Economic

With unprecedented level of trading activity, the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) have issued new directives to monitor credit exposure undertaken by brokers and dealers.

The USD/LKR rate on spot contracts appreciated on Wednesday to close the day at Rs. 192.25/193.00 against its previous day’s closing levels of Rs. 195.50/196.50.

Cabinet has given approval for State land to be used to set up a new industrial estate in Katana to facilitate 150 investors that are expected to invest Rs. 30 billion and create 11,500 jobs, an official said yesterday.

The Department of Labour has launched the second phase of its survey on the impact of COVID-19 and beyond on businesses and their employment level as a follow-up to the inaugural exercise done mid-2020.

The Colombo International Container Terminal (C.I.C.T) is the only container terminal currently operating at the Colombo Port that can handle ships over 14.25 meter in depth (Dratf) despite the Failure of East terminal to begin operations port officials said.

Sri Lanka Tourism yesterday said the country has welcomed over 400 international tourists after reopening borders on 21 January, and expressed confidence that interest will build up gradually towards the first half of the year.

Despite global negativity, the CSE has emerged the best performing stock market in the world as of 19 January due to local positivity. Analysts expect global equity market growth to move away from the US to favour the rest of the world.

Sampath Bank PLC yesterday announced a share sub division on the basis of 1 into 3.

The Colombo Stock Market rally remained relentless as it notched up a record Rs. 15 billion in turnover and the more active index soaring by over 5.6%. The benchmark All Share Price Index (ASPI) gained by 2.7% or 231 points and the S&P SL20 by over 188 points or 5.69%. Turnover was Rs. 14.9 billion, a one-year high. First Capital said the two giants competed (John Keells Holdings and LOLC) to sustain the record-breaking streak for the fourth consecutive session. LOLC saw its market capitalisation rise to Rs. 181.17 billion, whilst John Keells Holdings (JKH) dominated at Rs. 239 billion.

The Government has decided to develop the Colpetty Market into a 40-storey mixed development project with a Memorandum of Understanding (MoU) signed between the Colombo Municipal Council (CMC) and the Urban Development Authority (UDA).

State Minister for Money, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal, yester-day sought to dispel speculation on Sri Lanka’s economic fundamentals asserting that the Government has taken all necessary steps to manage the economy and position the country on a growth trajectory whilst meeting all international obligations. Speaking at a press conference Cabraal noted that 2021 has so far seen speculative behaviour from the outset, resulting in some forward contracts and stated that the Central Bank has been activated to take necessary corrective steps.

The Government yesterday directed all State institutions, including Ministries, Provincial Councils, Local Government Authorities and statutory boards to allow local companies to exclusively bid for Government construction contracts.

Headline inflation, as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100)1, decreased to 3% in January from 4.2% in December 2020, largely due to the statistical effect of the high base prevailed during January 2020, the Central Bank said in a statement yesterday.

www.bloomberg.com: Sri Lanka stocks have returned a world-beating 30% so far in 2021 as domestic investors get more active.

Due to the current situation of COVID-19 pandemic and imposed restrictions under health guidelines, the Inland Revenue Department (IRD) has unveiled useful awareness programs via online.

The Government is to present five new foreign exchange regulations for Parliament approval to ensure laws cater to the present situation.

The Securities and Exchange Commission of Sri Lanka (SEC) yesterday cautioned investors against unsolicited tips or recommendations amidst the bull run at the Colombo stock market.

People’s Bank has won Sri Lanka’s ‘Best Consumer Digital Bank’ while the People’s Wave App has been crowned the ‘Best Mobile Banking App’ at the World Finance Digital Banking Awards 2020. These accolades not only emphasise the bank’s success but further cement its position as Sri Lanka’s Most Digitalised Bank.