Economic

The Central Bank of Sri Lanka (CBSL) and the People’s Bank of China (PBoC) entered into a bilateral currency swap agreement with a view to promoting bilateral trade and direct investment for the economic development of the two countries, and to be used for other purposes agreed upon by both parties.

The Central Bank yesterday has increased the maximum compensation payment under the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) by Rs. 500,000 to Rs. 1.1 million in a major relief to thousands of customers of failed finance companies.

SriLankan Airlines has sued Airbus for $ 1 billion as damages, loss of reputation, reimbursement of costs and interests.

Standard Chartered Bank (SCB) has upgraded Sri Lanka’s 2021 economic growth forecast to 4.5% from 3.5% earlier whilst noting recent initiatives have eased near-term external financing concerns though medium-term debt sustainability remains challenging.

The Sri Lanka Association of Inbound Tour Operators (SLAITO) yesterday expressed reservations over the new rules announced by Health authorities.

Cabinet has given approval for SriLankan Airlines to lease a new aircraft to expand its cargo operations and tap into new industry opportunities created by COVID-19. Cabinet Spokesman Minister Keheliya Rambukwella told reporters that Cabinet had approved a proposal submitted by Tourism Minister Prasanna Ranatunga to procure a new aircraft so the National Carrier could expand its cargo operations.

Battered by the double whammy of the 2019 Easter Sunday terror attacks and the COVID-19 pandemic, the tourism industry has been given a fresh lifeline by the extension of the debt moratorium by six months.

Mastercard, a global technology company in the payments industry has come forward to support the first ever Thought Leadership Forum on the restaurants and credit card/banking industry scheduled for Wednesday 24 March, at The Stables, Park Street Mews.

The Government yesterday said it would not walk back the policy decision to raise the daily wage of plantation workers to Rs. 1,000 and stands ready to provide support to implement the measure, despite legal action taken by a group of plantation companies.

The Central Bank last week suspended the directive to banks and exporters requiring early conversion of export proceeds as well as inward worker remittances.

Government and main Opposition politicians traded points over rupee depreciation yesterday, in the backdrop of the Central Bank suspending the requirement for licensed banks to sell 10% of worker remittances and 50% of export earnings to the monetary authority and stopping the purchase of Sri Lanka Development Bonds as part of a multi-pronged effort to stabilise the currency.

The economy in 2020 suffered a 3.6% contraction despite a 1.3% improvement in the last quarter, the Department of Census and Statistics (DCS) revealed last evening.

The Central Bank has extended the debt moratorium granted for tourism industry by another six months from 1 April.

The film industry has become the latest sector struggling towards recovery post-COVID, calling on authorities for support in maintaining business and increasing occupancy levels to at least 50%, so as to encourage more people to patronise theatres.

Twenty plantation companies yesterday filed a writ application before the Court of Appeal seeking an order to invalidate the gazette notification issued last week to increase the daily wage of plantation workers to Rs. 1,000.

The Colombo stock market yesterday completed a week of sustained bearish sentiments with both indices down by 5% to a 11-week low amidst below par turnover renewing concerns among investors.

Over 10,000 depositors of The Finance Company (TFC) yesterday appealed to the Government to carry out the additional payment of Rs. 500,000 from the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) under the Central Bank as pledged earlier and pave the way for the company to be resuscitated.

Indian tycoon Gautam Adani yesterday expressed his gratitude to Sri Lankan leaders for the opportunity granted to develop the West Terminal in the Colombo Port.