Economic

The Positive Sri Lanka initiative is generating an overwhelming response from the local business community as leading brands step forward to do their bit to restore the economy.

The Companies (Amendment) Bill 2019 received House approval yesterday, further reducing the difficulties investors undergo to register a new business in Sri Lanka. Industry and Commerce Deputy Minister Buddhika Pathirana moved the Motion in Parliament, highlighting the impact it would have in attracting much-desired foreign investment to the country.

Sri Lanka’s Cooperative sector has become a burden to the treasury as it has to reimburse the massive bank loans obtained by a large number of cash strapped Cooperatives countrywide, official sources said.

The World Trade Centers Association (WTCA), of which World Trade Center (WTC) Colombo is a member, celebrates its 50th anniversary this year as the owner of the iconic global “World Trade Center” and “WTC” trademarks.

The implementation of the National Policy on Human Resources and Employment is now in wilderness due to inefficiency and lethargic attitude of bureaucracy.

The Government has made arrangements to mobilize foreign financing of US$ 2,439 million by entering into 19 Agreements with foreign development partners and lending agencies from 1st January to 30th April 2019.

REUTERS: Shares rose for a fourth straight session to hit their highest close in over five months on Friday, led by a rally in beverage and banking stocks along with healthy purchases by domestic investors. The rupee ended flat as inward remittances offset importer dollar demand.

In the wake of dwindling tax revenue collection, a Revenue Intelligence Unit has been established at the Ministry of Finance.

The Sri Lanka Ports Authority (SLPA) is purchasing three Ships to Store (STS) cranes for the Jaya Container Terminal (JCT) 5 expansion, Minister of Ports, Shipping, and Southern Development Sagala Rathnayaka said.

Says resources recycling not allowed under local Entrepôt trade regulations
Recalls BOI told Hayleys to suspend all future shipments on 26 Jan. 2018
BOI in process of developing new guidelines in consultation with stakeholders

Despite global and local challenges, Sri Lanka’s merchandised and service exports have risen by 11.4% to $ 8.5 billion in the first half of this year, prompting the Government to attribute it to a series of development efforts and assure further support. Releasing the latest yet provisional data, Development Strategies and International Trade Minister Malik Samarawickrama said yesterday that export sector performance was commendable, though he admitted there is significant scope for higher value. “The 11.4% growth, despite the impact of the October 2018 undemocratic constitutional coup, and the Easter Sunday tragedy, as well as global challenges, is very satisfactory. For the first time, three months of 1H 2019 - January, March and June - have produced over $ 1 billion worth of merchandised exports. We had originally set an ambitious $ 20 billion target for 2019, but we may miss it and end up at around $ 18.5 billion, which will be still higher than the $ 16 billion achieved last year,” Samarawickrama said.

The Central Bank requested licensed banks and Non-Bank Financial Institutions (NBFIs) to reduce interest rates on deposits with effect from April 29, 2019.

World-renowned The Banker Magazine UK reaffirmed the Bank of Ceylon as being among the ‘Top 1000 Banks in the World’ with the country rank No. 1.

The Government plans to bring in new laws in September to enhance the scope and the independent decision-making ability of the Central Bank to further regulate the banking and the non-banking sectors, a top official said yesterday.

Central Bank Governor Dr. Indrajit Coomaraswamy has backed proposed Amendments to the Monetary Law Act as essential to stop governments making the Central Bank print money, which undermines macroeconomic fundamentals essential to strong growth.

REUTERS: Sri Lankan shares rose for a third straight session on Thursday to hit their highest close in nearly five months, led by a rally in banks, but the rupee weakened on higher importer dollar demand.

Sri Lanka’s inflation as measured by the year on-year change in the National Consumer Price Index (NCPI) decreased to 2.1 per cent in June 2019 from 3.5 per cent in May 2019 due to high base prevailed in the corresponding month of the previous year, Central Bank announced.

Cash strapped SriLankan Airlines strives to survive in the face of mounting loses by introducing business and brand promotion along with exploitation tactics without resorting to restructural procedueres suggested by the government.