Economic

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.

Softlogic Stockbrokers said yesterday that the Colombo Stock Exchange (CSE) was the highest gainer globally in August and second-best performer year-to-date (YTD), trading at a 40% discount to peers.

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.

Quantum unspecified but tenor could be 1 year or more; bids to be submitted by 22 Sep.
Financing proposals sought from banks, institutional investors, investment houses
Funds to meet expenditure approved in Annual Budget
In mid-2020 Finance Ministry specified FCTF $ 500 m and 5 responded with proposals

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 finally confirmed yesterday that Sri Lanka received Special Drawing Rights (SDR) allocation of International Monetary Fund (IMF) and the Initial Disbursements under the Currency Swap Arrangement with the Bangladesh Bank.

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.

The Colombo Stock Exchange (CSE) yesterday tweeted saying the market still remains attractive in terms of Price Earnings Ratio (PER).

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 Government yesterday reassured that foreign exchange inflows continue, though the markets reacted differently as rupee depreciation persisted.

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,

The Government is investing over Rs. 750 million to step up its efforts to open and expand first-ever pesticide-free, State-run retail chain, the Sathosa Organic Supermarket network – covering all 25 main cities across the country.