Bloomberg – Sri Lanka’s economy likely shrank the most in two years amid a debt crisis that triggered a default and widespread protests that brought the nation to a standstill leading to the ouster of the president. Gross domestic product probably fell 10% in the three months to June from a year ago, according to…
President Ranil W is expected to consult the parliament on electoral reforms and will consult the people direct at a referendum if the parliament doesn’t respond (Ref. Media). An analysis of the Sri Lankan society (since 1931) may indicate that the process of electing officials has been a root cause of all conflicts which fragmented…
By Prof. Samitha Hettige SL’s super power neighbor India recently commissioned its first aircraft carrier Vikrant at a cost of 3 billion USD in Kerala. At the commissioning Indian Prime Minister has indicated that Indo Pacific region is a defense priority for India (Ref. Indian sources). Although analysts question the need for such carriers in…
Fitch Ratings-Hong Kong-02 September 2022: The IMF staff-level agreement with Sri Lanka on a USD2.9 billion programme, confirmed on 1 September, appears to signal a sharp change in policy settings in order to achieve macroeconomic stability, including through large fiscal adjustment, greater exchange-rate flexibility and more central bank autonomy, says Fitch Ratings. This should facilitate…
Business Sentiment Despite the protracted period of suffering in recent months, Sri Lankans are gradually reclaiming a sense of their previous existence as the interminable wait in long queues has dwindled to minutes rather than hours and days, and basic necessities are in higher supply. Thank goodness for that island mentality and short memories. Soon,…
Blunt policy tools, a far cry from the ‘social market economy’’ proposed by the President and reformers in the opposition. Extraordinary Gazette No 2294/30 of 23rd August 2022, issued under the Import and Export Control Act No 1 of 1969 by the Ministry of Finance temporarily suspends the importation of over 300 items. This move…
JACKSON HOLE, Wyo., Aug 29 (Reuters) – The message from the world’s top finance chiefs is loud and clear: rampant inflation is here to stay and taming it will take an extraordinary effort, most likely a recession with job losses and shockwaves through emerging markets. That price is still worth paying, however. Central banks spent…
By Prof. Samitha Hettige The Hatton National Bank opened its Sri Jayawardenepura (Kotte) branch in the early 1990s. Media advertisements announcing the event included a poem from the historic “Selalihini Sandeshaya” in which Sri Jayawardenepura was referred to as the city of rich Buddhists (Ref. Media). The city became a rich economic hub along the…
an article by World Federation of Exchanges New data published by the World Federation of Exchanges (WFE), the global industry group for exchanges and central clearing counterparties, lays bare the full economic impact of the Ukraine war upon a global economy still trying to recover from the Covid-19 pandemic. The WFE’s Market Highlights report for…
By Prof. Samitha Hettige The Peoples Republic of China’s Northeast includes three provinces namely Heilongjiang, Jilin and Liaoning (Chinese Navy northern front named its first Aircraft carrier as “Liaoning”). This region was a powerhouse of traditional industries such as steel, automobile, aircraft manufacturing, shipbuilding and petroleum refining etc. (Ref. Chinese sources). Due to problems such…
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