Economic

The Export Development Board (EDB) Chairman Suresh de Mel recently said the current unprecedented time is an opportunity to formalise the small- and medium-scale entrepreneurs (SMEs), noting that half or more are engaged in the informal sector.

Newly appointed Central Bank Governor Nivard Cabraal yesterday said a 5% growth for 2021 was likely to be a reality with the on-going vaccination drive, and mobility restrictions being relaxed.

President Gotabaya Rajapaksa yesterday appointed Ajith Nivard Cabraal as the 16th Governor of the Central Bank of Sri Lanka with effect from tomorrow (15 September).

Reuters: Sri Lankan shares clocked their second consecutive weekly loss as the island nation further extended its lockdown until 1 October to tackle an upsurge in coronavirus cases.

Heightened risks from the challenging operating environment stemming from the Sri Lanka sovereign’s (CCC) weak credit profile and the ongoing COVID-19 pandemic continue to pressure the ratings of large Sri Lankan banks, says Fitch Ratings in a new report.

Sri Lanka Tourism Chief Kimarli Fernando said yesterday the country needed to take advantage of the successful vaccination program whilst relaxing guidelines in line with global best practices to revive the COVID-hit tourism industry.

Tea exports in August have increased by 16% to 25.48 million kilos and cumulative first eight months performance rose by 8% to 187.57 million according to Forbes and Walker Tea Brokers.

The Finance Bill which provides several tax amnesties was certified by Speaker Mahinda Yapa Abeywardena yesterday.

The Board of Investment (BOI) has begun its search for a Public Relations (PR) firm to position Sri Lanka locally and internationally to attract more Foreign Direct Investments (FDIs).

Port City Colombo, the largest and most ambitious development project ever undertaken in Sri Lanka, proudly marks its seventh anniversary since the initial land reclamation work commenced in 2014.

The Colombo stock market recovered yesterday after its heavy fall on Monday with both indices up by over 1% though turnover remained low in terms of recent activity levels.

Reviews progress made in exports and foreign employment in first 8 months
Instructs officials to expedite solutions to achieve optimal results by year-end

Says without sizeable, secure and long-term external financing, foreign exchange reserves to continue declining over next 2 to 3 years
FX reserves data points to rising risk of debt default
Reserves well below annual external debt repayments of $ 4-5 b through at least 2025
Opines recent inflows piecemeal and boost FX reserves only temporarily and marginally given Govt.’s external repayment schedule
Expects net FDI inflows to average $ 1 b in 2021-22 compared to peak of $ 2.2 b pre-pandemic in 2018
Says recent restrictive measures may be effective in short term but could weigh on economic activity and deter investment inflows
Rating agency Moody’s yesterday declared that Sri Lanka’s foreign exchange reserves were still low and credit negative.

The Government yesterday ruled out a fuel shortage, assuring there is sufficient stock, and that public panic and speculation were unnecessary.

The Colombo Stock Exchange has approved the second SME-centric Empower Board listing by EML Consultant Ltd.

Fitch Ratings yesterday warned that finance and leasing companies were facing challenges beyond the COVID-19 pandemic.

The Export Development Board (EDB) has introduced a new financial support scheme to encourage exporters of value-added industrial products.

Transparency International Sri Lanka (TISL), whilst expressing deep concerns over the new Finance Act passed last week, has called on the Government to ensure effective scrutiny and other measures to achieve the desired objectives.