Category: Economy and Markets

Suspension of parliament, other actions possibly detrimental to peace, says State Department Spokesman on Wednesday.U.S. State Department Deputy Spokesman Adam Ereli expressed concern that President Kumaratungas decision to sack three government ministers, suspend parliament, and deploy troops around the capital “could have a negative effect on the peace process and talks with the Liberation Tigers […]

The Norwegian-brokered ceasefire pact between the Sri Lankan government and Tamil Tiger guerrillas will stand despite President Chandrika Kumaratunga taking over the defence ministry, a presidential adviser said Wednesday. “The president has specifically asked me to state that the ceasefire agreement stands and will stand and there is no question about it,” Lakshman Kadirgamar, international […]

The Colombo stock market took a plunge as President Chandrika Kumaratunga sacked three key ministers and took over the portfolios of Defence, Interior and Media.Government Spokesman Gayrika Perusinghe told LBO that President Kumaratunga had removed Ministers Thilak Marapana (Defence), John Amaratunga (Interior) and Imthiaz Bakeer Markar (Media) and their respective line bureaucrats with immediate effect.rn […]

The state is gunning for a Rs. 9 billion cut in interest costs for 2004, after making a Rs. 4 billion saving in 2003. Deputy Finance Minister Bandula Gunawardene says interest costs for 2003 is estimated at Rs.130 billion, down from over Rs. 134 billion last year.rn rnThe Minister says prudent fiscal management or accelerating […]

The governments budget for next year will give substantial salary hikes for government sector workers while creating new jobs and improving infrastructure.A top minister said that underdeveloped industries would be looked at closely as a means of new employment generation.rn rnThe budget will be presented to parliament on the 12th of this month rn rnSome […]

The Ceylon Chamber of Commerce say the government must introduce lquote group taxation dblquote as an incentive for further investment in Sri Lanka. rnThe Chamber says if a committee goes to work on the framework, scope and regulatory provisions relating to the implementation of Group Taxation, a workable model should be ready for implementation by […]

Maintaining a positive growth trend over the past few months, Sri Lankas export earnings posted a double-digit growth for the first eight months of this year, a momentum that will help achieve better than forecasted year-end growth.The positive sentiment contributed to a rise in exports and a higher import bill in August.However, the trade deficit […]

The Urban Development Authority (UDA) has drawn plans to dispose a number of its property holdings that dont reap a minimum Rs. 1000 monthly rent, under a policy level decision taken to streamline its operations.UDA Chairman, S Amarasekera says the decision will free resources for other development work and generate funds for capital investments.rn rnThe […]

The far-reaching economic partnership agreement Comprehensive Economic Partnership Agreement between India and Sri Lanka will set up a new credit line and an economic cooperation fund of US$ 100 mn each to finance some of the countrys most pressing infrastructure bottlenecks.The economic cooperation agreement submitted to the Prime Ministers by two teams of top bureaucrats […]