SL’s laws don’t allow digital transformation: Namal

The government regulations are the major bottleneck that holds back the public and state sectors from embracing digitalisation, according to Digital Technology and Enterprise Development State Minister Namal Rajapaksa.

Foreign reserves fall to US$ 2.3bn despite swap, debt deferment

Sri Lanka’s official external reserves fell to US$ 2.36 billion by the end of January 2022 from US$ 3.14 billion by the end of December 2021, as the government settled foreign currency loans and funded essential imports, while taking receipt of a US$ 400 million currency swap and a US$ 500 million debt deferment from India.

Hela Apparel debuts trading on CSE

The shares of Hela Apparel Holdings Limited commenced trading on the Colombo Stock Exchange (CSE) yesterday. The shares have been listed on the Main Board of the CSE under the ‘Consumer Durables and Apparel’ sector. The occasion was marked with a special Bell Ringing Ceremony. The share closed Rs.3.60 or 24 percent up at Rs.18.60, compared to the issue price of Rs.15.00.

SL told to look outside its shores to overcome twin deficit crisis

Sri Lanka needs to look outside its shores to navigate out of the twin-deficit crisis (fiscal and current account deficits) stronger by focusing on untapped potential in its vast informal sector and service exports, which present enormous opportunities, according to the World Bank (WB).

Ceylon Cinnamon bags GI status from European Union

Sri Lanka this week received the much awaited Geographical Indication (GI) certification from the European Union (EU) Commission, a progress achieved after more than a decade long effort.

Basil says advice sought from IMF to tackle economic troubles

The government has in writing sought the advice from the International Monetary Fund (IMF) on how to tackle the prevailing economic crisis but accepting of such advice will be done only after a thorough study, Finance Minister Basil Rajapaksa said yesterday.

Govt. hopeful of resolving forex crisis in six months

The government remains hopeful of resolving the ongoing foreign exchange crisis within the next six months with Finance Minister Basil Rajapaksa and Central Bank Governor Ajith Nivard Cabraal leading the negotiations with the country’s creditors and multilateral agencies including the International Monetary Fund (IMF).

CB confident of meeting all essential imports through inflows

Sri Lanka can comfortably accommodate all essential imports plus non-essential goods without any disruption or shortages from the inflows envisaged, according to Central Bank Governor Ajith Nivard Cabraal.

Fresh boost for SMEs to enter European Union with launch of IPD hub

The local small and medium enterprises (SMEs) will receive fresh impetus to enter the European Union (EU) market, with Sri Lanka being selected as one of the four hubs to launch the Import Promotion Desk (IPD).

New inflation wave likely from April as one-off taxes take effect

Sri Lankans may need to brace for a new wave of consumer price pressures from around April with the one-off taxes proposed in the budget for this year coming into effect, according leading finance professionals and tax experts in the country.

Calls for transparency get louder over IPO share allocations

As a large amount of the initial public offering (IPO) shares of companies get often allocated to so-called undisclosed eligible investors, market participants are calling for the disclosure of such shareholders in a bid to bring in transparency to the whole IPO process.

Cabraal confident of settling US$ 1bn sovereign bond in July

Following the repayment of half a billion dollar bond last week, the Central Bank Governor Ajith Nivard Cabraal this week expressed confidence in settling the billion dollar sovereign bond maturing this July.

Small hydropower developers seek upward tariff revision

Sri Lanka’s Small Hydro Power Developers Association (SHPDA), which boats a combined installed capacity of 440MW, seeks a reasonable upward revision to feed in tariff to realise the remaining 150MW potential in the small and medium-scale hydropower sector, with 475MW worth of power projects being stuck at different levels, due to the government red tape over the past seven years.

Access to build SL’s largest warehousing complex with US$ 250mn investment

Access Engineering Group plans to build Sri Lanka’s largest warehousing complex in Ekala with an overall estimated investment of US$250 million, which will be leased out to a leading multinational company.

Fresh round of incentives from CBSL to up remittances

The Central Bank of Sri Lanka (CBSL) announced a fresh round of incentives to migrant workers this week, an effort to increase the flow of foreign exchange into the country.

