All Stories in Economic

Shares hit 6-month high

Shares hit 6-month high

Sri Lankan shares gained on Friday to hit a more than six-month closing high on foreign buying in market heavyweight John Keells Holdings, helping boost the overall sentiment. Foreign investors net bought equities worth 1.35 billion rupees ($8.88 million) on Friday, extending the week’s net …

Sri Lanka struggles to build up foreign reserves

Sri Lanka struggles to build up foreign reserves

A South Korean ship unloads its cargo of cars at the Hambantota port, the only sign of life at Sri Lanka’s newest harbor on its southern coast. The rest of …

Sri Lanka is rich

Sri Lanka is rich

Sri Lankan finance minister Ravi Karunanayake recently declared he would push capital market reform ahead in 2017 with eye-catching privatizations of state enterprises and securitization of billions of dollars of his government’s debt. These were big promises, but could such ideas deliver the desired results? …

Legal process, lack of approvals delay FDI

Legal process, lack of approvals delay FDI

Long delays in Sri Lanka’s legal process and a lack of speedy approvals from government institutions have delayed foreign direct investment (FDI), the head of state-run investment body chief said on Friday. The government said last month FDI slumped 54 percent to $450 million last …

Balance of payments under pressure

Balance of payments under pressure

Sri Lanka could face balance-of-payments pressure due to foreign outflows from government securities, a government document showed, even as the island nation is in the process of raising up to $2.5 billion from foreign borrowing. The central bank is aiming to tap the international market …

Rates steady, but possible tightening soon

Rates steady, but possible tightening soon

Sri Lanka’s central bank kept its key rates steady on Tuesday for a sixth straight month, but flagged possible “corrective measures” in the months ahead in a sign further tightening might be on the cards to temper inflation pressures and safeguard a fragile rupee. The …

Indian entrepreneurs want road link across Palk Strait

Indian entrepreneurs want road link across Palk Strait

Representatives of Indian companies who exhibited their products at the Jaffna International Trade Fair from January 27 to 29, were unanimously of the view that for the development and trade and investment between India and the Tamil-speaking  Northern Province of Sri Lanka, the construction of …

Indian companies keen to invest

Indian companies keen to invest

The Associated Chambers of Commerce and Industry of India (Assocham) will explore the “virgin market” in Jaffna, located in Sri Lanka’s Tamil-majority Northern Province, for possible business collaborations and to help commercially rebuild the former war-zone, a representative of the trade body said. Representatives of …

Port Loans Contributed to Debt Trap

Port Loans Contributed to Debt Trap

On Thursday, the government of Sri Lanka admitted that it was stuck in a “gigantic debt trap” from the previous administration’s construction loans, some of which were used to build deep sea terminals at the quiet port of Hambantota. Sri Lanka recently entered into a controversial deal to …

IMF commends Sri Lanka

IMF commends Sri Lanka

The International Monetary Fund (IMF) has commended the new strategy of Sri Lankan Government to create financial discipline and lead the country in a correct path to economic development. Managing Director of the International Monetary Fund Christine Lagarde said she highly values the Sri Lankan …