Emirates, Etihad and Adani Group among bids for SriLankan Airlines stake
Emirates, Etihad Airways and the Adani Group are among prospective bidders seeking a stake in SriLankan Airlines (SLA). They are among 16 investors – Tata Sons (Air India) being a notable absentee – which have expressed interest in phase 1 of the process, top Aviation Ministry sources revealed. The national carrier’s restructuring process phase 1 [...]
Tax exemption for luxury, electric vehicle caused over Rs.14 bn loss
Sri Lanka has incurred a massive loss of billions of rupees annually as a result of exemption granted to import luxury vehicles and electric vehicles since 2019 up to August 2023 under the concessionary vehicle permit scheme. According to the Finance Ministry data the government has lost Rs.14. 58 billion in revenue due to tax [...]
SLIC to be split into Life and General units
The Sri Lanka Insurance Corporation (SLIC) will be split into two entities namely Life and General before its restructure and the background to this process is nearing completion, Finance Ministry officials said. The Regulation of Insurance Industry (Amendment) Act, No.03 of 2011 requires an existing insurer to be listed on the Colombo Stock Exchange (CSE). [...]
CSE Demutualisation: 3 European firms interested
With the impending demutualisation of the Colombo Stock Exchange (CSE), three investors from Europe have expressed interest in a strategic stake in the entity after the demutualisation process. The 15-member stockbroking firms have got a detailed report done with the help of the IFC on the demutualisation of the CSE and after the Demutualisation Act [...]
38 SOEs now earn profits following reform process
Some 38 state-owned enterprises (SOEs) out of 52 strategic ones with powerful trade unions are now running at a profit after massive losses in the recent past. This SOE transformation to profitable entities was the result of the government’s reform measures adopted during 2022/23 including cost-reflective electricity tariff adjustment, implementation, of fuel price formula and [...]
Revenue, expenditure inconsistent with IMF targets
The government’s revenue and expenditure estimates for 2024 are inconsistent with the International Monetary Fund’s stipulated targets apparently raising risks around its US$.2.9 billion extended fund facility programme, several fiscal analysts warned. According to IMF Memorandum of Economic and Financial Policies, the Finance Ministry will have to abide by the targets set by the fund [...]
Softlogic share stays suspended
Softlogic PLC recently submitted its 2022 annual report to the Colombo Stock Exchange (CSE), but the share will still be suspended as the company has not sent its quarterly reports, officials said. “Softlogic Holdings PLC submitted the Annual report for 2022 as undertaken. However, as the quarterly reports have not been submitted as of date, [...]
On the migration trail
Enter Romania. This country in Eastern Europe is the latest source market for jobs for Sri Lankans. While the recruitment fees for a job in Romania can vary from Rs. 500,000 to Rs. 1 million, there are reports that Romania has also become a stepping stone to Italy as the final destination. “I am told [...]
Economics of opinions and feelings
Senarath (not his real name) is spending his retirement, perhaps intermittently attending his family affairs, including those of his children and grandchildren. Although he is known to me for about 40 years, we haven’t met since the time he graduated and left the university. A few days ago, we were both happy to see each [...]
Credit Regulation Authority bill soon to tackle loan sharks: CB
Sri Lanka’s Central Bank (CB) indicated that the monetary policy easing will be paused in the near term after lowering interest rates on Friday for the fourth time this year to make economic growth positive next year from around minus 3 per cent expected this year. The Monetary Policy Board has taken this decision with [...]
Unique ID and Blockchain technology to upgrade SL tax administration
The government has made a tax identification number compulsory while planning to introduce Blockchain technology with the aim of digitising the way tax authorities operate, allowing for greater transparency, accuracy, and efficiency in tax collection. Budget 2023 had proposed to “introduce compulsory tax registration for all residents who are above 18 years of age without [...]
Pretax profit of Rs.11.4 bn for 9M23 at People’s Bank
People’s Bank has announced the results for its nine-months period ending September 30, 2023 with total consolidated operating income and pre-tax profit was Rs.67.6 billion and Rs.11.4 billion, respectively. Due to the higher cost of term deposit funding – which stemmed from the high interest rate environment which prevailed during much of 2022 – consolidated [...]
ComBank, Green Building Council promote sustainable construction
The Commercial Bank of Ceylon has entered into a cooperation agreement with the Green Building Council of Sri Lanka, laying the framework for the two institutions to work together to promote eco-friendly building construction in Sri Lanka. A Memorandum of Understanding (MoU) commits the bank and the Council to cooperate in activities related to the [...]
BYD, JKH in partnership for energy vehicle business here
BYD, the world’s leading manufacturer of new energy vehicles, this week announced its collaboration with Sri Lanka’s largest listed conglomerate John Keells Holdings PLC (JKH), to provide cutting edge new energy vehicles (NEV) to the Sri Lankan market. The signing ceremony took place at BYD’s global headquarters in Shenzhen, attended by Liu Xueliang, General Manager [...]