Economy

 Warns reducing policy rates beyond certain point will not expand credit growth as banks have limited risk appetite Points out banks were under pressure well before COVID-19 Calls for fiscal support in COVID-19 recovery process Outcomes of multiple CB rate cuts could lead to currency pressure, money printing to pay SDF interest to banks  Says credit guarantee scheme good … [Read more...] about CB must balance financial stability and credit growth: ICRA Lanka

Central Bank Governor Prof. W. D. Lakshman (left) and Senior Deputy Governor Dr. P. Nandalal Weerasinghe at the media briefing yesterday – Pic by Ruwan Walpola  Latest change will push interest rates to single digits  Calls on all banks to pass on benefits to customers speedily  300 basis point reduction given so far in 2020 Despite high levels of liquidity, private … [Read more...] about CB slashes rates to spur 2H growth

SLPP National Organiser Basil Rajapaksa - Pic by Ruwan Walpola Says June exports rebound to $950m, signaling strong resurgence   Economy top priority post-polls As tourism remittances likely to continue struggling, focus on other sectors to spur growth Acknowledges exports will be crucial to earn forex   Wants stronger efforts from banks to support COVID-hit businesses, … [Read more...] about SL capable of ‘V-shaped’ COVID recovery: Basil

Seated from left: Sampath Bank Managing Director Nanda Fernando, CBSL Assistant Governor R.A.A. Jayalath, and University of Colombo School of Computing Director Prof. K P Hewagamage. Standing from left: CBSL Director (Payments and Settlements) D. Kumaratunge, CBSL Governor Prof. W.D. Lakshman, and Deputy Governor H.A. Karunaratne Seated from left: Yaala Labs CEO Lalin Dias, … [Read more...] about CB kicks off work on blockchain-based KYC platform

MSME COVID-19 Relief Ombudsman, support and care desk, economic relief, MSME national database system, national MSME advisory and steering committee among key recommendations Way forward demands greater coordination by all stakeholders; political authority, officials, business service providers, bankers, SMEs Study forecasts COVID-19 cost around 8.8% of GDP within 2 … [Read more...] about National study moots 15 key steps to boost MSME sector post-COVID-19

 Revenue down 20% in first 4 months; tax revenue dips 26%; income tax by 22% VAT revenue plunges by 53% Central Bank transfer of Rs. 24 b profit boosts non-tax revenue by 46% State expenditure down by 3%; recurrent expenditure up 9% Budget deficit up 24% YoY to Rs. 452 b  Fiscal operations of the Government in the first four months of this year have showed a mixed … [Read more...] about Govt. struggles with fiscal performance

Five-member committee appointed to look into development issues of JCT and ECT Procurement, non-implementation of Cabinet decisions, cost implications to be probed Agreements entered into with Japan and India to develop ECT to be analysed  Ad hoc, unsolicited decisions made by SLPA and Ports Ministry to be evaluated  Committee told to hand over report within 45 days Wading … [Read more...] about President floats committee on JCT and ECT

 President Gotabaya Rajapaksa SL tells UNHRC domestically designed and executed reconciliation process will be pursued Says committed to achieving reconciliation even as it withdraws from co-sponsorship of Resolution 30/1 Urges all parties to recognise realities on ground, focus on deliverable measures of reconciliation Pledges to continue engagement with Office of the … [Read more...] about Domestic it is, SL reiterates to UNHRC