Business

CBSL to talk to external quarters, other than IMF, to build foreign reserves

Published

6 years ago

2021/02/13

By Hiran H.Senewiratne

The Central Bank of Sri Lanka (CBSL) will not negotiate with the International Monetary Fund (IMF) any more but negotiations are in progress with foreign institutions, such as central banks, banks and donor agencies, for rapid financial instruments to strengthen and raise foreign reserves, Central Bank Governor. Prof. W.D. Lakshman said.

“We have witnessed very little success with IMF programs and those guidelines are not suitable for the country, Lakshman told a media conference on the Sri Lankan economy yesterday. The press conference was held at the Central Bank auditorium, Colombo.

The Governor said that it is the government’s policy to work as much as possible to resolve Sri Lanka’s foreign exchange problems on a self-reliant basis, which in turn will be founded on domestic efforts. The CBSL is to discuss with institutions, organisations and countries that are willing to assist on a relatively non-interventionist basis.

“This is the policy currently adopted and we also have the policy of finding foreign exchange requirements on non-credit increasing arrangements. I think we are going to be relatively successful in the process, as the negotiations we are carrying out with a few countries and international agencies will come to successful conclusions, probably soon, the Governor added.

The Governor added – ‘At present the country has foreign reserves amounting to approximately US $ five billion. Negotiations are on with several agencies to generate foreign reserves by way of swaps and other alternative mechanisms which will not burden the economy.

‘The Central Bank will promote a market-oriented economy guided by the government to achieve rapid economic growth in the year 2021 and beyond.

‘Import restrictions on luxury items will continue for some time until the balance of payments issue is resolved.

‘In 2021, we expect economic growth to be more than 6 percent and to achieve that the Central Bank has laid a proper foundation to stimulate the economy and to increase export revenue. Further, many relief measures have been taken to support the tourism sector which was badly affected due to the Covid 19 pandemic.

‘Further, the IT industry was the industry that was affected least and it will bring foreign reserves into the country once normalcy returns.

‘During 2020 the economy experienced a current account surplus, the likes of which was witnessed in 1950/51, 1964/65 and 1977.Therefore, the Central Bank intends to achieve that level in future years.

‘Currently the country’s inflation is around three percent. Inflation on food stuffs has increased but will come down soon.’

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Business

ADB approves $100 million loan to boost skills development and jobs for youth in Sri Lanka

Published

13 hours ago

2026/10/2

Thilina Walpola

The Asian Development Bank (ADB) has approved a $100 million results-based loan to help Sri Lanka transform its technical and vocational education and training (TVET) system, equip more young people with industry-relevant skills, and strengthen the country’s competitiveness and inclusive growth.

The Skills Development System Transformation Program will support the Government of Sri Lanka’s efforts in improving the quality and relevance of skills training, strengthening links between training providers and industries, and expanding employment opportunities for youth. The program will increase women’s employment opportunities in nontraditional jobs in fields including automotive technology, engineering, information and communications technology, construction, and renewable energy.

“A skilled workforce is essential to Sri Lanka’s long-term economic transformation and competitiveness,” said ADB Country Director for Sri Lanka Shannon Cowlin. “This program will help create stronger pathways from education to employment by making training more responsive to industry needs, expanding opportunities for young people and women, and ensuring that graduates have the skills required by a modern and evolving economy.”

Though Sri Lanka’s economy is recovering, it faces skills shortages in priority sectors, high youth unemployment, and low female labor force participation. Many employers report difficulty finding workers with the skills needed in a changing economy.

Aligned with the Government of Sri Lanka’s Technical and Vocational Education and Training Sector Strategic Framework 2026–2035, the nationwide program will be implemented from 2027 to 2031 and is expected to directly benefit more than 100,000 young people through improved access to quality, employment-oriented training.

Business

USD 40.84m pipeline to secure aviation fuel supplies to BIA

Published

13 hours ago

2026/10/2

Thilina Walpola

By Ifham Nizam

The government has cleared a USD 40.84 million and Rs. 8,548.75 million contract to build a dedicated aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA), alongside a massive new fuel storage facility with a capacity of 92,000 cubic metres.

Energy Minister Anura Karunatilaka said the project represented a major investment in strengthening the infrastructure underpinning Sri Lanka’s aviation fuel supply and ensuring more reliable fuel availability at the country’s main international airport.

‘This project will provide the infrastructure required to strengthen the reliability and continuity of aviation fuel supplies to Bandaranaike International Airport, Karunatilaka said.

The contract has been awarded to China Petroleum Pipeline Engineering Company Limited, following an international competitive procurement process in which three bids were received.

The project will see a new aviation fuel storage tank complex constructed at Muthurajawela, together with the associated infrastructure required for handling and transferring aviation fuel.

Business

CSE activity up, turnover weak at Rs. 1.4 billion

Published

13 hours ago

2026/10/2

Thilina Walpola

By Hiran H Senewiratne

Trading activity on the Colombo Stock Exchange (CSE) gathered pace yesterday as global fuel prices began to show signs of easing, according to market analysts.In this context, both indices moved upwards. All Share Price Index up by 67.97 points while S and P SL20 up by 8.30 points.

Turnover stood at Rs 1.4 billion with seven crossings. Those crossings were reported in Sampath Bank 1.7 million shares crossed to the tune of Rs 238 million and its share price traded at Rs 140, Access Engineering two million shares crossed to the tune of Rs 159 million and its share price traded at Rs 79.50, LOLC one million shares crossed to the tune of Rs 129 million and its share price traded at Rs 129, HNB 100,000 shares crossed to the tune of Rs 38.4 million and its share price traded at Rs 384, JKH 1.9 million shares crossed to the tune of Rs 35 million and its share price traded at Rs 18.60, Hayleys 100,000 shares crossed to the tune of Rs 22.50 million and its share price traded at Rs 225 and Richard Pieris 847,000 shares crossed to the tune of Rs 22 million and its share price traded at Rs 25.50.

In the retail market top seven companies that have mainly contributed to the turnover were Sampath Bank Rs 114 million (813,000 shares traded), JKH Rs 100 million (5.3 million shares traded) LB Finance Rs 49 million (325,000 shares traded), HNB Finance Rs 30 million (27 million shares traded), HNB Rs 27 million (70000 shares traded), NTB Rs 25 million (82000 shares traded ) and Lanka IOC Rs 21 million (666,000 shares traded). During the day 65 million shares volumes changed hands in 10433 transactions.

The Banking and manufacturing sector counters performed well. In the banking sector Sampath Bank let the market while manufacturing sector especially JKH also significantly performed well. With the fuel revision Land IOC also a significant stock at the floor.

Meanwhile, First Capital Treasuries said that Ramesh Schaffter resigned as a Non-Independent Non-Executive Director with effect from October 1, to facilitate the restructuring of the company’s board.

Yesterday the Central Bank announced the US Dollar rate as against rupee. The rupee was quoted flat at Rs 330.65/80 to the US dollar in the spot market , while bond yields dropped, dealers said.