Category: Economy and Markets
‘s Horana named best town for business
Nov 15, 2007 (LBO) – A town south-east of the Sri Lankan capital Colombo has emerged as the surprising choice of companies as the best place to do business. A study conducted by the international organization Asia Foundation in Sri Lanka on private sector business development and economic growth, found that Horana, 60 km from […]
Sri Lankan coastal towns threatened by rising sea level
Nov 14, 2007 (LBO) – Sri Lanka’s coastal settlements are at risk of rising sea levels caused by global warming while those in the central hills face landslide threats, a top official said. “If the water level rises Sri Lanka’s entire coastal belt is facing possible destruction,” said Lakshman Jayasekara, director general, National Physical Planning […]
Sri Lanka trade deficit widens in September; 9-month deficit still down
Nov 14, 2007 (LBO) – Sri Lanka’s trade deficit widened in September to 281 million from 199 million a year ago, but the gap for the first nine months of the year was still 7.5 percent lower than last year. Exports grew 19.2 percent to 724.6 million in September with imports also rising 24.9 percent. […]
Sri Lanka says US$500 million bond has been used to repay debt
Nov 13, 2007 (LBO) – Sri Lanka’s finance ministry confirmed Wednesday that the proceeds of its biggest ever foreign bond issue had already been spent to repay short term debt.The government originally said a 500 million dollar sovereign bond issue raised in October would be used for infrastructure development projects. A Sri Lanka finance ministry […]
Sri Lanka private sector calls for fewer, simpler taxes
Nov 12, 2007 (LBO) – Sri Lanka’s private sector Monday urged the government to do more to reduce the multitude of taxes and simplify the system in order to make payment and collection more efficient. It also warned against what appeared to be government moves to resurrect unsuccessful welfare measures in an attempt to cushion […]
Sri Lanka rupee gains, excess liquidity drops
Nov 12, 2007 (LBO) – The Sri Lanka rupee strengthened to 110.32/35 in spot trade Monday recovering losses made last week dealers said, while the central bank was progressively reducing excess liquidity. In equity markets, the benchmark Colombo All Share Index closed up 0.46 percent at 2,631.43 and the Milanka Index of liquid stocks ended […]
Sri Lanka top chamber says budget commitments good, but implementation is key
Nov 09, 2007 (LBO) – Sri Lanka’s most powerful business chamber welcomed a government commitment to lower the budget deficit next year, but said reaching the targets was important. “We have repeatedly pointed out in the past that implementation is the key to success in achieving the budgetary targets,” the Ceylon Chamber of Commerce said […]
Sri Lanka new tax proposal summary
Here are some of the key government revenue proposals presented in the 2008 budget: – Tax Reliefs for new investments in the Eastern Province – The following tax relief will be available on investments in any undertaking of any nature, where i. The investment is over Rs.50 MN, and ii. Provides employment opportunities for not […]
Sri Lanka taxes hit drinkers, smokers and drivers
Nov 08, 2007 (LBO) – Sri Lanka’s cash strapped government is taxing booze, smokes and cars again to boost government revenues and finance subsidies, the 2008 budget presented to parliament showed. “We have sharply increased taxes on alcohol and cigarettes to discourage consumption,” the budget speech tabled in parliament by President Mahinda Rajapakse said. The […]
Sri Lanka to have single digit inflation and 7 to 7.5-pct growth in 2008: CB
Nov 08, 2007 (LBO) – Sri Lanka’s Central Bank has once again promised to bring inflation now raging near 20 percent to single-digits in 2008, while maintaining high growth. “With the persistently tight monetary policy stance and complementary fiscal performance, inflation is expected to be at a single digit level in 2008,” the bank said […]
Severe Sri Lanka state cash crunch revealed
Nov 08, 2007 (LBO) – Though budget numbers tabled in Sri Lanka’s parliament suggested that no money had been printed in 2007, other documents showed a large bank-financed hole in state finances just weeks earlier. The budget showed that 10 billion rupees would be paid back to the banking system by the end of this […]
Sri Lankan exporters welcome incentives, criticise lost tax breaks
Nov 08, 2007 (LBO) – Sri Lankan exporters Thursday welcomed incentives in the government’s 2008 budget but warned reduced tax holidays and higher license fees could hurt growth. “The tax and other benefits to the gems and jewellery industry are positive signals as they will stimulate more exports in this sector,” Lakshman de Silva, acting […]