August 01, Colombo (LNW): In June 2024, Saudi Arabia ascended to the third spot as a key market for Sri Lankan tourism, according to the Sri Lankan Embassy in Riyadh.

Data from the Sri Lanka Tourism Development Authority (SLTDA) previously ranked Saudi Arabia as the 23rd source of tourists to Sri Lanka.

Sri Lanka recently participated in the Travel Fair 2024 at the Riyadh International Convention & Exhibition Centre.

The event was organised by the Sri Lankan Embassy in Riyadh and the Sri Lanka Tourism Promotion Bureau (SLPB), featuring eighteen Sri Lankan destination management companies, hotels, and Sri Lankan Airlines.

The travel fair facilitated networking opportunities among tour and travel operators and bolstered Sri Lanka’s image as a desirable destination for Arab tourists.

With an ambitious target of attracting five million tourists by 2026, Sri Lanka is focusing on affluent tourists from the Middle East.

The high spending capacity of Saudi visitors has solidified Saudi Arabia’s position as a crucial market for Sri Lankan tourism.

August 01, Colombo (LNW): Port City Colombo has officially gazetted two key regulations, Offshore Banking and Offshore Banking – Prudent Management and Confidence, on 26th July 2024 (Gazette Notifications 2394/66 and 2394/67), marking a significant step in its development as a regional offshore financial centre in South Asia.

These regulations facilitate commercial operations within the Colombo Port City Special Economic Zone, aiming to attract global investors by offering a business-friendly environment with robust safeguards.

Investors can transact in foreign currencies and enjoy benefits like higher trading freedom, capital repatriation, and tax exemptions, similar to those in Singapore and Dubai.

Xiong Hongfeng, Managing Director of CHEC Port City Colombo, highlighted that this regulatory framework will boost investor confidence and increase Foreign Direct Investment (FDI) inflows into Sri Lanka.

Eligible entities for offshore banking licenses include:

1. Sri Lankan companies licenced under the Banking Act.
2. Offshore companies registered in Sri Lanka and licensed under the Banking Act.
3. Offshore companies registered in Sri Lanka and licensed to engage in banking under foreign laws, but not under the Sri Lankan Banking Act.

The regulations allow permitted offshore banking activities, such as foreign currency transactions, accepting deposits from non-residents, borrowing in foreign currency, and other authorised transactions with the Central Bank’s concurrence.

Port City Colombo aims to become a major regional offshore economy and commercial hub, enhancing Sri Lanka’s economic stature.

August 01, Colombo (LNW): Inflation in Colombo District increased to 2.4 per cent in July, up from June’s 1.7 per cent, as favourable base effects diminished.

Monthly prices declined by 0.5 per cent in July due to softening food prices and lower non-food prices, driven by significant cuts in power tariffs and earlier reductions in fuel prices.

The Central Bank of Sri Lanka (CBSL) expressed confidence in managing medium-term inflation risks and maintained its 5 per cent target, while cutting rates by 25 basis points, seeing room for economic growth without igniting inflationary pressures.

Despite recent lower inflation, Sri Lankan consumers remain strained from over 70 per cent inflation in 2022 and substantial tax hikes.

July saw food prices rise by 1.5 per cent year-on-year, slightly up from June’s 1.4 per cent. Monthly food price increases slowed to 0.1 per cent, from 2.8 per cent between April and May.

Price rises in staples were largely offset by declines in other staple prices.

Non-food prices, which softened July’s inflation reading, rose 2.8 per cent year-on-year, up from 1.8 per cent in June.

Notably, the non-food index dropped by 0.7 per cent, mainly due to reductions in electricity tariffs, fuel, and gas prices.

Authorities announced no further gas price revisions for August.

Core inflation, excluding volatile items like food, energy, and transport, remained steady at 4.4 per cent year-on-year in July, unchanged from June.

August 01, Colombo (LNW): The insurance sector in Sri Lanka reported a total Gross Written Premium (GWP) of Rs. 78,589 million for the first quarter of 2024, marking a 7.39 per cent increase from Rs. 73,178 million in the corresponding period of 2023.

The Long-Term Insurance Business saw a substantial growth of 19.26 per cent, with a GWP of Rs. 40,230 million, whilst General Insurance Business experienced a 2.75 per cent decline, amounting to Rs. 38,358 million.

The industry’s total assets grew by 10.88 per cent to Rs. 1,098,988 million. Long-Term Insurance assets rose by 18.54 per cent to Rs. 824,890 million, whereas General Insurance assets decreased by 7.17 per cent to Rs. 274,098 million.

Investments in Government Debt Securities increased by 30.07 per cent to Rs. 552,158 million.

Claims incurred by both insurance sectors dropped by 6.97 per cent to Rs. 32,384 million, with Long-Term Insurance claims at Rs. 18,320 million and General Insurance claims at Rs. 14,064 million.

The Profit Before Tax (PBT) for the period rose by 35.06 per cent to Rs. 12,332 million, driven by significant growth in General Insurance Business PBT, which surged by 106.11 per cent to Rs. 5,677 million.