All Stories in Economic

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 …

Rising chicken prices

Rising chicken prices

Annual per capita consumption of chicken in Sri Lanka, which was barely 2.5 kg a decade ago, has now reached 8.2 kg and is likely to reach 10 kg in the near future. While consumption has risen more than three-fold, prices have remained virtually unchanged …

Sri Lanka to simplify taxes

Sri Lanka to simplify taxes

Sri Lanka’s new government is drafting norms aimed at simplifying taxes, widening the tax base and increasing compliance, Finance Minister Ravi Karunanayake said. The International Monetary Fund (IMF), which disbursed the first tranche of a $1.5 billion, three-year loan in June, has repeatedly asked the …

India to provide Rs 300 million aid

India to provide Rs 300 million aid

India will provide an assistance of Rs 300 million to Sri Lanka for livelihood development, including the fisheries sector, in the southern Hambantota district, an official said today. Sri Lanka government spokesman Gayantha Karunathilake said that the Indian government has agreed to provide the grant …

Stocks hit 3 month high

Stocks hit 3 month high

Sri Lankan shares hit a three-month closing high on Friday as investors bought banking and construction stocks, brokers said. Construction shares have been rising ever since the government gave its consent to restart a $1.4 billion port city deal on hopes the sector would see …