Economic

Warns forex crisis and the resultant import restrictions have pushed many of these businesses to the brink of collapse
Goods for sale, raw materials and basic product availability hampered due to increasing pressure on imports
Accounting for 23% of GDP, retail sector says hugely invested recently for development of Sri Lanka’s retail landscape
Represents 14% of labour market with over 1.1 m people employed
If not resolved, crisis to result in closure of stores, severely impacting livelihood of many directly and indirectly dependent
Urges Govt. to bring about measures to alleviate crisis for industry considering wider economic impact on ecosystem

The Colombo stock market struggled its way to close in Green with both indices gaining marginally amidst low investor activity.

Feeders which carry cargo of Non Vessel Operating Common Carriers insist direct billing with three terminals at Colombo Port from 1 March
Three terminals SLPA-JCT, SAGT and CICT unwilling as of now
Move follows worsening dollar crisis in the country
NVOCC operators have been an integral part of the supply chain in Sri Lanka and urge swift resolution by shipping and port stakeholders
Warn failure could result in Colombo losing status as South Asia’s hub port status

Investor sentiments at the Colombo stock market remained mixed yesterday with benchmark index down but renewed interest on banking sector stocks propelled the more liquid S&P SL20.

Bonanza for minority shareholders
Announces Rs. 537 m offer to repurchase remaining 4.45% minority stake
Offer at Rs. 183 per share; NAV is only Rs. 67 per share

Solar Universe in Vavunathivu adds 10 MW; Hiruras Power in Mannar 15 MW
3Q Group consolidated revenue at Rs. 3.6 b; bottom line up 4% YoY
Hydro power revenue up by 25%; solar has growth of 22%

Fitch Ratings said yesterday Sri Lankan banks are likely to face continued asset-quality pressure in 2022 as rising macroeconomic stresses stemming from the sovereign credit profile pose a threat to borrowers’ repayment capacity, alongside the conclusion of most relief measures in 2021.

Regrets Govt. had not considered many alternative recommendations
Urges Govt. to avoid application of Surcharge Tax at Group level considering its unfair impact on smaller subsidiaries and minority shareholders
Says it is a serious deterrent to local and foreign investors who consider entering into JV with large conglomerates

The Colombo stock market closed in the green regaining Rs. 65 billion of lost value yesterday but the rebound was not strong enough to push the year to date ASPI to a gain, signalling CSE is still not out of the woods yet.

Says general perception of farmers and fishermen are ‘poor or piteous’
Points to agriculture as significant contributor to GDP, recognised as thrust sector
Calls on experts to find new ways to step up agriculture, dairy and fisheries exports
Asserts healthy dialogues could help to fashion policies to develop sectors

PUCSL, CEB and LECO hold discussion on Saturday
Decide to take count of reservoir water levels before final move
Countrywide heavy rains of 100 mm recorded during weekend
PUCSL unhappy with public response to energy saving
Asserts 47 GWh consumed last week and it should be dropped to 40 GWh
Chairman Janaka Ratnayake says PUCSL will be compelled to allow CEB for load shedding
Insists on saving depleting water levels on daily basis

Urges public and investor community not to be misled by inaccurate stories, misleading opinions and deliberate misinterpretations spread by certain parties with vested interests
The Central Bank (CBSL) yesterday reiterated Sri Lanka’s commitment to service forthcoming debt obligations and dismissed media reports that claimed the country was on the verge of default.

Trade Minister Bandula Gunawardena day before yesterday said Finance Minister will inform his stance pertaining to the report compiled by the International Monetary Fund (IMF) on Sri Lanka to the Cabinet of Ministers meeting next week.

The country's trade deficit in 2021 rose by over $ 2 billion owing to a sharper rise in imports and despite commendable export performance amidst challenges.

Reiterates 25% surcharge with retrospective effect on already taxed past profit as violation of rule of natural justice, unethical, unfair and destroys business confidence
Says SL facing global ridicule of being a nation taxing reserves as well as disrespecting international accounting standards
Govt. move has sparked fresh concerns among existing and prospective foreign investors
Acknowledges Govt. needs money but insists proper way is to introduce new one off tax across the board to all
Some private sector analysts suggest Govt. should exclude profit of Rs. 1 to Rs. 1,999 m made by companies when computing the 25% surcharge tax liability

Tourist arrivals cross 50,000 in first 15 days of Feb.
132,653 tourists arrive so far in 2022
Russia, India, Ukraine, UK and Germany among top source markets​

Despite restrictions and forex shortage, 2021 imports figure soars by 28.5% or $ 4.6 b to $ 20.6 b; highest in three years
December inflows highest ever at $ 2.2 b
Fuel imports in 2021 up by $ 1.2 b; textiles and textile articles by $ 732 m machinery equipment by $ 633 m, base metals by $ 406 m, medical and pharmaceuticals by $ 287 m, chemical products by $ 243 m and plastics and articles thereof by $ 225.6 m
Sharp increase in rubber and rubber articles, telecommunication devices, home appliances, food and beverages, non-food consumables, clothing and accessories imports
Fertiliser imports down 39% to $ 158 million though December sees pick up
Import of personal vehicles plunges by 96% to $ 13 m

මෙරටට ඩොලර් ගෙන්වා ගැනීමේ අරමුණින් ක්‍රියාත්මක කළ හැකි නව වැඩසටහනක් පිළිබඳ යෝජනාවලියක් ප්‍රකට ව්‍යාපාරික ධම්මික පෙරේරා විසින් රජයට ඉදිරිපත් කර තිබෙනවා. එය නම් කර ඇත්තේ ශ්‍රී ලංකා ගෝල්ඩන් පැරඩයිස් ප්‍රෝග්‍රෑම් ලෙසයි. විදේශිකයින් සඳහා මෙම අවස්ථාව ලබාදීමට යෝජනා කර ඇති අතර ඒ සදහා ඔවුන් විසින් සපුරා ලිය යුතු සුදුසුකම් කිහිපයක් යෝජනාවලියේ දක්වා තිබෙනවා.