Economic

Headline inflation in January had risen to 16.8% as against 14% in the previous month, the Census and Statistics Department (DCS) revealed yesterday.

Warns forex crisis and the resultant import restrictions have pushed many of these businesses to the brink of collapse
Goods for sale, raw materials and basic product availability hampered due to increasing pressure on imports
Accounting for 23% of GDP, retail sector says hugely invested recently for development of Sri Lanka’s retail landscape
Represents 14% of labour market with over 1.1 m people employed
If not resolved, crisis to result in closure of stores, severely impacting livelihood of many directly and indirectly dependent
Urges Govt. to bring about measures to alleviate crisis for industry considering wider economic impact on ecosystem

The Colombo stock market struggled its way to close in Green with both indices gaining marginally amidst low investor activity.

Ansell Managing Director and CEO Neil Salmon says SL is a global leadership location with 6,000-strong workforce important part and key contributor to global growth as sales top $ 2 b mark in FY21 with over 20% growth
Lankan talent developing latest and innovative technologies that are widely used at Ansell manufacturing sites globally serving customers in over 100 countries
R&D team in SL is developing first glove containing recycled yarn
Says reliance of Ansell on Sri Lanka is a testimony of capabilities of local young engineers and science graduates
Largest multinational corporation in SL, Ansell investing over $ 10 m for expansion of Clean Room packaging facility to service needs of high growth global pharmaceutical and semiconductor manufacturing industries, another value addition operation for surgical gloves and SL’s single largest solar energy plant with over 7 MW

Investor sentiments at the Colombo stock market remained mixed yesterday with benchmark index down but renewed interest on banking sector stocks propelled the more liquid S&P SL20.

Bonanza for minority shareholders
Announces Rs. 537 m offer to repurchase remaining 4.45% minority stake
Offer at Rs. 183 per share; NAV is only Rs. 67 per share

CB Governor Cabraal tells Bloomberg that steady inflow of forex expected in near future
Hopeful the expected inflows to be non-debt creating
Says current exchange rate a “fair one” that provides opportunities for all stakeholders

Fitch Ratings said yesterday Sri Lankan banks are likely to face continued asset-quality pressure in 2022 as rising macroeconomic stresses stemming from the sovereign credit profile pose a threat to borrowers’ repayment capacity, alongside the conclusion of most relief measures in 2021.

Regrets Govt. had not considered many alternative recommendations
Urges Govt. to avoid application of Surcharge Tax at Group level considering its unfair impact on smaller subsidiaries and minority shareholders
Says it is a serious deterrent to local and foreign investors who consider entering into JV with large conglomerates

නියමිත ණය සීමාව ඉක්මවා ලංකා ඛනිජ තෙල් සංස්ථාවට ණය නිකුත් නොකරන ලෙස ශ්‍රී ලංකා මහබැංකුව විසින් රාජ්‍ය බැංකු වෙත උපදෙස් ලබාදී තිබේ.

Says general perception of farmers and fishermen are ‘poor or piteous’
Points to agriculture as significant contributor to GDP, recognised as thrust sector
Calls on experts to find new ways to step up agriculture, dairy and fisheries exports
Asserts healthy dialogues could help to fashion policies to develop sectors

PUCSL, CEB and LECO hold discussion on Saturday
Decide to take count of reservoir water levels before final move
Countrywide heavy rains of 100 mm recorded during weekend
PUCSL unhappy with public response to energy saving
Asserts 47 GWh consumed last week and it should be dropped to 40 GWh
Chairman Janaka Ratnayake says PUCSL will be compelled to allow CEB for load shedding
Insists on saving depleting water levels on daily basis

විදෙස් ණය ලබාගැනීමේදී පවතින රජයන්ට සීමා පැනවිය යුතු බව ආර්ථික විශ්ලේෂකයින් පෙන්වා දෙනවා. නෙත් නිවුස් කළ කරුණු විමසීමකදී කොළඹ විශ්ව විද්‍යාලයේ ආර්ථික විද්‍යා අධ්‍යයන අංශයේ ජ්‍යෙෂ්ඨ කථිකාචාර්ය ආචාර්ය ප්‍රියංග දුනුසිංහ පැවසුවේ දැනට පවතින නීති අනුව පාර්ලිමේන්තුවේ අනුමැතිය ලබාගෙන විදෙස් ණය ලබාගත හැකි බවයි.

Trade Minister Bandula Gunawardena day before yesterday said Finance Minister will inform his stance pertaining to the report compiled by the International Monetary Fund (IMF) on Sri Lanka to the Cabinet of Ministers meeting next week.

The country's trade deficit in 2021 rose by over $ 2 billion owing to a sharper rise in imports and despite commendable export performance amidst challenges.

කොළඹ මහාධිකරණය දුන් නියෝගය

Tourist arrivals cross 50,000 in first 15 days of Feb.
132,653 tourists arrive so far in 2022
Russia, India, Ukraine, UK and Germany among top source markets​

Despite restrictions and forex shortage, 2021 imports figure soars by 28.5% or $ 4.6 b to $ 20.6 b; highest in three years
December inflows highest ever at $ 2.2 b
Fuel imports in 2021 up by $ 1.2 b; textiles and textile articles by $ 732 m machinery equipment by $ 633 m, base metals by $ 406 m, medical and pharmaceuticals by $ 287 m, chemical products by $ 243 m and plastics and articles thereof by $ 225.6 m
Sharp increase in rubber and rubber articles, telecommunication devices, home appliances, food and beverages, non-food consumables, clothing and accessories imports
Fertiliser imports down 39% to $ 158 million though December sees pick up
Import of personal vehicles plunges by 96% to $ 13 m