Economic

The Colombo stock market produced signs of a rebound yesterday with both indices closing positive, though turnover remained low.

Inflow of workers remittances has got off to a positive start in 2021 reflecting double digit growth.

The tea industry witnessed an increase in production and began the year with lower export volumes, but with higher returns, brokers said yesterday.

World-famous news broadcaster CNN this week put Sri Lanka under the spotlight, highlighting how the country has resumed international tourism, whilst following safety protocols amidst the COVID-19 pandemic.

Headline inflation as measured by the Year-on-Year change based on the National Consumer Price Index (NCPI) was 3.7% in January, down from 4.6% in December.

Years-long tripartite talks over the Rs. 1,000 daily wage for the plantations sector will drag into March after there were inadequate members to form a quorum at the Wages Board meeting yesterday to hear objections raised by Regional Plantation Companies (RPCs), a top official said yesterday.

Strong asset and other income growth combined with an emphasis on prudent provisioning in one of the most challenging years on record, have enabled the Commercial Bank of Ceylon Group (ComBank) to end 2020 on a stable platform for growth, with better liquidity than most peers and adequate provision cover.

The Central Bank has increased the Loan to Value (LV) ratio in respect of registered vehicles which have been used in Sri Lanka for more than one year after the first registration.

Exporters yesterday raised concerns over a new Central Bank order to immediately convert 25% of forex earnings through licenced banks, insisting such a policy could increase costs and place more pressure on an already struggling sector.

Cabinet approval was given this week to expand the Kalutara Industrial Zone by 1.9 hectares to accommodate more investors.

Money, Capital Markets and Public Enterprises Reform State Minister Nivard Cabraal declared yesterday that doomsayers of Sri Lanka will be disappointed when the country honours its foreign debt repayment track record.

Despite the adverse macro-economic challenges faced, DFCC Bank yesterday said it concluded the year ended 31 December 2020 with sound performance and growth. DFCC Bank PLC reported a profit before tax (PBT) of Rs. 3,398 million and a profit after tax (PAT) of Rs. 2,388 million for the year ended 31 December 2020. This compares with a PBT of Rs. 2,989 million and a PAT of Rs. 2,074 million in the previous year.

Dialog Axiata PLC yesterday announced the commissioning of the Maldives Sri Lanka Cable system (MSC), enabling the delivery of high-speed broadband services.

The Government has announced numerous tax exemptions for the dedicated Pharmaceutical Manufacturing Zone being built on 400 acres of land in Hambantota.

National Development Bank PLC said yesterday it posted solid financial results for the financial year ended 31 December 2020, demonstrating its strength, sustainability in generating operational revenue and resilience in withstanding unprecedented challenges.

The Central Bank yesterday defended the recent regulation on exporters to immediately convert 25% of their forex repatriations as not having undue impact, and insisted it was necessary to stabilise the currency, strengthen Sri Lanka’s credit profile and increase economic reliance.

Two popular international banks last week confirmed their “underweight” position on Sri Lanka and its sovereign bonds flagging-off concerns over debt sustainability and external position amidst domestic and global challenges.

The Colombo stock market yesterday staged a strong recovery with a near 2% gain in indices thanks to a rebound in buying sentiment.