All Stories in Economic

Local investors are buying blue-chip shares

Local investors are buying blue-chip shares

Sri Lankan shares snapped a seven-session streak of declines on Friday, recovering from a near three-week closing low hit in the previous session, as investors picked up battered blue-chip and banking shares. However, foreign investors, who have been net buyers of 2.7 billion rupees worth …

Economy expected to return to a high and inclusive growth trajectory

Economy expected to return to a high and inclusive growth trajectory

The IMF  released the ‘staff’ report pertaining to the third review of the Extended Arrangement Under the Extended Fund Facility with Sri Lanka on 12 January 2018. The IMF report …

Government liquidity and external vulnerability risks will remain elevated.

Government liquidity and external vulnerability risks will remain elevated.

Moody’s Investors Service says that Sri Lanka’s (B1 negative) high general government debt levels, very low debt affordability, and fragile external payments position continue to present the sovereign with material credit challenges. In particular, persistently high government liquidity and external vulnerability risks will maintain pressure …

Timely progress in structural reforms will support fiscal consolidation.

Timely progress in structural reforms will support fiscal consolidation.

  On December 6, 2017, the Executive Board of the International Monetary Fund (IMF) completed the third review of Sri Lanka’s economic performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF) arrangement. Completion of the review enables the …

Salient Provisions in the Budget for 2018

Salient Provisions in the Budget for 2018

1) Legislative Reforms: The budget has identified the key legislative impediments to the ease of doing business and the efficient utilization of Sri Lanka’s assets. Access to land has been …

Stocks drop

Stocks drop

Sri Lankan shares fell on Friday, weighed down by declines in telecom and banking stocks after the island nation targeted both cash-rich sectors in its 2018 budget to boost revenue. Sri Lanka imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid …

Rates steady ahead of budget

Rates steady ahead of budget

Sri Lanka’s central bank is expected to keep its key interest rates steady on Tuesday to support the sluggish economy despite a pick-up in inflation amid strong credit growth, a Reuters poll showed. All 11 economists in the survey predicted the central bank would keep …

Ensure fiscal consolidation

Ensure fiscal consolidation

The IMF  urged Sri Lanka to continue fiscal consolidation and tighten monetary policy and said it had agreed to delay the next review of its 3-year loan until the government submits the 2018 budget. The 2018 budget should continue fiscal consolidation, supported by the new …

Sri Lanka’s growth to be lowest among key South Asian nations

Sri Lanka’s growth to be lowest among key South Asian nations

Sri Lanka’s economy is expected to grow 4.6 percent this year, but the growth is said to be low compared to other key South Asian countries, a latest World Bank forecast, quoted by a local media report said here Wednesday. The estimated 4.6 percent growth …

Why Sri Lanka needs to boost its ailing private sector

Why Sri Lanka needs to boost its ailing private sector

Sri Lanka experienced strong growth at the end of its 26-year conflict. This was to be expected as post-war reconstruction tends to bring new hope and energy to a country. And Sri Lanka has done well—5 percent growth is nothing to scoff at. However, Sri …