Economic crisis to reverse SL’s gains in economic freedom

Sri Lanka ranks 89 out of 165 countries and territories included in the Economic Freedom of the World: 2022 Annual Report, released by the Fraser Institute in association with the Advocata Institute in Sri Lanka.

Leading Business chambers request to call off mass protests planned for today

Several business chambers, including the Ceylon Chamber of Commerce, in a joint statement yesterday expressed concerns....

Inflation eases in October for first time after a year

Inflation in the Colombo district made an about turn in October exactly, possibly signalling the beginning of the end of the current spell of runaway inflation,

Colombo inflation rate eases to 66% in October

Inflation in the Colombo district made an about turn in October, bringing an end to the current spell of runaway inflation, which set off more than a year ago when the global commodities prices started rising, caused by the surge in demand amid the supply chain bottlenecks and emergence of foreign currency shortages in the domestic market.

Government approval moves up, but only to an extreme low level of 10%, reveals survey

The latest ‘Mood of the Nation’ poll by Colombo-based think-tank Verité Research reveals that government approval has moved up, yet still at an extremely low level of 10 percent.

JAAF to strengthen and consolidate relationship with trade unions, apparel workers

Efforts are underway to bring in measures to firm up and consolidate the relationship between the Joint Apparel Association Forum (JAAF) and trade unions and apparel workers, the apex body of the industry said.

Hoteliers wary of another wave of protests scuttling tourism industry recovery

Sri Lanka’s hotel sector yesterday asserted it will not tolerate any protests that will eventually result in severe negative implications to the industry, specially at a time when some improvement is seen in international travellers visiting the country.

SL’s economic development will be set back by years: IPS

Crisis-hit Sri Lanka is expected to fall back in economic development while the other nations get ahead, the Institute of Policy Studies....

Jan-Sept export income reaches US$ 10bn

Sri Lanka’s merchandise exports reached US$ 10 billion in the first nine months of 2022 with September export income topping US$ 1 billion ....

IMF remains only hope for Sri Lanka to emerge from crisis: CB Governor

The economic rescue programme with the International Monetary Fund (IMF) remains the only path available for Sri Lanka to emerge from the prevailing economic crisis, as no one else is ready to bail out Sri Lanka, according to Central Bank Governor Dr. Nandalal Weerasinghe.

National consumer inflation gallops to 73.7% in potential peak prices in September

Sri Lanka’s inflation measured by the National Consumer Price Index (NCPI) showed a relentless increase through September, as the prices continued their ascent over and above 70 percent for the second month in a row but the recent monthly price movements have galvanised expectations for the prices to have turned a corner.

Central Bank estimates further ease in imports as tighter policies take root

The Central Bank estimated a further decline in imports in September narrowing the trade deficit from the prior month in a clear sign that the policies instituted since April onwards are making the intended adjustments in the country’s external sector which fell into a deep crisis early this year pushing the entire economy off a cliff.

Severe blow to Lankan biz if crisis deepens: Fitch

The prevailing economic crisis, if deepens or sustained for a prolonged period, could deal a severe blow to many Sri Lankan business sectors, as runaway inflation, elevated interest rates and import restrictions have already pressured their revenues, margins, profits and cash flows, Fitch Ratings said.

Government to increase borrowing limit by further Rs.663bn to plug deficit

The Cabinet greenlight has been granted to increase the government’s borrowing limit for this year by a further Rs.663 billion to bridge....

Private sector says transparency and accountability should complement tax hike

While acknowledging the rationale behind the recently proposed higher tax rates, the Ceylon of Chamber of Commerce yesterday urged the government to show greater restraint, accountability and transparency in government spending.

IMF expresses “deep” concern over SL’s current situation 

The International Monetary Fund (IMF) expressed “deep” concern about the current situation prevailing in Sri Lanka and said it hopes it will be able to work fast to end the suffering, specially of the country’s poor and vulnerable.

IMF looking to expand donor coordination for countries such as SL: Georgieva

As the International Monetary Fund (IMF) is looking to press for a more effective debt resolution mechanism, it is said efforts are underway to also explore avenues that will help expand donor coordination to middle-income countries such as Sri Lanka.

Easing inflationary outlook projected from Oct. onwards

First Capital Research (FCR) forecasts a possible decline in consumer prices starting from October after inflation was believed to have peaked in September due to muted demand conditions and the likely moderation in the supply side price pressures coming from a looming global economic slowdown.

Sweeping changes to personal and corporate income tax

Sri Lanka this week gazetted key income tax changes proposed in May, giving effect to a host of personal and corporate income tax hikes while removing concessions and exemptions, with a view to raise government revenues to fix the budget under an International Monetary Fund (IMF)-backed economic rescue programme.

Confusion mounts over  Sri Lanka’s per-capita income status classification 

Conflicting statements from the Cabinet spokesman and the President’s Media Division over classification of Sri Lanka’s economy....

Prez to launch a policy package to fight runaway inflation

President Ranil Wickremesinghe, in his capacity as the Finance Minister, recently announced a string of policy measures to defeat stagflation, which could become difficult to be undone if it became more deep-rooted.

Prez to launch a policy package to fight runaway inflation

President Ranil Wickremesinghe, in his capacity as the Finance Minister, recently announced a string of policy measures to defeat....

​Central Bank pushes back against widespread calls for lower rates 

Pushing back on growing calls by many to cut rates to ease the pain on households and businesses and thereby kick start growth in the economy, the Central Bank last week defended its tight monetary policy as necessary until it s

Sri Lanka still a tourist favourite destination despite challenges

Sri Lanka faces hardships in the current economic context; however, the island nation has been successful in braving through the challenges and remaining a favourite destination among the travellers across the world.

Central Bank expects sharp deceleration in inflation early next year

The Central Bank, which kept its key interest rates unchanged yesterday to continue with its bone-crushingly tight monetary policy, said a significant deceleration in inflation is expected in the early part of next year, particularly with higher base effects kicking in.

Lanka poised to become winter escape for European tourists

With an increasing number of Europeans looking to avoid an expensive winter, due to the skyrocketing energy prices, Sri Lanka’s tourism industry is positioned to grow exponentially in the upcoming winter season, supported by the devalued rupee and recent relaxation of travel advisories, according to the latest report by First Capital Research (FCR).

Govt. to present budget 2023 with Rs.7.9tn expenditure estimate

The Cabinet nod has been granted to submit the draft Appropriation Bill for 2023 to parliament with an estimated total expenditure....

CB expected to hold rates amid signs of easing price pressures

The Central Bank is widely expected to hold its key rates steady this week, when the monetary board meets tomorrow (Wednesday) to review its monetary policy for the seventh time of the year, after delivering a cumulative 950-basis-point hike through July, in a bid to tame roaring inflation, which hit almost 70 percent in September.

Jobless rate in 2Q increases as economy continues to contract

Sri Lanka’s official unemployment rate increased in the second quarter ended in June as the unprecedented economic crisis pushed many out of work amid sky-high interest rates, import restrictions, soaring.....

Colombo inflation flirts with 70% in Sept. as prices surge

Inflation in capital Colombo, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI), rose to 69.8 percent in September, from 64.3 percent in August, as the crisis-struck nation continues to battle with exorbitant prices.