The country’s manufacturing and services sector expanded in December as per Statistics compiled by the Central Bank. 

CB said that manufacturing activities sustained the expansion on a month-on-month basis in December 2021, recording an index value of 58.1 mainly due to the expansion in New Orders and Production. 

It said the entire subsector, except Employment, increased during the month. The expansion in New Orders and Production was mainly driven by seasonal demand for the food and beverage manufacturing sector.

New Orders and Production in the manufacture of textile and wearing apparel sector also showed an improvement, yet at a slower pace. 

However, Employment sub-sector declined in December compared to November 2021. The Stock of Purchases increased at a slower pace compared to the increases in New Orders and Production.

“Many respondents mentioned that although they wanted to build up stocks significantly ahead of the Chinese New Year holidays, they were able to do it only to a certain extent due to import related issues,” CBadded. 

It said Suppliers’ Delivery Time lengthened at a higher pace in December 2021. Delays due to port congestions, increase in orders ahead of the Chinese New Year holidays, and shortage of local raw materials were among the major causes of lengthening the Suppliers’ Delivery Time.

In the next three months, expectations for manufacturing activities remain at higher levels anticipating continuous improvements in economic condition locally and globally.

CBSL also said the services sector edged up in December marking a strong end to 2021. 

This increase was underpinned by the increases observed in New Businesses, Business Activities, Employment and Expectations for Activity.

New Businesses rose further in December compared to the previous month with the improvements observed across most of the sub-sectors.

Business Activities in the Services sector indicated a stronger growth in December in line with the continued improvements in demand amid the normalisation of economic activities and the festive season. 

Accordingly, business activities improved across most of the sub-sectors, where major improvements were observed in financial services, transportation, wholesale and retail trade and other personal activities sub-sectors. 

Business activities in accommodation, food and beverage sub-sectors also recorded a significant improvement amid the festive season and the considerable growth in international tourist arrivals.

Employment rose further in December as companies continued to expand their workforce owing to the positive developments in their business activities. 

CB said backlogs of work continued to decline in December in line with staff reporting to work as usual. 

Expectations for Business Activities for the next three months improved further in December supported by the improved perceptions amid expectations on continuity of relaxed pandemic related restrictions. 

Nevertheless, some respondents mentioned that the business outlook continues to remain uncertain due to the challenging economic environment amid inflationary pressures stemming from supply constraints and the potential impact of new variants of COVID-19, CB disclosed. 

The Colombo Airport Ratmalana has been developed for its envisioned future, positioning it as an “Exclusive Gateway to Colombo following the commencement of international flights by end this month. State Minister of Aviation and Export Zones Development, D.V. Chanaka disclosed.  

He noted that the International flight would commence from Colombo International Airport, Ratmalana from the 29th of this month. In particular, flights from South India, Male and Bangladesh via India to Ratmalana will be based in Ratmalana Airport.

These facts were revealed during a discussion on the development of Ratmalana Airport held at the State Ministry of Aviation and Export Zones Development in attendance of Secretary to the Ministry Janaka Chandragupta, Chairman of Airports and Aviation Retired Major General GA Chandrasiri, Chairman of the Civil Aviation Authority Upul Dharmadasa. 

Colombo International Airport, Ratmalana was established in 1938 and regional international flights were not operational due to the commencement of flights from Katunayake International Airport in 1968. Mr. Chanaka says that steps have already been taken to launch new regional international flights using the resources available at the Ratmalana Airport.  

President Gotabhaya Rajapaksa has stated in his policy statement that Sri Lanka would be developed as a regional aviation hub.

Accordingly, two airlines have already agreed to launch regional international flights based on India and the Maldives. He said talks were underway with several other airlines and those talks were positive. 

The State Ministry of Aviation and Export Zones Development has taken steps to develop the Ratmalana International Airport in several key areas. 

It is also being developed as a local aviation hub, recreational aviation hub and aviation training center. In addition, measures will be taken to promote the bringing of private jets to Sri Lanka targeting high income earners and to meet the requirements of technical and parking services for private jets such as jet refueling.

In addition, promotions are expected to be launched at Ratmalana Airport for international commercial and corporate flights as well as private jet operations. 

Action will be taken to bring high income earners to Sri Lanka. Ratmalana Airport also has facilities for technical and parking services for private jets and refueling. State Minister of Aviation and Export Zones Development DV Chanaka stated that in the future it is expected to promote these services in the world as well.

Airport and Aviation Services (Sri Lanka) Limited (AASL) will be looking into the emerging opportunities in order to meet the growing demands in the foreseeable future.

Potential business opportunities such as High End Tourism, foreign investments for Fixed Based Operations (FBO), demand of domestic operators for expansions, growing trends in aviation training in the region, growth of private jet operations, and domestic connectivity to internationally arriving passengers may stress the development needs of Colombo Airport Ratmalana.

Domestic Aviation Hub strategy is focused on promoting the airport for the local, business tourists and connecting destination for international high-end tourists visiting Sri Lanka.

 For the implementation of this strategy, it is required to shift SLAF Hangars to the Northern side of the Runway along with structural modifications of the hangars, overlay the Apron and construct a new taxi way etc.

The Ratmalana Airport would also be promoted as a Leisure Flying Center under the Government’s program to develop the Airport as a domestic aviation hub, Tourism Minister Prasanna Ranatunga said.

