All Stories in Economic

Election Surprise Proves Letdown for Sri Lanka Investors

Election Surprise Proves Letdown for Sri Lanka Investors

An election hailed as a leap forward for Sri Lanka’s democracy is proving a step back for investors. President Maithripala Sirisena’s government last week canceled casino licenses, and his first budget reduced public investment and included a one-off windfall tax on company profits. The country’s …

Government seeks to obtain trade concession from EU

Government seeks to obtain trade concession from EU

The Sri Lankan government said it will seek to obtain trade concession from the European Union which was withdrawn under the previous government. The EU Trade concession known as GSP plus was withdrawn as the previous government headed by Mahinda Rajapakse failed to comply with …

New c.bank chief sees strong growth, chances of lower rates

New c.bank chief sees strong growth, chances of lower rates

A day after taking over as governor of the Central Bank of Sri Lanka, Arjuna Mahendran said interest rates can be reduced below current record lows once inflationary expectations flatten out, and called for an overhaul of the tax system to help businesses. Mahendran was …

Central bank keeps policy rates steady at record low

Central bank keeps policy rates steady at record low

Sri Lanka’s central bank kept key policy rates steady at record lows for an 12th straight month on Tuesday, as expected, and said inflation was expected to ease further. The central bank also kept a 5 percent lower repo penalty rate paid to banks that …

Sri Lanka Taps Former HSBC Wealth Manager to Head Central Bank

Sri Lanka Taps Former HSBC Wealth Manager to Head Central Bank

The Sri Lankan government appointed an ally of the new prime minister who previously worked as a wealth manager with HSBC Holdings Plc (HSBA) and Emirates NBD to run its central bank. Arjuna Mahendran was today appointed by President Maithripala Sirisena, on the recommendation of …

Sri Lanka coalition may be perceived as investor unfriendly: Standard Chartered

Sri Lanka coalition may be perceived as investor unfriendly: Standard Chartered

Global banking group Standard Chartered Bank said the presidential election in Sri Lanka may result in ‘some’ economic uncertainty with President Maithripala Sirisena’s manifesto perceived as investor unfriendly with a lot depending how successful reforms are. Sirisena won over his rival Mahinda Rajapaksa last week. …

Sri Lanka raises deposit rate for over-60s to 12 pct before election

Sri Lanka raises deposit rate for over-60s to 12 pct before election

Sri Lanka’s central bank on Tuesday raised fixed deposit rates for some savers aged over 60 to 12 percent, as promised in the 2015 budget and ahead of a Jan. 8 snap presidential poll. All deposit holders above 60 years and holding fixed deposits of …

Stocks down; political uncertainty grows after fresh defections

Stocks down; political uncertainty grows after fresh defections

Sri Lankan stocks traded weaker on Tuesday as fresh defections from the ruling party hit the sentiment, raising political uncertainty ahead of the presidential polls early next year. The main stock index was down 0.3 per cent or 21.57 points at 7,230.00 at 0841 GMT. …

Sri Lanka Business Forecast Report Q1 2015

Sri Lanka Business Forecast Report Q1 2015

“Sri Lanka Business Forecast Report Q1 2015” from Business Monitor International has said Sri Lanka’s economy will continue powering ahead over the coming years on the back of sustained strong performance in the industrial and services sectors (comprising 58.0% and 31.5% of GDP, respectively). It has upgraded …

Russian rouble crisis affects tea exporters

Russian rouble crisis affects tea exporters

Central Bank Governor, Ajith Nivard Cabraal last Wednesday intervened to try to solve the crisis which has engulfed the country’s tea exporters who are reeling under the Russian rouble crisis. Russia is a destination to which 22% of Sri Lanka’s tea exports are shipped. Governor Cabraal …