for the fifth quarter in a row, according to the Gross....

Nov. PMI points to contraction in activities albeit some improvement from last month

The Purchasing Managers’ Index (PMI) continued to remain in the contractionary territory in November, albeit some improvement in activity from the previous month, as the subdued demand conditions, both locally and internationally, weighed on the Sri Lankan economy, which is on course for its worst decline in its history this year.

Sri Lanka further sinks into recession as economy contracts 11.8% in 3Q

The Sri Lankan economy further sank into recession after its Gross Domestic Product (GDP) for the third quarter gave up as much as 11.8 percent of its output, bringing the nine-month contraction in the economy to 7.1 percent.

Strengthening fiscal rules next key reform for economic stability: CB

The proposed strengthening of the Fiscal Management Responsibility Act (FMRA), which would require strict compliance with the fiscal targets, will be the next key reform for economic stability, leading to a sustainable economy in the long term, according to Central Bank Governor Dr. Nandalal Weerasinghe.

Public at forefront in preventing SOE reforms: CB Governor

Although the public now appears to have understood the need for tough economic reforms for a certain degree, particularly with regard to State-owned enterprises (SOEs), it was they who opposed...

Weaker rupee to lead swift tourism industry recovery

Driven by the country’s growing appeal as a low-cost tourist destination, following the steep depreciation of the rupee, Sri Lanka’s tourism industry is expected to make a swift and steady recovery in this winter season, with tourist arrivals surpassing pre-crisis levels in 2024.

November worker remittances hit 16-month high to US$ 384mn

Worker remittances income continued to gather steam as such inflows in November recorded the highest levels in sixteen months....

CBSL Governor sets record straight on export remittances and conversions

Apparel industry points out, given current economic milieu, companies use a considerable portion of export proceeds to purchase raw materials, fuel and other items essential

Tax incentives essential to market Port City, says project company

The project company of the Colombo Port City (CPC) project stressed that the multi-billion-dollar project cannot be marketed to foreign investors in the present context sans tax incentives.

Government to expedite FTA talks with India, China and Thailand

The government plans to resume free trade agreement (FTA) negotiations with India, China and Thailand and expedite the completion process, a senior official said.

IMF bailout will come as budget support this time, says CB chief

As crisis-hit Sri Lanka awaits a lifeline from the International Monetary Fund (IMF), the country’s Central Bank chief said the expected....

President says no plans for reforms; stresses need for new economic model

Sri Lanka has no plans whatsoever for reforms going forward, President Ranil Wickremesinghe told a room full of the country’s top private sector business leaders yesterday but instead would be thinking bigger and bolder in terms of its growth agenda.

Private credit continues to slump; October logs Rs.47bn contraction

Net credit to the private sector fell for the fifth consecutive month in October reflecting the depth and the breath of the economic contraction, which is impacting businesses and individuals alike after the economy....