Economic

Despite allegations of privatisation of state owned banks by opposition political parties, Sri Lanka’s people’s bank is set to be restructured soon with the aim of strengthening the financial stability and effectiveness of its operations, banking sector sources divulged.

Sri Lankan banks now face a moment of truth as customers default loans and the growth in new loans has slowed after the Central Bank tightened monetary conditions.

Earnings from industrial exports increased in April 2019 mainly due to the improved performance in textiles and garments, petroleum products and gems, diamonds and jewellery exports, Central Bank said.

Sri Lanka has instituted a comprehensive domestic regulatory and supervisory regime for banks and non-bank financial institutions and other financial agencies that provide formal or informal services for the transmission of money or value and other bodies particularly susceptible to money-laundering.

As the first Sri Lankan Company to receive the Global Gender Equality Certification from the assessment body Economic Dividends for Gender Equality (EDGE), NDB has taken massive as well as to become the employer of choice to both women and men that for NDB.

Total borrowings by the Government have been completely used to repay debt, State Minister of Finance Eran Wickramaratne confirmed to Parliament yesterday rejecting Opposition charges of bad financial management and using money for consumption. The State Minister responding to a supplementary question held the Government was left with a considerable debt burden when they took power in 2015.

Sri Lanka’s intellectual property protection initiatives are set be further strengthened for the benefits of local inventors, artistes, and authors for their creative efforts; as well as to encourage research and innovation and start new businesses.

The government could face risks in refinancing its debt obligations in the next five years due to various domestic and external obstacles, especially if investor sentiment changes, Moody’s Investors Service said in a new report yesterday.

Reuters: Growth in Sri Lanka’s economy picked up to 3.5% in the first quarter from 1.8% in the previous three-month period, Finance Minister Mangala Samaraweera said yesterday.

Sri Lankans are now being caught up with vicious economic cycle triggered by political standoff between President Maithripala Sirisena and Prime Minister Ranil Wickremasinghe who pushed citizens from frying pan in to fire.

The CMPort managed Colombo International Container Terminal (CICT), the only deep water terminal in the Port of Colombo, has been voted the Best Container Terminal in Asia in the Under 4 million TEUs category at the prestigious Asian Freight, Logistics and Supply Chain (AFLAS) Awards hosted and presented by Asia Cargo News.

The country’s trade deficit narrowed significantly in April and in the first four months of this year thanks to dwindling imports and satisfactory export performance.

Reuters: Sri Lankan shares fell for the second straight session yesterday to hit a more than one-week low, due to continued foreign fund outflows, while the rupee ended steady as dollar demand from importers offset exporters' greenback sales.

The Central Bank yesterday launched the Roadmap for Sustainable Finance to encourage the financial system to promote financing for climate resilience projects to combat climate change in Sri Lanka.

Sri Lanka Tourism will launch the much-awaited two-month global promotional campaign next month with an investment of Rs. 500 million, to position Sri Lanka on the global tourism map which will also help the industry to bounce back quickly from negative sentiments following the Easter Sunday terror attacks.

Sri Lanka depends on Foreign Financing Commitments for the Public Investment Program (PIP), to achieve Medium Term Fiscal Framework and the envisaged public debt management targets.

Sri Lanka‘s external sector remained relatively stable in April 2019 supported by a contracting trade deficit, Central Bank announced recently.

Ceylon Electricity Board is set to retire power plants incurring high production costs within the next one and half years, Power and Renewable Energy Minister Ravi Karunanayake said yesterday.