Economic

The government could face risks in refinancing its debt obligations in the next five years due to various domestic and external obstacles, especially if investor sentiment changes, Moody’s Investors Service said in a new report yesterday.

Reuters: Growth in Sri Lanka’s economy picked up to 3.5% in the first quarter from 1.8% in the previous three-month period, Finance Minister Mangala Samaraweera said yesterday.

Sri Lanka’s revenue collection target of Rs.1 trillion by 2019/2020 through the expansion of the tax payer base in the country, while adjusting indirect and direct tax has become a distant dream owing to weak tax administration at present, official forecast revealed.

The CMPort managed Colombo International Container Terminal (CICT), the only deep water terminal in the Port of Colombo, has been voted the Best Container Terminal in Asia in the Under 4 million TEUs category at the prestigious Asian Freight, Logistics and Supply Chain (AFLAS) Awards hosted and presented by Asia Cargo News.

The country’s trade deficit narrowed significantly in April and in the first four months of this year thanks to dwindling imports and satisfactory export performance.

Sri Lanka’s only state-owned manpower recruiting entity, the Foreign Employment Agency (Pvt) Ltd is losing its market share owing to management weakness and lack of dynamism in the face of high competition from mushrooming job agencies.

The Central Bank yesterday launched the Roadmap for Sustainable Finance to encourage the financial system to promote financing for climate resilience projects to combat climate change in Sri Lanka.

Sri Lanka Tourism will launch the much-awaited two-month global promotional campaign next month with an investment of Rs. 500 million, to position Sri Lanka on the global tourism map which will also help the industry to bounce back quickly from negative sentiments following the Easter Sunday terror attacks.

The Petroleum Corporation owes Bank of Ceylon and People’s Bank Rs. 56.2 billion, according to the 2018 Finance Ministry report.

Sri Lanka‘s external sector remained relatively stable in April 2019 supported by a contracting trade deficit, Central Bank announced recently.

Ceylon Electricity Board is set to retire power plants incurring high production costs within the next one and half years, Power and Renewable Energy Minister Ravi Karunanayake said yesterday.

The Asian Development Bank inked an agreement with the finance ministry to provide a loan facility amounting to US$ 50 million to Regional Development Bank (RDB) for the strengthening of its operational capacity to assist Sri Lankan entrepreneurs.

Earnings from industrial exports increased in April 2019 mainly due to the improved performance in textiles and garments, petroleum products and gems, diamonds and jewellery exports, Central Bank said.

Sri Lanka’s National Intellectual Property Office(NIPO) is working tirelessly with limited resources to clear the back log ofall pending applications for registration of patents and trademarks over the next 18 months.

Sri Lanka for small and medium scale entrepreneurs exceeding one million will be getting more financial and credit facilities as well as non-financial support from the treasury to contribute their share towards economic prosperity of the island nation affected by Easter terror.

Total borrowings by the Government have been completely used to repay debt, State Minister of Finance Eran Wickramaratne confirmed to Parliament yesterday rejecting Opposition charges of bad financial management and using money for consumption. The State Minister responding to a supplementary question held the Government was left with a considerable debt burden when they took power in 2015.

Sri Lanka’s manufacturing activities recovered considerably in May 2019 which is an increase of, compared to April.

The Board of Investment of Sri Lanka signed an Agreement with Putus Brother’s Sustainable Developments (Private) Limited to build, construct and operate a 15 cabana hotel project in Palatupana, Yala.