Economic

Central Bank, Treasury make joint appeal for foreign currency deposits from Sri Lankans living abroad and here, as well as charity organisations, well wishers
Assure all forex remittances will be exempted from exchange control regulations and taxes, and protected under banking secrecy provisions
3-month offer aimed at boosting reserves and economy to face COVID-19 challenge, ensure healthcare and social security to people of Sri Lanka
Analysts say success of new initiative depends on assurance of no legal or Inland Revenue action later on
Under pressure from dwindling reserves, debt repayment and COVID-19 impact on the country, the Government yesterday sent an open invitation to all Sri Lankans abroad, as well as locals having foreign currency holdings, to deposit same with guarantee of secrecy and convertibility.

Informs passengers it is constantly reviewing market conditions
Stands ready to recommence flights at short notice
Willing to operate special flights to repatriate Sri Lankans if required

Jan. trade deficit at $ 730 m, up from $ 617 m
Merchandise exports down 3.7% as all sectors see decline
Food and vehicles push imports up by 4.8% to $ 1.7 b

The much-anticipated, historic first-ever tea auction via an electronic platform will not be held today.

Reduces liquid asset requirements to ease stresses that may be caused by loan defaults, large cash withdrawals
One year extension to meet core capital requirements
Defer minimum capital adequacy requirements to July 2021 and July 2022
Deadlines on submission of statutory returns relaxed
Companies advised to diligently monitor risk profiles and resources, CB pledges to do same

Air cargo is piling up at the Bandaranaike International Airport (BIA) in view of the partial shutdown of economic and business activities in the country as part of mitigation measures against the spread of novel coronavirus.

The Hotels Association (THASL) yesterday listed 10 recommendations for the consideration of the Government if it were to ensure survival and success of the crucial tourism industry. The recommendations were further to the several measures the Government had already extended for the tourism industry, which have been commended by THASL. The tourism industry, by far the highest net foreign exchange earner and whose success hinges on the livelihood of two million people, is reeling from the novel coronavirus pandemic a blow hot on the heels of the Easter Sunday tragedy of April 2019.

A number of issues that have arisen in the apparel industry in the wake of the COVID-19 pandemic were discussed at a meeting of the Presidential Task Force on Continuous Supply, Operation and Coordination of Essential Services, headed by Basil Rajapaksa, held yesterday.

Major six-month initiative with range of relief to support all COVID-19-hit businesses, individuals and the self-employed

The Securities and Exchange Commission (SEC) has announced relief to all investors in the Colombo stock market, which has been affected by the novel coronavirus (COVID-19) pandemic.

Several rounds of discussions via video conferencing between brokers, buyers, solutions provider
More discussions today followed by final call by CTTA
If consensus reached, mock trial tomorrow, with e-auction starting from Friday
Failure will mean world’s largest single origin tea auction inactive for two consecutive weeks, causing financial loss to producers

The Export Development Board (EDB) yesterday welcomed the recent announcement of relief to export industries to tide over the extremely critical situation over the next few months following the novel coronavirus (COVID-19) pandemic.

Opportunity follows CB extending Rs. 50 b re-financing facility
At end 2019, total capital adequacy ratio of banking sector was 16.5%, well above regulatory minimums of 13.5-14% and 12.5% applicable to D-SIBs and non-SIBs respectively
At present, capital buffers in excess of CCB in banking sector is Rs. 200 b whilst CCBs amount to Rs. 170 b; buffers can be drawn, leveraged up to 8-10 times during times of stress
Banking sector LCR end 2019 was 212.8% where regulatory minimum is 100%
End Feb. total banking sector loans, advances were Rs. 8 trillion; total NPL was Rs. 435 b; first 2 months of 2020, new NPLs were Rs. 50 b
The Central Bank has said commercial and specialised banks can collectively leverage up to Rs. 400 billion to extend support to COVID-19 impacted businesses, individuals, and the self-employed.

All operations of the Kollupitiya Hatton National Bank (HNB) branch have been shut down for 14 days after COVID-19 has been checked positively by a parent of a staff member of the specific branch, the bank said.

The Colombo Stock Exchange (CSE) said the market will not open for trading today.

Private sector experts are suggesting that the best help for businesses and individuals who have been economically hit by the multiple weeks’ partial shutdown owing to the COVID-19 pandemic is complete waiver of a month’s interest on their borrowing.

8 new regulatory measures announced to give relief to struggling businesses
Major banks given permission to draw down capital buffers by 100 basis points to smoothen credit flows
Foreign currency loans given option of being recovered in rupees as last resort
Dues in March given 2-month extension, capital enhancement deadline of banks extended till 2022
Any changes made to loans between March and June to be modifications, not restructuring

Business leader Harry Jayawardena controlled Melstacorp PLC recently donated medical equipment worth Rs. 25 million, to set up a real-time PCR laboratory at the Infectious Disease Hospital, Angoda.