Category: Economy
‘s Six-Month Road Map at a glance
Sri Lanka’s Central Bank on Friday outlined the key measures and tools they will use to ensure macroeconomic & financial system stability in the country for the next six months. • Intervene in the FX market by providing the funds to finance the country’s energy bills, and thereby to infuse liquidity • Promote investments in […]
Central Bank removes cash margin deposit requirement on non-essential imports
Sri Lanka’s Central Bank has decided to discontinue the 100 percent cash margin deposit requirement against the importation of selected goods of non-essential/non-urgent nature with immediate effect. The decision to impose a cash margin deposit requirement was expected to support the efforts to preserve the stability of the exchange rate and foreign currency market liquidity, […]
Central Bank requests Govt to tax export profits at 28-pct where forex is not repatriated & converted
Sri Lanka’s Central Bank requests the government to tax profits of exporters at 28 percent and not 14 percent where forex is not repatriated & converted. Unveiling the Six-Month Road Map for Ensuring Macroeconomic & Financial System Stability, Governor Ajith Nivard Cabraal said that there will be specified limits. Service related foreign exchange inflows will […]
ADB Annual Meeting 2022 in Sri Lanka; MoU signed
Sri Lanka’s government and the Asian Development Bank (ADB) today entered into a Memorandum of Understanding to hold the 55th Annual Meeting of the ADB in Colombo, Sri Lanka next year. It was signed on behalf of the Asian Development Bank by its Director General, South Asia Department, Kenchi Yokoyama, and SR Attygalle on behalf […]
CBSL to announce 6-month road map for ensuring macroeconomic & financial stability on Friday
The Central Bank is to announce “A Six-Month Road Map for Ensuring Macroeconomic & Financial System Stability” on Friday, 01 October 2021. Accordingly, Governor Ajith Nivard Cabraal will announce the road map to the officials of the Government and the financial sector institutions. Due to the prevailing COVID-19 pandemic situation and in keeping with required […]
Central Bank recommends complete repatriation of export proceeds within reasonable period
Steps must be taken to strengthen the systems to ensure monitoring and to implement measures that lead to the complete repatriation and conversion of export proceeds within a reasonable period, the Central Bank said. Releasing an information series note on the current status of the export earnings, the Central Bank justified that it would be […]
‘s exports exceed USD 1Bn for third consecutive month in August
Sri Lanka’s merchandise exports in August 2021 recorded an increase of 14.4 % to US$ 1,083.56 Mn as compared to US$ 947.2 Mn recorded in August 2020 as per the data released by Sri Lanka Customs. Table 1: Merchandise Export Performance Values in US$ Mns Exports of Goods Jan-Aug 2019 Jan-Aug 2020 Jan-Aug […]
”s Investors Service
Coupled with limited external financing options and pandemic-related lockdown weighing on the recovery of non-debt generating inflows, the FX reserves data points to a rising risk of debt default, Moody’s Investors Service said in a new report. According to the report, without sizeable external financing that is relatively secure and long-term, they expect foreign exchange […]
Newly appointed CBSL Governor Nivard Cabraal to announce a policy package soon
Central Bank will need to take the required steps that will reflect its own commitment towards economic stability, and will therefore soon announce a policy package in the form of a short-term Road Map, that could then be followed by all stakeholders, said newly appointed Governor Nivard Cabraal. Releasing an initial statement upon taking office […]
Transparency International Sri Lanka recommends enhanced scrutiny in operation of tax amnesty
Transparency International Sri Lanka (TISL) is deeply concerned regarding the new Finance Act passed on 7th September 2021 that aims to grant tax amnesty for individuals who voluntarily disclose their undisclosed income and assets. TISL warns that this amnesty scheme could be abused for the purpose of money laundering unless regulatory authorities take extra measures […]
High probability that Sri Lanka may consider moving into an IMF program: FCR
First Capital Research believes that there seems to be a high probability that Sri Lanka may consider moving into an IMF program. Though there are rumours of negotiations, so far such a program has not materialized, but the Govt has obtained the Rapid Funding Facility of USD 787Mn from the IMF. “Analysing the economic indicators […]
Central Bank imposes 100-pct cash margin deposit requirement for non-essential goods imports
The Monetary Board of the Central Bank has decided to impose a 100 percent cash margin deposit requirement against the importation of selected goods of non-essential/non-urgent nature made under Letters of Credit and Documents against Acceptance terms with Licensed Commercial Banks and National Savings Bank, with immediate effect. The decision to impose the cash margin […]