The ongoing military conflict in the Middle East has adversely impacted on the Sri Lankan tea industry as the exporters are unable to supply tea to the region. The exporters estimate the revenue loss at about $ 10-15 million per week. The exporters have orders in hand for supply of tea and it is the…
The effective closure of the Strait of Hormuz, the key driver of oil price increases following the 28 February outbreak of the Iran conflict, is likely to be temporary given its vital economic role, Fitch Ratings says. This, alongside global oil market oversupply, should limit oil price rises and mitigate any potential disruptions to Iranian…
Fitch Ratings: The duration of the aviation disruption following the attacks launched by Israel and the US on Iran on 28 February and Iran’s subsequent attacks on countries in the region, will be fundamental to determining the implications for affected sectors, including airlines, airports, lodging, insurance and lessors, Fitch Ratings says. Our baseline expectation that the conflict…
By Dr Bilesha Weeraratne With over 18% already aged 60 and above—and one in four projected to be 60 or older by 2041—the Sri Lankan population is rapidly ageing. IF harnessed effectively, the elderly population and the related Silver Economy have great potential to contribute to Sri Lanka’s economy. This blog analyses the challenges and…
The business barometer dips again following a brief surge as corporate optimism fades Unpredictable global politics, T20 World Cup fever, progress on the 2025 Corruption Perceptions Index (CPI), emerging health concerns and the not unusual political drama have dominated conversations in recent weeks. Sri Lanka recorded notable progress on the CPI by Transparency International (TI),…
Asia-Pacific (APAC) commodity issuers are likely to see divergent credit effects if the Iran conflict prolongs disruption to Gulf energy supply and shipping, Fitch Ratings says. Upstream producers would benefit from higher realised prices, while the cost inflation would pressure the margins of downstream, energy- and feedstock-intensive sectors. Higher input prices pose the main risk…
Reuters – The United States and Israel launched strikes on Iran on Saturday, targeting its leadership and plunging the Middle East into a new conflict that President Donald Trump said would end a security threat and give Iranians a chance to topple their rulers. The strikes put nearby oil-producing Gulf Arab countries on edge as fears of escalation grew,…
The Central Bank of Sri Lanka (CBSL) has released the key findings of the latest edition of the Systemic Risk Survey (SRS) conducted for the first half (H1) of 2026 capturing market participants’ perceptions of the financial system. This survey was conducted between 19 December 2025 and 16 January 2026, in the immediate aftermath of…
Dr Asanka Wijesinghe, Research Fellow, Institute of Policy Studies of Sri Lanka The recent US Supreme Court ruling will reduce Sri Lanka’s overall tariff from about 31% to 21.6%, with apparel seeing nearly a 10‑point cut. More Sri Lankan products now qualify for tariff exemptions, granting additional-tariff‑free access for USD 65 million worth of exports….
The largely state controlled Sri Lankan health sector is a comparatively high quality welfare system. Still on many instances media reports the hardships less privileged go through when state sector health professionals engage in strikes (refuse to work). To reduce this impact, state introduced duty free vehicle permits in the early 1990s for health sector…
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