Accordingly, Ratmalana Airport will be developed for leisure flying, wedding photography, drama and cinematography.

The Minister said that new local air routes to tourist attractions and new runways suitable for aircraft would be identified. It is also expected to ease the barriers to flying to such identified locations. 

“Besides, we expect to launch promotions for international commercial and corporate flights as well as private jet operations at Ratmalana Airport,” he said.

Nearly 90,000 visitors flocked to the Port City Marina Promenade since its opening on January 10, making it the latest must-see sight in Colombo.

As crowds drew to the new landscape, queues were seen forming outside the gates open from the Galle Face side, displaying great enthusiasm from the public to visit the new landscape.

Unprecedented numbers were seen especially during the holiday within the first week of opening from 10th and 17th of January.

The Marina Promenade was ceremonially opened by President Gotabaya Rajapaksa, Prime Minister Hon. Mahinda Rajapaksa and Chinese Foreign Minister, Hon. Wang Yi, on the 9th of January 2022.

The Port City Colombo Marina Promenade is the first major attraction within the megaproject to be accessible to the public. 

The opening ceremony coincided with two significant anniversaries for Sri Lanka and China; 65 years since the establishment of formal diplomatic relations and 70 years since the signing of the historic Rubber-Rice Agreement between the two countries.

A total of 89,540 people visited the Marina Promenade during the week from 10th to 17th January 2022.

The highest number of visitors, 25,580, was recorded on Sunday 16th January 2022. The next highest numbers were recorded on Friday and Monday, both of which were holidays, recording 19,717 and 21,665 visitors, respectively. 

The Marina Promenade features 500m of beautifully landscaped promenade and is one of many public areas expected to be opened to the public within Port City Colombo. 

A total of 91 hectares of land has been allocated for public use including 53 acres of green spaces, 2km of beach and 14 acres for a central park, along with walkways, waterways and park connecting paths.

The Marina Promenade is open between 9.00am and 6.00pm for the public and can be accessed through a special entrance located opposite the Presidential Secretariat. 

Vehicles are not  allowed at present and the public is encouraged to follow all COVID-19 prevention guidelines during their visit.

 Due to the overwhelming number of visitors and considering the health and safety of the public, project officials decided only to allow a maximum of 700 people to stay in the Marina Promenade at any given time with restrictions on using the footbridge.

Port City Colombo is an extension to the commercial heart of Colombo – the Central Business District – spanning 269 hectares (ha) reclaimed from the sea.

By building a world class city; augmenting Colombo’s proposition as one of the best places to live, Port City aims to attract talent and investment to ensure a sustainable economic future by accelerating internationalization. 

The multi-service Special Economic Zone status conferred by the recently enacted Colombo Port City Economic Commission Act positions Colombo as the ideal platform to leverage Sri Lanka’s geographical location connecting the East and West.

Ceylon Petroleum Corporation (CPC) is getting ready to supply diesel and furnace oil for Ceylon Electricity Board (CEB) to resume power generation at their thermal power plants as unloading of two diesel shipments stranded at the Colombo port due to delay in LC payments being settled.

Energy Minister Udaya Gammanpila er said that two ships with 76,000 metric tonnes of diesel are docked at the Colombo harbour and if dollars are provided fuel could be obtained from them.   

The Central Bank has released funds for the Ceylon Petroleum Corporation (CPC) to obtain fuel from two ships docked at the Colombo Port.

Energy Minister Udaya Gammanpila said that the approval was given last evening and the unloading began today.

He said that of the 37,500 MT of diesel being purchased by Sri Lanka 10,000 MT will be given to the Ceylon Electricity Board (CEB).

Accordingly, he said that the CEB will have fuel from the current stocks for another 8 days.

The Ceylon Petroleum Corporation (CPC) is grappling to find at least US$200 million to import fuel to Sri Lanka enabling it to continue petrol and diesel supply in the country this month without any shortages, the minister said.

He disclosed that the CPC needs $300 million for fuel imports but it has only $150 million and there was an immediate requirement of $52 million to clear two petrol and diesel shipments currently stuck at the port.

The CPC processed a stock fuel sufficient for 10 days to meet the demand of the motorists in the country, he said.

The Sapugaskanda oil refinery was not in operation due to shortage of crude oil at present while the CPC authorities are expecting a crude oil shipment by Sunday January 23, a senior official of the corporation said.

Gammanpila said that the fuel shortage would not be there if Sri Lanka had sufficient dollars in hand.He added that once the dollar crisis is resolved then fuel supplies will be normalised.

As a result of the dollar shortage in Sri Lanka, it is reported that close to 1,700 containers of imported essential commodities are stranded at the Colombo Port for nearly two months.

The Essential Food Commodities Importers & Traders Association attributed the situation to the delay in issuing dollars to the banks by the Central Bank of Sri Lanka.

Although several rounds of discussions were held with the related ministers and public officials on the matter, a proper solution is yet to be reached, the importers said further.

Reportedly, the delays in clearing the stranded essential items at the Colombo Port have led to a shortage of goods in the country, and this situation is expected to prevail in the future as well.

A meeting has been scheduled for January 18, with the Trade Minister to discuss the issue, the association added.