Economic
The terror-struck tourism industry is now faced with a fresh dilemma, as the much-lauded reduction of Value Added Tax (VAT) from 15% to 5% would in fact give more problems than relief. On the face of it, though the reduction of VAT from 15% to 5% reflects a 66.6% saving, it renders the hotels, restaurants and others unable to claim an input VAT paid on purchases, imports and other supplies. The current VAT Act restricts the claim of input credit if output VAT is at 5%.
Compared to other countries that have faced terror attacks, the Government was optimistic Sri Lanka can recover faster from the economic fallout of the Easter Sunday attacks, State Minister of Finance Eran Wickramaratne said yesterday.
Pakistan exports to Sri Lanka have come to a grinding halt, the Pakistan-Sri Lanka Business Forum announced recently after days of anti-Muslim violence targeting Muslim businesses, homes and mosques.
Advocata Institute yesterday said it strongly supports the President Maithripala Sirisena appointed expert committee recommendations on restructuring of SriLankan Airlines.
Representatives of the private sector yesterday took a Pledge for Unity, a national initiative, marking one month since the Easter Sunday terror attacks in the country.
The import levy on big onions has been increased by Rs 20 per kilo, the Minister of Agriculture P. Harrison has said.
The recent mob attacks on Muslim properties and businesses in certain parts of the country have led the majority Sinhalese to lose jobs and earnings, Finance Minister Mangala Samaraweera told Parliament yesterday.
Reuters: Sri Lankan shares closed higher for a third straight session on Tuesday, moving further away from a near seven-year closing low hit last week, as local investors bought beaten-down stocks.
During the first quarter of 2019, the Sri Lanka Telecom Group reported a Net Profit of Rs.2.20 bn which is the highest ever during the first quarter of any year, with a remarkable 86.8% YoY growth compared to the same quarter in 2018.
Government spends around Rs. 1.7 million per university student for their education while private university offers the same service for around Rs 1.2 million, said Chairman Vallibel One Dhammika Perera.
දේශීය ලොකු ලූනු අස්වැන්න වෙළෙඳපොළට පැමිණෙන බැවින් දේශීය ගොවියා ආරක්ෂා කර ගැනීමේ පියවරක් ලෙස ආනයනික ලොකු ලූනු සඳහා වන විශේෂ වෙළෙඳ භාණ්ඩ බද්ද අද (21) මධ්යම රාත්රියේ සිට ක්රියාත්මක වන පරිදි ඉහළ දමා තිබේ.
The apparel export industry is facing several short and long term challenges following the Easter Sunday attacks, the industry officials said.
Debt increased by weaker economy, rupee depreciation last year
Treasury bills and bonds account for 42% of GDP
Obligations of 42 SOEs estimated to be 11.8% of GDP
CPC, CEB and SriLankan losses account for 1.3% of GDP
With fiscal consolidation, debt can drop to 75.4% of GDP in 2024
External debt 59% of GDP, but can reduce to 56% by 2024
But IMF warns deviating from program could see sharp increase in debt
Chinese loans amount to 15% of Govt. external debt, or 7% of total public debt
The Ministry of Health has increased the prices of 60 pharmaceutical drugs which were decreased previously under a price control mechanism.
The Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC), in a proactive attempt to reassure foreign investors, recently organised an Invest Sri Lanka Forum targeting portfolio and direct investors in Singapore.
The delay in legalising the VAT reduction from 15% to 5% for travel and tourism businesses has irked the private sector, despite industry efforts for a fast-track revival post-Easter Sunday setback.
The Sri Lankan economy and its tourism sector will be able to withstand the shock from the Easter Sunday terror attacks according to Central Bank Governor Dr. Indrajit Coomaraswamy, who spent most of his career behind the scenes, working meticulously to give strength and structure to a fragile front line market.
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