Sri Lanka’s wage board has announced new daily wage rates for tea and rubber workers effective from September 10, as detailed in a recent gazette notice. The minimum daily wage has been set at 1,350 rupees for a standard ‘norm’ of each estate. Additionally, workers will receive an extra 50 rupees for every kilo of
As of July 2024, Sri Lanka’s central bank continues to face a challenging financial situation, with net foreign reserves remaining in the negative at US$728 million. This represents a significant improvement from mid-2022, when net foreign assets were deeply negative at US$4.6 billion. The drastic decline in reserves in 2022 was driven by borrowing through
Sri Lanka’s economy will remain stable under the National People’s Power (NPP) administration, according to party leader Anura Kumara Dissanayake. Addressing the business community, Dissanayake emphasized that while economic changes will be made, they will be carefully assessed to prevent any destabilization. Dissanayake assured that the NPP’s approach is not driven by populist politics, citing
The Government has announced plans to ease the current regulations on the repatriation of export earnings in response to feedback from exporters and government agencies. The existing rules, outlined under ‘Rules for Repatriation of Export Earnings No. 01 of 2022,’ will be amended to provide greater flexibility for managing export earnings. The proposed changes, set
Sri Lanka’s rupee opened stronger at 300.45/60 to the US dollar on Friday, compared to Thursday’s close of 300.80/301.05. Despite this strengthening, the bond market continues to experience volatility due to policy uncertainty, affecting investor interest in longer-term securities. The yields on short-term bills were quoted at 9.75/85 for the 6-month bill and 10.15 percent
Sri Lanka’s balance of payments (BOP) remains in surplus in 2024, but it trails slightly behind the figures from 2023, according to official data. By June 2024, the country recorded a BOP surplus of $1.761 billion, compared to $1.957 billion in the same period the previous year. The surplus, reflecting an improvement in net international
Sri Lanka’s banks are still owed 88 billion rupees for interest subsidies paid to senior citizens in the past, according to State Minister for Finance Ranjith Siyambalapitiya. This disclosure comes as the cabinet of ministers approved a new interest subsidy scheme aimed at providing relief to senior citizens. The newly approved scheme establishes a floor
Sri Lanka’s consumer prices in the capital Colombo increased by 2.4% in the 12 months to July 2024. However, the central bank’s deflationary policy, which began impacting the balance of payments in September 2022, has only resulted in a 2.8% rise over the past 22 months. In July, the Colombo Consumer Price Index (CPI) fell
The International Chamber of Commerce Sri Lanka (ICCSL) recently led a crucial meeting with representatives from Sri Lanka’s export sector and a team from the International Monetary Fund (IMF) to evaluate the potential effects of abolishing the Simplified Value Added Tax (SVAT) on the country’s export industry. ICCSL Policy Committee Chairman Prof. Ajantha Dharmasiri highlighted
Sri Lanka has lifted import controls on several key cereal grains, which had been in place despite increasing malnutrition and poverty resulting from a currency collapse driven by aggressive macro-economic policies. Previously, Sri Lanka imposed controls on approximately 3,500 items, including various cereal grains, as part of a broader economic strategy. This strategy involved the