February 11, Colombo (LNW): Sri Lanka has observed a notable 11.4 per cent increase in workers’ remittances in January 2024 compared to the figures from January 2023.

The country received a total of US$ 487.6 million in foreign remittances during January, Labour and Foreign Employment Minister Manusha Nanayakkara said.

Data compiled by the Central Bank of Sri Lanka indicates that the total foreign remittances earned between January and December 2023 amounted to US$ 5,969.6 million.

By: Staff Writer

February 11, Colombo (LNW): In a pivotal move to fortify Sri Lanka’s agricultural landscape, People’s Bank, has entered into a Memorandum of Understanding (MoU) with Hayleys Agriculture Holdings Ltd., a distinguished provider of agricultural machinery and vehicles.

This strategic collaboration, designed to facilitate a joint promotional campaign, is poised to usher in a new era of financial accessibility and technological adoption for the country’s agricultural community, Hayleys Agriculture Holdings announced.

Under the terms of this alliance, People’s Bank assumes a pivotal role by offering bespoke loan facilities to clients with specific requirements pertaining to agricultural machinery and vehicles.

This financial framework aims to empower farmers, providing them with the means to invest in cutting-edge equipment that holds the potential to enhance overall agricultural efficiency and productivity.

Concurrently, Hayleys Agriculture Holdings, acknowledged for its premium assortment of high-calibre machinery and vehicles tailored for the agricultural domain, will complement this financial support by extending exclusive discounts to clients availing loans through People’s Bank.

This dual approach ensures a comprehensive and synergistic initiative that not only addresses financial aspects, but also lowers the barriers to entry for advanced agricultural technologies.

The collaboration stands as a testament to the shared vision of People’s Bank and Hayleys Agriculture Holdings to uplift and empower the agricultural community, contributing to the modernisation of Sri Lanka’s agricultural landscape and practices.

As the agricultural sector remains a linchpin of Sri Lanka’s economic fabric, endeavours such as these highlight the efficacy of partnerships in driving substantive progress.

The concerted efforts of People’s Bank and Hayleys Agriculture Holdings extend beyond immediate financial facilitation, fostering an environment conducive to sustainable agricultural development.

By: Staff Writer

February 11, Colombo (LNW): Capital Alliance Holdings Limited (CAL), the leading investment bank with over 23 years of extensive market experience, is pleased to announce that Capital Alliance Investments Ltd, the asset management division of CAL, has launched Sri Lanka’s exclusive active fixed-income closed-end fund.

The investment banking division of CAL, Capital Alliance Partners Ltd, played a crucial role as the financial advisor in the introduction, highlighting CAL’s commitment to providing innovative financial solutions to the market.

This specialized fund is strategically launched during periods of high interest rates in the economy, offering investors the opportunity to lock their funds for a stipulated timeframe and gain maximum returns on their investments.

The product will enhance the ability for investors to diversify their portfolio and manage liquidity and return objectives more efficiently.

The CEO of CAL Investments Ltd, Mr. Gayan De Silva, CFA, states “It is with great pride that I announce the listing of our fund, the ‘CAL 5 Year Optimum Fund’, on the Colombo Stock Exchange.

At CAL, we live by a simple motto – ‘We are only two years away from irrelevance’, and today’s milestone stands testament to our commitment to being one of the most dynamic fund managers in Sri Lanka.

We believe capital markets act as an intermediary in transferring wealth, which is key in moving economies into prosperity.

Our focus is always on enhancing capital markets, and the launch of this closed-end fund, which will incidentally be the only active listed fixed-income fund in Sri Lanka, demonstrates our commitment to the cause”.

Further, he highlights how CAL 5 Year Optimum Fund differs from standard open-end funds. In terms of the trading, units of this fund will be traded on the Stock Exchange like individual stocks.

Investors can buy and sell units throughout the trading hours, in contrast to open-end funds, where investors buy and sell units directly with the fund management company.

Concerning pricing, investors buy and sell closed-end fund units through brokers at prevailing market prices, similar to individual stocks, whereas units of open-end funds are priced based on the net asset value of the fund.

By: Staff Writer

February 11, Colombo (LNW): The Sri Lankan economy has bounced back form the set back in 2022 faced with a complex interplay of economic and political challenges, finance ministry sources said.

