Global recovery to impact commodity prices: Central Bank

The Central Bank of Sri Lanka has decided to keep its key policy rates unchanged during February taking into consideration the country’s current economic developments.
Accordingly the Repurchase rate will remain at 7% while the Reverse Repurchase rate will continue to be at 8.50%.
Describing the current developments in the economy, the Central Bank said the global [...]

IMF disburse US$ 216.6 million to SL

The International Monetary Fund has approved another tranche of US$ 216.6 million to Sri Lanka under the ongoing IMF Stand-By Arrangement with the country.
With this, the total disbursement of the IMF for Sri Lanka runs up to US$ 1.51 billion out of the agreed US$ 2.6 billion stand-by arrangement.
However the latest disbursement comes minus 2 [...]

Import duty on Petrol reduced

The government has reduced the import duty on petrol by Rs 10.00 per liter in order to maintain the current selling price without a change.
Accordingly it will be reduced from Rs. 15 to Rs. 5 per liter.
The Ministry of Finance has taken this decision following a request made by the Lanka Indian Oil Company to [...]

Sri Lankan Garment industry gets new orders in 2010

Prasanna C. Rodrigo
Sri Lankan Garment industry has got a large number of  new orders in 2010 owing to issues faced by the Chinese and Bangladeshi apparel industry.
Secretary General of the Joint Apparel Association Forum of Sri Lanka Rohan Masakorala says rising cost in the Chinese garment industry and the labor unrest in the Bangladeshi garment [...]

Foreign Banks needs to bring in Value additions: Deputy Governor

By: Prasanna C. Rodrigo
Sri Lanka is ready to welcome international Banks who brings in “Value additions” to the country’s financial system says the Central Bank.
The Banks Deputy Governor K.G.D.D. Dheerasinghe said “We encourage banks which bring in value additions”.
According to Dheerasinghe foreign banks can get engaged in areas such as providing “remittance transaction” services etc.
Talking [...]

Foreign exchange controls relaxed

Sri Lanka has introduced wide scale reforms to the country’s foreign exchange regulations in a bid improve investor confidence, strengthen foreign reserves and stabilize the foreign exchange market.
According to the latest regulations which a part started from yersterday foreigners will be permitted to invest in Rupee Denominated Debentures aimed at promoting the local bond market.
Also [...]

A Glimpse of the Forex Liberalization package

By: Prasanna C. Rodrigo

Central Bank of Sri Lanka is likely to allow local companies to invest in overseas firms and also allow foreigners to buy “debentures” issued by local companies under its latest foreign exchange liberalization program.
This is according to a senior Central Bank official who in an earlier occasion revealed to us some of [...]

Exports rising but trade deficit is widening

Sri Lanka’s trade deficit during the 1st 7 months has widened to 103% to stand at US$ 3.36 billion owing to the import bill which is rising higher than the export earnings.
Importation of consumer goods, intermediate goods and investments good all has increased during this period to incur an import bill of US$ 7.6 billion, which [...]

Sri Lanka’s 2nd quarter economic growth reaches record level

Sri Lanka’s economy grew by 8.5% in the second quarter marking the highest ever quarterly growth since 2002.
This increased growth was backed by significant performances from the 3 main sectors such as Agriculture, Industry and Services.
The agriculture sector saw a growth rate of 5.1% during the 2nd quarter, while the Industrial sector grew by 9.2%.
The [...]

SL to transform from a “deficit economy” to a “surplus economy”: Jayasundera

Sri Lanka’s top bureaucrat, Finance Secretary Dr. P. B. Jayasundera request the country’s monetary officials to get ready to handle the challenges of a “surplus economy” from handling of the current “deficit economy”.
Jayasundera who was delivering the diamond jubilee oration at the 60th anniversary of the Central Bank last evening said Sri Lanka’s economy in [...]