Economic

The Colombo stock market celebrated Christmas in advance soaring to a 41-month high amidst healthy turnover and play on select blue chips.

The Finance Ministry will establish a Budget Implementation Unit to coordinate Budget 2021 to ensure it meets the Government’s aspirations of realigning the economy to tap Sri Lanka’s growth potential fully, increase revenues and promote debt sustainability.

Cementing its track record as the richest region in the country, the Western Province contributed the highest share of 39.1% to Sri Lanka’s nominal GDP in 2019 but was down 0.5% from the previous year, while the Central and North Western Provinces followed at a distant second and third place, latest data from the Central Bank showed.

Reuters: Shares slipped on Wednesday, snapping a two-session winning streak, dragged down by losses in financial stocks.

National carrier Srilankan Airlines has been convicted by an Indian court for non-compliance of Indian law.

The US Department of State, Bureau of Democracy, Human Rights and Labor (DRL) has announced an open competition for organizations interested in submitting applications for projects that advance and protect freedom of association and freedom of assembly in Sri Lanka.

The tea sector weathered a difficult year with revenues slumping by Rs. 12.43 billion to Rs. 209.02 billion while production dropped by 27.3 million kilos to 241.6 million kilos in the first 11 months of 2019, brokers said yesterday, but rupee prices reached an all-time high of Rs. 80 per kilo due to COVID-19 impact.

The Bank of Ceylon (BoC) yesterday said it was ending 2020 on a healthy note despite the COVID-19 impact, having recorded the highest asset base of Rs. 2.9 trillion and deposit base of Rs. 2.3 trillion.

The Colombo Stock Exchange (CSE) announces several changes in S&P Sri Lanka 20 index constituents made by S&P Dow Jones Indices at the 2020 year-end index rebalance.

The Central Bank has given more time for John Keells Holdings Plc and Central Finance Plc to reduce their shareholding in Nations Trust Bank Plc to 15% each.

Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 decreased to 5.2% in November 2020 from 5.5% in October 2020, the Central Bank said yesterday.

Sri Lanka’s growth prospects for 2021 had dimmed from the 5 percent levels expected in October amid a surge in Corona virus and with the Census and statistics latest controversial data released with much delay, economic analysts said.

The Board of Investment of Sri Lanka (BOI) and the Embassy of Sri Lanka in France organised a webinar on 17 December. The webinar was sponsored by National Confederation of French Employers (Movement des enterprise France) MEDEF. The Embassy of France in Sri Lanka and the Sri Lanka – France Business Council worked closely with the BOI and Sri Lanka Embassy in Paris to make this event a success.

The Free Trade Zone Manufacturer’s Association (FTZMA) yesterday called on the Government not to change the compensation ceiling of Rs.1.25 million given to terminated employees as such a move would place additional pressure on employees already struggling with COVID-19.

Uber yesterday (18) announced the installation of safety screens or safety ‘cockpits,’ a protective ceiling-to-floor transparent plastic screen between the passenger and the driver, in over 1,500 cars and tuks, setting a new standard of safety in the ‘new normal.’ Additionally, these safety screens are being scaled up across product categories immediately.

The Finance Ministry has approved the payment of bonuses to staff of State corporations and fully State-owned companies for the year 2020.

The Hotels Association of Sri Lanka (THASL) on Friday welcomed the new initiatives to boost tourism, whilst making key suggestions for better revival post COVID-19 pandemic.

Low growth, macroeconomic issues, muted private sector growth to impact banks
Despite projections of 4.9% growth in 2021 underlying vulnerabilities and COVID-19 to affect profitability
Growth expected to contract 6.7% in 2020
Despite spate of relief measures by CB, impaired loan ratios on the rise