Category: Economy
CBSL issues new rules on export proceeds conversion; applicable for both goods & services
The Monetary Board of the Central Bank has issued new rules, in respect of repatriation of export proceeds into Sri Lanka and conversion of such export proceeds to Sri Lanka Rupees, repealing the existing rules. The new rules are applicable for both exporters of goods and services in Sri Lanka. The new Rules require exporters […]
”s rating to Caa2; CBSL questions timing & subjectivity
Moody’s Investors Service (“Moody’s”) has downgraded the Government of Sri Lanka’s long-term foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa1 under review for downgrade. The outlook is stable. “The decision to downgrade the ratings is driven by Moody’s assessment that the absence of comprehensive financing to meet the government’s forthcoming significant […]
‘s Central Bank reveals progress of securing foreign exchange inflows
The Central Bank on Tuesday revealed the progress of securing foreign exchange inflows and highlighted a series of direct engagements that the Sri Lankan Government has commenced with other Governments, Central Banks, financial institutions, and investors. Releasing a statement, the bank said that the government is processing a US dollars 1.5 billion long-term loan offer […]
Fitch Ratings: Is Sri Lanka Headed for Default?
Sri Lanka’s external liquidity position remains stressed, with USD26 billion in sovereign foreign-currency obligations coming due between now and 2026, against foreign-exchange reserves of only USD3.5 billion as of end-August (up from USD2.8 billion in July reflecting the receipt of USD780 million from the IMF Special Drawing Rights (SDR) allocation). “Sri Lanka’s public and external […]
TISL wants FIU of CBSL to investigate into potential money laundering cases in Pandora Papers
Transparency International Sri Lanka (TISL) once again draws the attention of the general public to the serious concerns that were brought to light by the Pandora Papers and revealed to the public earlier this month. The Pandora Papers exposé provides clear evidence of how the offshore industry promotes corruption and demonstrates the importance of ensuring […]
Export Advisory Committees appointed covering 24 sectors for 5 years
Export Advisory Committees have been appointed by the trade minister covering 24 sectors for a period of 5 years (from 2021 to 2026). In terms of Section 10 of the Sri Lanka Export Development Board (EDB) Act No 40 of 1979, the minister in charge of the EDB, on the advice of the Board, is […]
CBSL maintains policy rates; near term supply side developments do not warrant policy tightening
The Monetary Board has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 5.00 percent and 6.00 percent, respectively. The Board said it arrived at this decision after considering the macroeconomic conditions and expected developments on the domestic and […]
Interview: Futureproofing banking sector through digital-first mindset
There is a good reason why digitalisation is a top priority for banking. When done correctly, it enables paradigm shifting improvements in customer experience and accessibility. For the average customer, it means, they are able to utilize the full range of our products and services seamlessly, through the platform of their choice. While prior to […]
Regulating prices: From price mandates to more competition
Regulating prices: from price mandates to more competition The government recently removed the maximum retail price (MRP) on rice with a decision to import a buffer stock of rice to prevent any shortages. This is an important step in the right direction. Opening up the market for more competition will reduce the market power of […]
Sri Lanka projected to grow by 3.3-pct : Shifting gears to services-led growth can help build back better
Sri Lanka’s economy is projected to grow by 3.3 percent in 2021, but the medium-term outlook is clouded by pre-existing macroeconomic weaknesses and the economic scarring from the COVID-19 pandemic. A gradual recovery will likely lead to corresponding improvements in labor market conditions. Most countries in South Asia are far from pre-pandemic trend levels, says […]
‘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, […]