CB hikes policy rates to fend off inflationary pressures, Fx crunch

The Central Bank yesterday tightened monetary policy for the second time in five months to tame the soaring consumer prices and also alongside took a host of other measures to ameliorate the foreign exchange situation, which fell to crisis proportions in recent times.

Govt. projects 20-25% output loss amid organic agriculture push

The government is projecting a 20-25 percent loss in the country’s agricultural output, as a direct result of its ill-thought-out, ambitious organic agriculture drive.

Power cuts frustrate exporter community

The country’s exporters yesterday expressed their frustration over continued challenges faced by them in carrying out day-to-day activities with unannounced power cuts.

SL averts immediate default; calls to engage with IMF get louder

As Sri Lanka avoided an immediate debt default, averting a massive crisis, the country’s policymakers should now make use of the breathing space provided by the Indian credit lines to the tune of US $ 1.9 billion to engage with its creditors,

Pharma Chamber warns of disastrous medicine shortage

The Sri Lanka Chamber of Pharmaceutical Industry (SLCPI) yesterday said importing of medicines to Sri Lanka is now done on the availability of foreign currency and not on the needs of the country or its patients.

S&P cuts SL’s rating deeper into junk territory

S&P Global Ratings (S&P) downgraded Sri Lanka’s sovereign credit rating yesterday, citing heightened conditions for a foreign debt default in the next 12 months, becoming the third rating agency to strike against Sri Lanka’s waning external financing position in the last three months.

President to inaugurate construction of East Container Terminal today

Marking a milestone in Sri Lanka’s shipping industry, President Gotabaya Rajapaksa is scheduled to inaugurate the construction of East Container Terminal (ECT) of the Port of Colombo today.

Private sector wants no govt. input in salary bargaining process

Sri Lanka’s private sector employers, led by the Employers’ Federation of Ceylon (EFC), yesterday urged the government to refrain from forcing them to pay the Rs.5000 allowance to their employees and said their financial difficulties have been worsened by the ongoing foreign exchange crisis and global supply issues.

Economist calls for debt default to avert hardships on people

Contradictory as it may sound, senior economist Dr. Nishan de Mel said the settlement of the dollar bonds would plunge Sri Lanka and its people into further abyss and therefore the government should default on its debt come due next week, as debt repayment neither solves the current shortages of essential items nor would raise the country’s junk credit rating.

Trade unions demand Rs.5,000 allowance to be extended to private sector

The key trade unions representing the private sector employees have requested Labour Minister Nimal Siripala De Silva to extend the Rs.5,000 allowance announced for the public sector last week to the private sector employees as well, through legislative measures.

Lankan dollar salary earners face forcible conversions by banks

A state of confusion appears to have been created by the instructions issued to banks by the Central Bank with regard to conversion of bank balances of resident Sri Lankans who earn in dollars and Lankan migrant workers who remit money to their foreign currency bank accounts.

SL risks runaway inflation with govt.’s mega relief package

Already entrapped in high inflation, Sri Lanka runs the risk of runaway prices in the coming months, as the government this week unveiled a surprise stimulus package worth of Rs.229 billion, without explaining how it will be financed.

Government’s New Year relief: A blessing or curse in disguise?

The government’s New Year bonanza to the people announced by the Finance Ministry this week could be looked at as a blessing at a time of hardship. However,​​ looking beyond the attractive packaging makes one question if it’s a curse that would eventually add to the mounting woes of the public.

Govt. announces mega New Year relief package

Finance Minister Basil Rajapaksa yesterday evening announced a massive relief package to the tune of Rs.229 billion (US $ 1.15 billion), aimed at easing the burden faced by the public, due to the soaring consumer prices and shortages of essential commodities.

Bourse ends 2021 as banner-year for IPOs

Year 2021 became a banner-year for Initial Public Offerings (IPOs) with 13 companies raising nearly Rs.12 billion in fresh equity on the Colombo Stock Exchange (CSE), while majority of them closed the year above offer prices last Friday.