Economic

Borrowers given 3 options in debt freeze till March 2022; required to apply for concessions by 1 November

With a view to commence the ‘Smart Sri Lanka,’ the Government has decided to appoint a committee consisting of skilled professionals in the public and private sectors on rules and regulations required to attract investments from companies operating in block chain technology and crypto currency mining.

The Colombo stock market behaved erratically yesterday before closing in the red despite improved turnover.

The Central Bank of Sri Lanka (CBSL) said yesterday it has appointed a working committee to study and suggest new remittance channels for Sri Lanka and to make recommendations on reducing the cost of remitting money, having identified the need to introduce new and low-cost remittance channels with the objective of increasing the inflows of foreign remittances while discouraging the use of informal channels.

Celebrating the success of its inaugural virtual AGM that took place on the 24 September, the Sri Lanka Gem and Jewellery Association (SLGJA) announced the election and appointment of its new Chairman Ajward Deen.

Indian Foreign Secretary Harsh Vardhan Shringla and his delegation yesterday called on Finance Minister Basil Rajapaksa yesterday.

Global giant Citi has said it remains credit neutral on Sri Lanka, describing downside risks as high despite the measures outlined in the Central Bank’s short-term Road Map.

The Colombo stock market sustained its upward trend from a position of strength as both indices gained on healthy turnover.

Aims to attract post-COVID travellers to SL during 6-month Expo
Sri Lanka Tourism Chief says plan is to reach 2018 numbers overall
EDB to increase exports through its retail space with ‘Made in Sri Lanka’ products
PM Rajapaksa to inaugurate main country-designated event on 3 January
Singing sensation Yohani to perform at National Day event
Unique water-themed pavilion focused on promoting Sri Lanka as a gateway to South Asia

2022 Appropriation Bill presented in Parliament
Overall, as much as 50% of ministries, including several economically important ones, have seen their allocations cut
Budget vote on 10 Dec.

ඩිජිටල් බැංකුකරණය, බ්ලොක්චේන් තාක්ෂණය හා ක්‍රිප්ටොකරන්සි මයිනින් ඇතුළු අනෙකුත් සේවාවන් ශ්‍රී ලංකාවට විවෘත කිරීමට කැබිනට් මණ්ඩලයේ අනුමැතිය හිමිව තිබෙනවා. ඩිජිටල් ව්‍යාපාරික පද්ධතියක් ඇති කිරීම පහසු කිරීමේ අරමුණින් මෙම පහසුකම් විවෘත කිරීමට තීරණය කර තිබේ.

The Colombo stock market yesterday broke through the benchmark All Share Price Index’s 9,500-point psychological barrier as investors began a fresh week with improved sentiment though turnover was relatively low.

Minister Weerawansa meets heads of 19 Advisory Councils to resolve issues faced by industrialists
Import restrictions on essential raw material, transaction delays, non-issuance of foreign exchange, delays in Customs clearance listed as key issues impacting industrial sector
Separate meetings to be held with Finance Ministry, Central Bank, Customs for redress
Stakeholders commend Minister for relying on Advisory Councils to develop industrial sectors

New labour rights, human rights, Paris convention to be included
Plans to introduce mandatory due diligence to scrutinise supply chains entering EU market
Conventions on rights of persons with disabilities and children in armed conflict to be added
Eligibility conditions for LDCs to apply for GSP+ will be amended
Proposes to shorten process of the withdrawal of the preferences
Says unimaginable on future trade policies without reference to basic sustainable development principles
Expresses concerns on SL only exploiting 60% of the program
Legal stability and long-term approach to the program will help to fully exploit the full potential of GSP+
Calls on to diversify products and to industrialise
Underscores importance of creating awareness among SMEs about GSP+

CBSL requires mandatory repatriation and conversion of new export proceeds into rupee after deducting the permitted amounts of forex for intermediate and investment inputs
Export proceeds already accumulated in forex deposits with banks from 2020 onwards must be converted proportionately within 6 months
CBSL to introduce dedicated non-interest-bearing foreign currency accounts for export proceeds to encourage conversions
International Transaction Reporting System from 1 January 2022 to track banking sector forex inflows and outflows
3 major private sector lobby groups contest CBSL claims of exporters hoarding nearly $ 3 b of earnings overseas
Cabraal says current Rs. 199-203 band for US forex deals still provides a Rs. 32 per dollar advantage vis-à-vis a Real Effective Exchange Rate assessed based on implied exchange rate of 24 competitor countries

Arrivals up 169% to 13,547 from August
Increase largely influenced by relaxed travel restrictions, aggressive vaccination programs globally and growing consumer confidence
India, Pakistan, Germany, UK and Russia among top source markets
India beats Kazakhstan as largest single country source; Europe highest by region, up by 15% to 17,987 in first 9 months

The Commercial Bank of Ceylon yesterday announced it is now accepting digitally-signed documents from business customers using LankaSign operated by LankaClear, the only commercially operating certification authority in the country which complies with the Electronic Transactions Act.

Financial institutions to immediately suspend parate execution, forced repossession of leased assets up to 31 March next year and cancel all penalties imposed
Debt moratorium since July 2020 worth Rs. 780 b slated to end this year
Banking sector additionally extended Rs. 165.5 b in concessionary working capital financing