By: Staff Writer

Colombo (LNW): The Central Bank Governor Dr. Nandalal Weerasinghe says additional monetary policy easing will be paused in the near term, leaving room for market interest rates to fall lower in accordance with current and previous monetary policy easing measures.

“All licenced banks need to take swift measures to reduce market lending interest rates to ensure that the benefits of the series of monetary policy easing measures are adequately passed on to businesses and households,” he added.

Noting that 14 banks have taken proactive measures to reduce lending interest rates, he acknowledged that 10 banks have not complied with the directive. “We have notified them and actions will be taken against those banks if they fail to comply before 31 December,” he added.

“With the moderation of market lending interest rates, credit to the private sector is expected to increase, thereby supporting the envisaged rebound of domestic economic activity,” he added.

The Monetary Board anticipates a swift, sizeable and broad-based reduction in overall market lending interest rates in line with the monetary policy easing measures affected since June 2023.

Such adjustment in interest rates is imperative to ease the domestic monetary conditions further.

Market interest rates are expected to normalise in the period ahead. Market interest rates continued to adjust downwards, and most benchmark interest rates have declined significantly.

Meanwhile, the yields on government securities are also adjusting downwards with falling risk premia.

The reduction of policy interest rates by 100 bps in this monetary policy review is expected to create further space for market interest rates to adjust downward and normalise in the period ahead.

Reflecting the transmission of the relaxed monetary policy stance, outstanding credit to the private sector by the banking sector expanded on a monthly basis in September as well as in October 2023 based on provisional data.

With the moderation of market lending interest rates, credit to the private sector is expected to increase further in the period ahead, thereby supporting the envisaged rebound of domestic economic activity.

Policy interest rates are further reduced in view of the stable inflation outlook over the medium term and subdued demand pressures.

.The monetary Board viewed that, with this reduction of policy interest rates and based on the available information, further monetary policy easing will be paused in the near term, given the space for market interest rates to adjust downwards in line with the current and past monetary policy easing measures.

Colombo (LNW): The Sri Lankan Rupee (LKR) happens to be largely steady against the US Dollar today (27) in comparison to last week’s Friday, as per leading commercial banks in the country.

At Peoples Bank, the buying and selling prices of the US Dollar remain unchanged at Rs. 322.90 and Rs. 334.15, respectively.

At Commercial Bank, the buying price of the US Dollar has dropped to Rs. 322.24 from Rs. Rs. 322.49 and the selling price to Rs. 332.50 from Rs. 332.75.

Sampath Bank follows the same pattern, with the buying price at Rs. 324 and the selling price, Rs. 334.

Colombo (LNW): Sri Lanka Insurance (SLIC) hosted a special event to honour the significant contributions of insurance brokers to the country’s insurance industry.

Held at the Hilton, Colombo, the event recognised the essential role played by insurance brokers in enhancing the industry and contributing to the economy.

SLIC annually acknowledges the efforts of brokers, with the recent event being particularly special as five veteran brokers were felicitated for their outstanding dedication.

The honourees include Nihal Senarathna, Hema Wijeratne, Vernon Edirisinghe, Victor Colambage, and Ray Pompeus, each with remarkable service records ranging from 50 to 70 years.

The event was attended by boards of directors and senior officials from insurance broker companies, as well as key figures from Sri Lanka Insurance.

The recognition underscores SLIC’s appreciation for the pivotal role of brokers in the industry.

Colombo (LNW): Sysco LABS was honoured with the prestigious Best Exporter Award in the Information and Communication Technology (ICT) sector at the Presidential Export Awards for both 2021/22 and 2022/23.

This achievement recognises Sysco LABS as the foremost contributor to export revenue within the ICT sector, affirming its position as the premier technology corporation in Sri Lanka.

Sysco LABS, the Global In-House Centre (GIC) of Sysco, is the global leader in foodservice and occupies the 56th position on the Fortune 500. Sysco has over 330 distribution facilities worldwide and a network of 72,000 staff serving approximately 725,000 customer locations.

