Economic

The forex market remained largely inactive for a second consecutive day following the request by the Central Bank to keep the US Dollar exchange rate at maximum of Rs. 203.

The Government yesterday said efforts to set up 500 production villages and assist 200,000 self-employed businesses and start-ups countrywide are progressing well.

National Carrier SriLankan Airlines, a member of the oneworld Alliance, this week celebrated 42 years of flying across the globe.

The Colombo stock market yesterday suffered the biggest drop in recent months as investors continued to book profit after record highs, though panic selling was evident on concerns over the Central Bank's currency move.

The apparel industry says the export target of $ 5.1 billion for 2021 would be a tough task, given the latest wave of COVID-19 in the country and companies operating 15% below capacity.

With the rupee having already lost 7.5% against the dollar so far this year, importers are worried price controls will further discourage imports, according to a Reuters report.

Veteran Central Bank Governor turned national-list Government MP and State Minister Nivard Cabraal is likely to revert to the former position in the greater national interest.

The Ceylon Institute of Builders (CIOB) has written to Finance Minister Basil Rajapaksa on the importance of continuing with key infrastructure projects.

Relief to COVID-19-affected biz and individuals was to expire on 31 Aug.
Banks are required to ensure deferment or restructuring of existing credit facilities in performing category as of 1 Sept.
For facilities in non-performing category, banks may reschedule on case-by-case basis, over a longer period, considering repayment capacity of borrower and acceptable revival plan
Eligible borrowers must request for latest concessions on or before 21 Sept.
Banks cannot allow penal interest to be accrued or charged during concessionary period 1 Sept. to 31 Dec. for amounts falling due
Banks told to suspend all types of recovery actions until 31 Dec. against credit facilities that have been classified as non-performing on or after 1 April 2020
Banks also requested to extend validity period of cheques valued less than Rs. 500,000 until 31 Oct., discontinue charging for cheque returns and stop payments in relation to all cheque payments until 30 Sept.
Banks requested to discontinue late payment fee on all credit cards and other credit facilities during period up to 31 Oct. for those who are demonstrably affected
The Central Bank (CB) has extended the debt moratorium for COVID-19-affected businesses and individuals by another three months till 31 December.

The Central Bank’s move to fix the dollar to a permissible range yesterday was described as “regressive” by economists who maintained that it will only make the critical bailout by the International Monetary Fund (IMF) more challenging or even remote.

Emergency regulations relating to food supplies to be debated today
Sittings limited to 2 days this week due to COVID-19

Top apparel manufacturers yesterday reiterated that the European Union (EU) GSP+ is very critical for the future growth of exports and expressed hope that the Government will work towards retaining the concession.

Forex and capital markets were rattled yesterday, leaving the private sector confused and concerned, after the Central Bank unofficially pegged the rupee to the dollar at a fixed rate.

Union Assurance PLC closed the first half of the financial year as the fastest growing life insurer, achieving a 65% growth in regular new business premiums among the top 5 life insurers in Sri Lanka amidst a pandemic-affected business landscape.

Turnover tops Rs. 10 b mark for sixth consecutive market day
Indices gain by 2%; ASPI extends YTD return to 38%, S&P SL20 shy of 15 points to reach highest level in 2021; up 33% YTD
Foreign exodus continues; YTD figure now nearing Rs. 40 b mark or $ 200 m
Gainers outnumber decliners by a wide margin of 137 to 54
Expolanka sustains most valued status for third straight day; market capitalisation tops Rs. 360 b mark

The Colombo stock market dipped by 1% yesterday owing to investors taking profit after record-high prices, whilst activity remained robust with over Rs. 7 billion turnover.

The Government yesterday reassured people that there was ample food stock in the country for the foreseeable future.

Essential food items rice and sugar will come under the Maximum Retail Price (MRP) regime with effect from today,