Sri Lanka’s trade deficit continued to expand in July 2021 from a year ago levels, as imports surged surpassing the increase in exports, amid the rise in global commodity prices and higher imported volumes.

There were signs of excessive imports of certain categories up to July this year, reflecting front-loading by a section of traders, a claim, which was repeatedly made by the Central Bank, while partly attributing it to the current undue pressure on t

Central Bank Governor Prof. W.D. Lakshman yesterday formally announced that he is stepping down from the post prematurely, with effect from the 14th of this month.

Amid a slew of measures taken in the recent past to alleviate the pressure on the currency, the Monetary Board of the Central Bank this week decided to further limit importation of some 623 products under 11 categories, which are deemed “non-essent

Quoting a health communiqué issued by Director General of Health Services Dr. Asela Gunawardena, on September 3, the Sri Lanka Tourism Promotion Bureau (SLTPB) yesterday in a statement said the prevailing lockdown and travel restriction rules would

The Central Bank has written to banks asking them not to quote outside Rs.200/Rs.203 level for US dollars on all foreign exchange transactions as banks were quoting Rs.238 for a dollar by Monday amid exporters continuing to withhold selling dollars i

The government has ruled out any coal-based capacity additions or new coal-fired power plants as it reaffirms on the target set for the country’s power sector to achieve carbon neutrality in 2050 while meeting 70 percent of the country’s power ge

Market lending rates have began responding to the policy rate and banks’ reserves ratio hikes announced on August 19, as prime customers witness their loans becoming pricier for the third straight week as the benchmark rate climbed above 6.0 percen

The government moving to implement harsh price controls will have detrimental effects on the economy and the people are likely to experience further difficulties as the food shortages could further worsen.

Borrowers who continue to be battered by the pandemic-induced restrictions on their income generating activities are given further four months of loan relief and a host of other concessions, effective from September 01, 2021. The fresh round of paym

In a fresh attempt to rebuild the country’s foreign reserves ahead of external debt services running into billions next year, the Finance Ministry this week called for proposals from banks, investment houses and institutional investors to raise a f

Although the government is yet to reach a definite decision whether to go to the International Monetary Fund (IMF) or not, it has begun preparations for austerity measures such as freezing new recruitments and restructuring welfare programmes in orde

Pushing back on claims made to the effect of reversal in the monetary policy towards a hawkish stance from a dovish stance, the Central Bank said it hasn’t made a turnabout and the measures last week were predominantly aimed at addressing some of t

Sri Lanka’s fiscal deficit expanded slightly despite higher revenues during the first six months of 2021 compared to the same period last year, made possible by the higher tax revenues collected during the first three months of the year from a burs

S&P Global Ratings yesterday revised its outlook on Sri Lanka’s long-term ratings to negative, from stable, while affirming its ‘CCC+’ long-term sovereign credit ratings and ‘C’ short-term ratings on Sri Lanka.

The Internal Monetary Fund’s (IMF) US$ 800 million Special Drawing Rights (SDRs) allocation to Sri Lanka is only likely to provide some breathing space to the debt-ridden nation to delay a much needed IMF programme for a possible debt structuring u

Reinforcing an early cap imposed on the foreign currency-denominated deposits by the local banks, the Central Bank yesterday issued an order stipulating the maximum rate at 5.0 percent for deposits denominated in foreign currency up to one year, barr

The Ceylon Electricity Board Engineers’ Union (CEBEU) and Public Utilities Commission of Sri Lanka (PUCSL) are throwing the blame at each other as a Malaysia-based renewable energy investor has resorted to arbitrary action against the Ceylon Electr

The Public Utilities Commission of Sri Lanka (PUCSL) has instructed the Ceylon Electricity Board (CEB) to come up with a fresh Long-Term Power Generation Expansion Plan, complying with the 70 percent renewable energy power generation target set by th

Citibank in a note issued soon after last week’s monetary policy action said although the Central Bank would pause for sometime given the temporary respite they may get from the envisaged foreign inflows via swaps and others, it did not rule out fu

Sri Lanka’s merchandise export earnings surpassed the US $ 1 billion mark in July, after a lapse of four months, where a similar achievement was only recorded in March during this year.

The Monetary Board yesterday raised policy interest rates, ending its unprecedented monetary support extended to the pandemic-hit economy in a bid to address recent external sector imbalances and ward off medium term price pressures to make sure the

The Colombo Stock Exchange (CSE) evidently had been one of the most preferred options for local corporates of all sizes to raise capital in the first seven months of 2021.

The lingering virus could dampen the economic activities through the end of September, further delaying any hopes for a tangible recovery in the economy, which was continuously battered by half a decade of subdued growth before contracting last year.

Sri Lanka’s gross official reserves weakened as expected in July after the government settled a billion dollar bond with coupons among other obligations on July 27.

The trade deficit continued to widen for the fourth consecutive month in June on a year-on-year (YoY) basis, as imports grew at a faster pace, driven by consumer and investment goods, surpassing the pre-COVID levels, despite a decline in the fuel imp

One of the fastest growing apparel manufacturers in Africa, Sri Lanka-headquartered Hela Apparel Holdings plans to raise up to Rs.4 billion (US$ 20 million) by offering 20 percent stake in the company through an initial public offering (IPO) on the C

With no considerable foreign exchange inflows in sight,

Sri Lanka’s cement industry could become the latest victim of controlled prices as manufacturers are contending with input and other costs, which are rising at a level that no longer enables them to stay solvent at the current retail price for ceme

The Special Deposit Accounts (SDAs) introduced last year at the onset of the pandemic, offering a higher rate of interest for foreign currency deposits, are also playing a role in drawing more foreign earnings from the Sri Lankan expatriates working