Category: Economy
JICA extends support for Sri Lanka’s socio-economic development
The Japan International Cooperation Agency (JICA) is ready to support the socio-economic development needs of Sri Lanka, said JICA, Director General South Asia Mr. Sakamoto Takema. Mr. Sakamoto Takema made these remarks when he met President Gotabaya Rajapaksa at the President’s House in Colombo, today (16). President Rajapaksa recalled that when he was the Secretary […]
Finance Minister proposes to release all vehicles seized at Customs subject to taxes
Finance Minister proposes to release all vehicles seized at the Sri Lanka Customs owing to non-payment of applicable taxes and other reasons. Such release will be subject to the applicable taxes and fines. It is also proposed to impose a fee on vehicles meeting with accidents with the opportunity of reimbursing this fee from the […]
Government seeks to collect Rs 140bn from Social Security Contribution
Aiming to rebuild Sri Lanka’s economy affected by the Covid pandemic, a “Social Security Contribution” has been proposed by the Finance Minister. This contribution will be charged at 2.5 percent on the annual threshold turnover exceeding Rupees 120 million. Rupees 140 billion is expected as revenue through this contribution. This will be effective from 01 […]
Central Bank expects inflation to remain high at around 8-9% in next few months
Sri Lanka’s Central Bank expects inflation to remain high at around 8-9% in the next few months, before gradually reverting to the desired 4-6% level thereafter. Releasing the ‘Recent Economic Developments’ report, the Central Bank said that the upward adjustments in retail market prices of some commodities, mainly driven by supply side factors and increased […]
CBSL expects reserves to remain around USD 3.5bn by end 2021; USD 4bn on average in 2022
Sri Lanka’s Central Bank expects gross official reserves to remain at around USD 3.5 bn at the end of 2021, and around USD 4.0 bn on average in 2022. Releasing the ‘Recent Economic Developments’ report, the Central Bank said that it expects financial flows to strengthen in the period ahead with the envisaged inflows in […]
Is wealth tax the solution to Sri Lanka’s low tax revenue collection?
By Sathya Karunarathne IntroductionSuccessive governments have run fiscal deficits. Inadequate revenue collection and unrestrained government expenditure have worsened the country’s fiscal position. Tax revenue which averaged over 20% of GDP in 1990 has declined to under 10% of GDP inAd hoc tax policy changes have significantly eroded the tax base. Weak tax administration has also […]
WB Group agreed to provide USD 500mn loan for Inclusive Connectivity & Development Project
The Development Policy Framework of the Government has identified the necessity of improvement of accessibility and connectivity of Rural Sri Lanka by rehabilitation and improvement of rural & provincial roads on a priority basis. Poorly maintained provincial and rural road network has resulted poor accessibility and connectivity, poor road safety, as well as high transportation […]
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 […]