Economic

The value of the Employees Provident Fund (EPF) listed equity portfolio has increased to Rs. 112 billion as opposed to its cost of Rs. 84 billion, reflecting an unrealised gain of Rs. 28 billion, the Central Bank revealed yesterday.

Colombo stock market managed to push its benchmark index positive though the more active S&PSL20 declined amidst waning turnover.

The Central Bank yesterday issued a statement clarifying the composition of official reserve position following different interpretations by economists and Opposition MPs.

Workers’ remittances in 2021 via banking channels have declined to a 10-year low, sparking fresh concerns over Sri Lanka’s biggest net foreign exchange earner.

State-run Litro Gas Lanka Ltd. has called for International Competitive Bidding (ICB) from eligible and qualified interest parties for the supply of 280,000 tons of +/- 20% of Liquefied Petroleum Gas (LPG) for a period of 12 months.

Central Bank Governor Nivard Cabraal via a tweet issued a rebuttal to yesterday’s Daily FT’s exclusive feature of leaders of the Ceylon Chamber of Commerce and top economists’ call to defer foreign debt repayment via rescheduling and use scarce resources to meet essential imports.

REUTERS: Sri Lankan shares extended gains to a second session yesterday, closing more than 1% higher as financial and industrial stocks advanced.

National carrier reports $ 9.25 m net profit and Group profit of $ 10.66 m in December
$ 11.43 m profit at air transportation level highest in over two decades
Says first profitable month since pandemic was boosted by $ 75 m revenue with higher passenger and cargo business
Chairman Ashok Pathirage hails sacrifices and contributions made by all staff members
Cautions future remains extremely challenging with spread of new variant of the virus
Commits to take necessary action to ensure December momentum continues

Employers Federation informs Labour Minister members can only consider Rs. 5,000 allowance if economy improves
Opines private sector had extra expenses to keep business afloat for the past COVID-hit 2 years
Labour Minister calls on private sector to submit a collective document to present to Cabinet
Minister insists on importance of protecting employees and employers interests for economic recovery and stability

Russia, India, Ukraine, UK and Germany among top source markets
Sri Lanka Tourism Chief Kimarli Fernando says future trend uncertain amidst COVID pandemic
Asserts SL need to ‘ride with the tide’ to sustain industry
Cancellations from EU and India amidst global Omicron threat
SLTDA Director General Dhammika Wijayasingha says average tourists stay has extended to 14 or more, from 10 days
Most tourists come for wellness tourism, vaccination with family

Cabinet Co-Spokesman Dr. Ramesh Pathirana says SL has an unblemished reputation of honouring debt
Asserts Govt. exploring all options including debt restructuring
Discussions ongoing with World Bank and ADB, whilst keeping doors open to IMF as well
Says Govt. liaising closely with India, China and Japan who had helped Sri Lanka historically
Insists on managing the crisis, adding it will be over soon

First six days of Jan. attracts 16,000 tourists
Tourism Minister Prasanna Ranatunga anticipates monthly tourist arrivals will improve to 100,000-125,000 in Q1

The COVID-hit tourism industry has managed to rebound with earnings of over $ 500 million in 2021. “Tourism holds a greater significance in the services sector and has been a driver of growth for the economy. The industry was the most vulnerable to COVID-pandemic, but it has proven again its resilience with remarkable resurgence. The year ended with 194,495 tourists, with earnings surpassing the target of $ 500 million,” Sri Lanka Tourism Development Authority (SLTDA) Director-General Dhammika Wijayasingha told the Daily FT.

The Colombo stock market remained negative for the second consecutive day dampening investor hopes of a turnaround.

Special GST to be new composite tax payable on number of specified goods and services
Special unit under Deputy Secretary to the Treasury to collect tax
Certain goods to be given exemptions
Rate applicable to be made by Order of Finance Minister
Tax payments to be made by electronic fund transfer
Bill to Parliament later this month

Says CBSL and Treasury officials not sleeping, but aware of debt challenge and busy on ways to boost reserves to repay debt
Says debt restructuring has been an on-going exercise, cites swaps as one example
Rescheduling of some bilateral and multilateral debt on the cards
Criticises some business leaders and “internet economists” for calling for non-payment
Chides rating agencies for downgrade and insists they will be disappointed by their action
Wants those calling for default and rating agencies held accountable
Warns default would be disastrous and will lead to anarchy
Urges all to be patient as debt repayment task though challenging is being addressed pragmatically
Says global investors have faith in SL’s debt repayment and calls for default erode this confidence
Points to record $ 21 b in imports in 2021 as proof of how essential imports were facilitated whilst servicing debt

ඉදිරියේදී විදේශ සංචිත වර්ධනය වන විට, එහි රත්‍රන් ලෙස පවතින ප්‍රමාණය වැඩි කිරීමේ අවශ්‍යතාව පිළිබඳ සලකා බැලීමට හැකි බව ශ්‍රී ලංකා මහ බැංකුව පවසනවා.

Lists 7 proposals which he believes can sustainably boost foreign currency reserves by $ 11 billion per annum
Says Govt. must approach IMF with two conditions – retaining tax concessions for new investments and pursuing a managed float of the rupee