All Stories in Economic

IMF funding pledge offers significant support for economic reform agenda

IMF funding pledge offers significant support for economic reform agenda

Sri Lanka is poised to escalate economic propulsion and uplift investor opportunities in the coming months, supported by a substantial phased loan from the International Monetary Fund (IMF). The IMF’s Executive Board approved the three year lending arrangement under the Extended Fund Facility (EFF) in …

Imperative for Sri Lanka to expedite high priority structural reforms

Imperative for Sri Lanka to expedite high priority structural reforms

Sri Lanka’s economic growth is projected to grow at 5.0 percent in 2017, up from 4.8 percent 2016 and driven by increased private consumption and postponed investment in 2015. It is imperative for Sri Lanka to expedite high priority structural reforms to increase competitiveness, improve …

Government doesn’t know how much it owes

Government doesn’t know how much it owes

Trying to develop its infrastructure to increase its economic potential has plunged Sri Lanka deep into a pit of debt, pushing the country to the brink of bankruptcy and prompting an IMF bailout. The official estimate of what Sri Lanka currently owes its financiers is …

Government opens itself to be cheated

Government opens itself to be cheated

Government opens itself to be cheated from collecting legitimate revenue by unscrupulous traders because of the introduction of the deemed VAT input clause in the proposed VAT hike Bill. Cheating the government is cheating the ordinary people of the country. Nonetheless, deemed VAT from other …

Central Bank holds key policy interest rates

Central Bank holds key policy interest rates

Sri Lanka’s central bank held its key policy interest rates steady on Wednesday, a widely expected decision that analysts say suggested policy makers were keen to support a slowing economy even as they kept a tight leash on rampant credit growth. The Central Bank of …

No time frame for accord

No time frame for accord

India will not give a time frame for negotiating an Economic and Technical Coope­ration Agreement (ETCA) with Sri Lanka, visiting Indian Commerce Minister Nirmala Sitharaman said on Tuesday. She was referring to the controversial agreement that has been opposed by many Sri Lankan professionals because, …

Merchants will pay lower VAT

Merchants will pay lower VAT

Sri Lanka’s Finance Ministry says retail and wholesale merchants will have to pay a lower VAT payment than expected despite the rate hike from 11 to 15 percent. Under the proposed VAT amendment bill, the VAT will really be charged only on the revenue accumulated on …

High costs slowing push toward solar energy

High costs slowing push toward solar energy

An ambitious plan by the Sri Lankan government to outfit 100,000 homes with solar panels, to turn them into power producers for the national grid, may be too expensive for many families to afford, experts warn. Sri Lanka’s government this month launched a “battle for …

Important that government expedites legislative process of implementing VAT

Important that government expedites legislative process of implementing VAT

A staff team from the International Monetary Fund (IMF) led by Jaewoo Lee visited Colombo during September 13-23, 2016 to hold discussions on the first review of the Sri Lankan authorities’ economic program that is being supported by a three-year Extended Fund Facility (EFF). The …

Axiata falls as Malaysian parent plan to cut stake

Axiata falls as Malaysian parent plan to cut stake

PT XL Axiata, the Indonesian wireless carrier, fell to the lowest in nearly a year after people with knowledge of the matter said its Malaysian parent company is planning to sell part of its stake. Shares of XL Axiata dropped as much as 4.9 percent Tuesday …