Economic

The Colombo stock market will remain closed for the fourth consecutive day today.

Despite the special holiday, the Monetary Board met at emergency session yesterday to assess and respond to the coronavirus (COVID-19) pandemic globally and locally, taking key decisions to cushion impact and stimulate economic activity.

Worst hit by the novel coronavirus COVID-19, the tourism industry is fearing a cash-flow crisis leading to non-payment of salaries for employees and loss of service charge, with some anticipating possible temporary closure of hotels.

The Hotels Association of Sri Lanka (THASL) yesterday made a fresh appeal for urgent support from the Government to prevent what it called “unprecedented levels of closures and job losses” from the novel coronavirus COVID-19 crisis.

MADRID (Reuters): The coronavirus epidemic is putting up to 50 million jobs in the global travel and tourism sector at risk, with travel likely to slump by a quarter this year, Asia being the most affected continent, the World Travel and Tourism Council has said.

Sri Lanka's largest export industry the garment sector is dealing with a fall in apparel order volumes as the corona virus outbreak has slowed down in key export markets, official sources said.

The present administration has decided to remove import duty and other taxes imposed on imported face masks and sanitizers with effect from midnight Wednesday 18).

Hemas Holdings Plc’s subsidiary Hemtours Ltd. has entered into a share sale and purchase agreement with Acorn Partner Ltd. for the sale of 80.1% stake in Forbes Leisure Services Ltd. for Rs. 201 million.

Sri Lanka’s US$4.4 billion tourism industry is now reeling from room cancellations as tourists snub the sun and sand in Indian Ocean Island after corona virus (Covid-19) threat looms in Colombo and suburban areas several weeks ago.

Sri Lanka Tourism said yesterday it had decided to revise the 2020 arrivals and earnings forecast following the impact of the new coronavirus (COVID-19) outbreak and the partial shutdown of the Bandaranaike Airport from tomorrow.

Sri Lanka Central Bank announced today an emergency cut to interest rates in an attempt to limit the economic impact from the new corona virus.

Sri Lankan Airlines is still to collect around US$ 100,000 to $ 500,000 from Pakistan Airlines (PIA) for the arrears of the aircraft crew training of A 330 Aircraft wet leased to Pakistan’s national carrier In August 2016, an official closely connected to the airbus deal revealed.

As of now there are no proceedings by UL to collect this money as the matter is already under the carpet, he said.

However the Federal Investigation Agency and National Accountable Agency of Pakistan are investigating the possibility of commission payments to the former CEO the German national who fled the country and or other Officials.

Bernd Hildenbrand, the German head of Pakistan International Airlines Corp. (PIA), has been put on a so-called exit control list (ECL) and the nation’s anti-graft Federal Investigation Agency has been directed to probe the national carrier’s wet lease of A 330 Aircraft allegedly tainted with corruption and irregularities, Pakistan media reported.

Under this set up Hildenbrand fled the country and he is still absconding to avoid corruption and commission taking charges from A 330 Aircraft deal with Sri Lankan Airlines.

The beleaguered Colombo stock market will be closed today as well, marking the second consecutive day of non-activity.

The Information and Communication Technology Agency (ICTA) was in the process of finalising a hi-tech system over the weekend to monitor coronavirus patients and those who had any form of interactions with them.

The Government yesterday assured there was no fuel shortage and sufficient stocks existed in the country.

Dialog Axiata Plc, Sri Lanka’s premier connectivity provider, in partnership with Wavenet International Ltd. and MyDoctor (My Health Solutions Ltd), has launched a free trilingual hotline 1390 for all Sri Lankans to receive information and advice on the coronavirus, providing access to doctors without the requirement of physically visiting a hospital or clinic. This convenient and easy-to-use service is a timely development, as the pandemic continues to spread.

COPENHAGEN (Reuters): Denmark’s Government told private companies struggling with drastic measures to curb the spread of coronavirus that it would cover 75% of employees’ salaries, if they promised not to cut staff.

In a bid to safeguard consumers ahead of the festive season, the Government has decided to set a Maximum Retail Price (MRP) for broiler chicken, effective from Wednesday night.