Category: Economy and Markets
Focus on Including Private Sector Proposals for Building the Economy in the Budget
President Ranil Wickremesinghe has announced his intention to prioritize the inclusion of proposals from the private sector in this year’s budget and to separately examine related areas. He made these statements while attending a 2024 pre-budget -discussion held at the Presidential Secretariat yesterday (01) with the leaders of private sector institutions. During the meeting, the […]
Ceylon Chamber Advocates for a Balanced Fiscal Approach Over Proposed VAT rate hike
The Ceylon Chamber of Commerce raises concerns regarding the proposed increase of the Value Added Tax (VAT) to 18%. While recognising the government’s commitment to revenue enhancement in alignment with International Monetary Fund obligations, it’s imperative to evaluate the broader economic ramifications of such a decision. The current economic landscape, characterized by escalating income taxes, […]
Sri Lanka’s Mobile Network Performance Lags Behind in South Asia: Analysis
In a recent analysis by Opensignal, which examined the mobile network experiences of smartphone users across the six most populated countries in South Asia, Sri Lanka’s performance was found to be lacking compared to its regional counterparts. The study, which included Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka, revealed significant disparities across the region. […]
PUCSL electricity tariff revision discriminatory: Advocata
Electricity tariff design must meet two main objectives: firstly, raising the money needed to pay for the costs of provision, and secondly, sending the right economic signals to each customer to favour the optimal socio-economic use of electricity. To achieve the above objectives the principles that must be followed when designing tariffs are; Economic sustainability […]
‘s real estate market trends
In a significant stride towards fostering transparency and informed decision-making within South Asia’s real estate landscape, the Research Intelligence Unit (RIUNIT) unveiled a series of reports during the 8th Islamic Finance Forum of South Asia, held on recently at the Shangri-La hotel in Colombo. These reports provide a holistic view of the real estate markets […]
World Bank Managing Director Visits Sri Lanka, Stresses Need to Pursue Reforms, Invest in People
World Bank Managing Director for Operations, Anna Bjerde, concluded her four-day visit to Sri Lanka today, encouraging the Government of Sri Lanka to stay the course on reforms for recovery and sustainable growth. She also underscored the World Bank’s continuous commitment to investing in people, strengthening human capital, and creating jobs. Bjerde met with Sri […]
VAT to be increased to 18-pct from January; coverage will be expanded to meet targets agreed with IMF
The current Value Added Tax (VAT) rate is to be increased to 18% with effect from 01-01-2024, and to impose the tax on certain goods and services to which the Value Added Tax does not apply. According to the Cabinet of Ministers, this will be carried out to achieve the tax revenue and primary balance […]
Opinion: Reforming tax incentive structure in Sri Lanka
The second tranche of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) was delayed as the country failed to meet some of the program targets including the government revenue target. This prompted the IMF in their latest review to reiterate the need to “strengthen tax administration, remove tax exemptions, and actively eliminate tax evasion” […]
CDS signs Agreement with LankaPay Online Payment Platform
The Central Depository Systems (CDS), a fully owned subsidiary of the Colombo Stock Exchange (CSE), recently signed an agreement with LankaPay, Sri Lanka’s National Payment Network, joining its Online Payment Platformto develop an innovative payment platform to facilitate a seamless and a secure payment experience for investors. The new payment platform promises to transform how […]
Sri Lanka’s exports dropped by 15-pct in Sept compared to Aug amid decreased demand
Sri Lanka’s merchandise exports decreased by 11.88 % to US$ 951.5 Million in September 2023 compared to September 2022 as per the provisional data released by Sri Lanka Customs. Also, it is a 14.94 % decrease when compared to the value recorded in August 2023. The decline in merchandise exports is due to decreased demand […]
”; Outlook Stable
Fitch Ratings has affirmed the National Long- Term Ratings of Sri Lanka-based conglomerate Melstacorp PLC and its subsidiary, Distilleries Company of Sri Lanka PLC (DIST), at ‘AAA(lka)’. The Outlook is Stable. Fitch equalises the rating of DIST, which has a stronger credit profile than its parent Melstacorp, to the consolidated profile of its parent, based […]
IMF Reaches Staff-Level Agreement on First Review of Sri Lanka’s Extended Fund Facility Arrangement
IMF staff and the Sri Lankan authorities have reached a staff-level agreement on economic policies to conclude the first review of the 48-month EFF-supported program. Sri Lanka will have access to SDR 254 million (about US$330 million) in financing once the review is approved by IMF Management and IMF Executive Board. “Macroeconomic policy reforms are […]