All Stories in Economic

Bank of China to open branch in Port City

Bank of China to open branch in Port City

Bank of China, one of the biggest state owned commercial banks in China will open its first branch in Colombo this year in the presently constructed 1.4 billion dollar Port City, China’s Ambassador to Sri Lanka, Yi Xianliang said. The Bank would bring in an …

Supreme court shoots down tax reforms

Supreme court shoots down tax reforms

Sri Lanka’s Supreme Court has effectively shot down a sweeping overhaul of the island’s tax system, calling the proposed legislation unconstitutional, the country’s parliament speaker told lawmakers on Friday. Last month Sri Lanka tabled the Inland Revenue bill to widen the tax net and give …

Trade in Renminbi to expand trade

Trade in Renminbi to expand trade

China, on Monday requested Sri Lanka to directly use the Chinese currency renminbi, rather than the US dollar, in trading between the two countries. Chinas Ambassador to Sri Lanka, Yi Xianliang, speaking at the China Sri Lanka Infrastructure Investment Cooperation Forum in Colombo said Chinese …

Port deal to boost FOREX, attract more investments

Port deal to boost FOREX, attract more investments

China’s deal with Sri Lanka to acquire a 70 percent stake to develop the Hambantota Port in southern Sri Lanka for 1.12 billion US dollars will boost Sri Lanka’s foreign-exchange reserves and help bolster investor confidence, an international rating agency said Monday. Moody’s, in its …

New Tax Bill aims to widen tax net, cut indirect taxes

New Tax Bill aims to widen tax net, cut indirect taxes

Sri Lanka’s new tax bill, demanded by the IMF as a condition for a third tranche of aid disbursed this week, will seek to ensure that all citizens pay direct taxes and cut indirect taxes, top finance ministry officials said on Friday. The new Inland …

Shares post 1-month closing low

Shares post 1-month closing low

Sri Lankan shares fell for an eighth session in nine in thin trade on Friday and posted a more than one-month closing low, with blue chips leading the losers. The Colombo stock index ended 0.22 percent lower at 6,669.51, its lowest close since June 14, …

Sri Lanka must shift its growth model

Sri Lanka must shift its growth model

In June 2017, the World Bank launched the most recent edition of the Sri Lanka Development Update (SLDU). Produced every six months, the report provides a more in-depth examination of selected economic and policy issues, and analysis of medium-term development challenges. This edition’s special focus …

Shares hit one-week high on foreign buying

Shares hit one-week high on foreign buying

Sri Lankan stocks on Friday ended at their highest in a week, underpinned by manufacturing and diversified shares while offshore investors continued to be net buyers. Local investors, however, cautiously acquired shares amid concerns over a proposed tax bill. Foreign investors net bought 179.9 million …

Interest-Rate Pressure for Corporates

Interest-Rate Pressure for Corporates

Fitch Ratings expects rising domestic interest rates to hurt Sri Lankan corporates over the next 12 months. Their borrowing costs have increased more than 200bp in the 12 months to March 2017 as the Central Bank of Sri Lanka increased policy rates by 125bp and …

Shares hit 5-1/2-week closing low

Shares hit 5-1/2-week closing low

Sri Lankan shares on Tuesday hit their lowest close in more than five weeks due to profit-booking in blue chips, although foreign investors actively bought into the island nation’s risky assets. Foreign investors were net buyers of 389.9 million rupees worth of shares, extending the …