Sysco LABS is a dedicated innovation and tech engineering hub, leveraging Sri Lanka’s ingenuity to power the technology that drives Sysco’s global operations.

Commenting on the win, Sysco LABS Managing Director Rasika Karunatilake said, “Receiving the Best Exporter award in the ICT sector for the past two years at the Presidential Export Awards is a tremendous honour. It is a matter of immense pride to our entire team at Sysco LABS to be contributing to Sri Lanka’s economic recovery and being recognised as the key contributor. This achievement is a testament to the world-class tech engineering talent and ingenuity in Sri Lanka and our commitment to expand, innovate and deliver value to Sysco – the global leader in foodservice.”

“As we celebrate this accolade, it’s crucial to acknowledge the immense value that the tech industry brings to Sri Lanka. Technology is inevitably the future, and fostering an environment that enables the growth of this industry and the presence of global giants like Sysco will provide more opportunities for Sri Lankan talents to excel on a global stage,” he added.

Organised by the Export Development Board (EDB), the 25th Annual Presidential Export Awards was held on November 23 at the Bandaranaike Memorial International Conference Hall (BMICH), under the patronage and presence of President Ranil Wickremesinghe.

Sysco LABS is the Global In-House Centre of Sysco Corporation (NYSE: SYY), the world’s largest foodservice company. Sysco is a Fortune 500 company and the global leader in the trillion-dollar foodservice industry.

Sysco employs 72,000 associates, has over 330 smart distribution facilities worldwide and over 14,000 IoT-enabled trucks serving 725,000 customer locations. For the fiscal year 2023 that ended on July 1, the company generated sales of more than $76 billion.

Sysco LABS delivers the technology that powers Sysco’s end-to-end operations. With engineering teams based out of Colombo, Sri Lanka, and Austin and Houston, TX, Sysco LABS enables Sysco’s entire supply chain, delivering the enterprise-grade technology that is revolutionising the industry.

Sysco LABS’ technology is present in the end-to-end foodservice journey, enabling the sourcing of food products, merchandising, storage and warehouse operations, order placement and pricing algorithms, the delivery of food and supplies to Sysco’s global network, the in-restaurant dining experience of the end-customer and much more.

Colombo (LNW): Sri Lanka has been granted budget support loans totaling US $495.6 million by the World Bank (WB), with an interest-free arrangement until September 2023.

This financial assistance comes after the country’s downgrade made it eligible for reduced-rate International Development Association (IDA) credits, reported Economy Next.

The WB has committed to providing development policy financing, disbursed in connection with policy reforms, on an interest-free basis, with a nominal commitment fee of 0.5 per cent.

The repayment terms include a generous 6-year grace period and a 12-year repayment period through the IDA window, a Finance Ministry report outlined.

Additionally, the WB has earmarked US $196.3 million for social protection initiatives, carrying an interest rate of 1.25 per cent, a service fee of 0.75 per cent, and a commitment fee of 0.5 per cent. The repayment schedule for this allocation spans 30 years, with a 5-year grace period.

In 2022, Sri Lanka faced economic challenges, with a sharp depreciation of its currency, leading to a significant portion of the population falling into poverty. The currency’s float, initially unsuccessful due to a surrender rule, saw subsequent corrective measures, including interest rate hikes and the removal of the surrender rule, resulting in the rupee appreciating to approximately 320-330 against the US dollar.

Sri Lanka, having attained middle-income status and market access for International Bank of Reconstruction and Development (IBRD) loans, experienced a shift in its economic landscape with aggressive macro-economic policies.

The country lost market access and defaulted on foreign loans, prompting the World Bank to extend IDA loans to Sri Lanka.

While loans from multilateral agencies such as the World Bank and Asian Development Bank are generally concessional, the expectation remains that these loans are serviced even in the event of default.

The WB adheres to a policy of providing favorable loan terms with extended repayment periods, ensuring a net positive flow of new loans compared to repayments, according to a senior official.

Sri Lanka’s default on foreign loans in 2022 resulted from a series of currency crises triggered by excessive money printing to target potential output through macro-economic policies.