Economic

The Board of Investment, the Ceylon Chamber of Commerce and the Colombo Stock Exchange are all set to unveil the first-ever virtual platform in Sri Lanka to attract foreign investments and Asia’s first and largest Virtual Investor Forum from 7 to 9 June.

Reuters: Shares closed higher on Friday after a two-day market holiday, as the financial and industrial sectors gained.

New concessions on capital, interest, or both, are applicable to performing as well and
non-performing borrowers and facilities as of 15 May
Interest rate for rupee facilities deferment period and amount is 6.18% per annum
Banks told to extend due dates of revolving credit facilities, including but not limited, to facilities such as working capital, pawning, temporary overdrafts, short-term trade finance facilities etc. up to 31 Aug.
Penal interest cannot be accrued or charged during concessionary period of 15 May to 31 Aug.
Banks should not levy excessive fees or charges in relation to granting of concessions, must extend validity period of cheques valued less than Rs. 500,000 until 30 June
Banks told to discontinue charging for cheque returns and stop payments in relation to all cheque payments until 30 June
Banks must discontinue late payment fees on credit cards and other credit facilities up to 30 June; told not to charge early settlement fees
Eligible borrowers must request for new concessions on or before 21 June
Borrowers who currently enjoy deferment of lease repayments or moratorium under previous measures not eligible

The overall rate of inflation as measured by the Colombo Consumer Price Index (CCPI) on a year-on-year (YOY) basis was 4.5% in May as against 3.9% in April. A year ago, it was 4%.

Claims hasty process adopted failed to uphold right to information of the people
Parliamentarians were not given adequate time to review revised version of the Bill
Opines establishment and inadequate oversight of offshore banks and companies could lead to Port City attracting money laundering and illicit financial flows
Warns lack of public access to beneficial ownership information could lead to Port City becoming a secret jurisdiction that provides a safe haven for proceeds of crime
Alleges SL faces risk of being downgraded by FATF due to Port City

The Hotels Association of Sri Lanka (THASL) is seeking urgent attention and action from the Government on what it described as seven key requests to prevent the collapse of Sri Lanka’s tourism industry.

Reverts to 25% conversion of export proceeds within 30 days of receipt but less with a floor of 10% for export sectors which incur high percentage of imported inputs
The Central Bank has once again tweaked the rules on repatriation of export proceeds with new directives issued via an Extraordinary Gazette effective last Friday (28 May).

Central Bank of Sri Lanka (CBSL) is yet to formally announce the finalisation of the $ 200 million currency swap with Bangladesh, despite the latter having confirmed same.

SANASA Development Bank (SDB) has announced plans to raise Rs. 4.5 billion via a Secondary Public Offering (SPO).

Tea production in the first four months of this year has risen to a five-year high of 104 million kg, according to Asia Siyaka Commodities.

Relaxation for one year aimed at stimulating capital formation within real economy and supplement foreign currency needs of the country
Previously set limit in Nov. 2018 was so that banks could borrow 1-year short-term with maximum of 1.5-2.5% of total assets depending on individual credit rating
Existing total foreign currency borrowing limit up to 10% remains unchanged but new move gives greater flexibility to banks
Amidst restrictions since last year several banks secured foreign borrowing and funding lines in addition to equity
Analysts say reliance on listed debenture issue may wane following new relaxation on foreign borrowing
In 2020 despite challenging business environment off-balance sheet exposures of banks grew 16% (Rs. 675.2 b) as against a 5% negative growth in 2019
Central Bank has decided to revoke the limits set for short-term foreign currency borrowings for one year.

Commercial Bank has announced plans to raise Rs. 10 billion via a listed debenture issue.

Money, Capital Market and State Enterprise Reforms State Minister Ajith Nivard Cabraal on Friday defended the $ 250 million currency swap with Bangladesh, implying it wasn’t a disgrace for Sri Lanka to enter into such an arrangement.

State Minister of Money, Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal yesterday issued a statement dismissing allegations that his support to Port City is connected to his son being employed by the project company CHEC Port City Ltd.

Hemas Holdings PLC (HHL) has ended FY21 with a strong performance despite the challenges encountered in the macroeconomic environment, including the COVID-19 pandemic and the intensity of the competitive landscape.

The tourism industry has welcomed the Government’s recent decision to allow registered hotels to accept foreign currency from resident Sri Lankans as payment for services.

The Colombo stock market yesterday continued with its positive stance despite low turnover and investor participation.

Oxford study of American Airlines, British Airways and oneworld trial reveal pre-travel testing does catch those who have COVID-19 before they fly