Economic

The Colombo stock market gathered more momentum yesterday with both indices up 1% but more importantly high turnover of Rs. 3.5 billion thanks to strong retail interest.

The Government yesterday assured that the relief packages including debt moratorium introduced to the tourism sector, the worst impacted by the COVID-19 pandemic, would continue until there was proper recovery. Tourism Minister Prasanna Ranatunga said that two Cabinet papers were submitted to assist the tourism industry that was badly affected by COVID-19, while the assistance given to the industry post-Easter Sunday was also extended further for a period of one year.

The Colombo stock market bounced back strongly yesterday after its dip on Wednesday as bargain hunters stepped up buying.

The Government has decided to extend the last date to furnish the Return of Income for the year of assessment 2019/2020 till 28 February 2021 after considering the difficulties arising out of the COVID-29 pandemic.

The Colombo stock market began the new week on a negative note though investors took heart from the above Rs. 1 billion turnover and relatively mature behaviour, thereby checkmating a steeper fall owing to the rapid spread of COVID-19 in the country.

Cabinet this week approved the move to set up a 275-acre Industrial Zone for Fabric Processing Enterprises in Eravurpattu, Batticaloa, following a proposal by the Ministry of Industries.

Awarding the ISO 45001:2018 certification (from left): Litro Gas Terminal Lanka Director Operations Pushpakumara Edirisinghe, SGS Lanka Business Manager – Certification and Business Enhancement Chamika Wimalasiri, Litro Gas Lanka and Litro Gas Terminal Lanka Chairman and CEO Anil Koswatte, Litro Gas Lanka Director Health, Safety and Environment Jayantha Basnayake

Sri Lanka’s growth is expected to contract by 1.7% in 2020 before rebounding to an optimistic 5% next year, the Central Bank said yesterday, but the monetary authority warned a recovery was dependent on strong reforms, including better fiscal management, strong exports and increased investment.

Simulation exercise shows that when cigarette taxes are raised in line with inflation and streamlined between 2020-2023, Government Excise Tax revenue will increase by Rs. 37 b by 2023 and 140,000 premature deaths from cigarette consumption can be prevented

The Colombo Stock Market bounced back strongly yesterday with higher turnover as investors showed signs of renewed optimism, despite a worsening COVID-19 situation in the country.

Sri Lanka has come second in the ‘Top 20 countries in the world’ ranking by popular and influential Condé Nast Traveler readers.

Influential global investment bank Morgan Stanley recently said a key weakness for Sri Lanka is the high proportion of short-term debt.

The Government has decided to upgrade the decades-old Sapugaskanda oil refinery to produce a higher percentage of fuel needed by the local market and also plans to set up two more refineries in Hambantota and Trincomalee.

State Minister of Money, Capital Markets and Public Enterprises Reform Nivard Cabraal, in a special statement, dispelled undue fears on Sri Lanka’s debt servicing capacity.

The increase in corona virus cases threatens Sri Lanka’s economic recovery. After an initial phase during which the pandemic was kept under control, the number of cases has surged since 4 October official sources said.

Sri Lanka has initiated export promotional activities via online due to the difficulties of organizing physical export promotion programmes during this Covid pandemic situation, the Sri Lanka Export Development Board (EDB) disclosed.

The Colombo Stock Exchange yesterday said that all stock market operations will continue as normal from today onwards.

Continuing its heavy focus on entrepreneurial and economic development island-wide, BOC has led the way in CBSL’s ‘Saubagya COVID-19 Working Capital Loan Scheme,’ by being set to single handedly disburse Rs. 42.8 billion of the allocated total of Rs. 150 billion by CBSL.