Economic

After a jubilant January, the Colombo stock market has recorded a feeble February, suffering a 13% dip, whilst turnover was half of what was experienced in the previous month.

Cabinet approval was given this week to expand the Kalutara Industrial Zone by 1.9 hectares to accommodate more investors.

Money, Capital Markets and Public Enterprises Reform State Minister Nivard Cabraal declared yesterday that doomsayers of Sri Lanka will be disappointed when the country honours its foreign debt repayment track record.

In a bid to improve policy clarity, the Treasury yesterday said it is putting the finishing touches on a slew of taxes announced in December 2019 and Budget 2021 to be placed before Cabinet and finalised ahead of April to give businesses a clear start for the next tax year.

Dialog Axiata PLC yesterday announced the commissioning of the Maldives Sri Lanka Cable system (MSC), enabling the delivery of high-speed broadband services.

The Government has announced numerous tax exemptions for the dedicated Pharmaceutical Manufacturing Zone being built on 400 acres of land in Hambantota.

There is no indication of a positive response on the statement made by the Finance, Money Capital Markets and State Enterprise Reforms State Minister Ajith Nivard Cabraal regarding the evaluation of the situation of allowing vehicle imports at the end of this year, the Vehicle Importers Association of Sri Lanka (VIASL) yesterday said.

The Central Bank yesterday defended the recent regulation on exporters to immediately convert 25% of their forex repatriations as not having undue impact, and insisted it was necessary to stabilise the currency, strengthen Sri Lanka’s credit profile and increase economic reliance.

Two popular international banks last week confirmed their “underweight” position on Sri Lanka and its sovereign bonds flagging-off concerns over debt sustainability and external position amidst domestic and global challenges.

The Colombo stock market produced signs of a rebound yesterday with both indices closing positive, though turnover remained low.

Inflow of workers remittances has got off to a positive start in 2021 reflecting double digit growth.

The tea industry witnessed an increase in production and began the year with lower export volumes, but with higher returns, brokers said yesterday.

World-famous news broadcaster CNN this week put Sri Lanka under the spotlight, highlighting how the country has resumed international tourism, whilst following safety protocols amidst the COVID-19 pandemic.

Headline inflation as measured by the Year-on-Year change based on the National Consumer Price Index (NCPI) was 3.7% in January, down from 4.6% in December.

Years-long tripartite talks over the Rs. 1,000 daily wage for the plantations sector will drag into March after there were inadequate members to form a quorum at the Wages Board meeting yesterday to hear objections raised by Regional Plantation Companies (RPCs), a top official said yesterday.

Strong asset and other income growth combined with an emphasis on prudent provisioning in one of the most challenging years on record, have enabled the Commercial Bank of Ceylon Group (ComBank) to end 2020 on a stable platform for growth, with better liquidity than most peers and adequate provision cover.

The Central Bank has increased the Loan to Value (LV) ratio in respect of registered vehicles which have been used in Sri Lanka for more than one year after the first registration.

Exporters yesterday raised concerns over a new Central Bank order to immediately convert 25% of forex earnings through licenced banks, insisting such a policy could increase costs and place more pressure on an already struggling sector.