Blog

New Public Enterprise Act in 1Q 2017
  • Finishing touches for legislation as documents sent to Attorney General
  • Public Enterprise Board to be established to appoint top management in all SOEs 
  • CPC highest loss-maker at Rs. 18 b, SriLankan Airlines Rs. 16.4 b, SLPA Rs. 9.5 b, SLTB Rs.4 b   

 By Chathuri Dissanayake 

As State-run strategic business entities continue to make losses the Public Enterprise Development Ministry is adding the final touches to introduce the Public Enterprises Act within three months to restructure management, reduce losses and wastage, a top Government official said.  

IMF tells Govt. to wind down forex swaps

By Uditha Jayasinghe 

The International Monetary Fund (IMF) has requested the Government to reduce reliance on currency swaps with commercial banks and grow reserves through direct foreign exchange purchases, which would also extend to maintaining a flexible exchange rate and inflation targeting to build insulation amidst growing external vulnerabilities.  

IMF staff team head Jaewoo Lee, talking to reporters after the approval of the second tranche of the $ 1.5 billion Extended Fund Facility (EFF), warned that Sri Lanka should avoid opening up a fresh front of vulnerability given its high debt and other macroeconomic challenges. 

Rate hike looms in 2017: IMF
  • SL performance under EFF broadly satisfactory, praises Govt. on revenue collection
  • Warns growing global vulnerabilities calls for readiness to tighten policy
  • Trims 2016 growth forecast to 4.5% and 2017 to 4.8%
  • Says proposed Inland Revenue Act crucial, structural reform pace slow   

By Uditha Jayasinghe

The International Monetary Fund (IMF) yesterday termed Sri Lanka’s performance under its Extended Fund Facility (EFF) “broadly satisfactory” and praised the Government for exceeding targets in revenue collection but warned increasing external vulnerabilities could affect growth targets and warrant fresh tightening of rates in 2017.  

SL wins ‘Best Destination off the Beaten Track’ at Conde Nast Traveler Middle East Reader’s Choice Awards in Dubai

Sri Lanka Tourism bagged the 'Best Destination off the Beaten Track' award at the Conde Nast Traveler Middle East Reader's Choice Awards, held on 14 November at the Creek Ballroom of the Park Hyatt Hotel in Dubai.

Dubai Consul General Charitha Yattogoda accepted the award on behalf of Sri Lanka Tourism. Sri Lanka made an outstanding appearance as it outperformed New Zealand and Vietnam to acquire the title of 'Best Destination off the Beaten Track', which is awarded based on the votes of the readers of Conde Nast Traveler Middle East Magazine, which covers a wide cross section of the tourism sector including favourite travel experiences, from destinations and hotels to airlines and tour operators.

UK Minister for UN and Commonwealth Baroness Anelay to visit Sri Lanka

The UK Minister of State for the Commonwealth and the UN at the Foreign & Commonwealth Office and Prime Minister’s Special Representative on Preventing Sexual Violence in Conflict Baroness Anelay will visit Colombo and Jaffna from 6 to 9 November, on her first official visit to Sri Lanka.

During her visit, the Minister will reiterate the UK’s commitment to supporting Sri Lanka in strengthening democracy and human rights (including tackling gender based and sexual violence), delivering reconciliation and combating corruption, the British High Commission in Colombo said in a release.

World Bank IFC to support women in biz

Industry and Commerce Minister Rishad Bathiudeen meets Head of IFC’s Gender Secretariat Henriette Kolb

Plans to partner with 15 firms to increase jobs for women, four-year plan to help private sector bridge gender gap (strap) 

International Finance Corporation (IFC), a member of the World Bank Group, has extended support in the form of a four year effort to directly partner with 15 local companies to involve more women in corporate decision making, the Industry and Commerce Ministry said in a statement yesterday. 

WB shows way forward for SL

The World Bank’s latest Sri Lanka Development Update finds that monetary and fiscal policy corrections and the start of a new IMF program have contributed to improving short-term stability of Sri Lanka’s economy.

Fireworks at COPE

COPE Chairman Sunil Handunetti

  • Major rifts appear over Central Bank Bond report, presentation to Parliament later this week
  • COPE Chairman Sunil Handunetti walks out in protest, says UNP MPs pressured Auditor General to change findings
  • UNP proposes stunning recommendation for CBSL report: demands criminal investigation into Perpetual Treasuries
  • UNP MP Mohamed Mahroof appointed temporary chair of COPE
  • UNP denies trying to protect ex-CBSL Governor; claims other recommendations will be equally forceful
  • Watchdog committee sits for marathon 10 hours; UPFA, JVP, TNA MPs absent
Rupee down on importer dollar demand

Reuters: The rupee ended weaker on Friday due to dollar demand from importers but moral suasion by the Central Bank discouraged trading in the spot currency market, dealers said.

Rupee forwards were active, with the spot-next ending at 147.95/148.05 per dollar, weaker than its previous close of 147.60/70.

The spot rupee was quoted at 146.90/95 per dollar, but there were hardly any trades.

BRICS development bank to lend $ 2.5 billion next year

From left: Brazil’s President Michel Temer, Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping and South African President Jacob Zuma pose for a group picture during BRICS (Brazil, Russia, India, China and South Africa) Summit in Benaulim, in the western state of Goa, India, 16 October - REUTERS  

PM Modi, at BRICS summit, calls Pakistan “mother-ship of terrorism” See page 21

 

Reuters: The development bank set up by the BRICS group of emerging economies will ramp up lending to $ 2.5 billion next year after making its first loans to back green projects, its President K.V. Kamath told Reuters.

The BRICS - Brazil, Russia, India, China and South Africa - agreed to create the New Development Bank (NDB) in July 2014 with initial authorised capital of $ 100 billion. The lender was officially launched a year later.

“The second year is scaling up, concentrating on people, getting all the skillsets in,” said Kamath, a veteran Indian banker appointed as the first head of the Shanghai-based NDB.

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