Sri Lanka readying for dedicated trade talks in MarchBeing the first FTA for India and Sri Lanka, the 1998 Indo-Sri Lanka Free Trade Agreement carries substantial sentimental value for Sri Lanka. Together, both countries can play a major role in elevating Indo-Sri Lanka economic relations from the current level to a much higher plane. The ...

The Daily FT’s exclusive expose of Aitken Spence Plc’s pullout from Sri Lanka’s biggest ever FDI project – the upcoming US$ 500 million Colombo South Container Terminal sent shock waves in corporate, shipping, political and diplomatic circles yesterday whilst investors found their own opportunity as well. A relatively high volume of 110,900 shares of Spence ...

By Cassandra Mascarenhas Addressing a topical subject which is of crucial significance to Sri Lanka in the context of the current drive towards achieving GDP growth of over eight percent per annum in the next five years, the Postgraduate Institute of Management hosted a lecture-discussion on ‘International Financial Institutions and Development in Asia’ earlier this ...

Political corruption: The definition Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by private persons or corporations not directly involved with the ...

“Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of a downward spiral of uncertainty, financial instability and potential collapse of global demand… we could run the risk of what some commentators are already calling the lost decade” – ...

If the Governor of Central Bank has an urge to enter politics, he should come to Parliament without playing politics inside the CB, charges United National Party Parliamentarian and well-known Economist Dr. Harsha de Silva. Dr. de Silva notes that Governor Nivard Cabraal should respect the sanctity of the Central Bank and therefore if Cabraal ...

Tighter sanctions will push the Iranian government to make some tough decisions. The Islamic republic can find ways to deal with the pressures that the next round of sanctions will bring, but probably not without political fallout. A quarter of the country’s crude exports currently go to Europe, which has agreed in principle to a ...

The Colombo stock market continued its miserable run in the New Year with no iota of ‘Wonder of Asia’ mindset or optimism. Whilst recording its fifth successive negative session, the Colombo bourse has seen Rs. 68 billion in value wiped off since the New Year and the All Share Index’ negative return topping 3% mark. ...

The Standard Chartered Bank (SCB) has opined the Central Bank’s forecast of $ 25 billion foreign inflow as “optimistic” given external headwinds whilst cautioning that pressure was mounting on the rupee given the rising import demand. This view along with weaker GDP forecast is contained in SCB's latest country update titled 'A challenging year ahead' ...

The Hindu: After a series of delays at various levels, false-starts, slip-shod trial and error experimentation at the Indian and Sri Lankan capitals, the massive Indian housing project for the displaced Tamils is set to take off. External Affairs Minister S.M. Krishna, and his team that deals directly with the project, including the Joint Secretary ...

By Dinali Goonewardene The World Bank is currently carrying out an assessment in consultation with stakeholders such as the Government to develop a Country Partnership Strategy for Sri Lanka, which has progressed to middle income status from low income status. A preliminary draft of the strategy which replaces the Country Assistance Strategy for low income ...

UNP MP Harsha de Silva yesterday alleged Central Bank Governor Nivard Cabraal’s 2012 and beyond road map was “nauseatingly one-sided propaganda” whilst it failed to address the balance of payments issue. Here is the full statement of Dr. de Silva. Without taking away from the hard work of the private sector for having driven this ...

AS expected, Sri Lanka’s tourism industry made a booming start to the New Year with the news that South Africa’s Sun City is planning to invest a hefty US$ 800 million in a massive project in Katana. This brings the total investment from large-scale foreign hotel projects to nearly US$ 2 billion, with Sheraton, Shangri-la, ...

Brief analysis of corrupt public expenditure in Sri Lanka Lessons from China or Tunisia? Just few months ago, in response to a public outcry for more accountability and transparency in the use of public funds, the State Council, which is the Cabinet in the Chinese Government, directed 98 public institutions including ministries to make public ...

Sampath Bank with effect from 1 January has got a new Chairman and several new youthful additions to its Board of Directors. The Bank announced on Friday that at a Board of Directors meeting held on 29 December Chairman I.W. Senanayake decided to step down with effect from 31 December. Whilst accepting this decision the ...

International Foodstuff Company Agri Bio Tech (Pvt) Ltd., (IFCO) was bestowed with the prestigious National Business Excellence Award for the Agriculture and Plantations Sector” presented by the National Chamber of Commerce of Sri Lanka, the leading trade and industrial promotion body in the island, consisting of member companies representing the entire spectrum of industry, trade ...

