Economic
Celebrating the success of its inaugural virtual AGM that took place on the 24 September, the Sri Lanka Gem and Jewellery Association (SLGJA) announced the election and appointment of its new Chairman Ajward Deen.
Indian Foreign Secretary Harsh Vardhan Shringla and his delegation yesterday called on Finance Minister Basil Rajapaksa yesterday.
Central Bank Governor Nivard Cabraal yesterday expressed confidence that the economy would grow by 5% in 2021 on the back of 8% growth in the first half.
The Colombo stock market sustained its upward trend from a position of strength as both indices gained on healthy turnover.
Aims to attract post-COVID travellers to SL during 6-month Expo
Sri Lanka Tourism Chief says plan is to reach 2018 numbers overall
EDB to increase exports through its retail space with ‘Made in Sri Lanka’ products
PM Rajapaksa to inaugurate main country-designated event on 3 January
Singing sensation Yohani to perform at National Day event
Unique water-themed pavilion focused on promoting Sri Lanka as a gateway to South Asia
The Central Bank’s short-term Road Map unveiled yesterday listed 20 specific initiatives in the next six months to stabilise the economy and boost growth. They are as follows:
ඩිජිටල් බැංකුකරණය, බ්ලොක්චේන් තාක්ෂණය හා ක්රිප්ටොකරන්සි මයිනින් ඇතුළු අනෙකුත් සේවාවන් ශ්රී ලංකාවට විවෘත කිරීමට කැබිනට් මණ්ඩලයේ අනුමැතිය හිමිව තිබෙනවා. ඩිජිටල් ව්යාපාරික පද්ධතියක් ඇති කිරීම පහසු කිරීමේ අරමුණින් මෙම පහසුකම් විවෘත කිරීමට තීරණය කර තිබේ.
The Colombo stock market yesterday broke through the benchmark All Share Price Index’s 9,500-point psychological barrier as investors began a fresh week with improved sentiment though turnover was relatively low.
Identifies debt and forex, financial sector and macroeconomic stability concerns as critical issues to be addressed in short to medium term
Says all these will need some clear policy responses from Govt. and CBSL
Unveils raft of bold, progressive and controversial measures
Lays onus of recovery and action by all stakeholders; comes up with ‘To-Do list’
Reveals forecast of $ 7 b in non-debt foreign inflows between October-December this year and $ 11 b in 1Q of next year
Separately fresh forex inflows and roll-overs expected from Govt. and Central Bank forecast at $ 5 b last quarter of 2021 and $ 6 b in 1Q of 2022
Governor Nivard Cabraal reiterates homegrown solution will take country to growth path
New labour rights, human rights, Paris convention to be included
Plans to introduce mandatory due diligence to scrutinise supply chains entering EU market
Conventions on rights of persons with disabilities and children in armed conflict to be added
Eligibility conditions for LDCs to apply for GSP+ will be amended
Proposes to shorten process of the withdrawal of the preferences
Says unimaginable on future trade policies without reference to basic sustainable development principles
Expresses concerns on SL only exploiting 60% of the program
Legal stability and long-term approach to the program will help to fully exploit the full potential of GSP+
Calls on to diversify products and to industrialise
Underscores importance of creating awareness among SMEs about GSP+
CBSL requires mandatory repatriation and conversion of new export proceeds into rupee after deducting the permitted amounts of forex for intermediate and investment inputs
Export proceeds already accumulated in forex deposits with banks from 2020 onwards must be converted proportionately within 6 months
CBSL to introduce dedicated non-interest-bearing foreign currency accounts for export proceeds to encourage conversions
International Transaction Reporting System from 1 January 2022 to track banking sector forex inflows and outflows
3 major private sector lobby groups contest CBSL claims of exporters hoarding nearly $ 3 b of earnings overseas
Cabraal says current Rs. 199-203 band for US forex deals still provides a Rs. 32 per dollar advantage vis-à-vis a Real Effective Exchange Rate assessed based on implied exchange rate of 24 competitor countries
In categorically denying forex hoarding JAAF says CBSL has access to real-time data on export earnings and repatriation, hence shouldn’t quote incorrect, arbitrary data
Alleges CBSL has implicitly tarnished reputation of all exporters broadly, including all apparel exporters
Opines current forex crisis cannot be attributed primarily to practices of exporters broadly but foreign debt servicing and imports key causes too
Says global banks increasingly wary of discounting LCs to Lankan counterparts, resulting in already stretched supply chains facing even further difficulties
Counters CBSL saying Bangladesh, India, Indonesia, Malaysia, Nepal, Pakistan and Thailand are more lenient in repatriation rules than Sri Lanka
Within EPZs in India no conversion is required; says practice of cherry picking by CBSL is not right
Warns cost of $ 2.2 b imported raw materials rising owing to enforced currency conversions would impact the industry with serious macro and micro economic consequences
Says need of the hour is not rash rhetoric but a collaborative effort of working together to resolve these issues to ensure international investors, buyers and financiers’ confidence
The Joint Apparel Association Forum (JAAF) yesterday in a statement raised its objections to the article and ‘misleading’ comments contained therein published in the Daily FT on 28 September, titled ‘Exporters hoarding $ 2.76 b in earnings overseas: CB’.
The Commercial Bank of Ceylon yesterday announced it is now accepting digitally-signed documents from business customers using LankaSign operated by LankaClear, the only commercially operating certification authority in the country which complies with the Electronic Transactions Act.
Financial institutions to immediately suspend parate execution, forced repossession of leased assets up to 31 March next year and cancel all penalties imposed
Debt moratorium since July 2020 worth Rs. 780 b slated to end this year
Banking sector additionally extended Rs. 165.5 b in concessionary working capital financing
The active S&P SL20 Index reaches all-time high; ASPI near 40% YTD return
Both indices end September with 5% gain
CSE’s star performer Expolanka peaks to Rs. 201.25 before settling up 3% at Rs. 198.25
Expo’s market cap soars to Rs. 389.5 b; almost double that of third placed JKH
The Colombo stock market behaved erratically yesterday before closing in the red despite improved turnover.
Despite the widespread impact of the COVID-19 pandemic, the unemployment rate, surprisingly, has decreased to 5.1% in the second quarter of 2021 from 5.7% in the first quarter of 2021, according to the Central Bank’s latest provisional data released last week.
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