Economic

Central Bank Governor Dr. Indrajit Coomaraswamy yesterday expressed confidence in Sri Lanka’s economy making a full recovery following the slowdown in the aftermath of the Easter Sunday attacks as the manufacturing sector remains untouched.

In a bid to restore confidence of foreign travelers, the Personal Accident (PA) cover of the Strike, Riot, Civil Commotion and Terrorism Fund (SRCC & T Fund) will be extended to riot and terrorism risks for inbound tourists, National Insurance Trust Fund (NITF) Board Chairman Manjula de Silva said.

In an effort to rebuild confidence among the Diaspora and foreign investors and reassure the world that Sri Lanka is a safe place to invest, the Research Intelligence Unit (RIU) will be hosting its next prestigious RIU Investor Forum on June 27 in London in association with the Sri Lankan High Commission in London.

The revising of travel advisories by key tourist countries has bolstered expectations of Sri Lanka recovering faster than expected from the Easter Sunday attacks, an industry expert said yesterday, but acknowledged that Government-led recovery plans were still essential.

Central Bank of Sri Lanka (CBSL) will issue Rs.20, 000 million Treasury bills through an auction on Wednesday 29and the settlement date is May 31enabling the government to raise money for a shorter period.

Sri Lankan market’s ability to allow assets to be bought and sold become more easy during the week ending May 24 with the country’s economy gaining momentum gradually a month after Ester terror blasts rocked the island nation.

Sri Lanka ’s much hyped offshore fish farming initiative by promoting the establishment of fish farms is now in deep waters due to land clearance issues and high cost of production.

Sri Lanka Ports Authority (SLPA) said yesterday the new revival deal for the long-prolonged East Container Terminal (ECT) will boost the Colombo port in retaining its hub and competitive status.

Police have frozen a total of Rs. 134 million deposited in 41 bank accounts belonging to suspects of the Easter Sunday attacks.

Imports dropped a steep 19.3% in the first quarter of 2019, even though export earnings increased by 5.6% year-on-year as the trade deficit contracted to $ 1,661 million from $ 2,982 million recorded in the first quarter of 2018, the Central Bank said yesterday.

President Maithripala Sirisena has extended till 30 June the term of office of the Presidential Commission of Inquiry appointed to investigate and inquire into alleged irregularities in connection with SriLankan Airlines Ltd., SriLankan Catering Ltd. and Mihin Lanka Ltd.

Tea exports for the month of April was recorded at 20.8 Mkg, which is identical when compared to the same period of the previous year, produce broker John Keells Ltd., said in their weekly report.

Sri Lanka will be modernising revenue administration to support recent tax policy reforms by improving the quantity and quality of revenue collection authorities.

The prices of 64 drugs had been revised due to the appreciation of the value of the dollar (depreciation of the rupee), Health, Nutrition and Indigenous Medicine Minister Dr. Rajitha Senaratne had stated.

REUTERS: Shares snapped five straight sessions of gains on Friday in low trade amid worries over economic slowdown and lack of investor appetite for risky assets.

The Sri Lanka Tourism Development Authority yesterday said that due to the severe hit on the tourism industry following the Easter Sunday attacks, it has decided to remove the minimum room rate (MRR) imposed on Colombo city hotels effective immediately.

Sri Lanka’s Licensed Finance Companies (LFCs) will be facing stringent regulations from the Central Bank (CB)’s Monetary Authority with ownership limits, ensuring higher capital adequacy, loan loss provisioning and improved reporting standards.

The terror-struck tourism industry is now faced with a fresh dilemma, as the much-lauded reduction of Value Added Tax (VAT) from 15% to 5% would in fact give more problems than relief. On the face of it, though the reduction of VAT from 15% to 5% reflects a 66.6% saving, it renders the hotels, restaurants and others unable to claim an input VAT paid on purchases, imports and other supplies. The current VAT Act restricts the claim of input credit if output VAT is at 5%.