Economic

Construction work on major mega projects in Colombo as well as highway projects which employ Chinese workers has come to a standstill since the corona virus outbreak, with Sri Lankan workers refusing to report to work while Chinese workers have been asked to stay indoors, construction industry sources said.

The Elections Commission (EC) yesterday announced that applications for postal voting will close on 16 March and called on public servants to submit their applications to relevant officials as early as possible.

The Central Bank is assessing the possibility of introducing an Open Banking Framework for Sri Lanka in order to improve access to financial services as well as drive Financial Technology (FinTech) innovations in Sri Lanka.

Cash strapped SriLankan Airlines is temporarily suspending its services between Sri Lanka and China from 10th March to 30th April 2020 due to current market conditions driven by significant reduction in worldwide travel to and from China.

Major stakeholders of the apparel industry will meet today for a crucial discussion to find ways to counter the double impact of the coronavirus outbreak, as the sector struggles with both disrupted supply chains and slower demand in key export markets with initial estimates indicating the impact could reach as much as $ 500 million.

Early stages of data collection indicate an impact of $ 200 million to $ 500 million on the apparel industry as a result of the coronavirus outbreak due to the unavailability of raw materials, although the apparel exports industry is yet to identify the impact of the drop in orders, especially from European markets.

Representatives from the industry are expected to meet later today to discuss how extensive the impact of the coronavirus outbreak on the industry is and if the industry will have to make any requests from the Government for special assistance or support. The industry is expected to present its proposals to the relevant authorities after the meeting.

The original impact of the coronavirus outbreak was on the supply of raw materials, Sri Lanka Apparel Exporters Association Chairman Rehan Lakhany told the Daily FT, explaining that Sri Lanka depends on China for raw materials.

“There have been some major delays in shipments for supplies from China and the impact has been different from factory to factory and customer to customer,” he said. This has also resulted in a backlog, which is further impeding the local apparel industry.

The impact may be felt until mid-May or even beyond May and there is a lot of uncertainty within the industry regarding the impact of the coronavirus outbreak.

“Some Chinese suppliers have said they started production and the factories have opened but we hear that they are not operating with a full labour force,” Lakhany said, adding, “Due to that, we expect that production won’t be at the usual level.”

While alternative sources for raw materials seem like a solution, Lakhany said that there were certain limitations to this.

“It takes a long time to develop those sources and technology,” he said, adding that alternative sources for certain raw materials cannot be found outside China.

“All garment manufacturing countries like Vietnam and Cambodia are looking at alternative sources and they are all going to these limited sources. There is a limited capacity,” he said, adding that there was going to be a shortfall given the sudden increase of demand from sources with a low supply.

Sri Lanka’s rural poor including women are to be rescued from micro finance debt trap under a special loan scheme of the present government Finance Ministry announced.

A Pre-election Budgetary Position Report containing information on the fiscal position of the country will have to be published by the ministry in terms of the section 16 (1) of the Fiscal Management (Responsibility) Act No. 2 of 2003 as amended.

With the rapid deployment of digital services and expansion of e-Government initiatives to deliver citizen services in the country, electronic transactions in Sri Lanka will grow substantially in the near future. This increases the probability of identity theft, financial fraud and other security breaches. Therefore, the requirement to authenticate citizens as well as organisations involved in digital transactions becomes pivotal.

A contributory pension for Sri Lankans employed overseas has been initiated under the National Policy Framework “Vistas of Prosperity and Splendor”, official sources said. .

As Sri Lanka braces for the impact of novel coronavirus COVID-19, the Central Bank yesterday said it has adjusted growth to a margin of 3.5-4% from an earlier 3.7-4.5% projection, and called on banks to transfer benefits from the last round of rate cuts to businesses faster, to counter the virus’s impact, which could be felt on a range of sectors.

The Export Develo-pment Board (EDB) yesterday called on the private sector to plan and prepare for the novel coronavirus COVID-19 challenge, which has caused market and supply chain disruptions globally since February, and is threatening to impact trade.

In the backdrop of Sri Lanka Cricket’s existing contract for media and sponsorship rights coming to an end on 31st March 2020, SLC launched three separate tender processes for television and radio rights (broadcasting) rights, digital rights and production services in respect of the ICC Men’s Future Tour Programme for the period 2020- 23, by issuing three separate invitations calling for expressions of interest on the 24th December 2019.

The new Acting General Manager of Bank of Ceylon Sudath Gunasekara yesterday assumed office whilst at People’s Bank it was Bonniface Silva and not K.B. Rajapakse as earlier reported by Daily FT.

The merchandise exports sector has begun 2020 on a negative note, with January’s performance down 7.4%, prompting the private sector to fear more challenges, given the impact of the coronavirus global pandemic, and local incentives and policies awaiting the conclusion of General Elections to become law.

Tour operators, travel agents say coronavirus global epidemic triggers cancellations; forward bookings bleak
Govt. to reduce costs to attract airlines to call at Mattala, Ratmalana
Embarkation tax at Mattala to be suspended for two years, cut by 50% at Ratmalana
Landing and parking charges waived off; aviation fuel to be issued at concessionary rates
Airlines meet Tourism Minister to seek support at BIA whilst welcoming concessions at new airports
Industry experts say concessions at BIA critical to sustain aviation and tourism sectors
Moot discounts or waive-off charges to encourage new airlines to call Colombo during off-peak hours as capacity idling at BIA

Inbound tour operators likely to offer packages targeting Indian tourists
Hotels to target local travellers following cancellations, forward bookings bleak
Tourism industry stakeholders met yesterday for the first time to assess the impact of COVID-19 and discuss the way forward.

The appointment of two acting General Managers (GMs) to the Bank of Ceylon and the People’s Bank following the irregular removal of the incumbent GMs without following proper procedure will be discussed at tomorrow’s cabinet meeting.

Sri Lanka Telecom PLC (SLT) said on Friday it has concluded the financial year 2019 on a high note, with 28% YoY growth in Profit After Tax (PAT) at Rs. 6.3 billion. The impressive growth was strongly underpinned by the increase in revenues by 6% YoY recorded at Rs. 86 billion.