Although fuel and food queues have disappeared, but the dire impact of the economic crisis was inescapable in 2023 which also saw a series of key political developments. initial improvements in political rights and civil liberties compared to 2022.

The state treasury was almost  zero at that time officials said adding that now the country has  reserves of US$4.4 billion.

The World Bank later revised its forecasts, noting Sri Lanka’s progress in reducing inflation and benefits accruing from tourism revenue and currency appreciation.

 The Bank now expects a 1.7 per cent economic expansion in 2024, up from its earlier 1 per cent forecast. In the last six months of 2023, Sri Lanka experienced reduced inflation, a 12 per cent currency appreciation, improved foreign reserves and increased remittances

State revenue has increased by 25 percent in January after the VAT increase, where Rs. 274 billion was recorded in January 2024, whereas the estimated state revenue was Rs. 219 billion, State Minister of Finance Ranjith Siyambalapitiya said.

The Minister said the Customs Department was set a target of Rs. 114 billion for January and it had recorded Rs. 121 billion, which is 11 percent more than the estimated revenue.

“The Excise Department recorded Rs. 14 billion exceeding the revenue target of Rs. 12 billion. The Inland Revenue Department has recorded Rs. 114 billion more than the set target of Rs. 88.9 billion,” the Minister said.

He noted that inflation was recorded as 6.4 percent while the food inflation was only 3.3 percent.

“Some people claimed that the prices of goods will go up excessively in January after the VAT increase.

However, the inflation in January was recorded as 6.4 percent. Food inflation was only 3.3 percent. We managed to keep the food inflation low as essential commodities were exempted from the VAT. The non-food inflation was also recorded as 7.9 percent,” he said.

The government set a budget deficit target of 2.85 trillion Sri Lankan rupees ($8.73 billion) in 2024, or 9.1% of gross domestic product, higher than the revised 8.5% of GDP in the current year. The original target for this year was 7.9%.

The government also projected total tax revenue at 4.1 trillion rupees for next year, sharply higher than 2.85 trillion rupees in the current year, with the biggest jump coming from the goods and services tax receipts, the budget document showed.

The Minister said the increase in state revenue will ultimately benefit all the people in the country.

By: Staff Writer

February 11, Colombo (LNW): Adani Group is negotiating with Sri Lankan authorities to manage three airports in the island nation, including its premier international gateway, Bandarnaike International Airport in Colombo.

Sri Lanka’s minister for tourism, land, sports, and youth affairs, Harin Fernando, said on Friday that modalities are being discussed between the two sides and could involve management contracts as well.

Other airports being offered are Ratmalana Airport in Colombo and Mattala Airport, the latter earning the tag of the world’s emptiest international airport seven years ago.

“There are plans to work with Adani Group for the management of airports,” Fernando told businessline on the sidelines of the OTM travel show in Mumbai.

The plan to rope in a private partner to manage airports comes amid a resurgence in tourism. Foreign tourist arrivals in Sri Lanka doubled to 1.48 million in 2023 on a year-on-year basis.

This, however, has put a strain on the country’s airport infrastructure. It is hoped that a private partner would help in expanding the facilities and improving the passenger experience.

If the deal goes through, it could be Adani Group’s first overseas aviation foray. In Sri Lanka, it is already present in ports and the renewable energy sector.

 Last November, the group secured $553 million funding from the US International Development Finance Corporation for its west container terminal project in Colombo. The US backing was widely viewed as a move to curb Chinese influence in the region.

The Adani Group currently has a portfolio of eight airports (including the upcoming Navi Mumbai airport) in the country, serving 23 per cent of India’s passenger base.

“We are happy with tourism growth. In January, we received 208,000 tourists, and in the first seven days of February, we had 60,000 tourists.

Our numbers are trending well, and forward bookings are looking great,” Fernando said. India is the largest source market for the country, accounting for 37 per cent of all arrivals in CY 2023. The Sri Lankan government is also targeting wealthy Indians to park their yachts at their marinas as a part of its marine tourism policy.

“We are targeting 2.3 million tourists in 2024, and we are quite hopeful we will reach the target. By 2030, we hope to attract four million visitors. That’s why we have to go for massive development projects,” he remarked.

Fernando said new investments are being made in the hospitality sector, and the government is also framing a homestay policy. While ITC is launching its maiden international hotel in Colombo, international brands such as IHG and Ritz Carlton are also developing properties in Sri Lanka.