manusath-derana

Analysis

Emerging signs of a revival – Biz confidence picks up with corporates planning to get back to doing business

Hot on the heels of a scathing review of the country’s monetary policy by President Gotabaya Rajapaksa on 16 June, in response to the COVID-19 crisis, the Central Bank of Sri Lanka announced a further reduction of the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of licensed commercial banks (LCBs). This lowering…

(0)Comments | June 30, 2020 3:43 pm

Reducing Health Costs and Increasing Government Revenue beyond COVID-19: A Case for Raising Cigarette Taxes in Sri Lanka

By Harini Weerasekera and Chamini Thilanka The susceptibility of smokers to contract COVID-19 has been recognised by the World Health Organisation (WHO) and other medical authorities. In Sri Lanka, concerned parties have called for a temporary ban of cigarette sales as a measure to contain the spread of the virus – a commendable move. However, beyond the pandemic, it…

(0)Comments | June 1, 2020 2:31 pm

Business Confidence stabilises – Sentiment steadies as businesses look to reopen following an easing of lockdown

Sri Lanka’s corporates would have breathed a collective sigh of relief in May as the Colombo Stock Exchange (CSE) opened for trading following an extended shutdown in the face of the COVID-19 outbreak and imposition of curfew. The move came at a time when businesses were looking to get back on track given the hit…

(0)Comments | June 1, 2020 12:00 pm

Business Confidence Nosedives – Sentiment plummets as the coronavirus outbreak exerts a heavy toll on corporates

COVID-19 has proven to be an unprecedented challenge for the corporate sector as all but essential services operations have come to a halt amid an extended period of lockdown in several parts of the country. A recent report by Fitch Ratings states that “corporates in consumer goods retail, construction and hotels will be among the…

(0)Comments | May 4, 2020 12:57 pm

Global COVID-19 outbreak exacerbates government liquidity & external risks : Moody’s

Moody’s Investors Service yesterday (29) warned that Sri Lanka is facing simultaneous domestic and external shocks amid the global coronavirus outbreak. The rating agency in its latest report stated that the country faces multiple challenges from capital outflows, marked local currency depreciation, wider risk premia and a further decline in real GDP growth that will…

(0)Comments | April 30, 2020 10:03 am

Business sentiment-Biz confidence in retreat mode

Sentiment is dealt a body blow on account of the emergence of a global health alert Just when Sri Lankan businesses thought a semblance of normalcy was emerging following the negative impacts of the Easter Sunday terrorist attacks last year, they’ve been hit by another blow in the form of COVID-19. The infectious disease caused…

(0)Comments | March 3, 2020 12:00 pm

Business Impact on Sri Lanka from COVID-19

By the Economic Intelligence Unit of the Ceylon Chamber of Commerce The outbreak of the Novel Coronavirus (COVID-19) is having its toll on the global economy with many economists now expecting a larger impact than the SARS outbreak in 2002-03. The outbreak is lowering China’s GDP growth expectations in the first quarter to 4.5%, a…

(0)Comments | February 20, 2020 2:15 pm

Economic optimism takes a dip -Survey

Post – election economic positivity erodes as corporates adopt a wait and see mindset The economy according to the latest LMD- Nielsen Business confidence index (BCI ) survey, the share of respondents who say the economy will improve in the coming 12-months has fallen to 62% in January from 74% in the previous month. Commenting…

(0)Comments | February 6, 2020 11:58 am

Sri Lanka must prepare for LIBOR 2021 transition – ICRA

ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service urges CBSL and Sri Lankan companies, including some of the biggest SOEs to get ready for the London Interbank Offered Rate (LIBOR) transition which is scheduled for 2021. “Central Bank of Sri Lanka (CBSL), Sri Lankan commercial banks and companies, including some…

(0)Comments | February 6, 2020 6:00 am

Biz Confidence Nudges Down – Sentiment wanes as businesspeople weigh the pros and cons of the new regime

The trade deficit contracted marginally in November with both imports and exports declining, according to data released by the Central Bank of Sri Lanka (CBSL). In the first 11 months of last year, the trade deficit contraction compared to the corresponding period of the previous year is attributed to a major drop in expenditure on…

(0)Comments | February 5, 2020 5:52 am