Economic

Rs. 1 b net foreign selling pushes YTD figure over Rs. 34 b

Says move due to delay by authorities to revise prices upwards
Temporary halt will lead to short-term interruption of supplies
To lobby further with authorities to return to biz
Says subsidiary companies will continue with their normal businesses without any interruptions

Reiterates Govt. has taken all measures to repay the upcoming ISB maturity of $ 1 b due in end-July
Recalls Moody’s downgraded SL on 28 September 2020 before a $ 1 billion ISB was to mature on 4 October 2020 and Govt. successfully settled the liability without any hesitation
Flags off need for Govt. to revisit its relationship with rating agencies
Invites investors to approach Sri Lankan policy authorities at the highest levels who always remain open for constructive dialogue
The Government on Monday expressed its surprise over the decision by Moody’s Investors Service to place Sri Lanka’s rating “under review for downgrade,” saying it was an “unwarranted” statement that was “ill-timed, ill-judged and hence unacceptable”.

The Government has floated a fresh $ 110 million (maximum) Sri Lanka Development Bonds (SLDB) issue.

Fitch Ratings yesterday warned that Sri Lankan corporates could face rating pressure should the Government further restrict imports amid weakening external finances.

Emerging market (EM) sovereign ratings have been fairly stable in 2021, with only four downgrades and no upgrades, after a net 30 downgrades in 2020, Fitch Ratings says in a new report.

Reiterates Bill has many features that will not only strengthen the regulatory mechanism but significantly contribute towards development of the market
Assures every attempt made in Bill to ensure that there are no grey areas or ambiguities

Colombo City Centre (CCC) is offering exclusive rewards for customers who have been fully vaccinated. As an initiative to promote the importance of vaccination in the battle against COVID-19, the Colombo City Centre rewards scheme hopes to motivate citizens to extend their support towards the vaccination drive in Sri Lanka and reward them for their dedication on the path to recovery.

ASPI crosses 8,000 points and turnover tops Rs. 6 b as bourse gains to 5-month high
Active investor play on Expolanka sees stock generating Rs. 40% of turnover or Rs. 2.5 b; share price gains Rs. 8.30 (15.23%) to close at Rs. 62.80

Bloomberg: Sri Lanka plans to repay a $ 1 billion bond by the Tuesday deadline, keeping intact its reputation for honoring debt as concern mounts about the nation’s overseas financing.

Export of gems, diamonds and jewellery have doubled this year in comparison to the corresponding period in 2020, with officials hinting that full year performance will be robust even though the industry remains wary of recent policy changes.

First half performance up 27% to $ 4.3 b; June shipments up 9% to $ 978 m

The Department of Census and Statistics (DCS) said on Friday that the National Consumer Price Index (NCPI) for June was 6.1%, the same as the previous month.

The Colombo stock market sustained its rally fired by new found optimism, with both indices up amidst near Rs. 5 billion turnover.

Newly-appointed Finance Minister Basil Rajapaksa on Saturday assured relief to people and forex stability amidst the COVID-19 pandemic via better economic management.

The Central Bank of Sri Lanka (CBSL) has published a special publication on the history of currency used in Sri Lanka, titled ‘The 70-year journey of currency issue and management’ co-authored by CBSL Retired Director Communications Shellomi H. Gunawardena and CBSL Retired Senior Manager W.M.K. Weerakoon.

The Central Bank has released the ‘Economic and Social Statistics of Sri Lanka – 2021’, an annual publication of the Central Bank (CB) for public access.

The organisers of the Most Admired Companies Award – the Chartered Institute of Management Accountants (CIMA), the International Chamber of Commerce Sri Lanka (ICCSL) and Daily FT, are delighted to have AIA Insurance on board as the Platinum Sponsor.