Reuters: Sri Lanka needs flexible exchange rates and tighter monetary policy to curb cheap imports that are putting pressure on the country’s balance of payments, Treasury Secretary P.B. Jayasundera said on Wednesday. Jayasundera, the most influential economic policy official serving President Mahinda Rajapaksa’s Government, said the country can sustain its growth target if the weak .....

A few days after RAM Ratings Lanka assigned respective long- and short-term corporate credit ratings of AA- and P1 to Hayleys PLC; the long term rating has a stable outlook, Fitch yesterday downgraded Hayleys to A+ in addition to declaring diversified bleu chip’s outlook is negative. In a move that is likely to ruffle some ...

By K.C Vignarajah “Due process with checks and balances,” are imperative for good governance of PLCs and banks: not discrimination based on age, which is a very valuable asset especially in the most confidential/competitive banking sector. “There shall be no discrimination based on age, gender, race, religion, ethnicity, etc.,” is a fundamental requirement of top ...

From war and destruction to peace and reconstruction Both before and following the end of Sri Lanka’s 30-year separatist war in May 2009, it was recognised that rapid economic recovery in the Northern Province would be the key to lasting reintegration and reconciliation within a united country. Nearing the two-and-a-half-year point since the cessation of ...

The U.S. economy will grow faster in 2012 – if it isn’t knocked off track by upheavals in Europe, according to an Associated Press survey of leading economists. Unemployment will barely fall from the current 8.6 percent rate, though, by the time President Barack Obama runs for re-election in November, the economists say. The three ...

It is the season for giving, which we all know is a reason to look beyond ourselves and find some worthy cause to take up for Christmas. Everyone is familiar with the warmth connected with giving and the quiet pleasure in ensuring that someone else has a happy time as well. It can be something ...

Author Nihal Sri Ameresekere, FCA, FCMA, CMA, CFE releases ninth book Nihal Sri Ameresekere has released his new book ‘IMF, World Bank and ADB Agenda on Privatisation Volume II: Dubious Deals in Sri Lanka What a Paradox!’ (published by AuthorHouse), the explosive ninth book in a series on corruption, fraud, economic crime, governance, rule of ...

After bringing down the nearly-25-year-old civil war, Sri Lanka is now working towards improving its investment climate. The economy is now in a high-accelerating mode, on the back of the political will and stability in the new era. India will play a big role in this development and will be a key partner for Sri ...

Central Bank has approved the five new nominees to the Board of Sampath Bank Plc in place of an equal number retiring by next week. The five nominees who are qualified and professionals in their respective fields are former International Finance Corporation (IFC) Sri Lanka and Maldives Resident Representative Sanjiva Senanayake, Orit Apparels Chairman Channa ...

The Pathfinder Foundation with the assistance of Volunteers for Economic Growth Alliance (VEGA) and USAID, recently commissioned a study to identify the policy and regulatory reforms that are required to make Sri Lanka a leading country in investor friendliness. Improving the business climate is not an end in itself. A better business environment is a ...

Reuters: Sri Lanka’s Central Bank can continue to maintain the rupee exchange by selling dollars from the foreign reserves as it expects large dollar inflows in the coming months, the Central Bank Governor said on Tuesday. The rupee was devalued three per cent on 22 November, a day after President Mahinda Rajapaksa in his capacity ...

The Monetary Board, at its meeting held on 16 December 2011, has promoted four Staff Class Grade IV officers, A. Kamalasiri, R. Dheerasinghe, S.S. Ratnayake and K.D. Ranasinghe to the post of Assistant Governor with effect from 1 January, 2012. These promotions have been made in line with the succession plan of the Bank to ...

Sri Lanka’s Gross Domestic Product (GDP) is likely to have expanded 8.0 per cent in the third quarter from a year earlier, slowing from annual growth of 8.2 per cent in the second quarter of 2011, according to a Reuters poll revealed yesterday. It said 10 analysts gave a range of estimates from 7.0 per ...

The Reserve Bank of India (RBI) has decided to create a separate category of Non Banking Financial Company – Micro Finance Institution (NBFC-MFI). This implements a recommendation of the Malegam Committee Report on Micro Finance in India, which was appointed subsequent to the MF crisis due to indebted farmer suicides in Andhra Pradesh. The NBFC-MFI ...