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Credit to govt from banks increased by Rs.157 billion in Nov. 2024

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Net credit to the government from the banking system increased by Rs. 157.2 bn in November 2024, according to the Weekly Economic Indicators report of the Central Bank of Sri Lanka.

Outstanding credit to public corporations decreased by Rs. 7.2 bn in November 2024. Outstanding credit extended to the private sector increased by Rs. 96.6 bn in November 2024 recording a year-on-year growth of 9.7 percent, the report stated.

Meanwhile, broad money expanded by 9.0 per cent, on a year-on-year basis, in November 2024.

The following are some of the economic indicators as per the above report.

Index of Industrial Production (IIP) in November 2024 increased by 4.7 per cent to 93.8 compared to November 2023, mainly contributed by the increases reported in the manufacture of food products (7.4 per cent), wearing apparel (6.5 per cent) and chemical products (18.6 percent).

Between 06th and 10th of January, 2025, crude oil prices showed mixed performance. Prices increased due to winter demand, China’s economic stimulus measures, growing concerns over supply disruptions and tightening sanctions amid low oil stockpiles. However, in the middle of the week, prices declined pressured by a stronger dollar and large builds in US fuel inventories.

Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 10th January 2025 decreased by 16 bps to 8.74 per cent compared to the previous week.

The Average Weighted Call Money Rate (AWCMR) recorded as 8.00 per cent on 10th January 2025 compared to 7.99 per cent at the end of last week.

The reserve money decreased compared to the previous week mainly due to decrease in currency in circulation and deposits held by the commercial banks with the Central Bank.

The total outstanding market liquidity was a surplus of Rs. 130.255 bn 10th January 2025, compared to a surplus of Rs. 140.156 bn by the endof last week.

During the eleven months ending November 2024, government revenue and grants increased to Rs. 3,664.6 bn compared to Rs. 2,771.4 bn in the corresponding period of 2023.

Total expenditure and net lending increased to Rs. 4,881.9 bn from January to November 2024 compared to Rs. 4,791.7 bn in the corresponding period of 2023.

During the period from January to November 2024, overall budget deficit decreased to Rs. 1,217.3 bn compared to Rs. 2,020.3 bn recorded in the corresponding period of 2023.

During the period from January to November 2024, net domestic financing decreased to Rs. 889.5 bn compared to Rs. 1,993.8 bn in the corresponding period of 2023. Net foreign financing increased to Rs. 327.8 bn during eleven months ending November 2024 compared to Rs. 26.4 bn recorded in corresponding period of 2023.

During the year up to 10th January 2025, the Sri Lanka rupee depreciated against the US dollar by 1.0 per cent.

Earnings from tourism amounted to US dollars 362.1 mn in December 2024, compared to US dollars 272.9 mn in November 2024 and US dollars 269.3 mn in December 2023.

Workers’ remittances amounted to US dollars 613.8 mn in December 2024, compared to US dollars 530.1 mn in November 2024 and US dollars 569.7 mn in December 2023.

The gross official reserves were provisionally estimated at US dollars 6,091 mn as at end December 2024. This includes proceeds from the PBOC swap arrangement.



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U.S.-Russia diplomatic thaw ignites Sri Lanka’s hopes for trade windfall

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Thilaka Jayasundara

Sri Lanka’s Ministry of Industries and Entrepreneurship Development Secretary Thilaka Jayasundara voiced confidence yesterday that warming U.S.-Russia relations could catalyse economic opportunities for Sri Lanka, during a forum hosted by the National Chamber of Commerce.

Speaking at the ‘Russia-Sri Lanka Development of Trade, Economic, and Banking Cooperation’ event, Jayasundara, a seasoned official with experience across multiple political administrations highlighted that eased secondary sanctions resulting from improved Moscow-Washington dialogue could unlock favorable trade conditions for Sri Lanka. Her remarks drew visible approval from Russian Ambassador Levan Dzhagryan, seated nearby.

“Sri Lanka’s balanced, neutral foreign policy positions us to benefit from any collaborative outcomes of U.S.-Russia talks,” she asserted, underscoring the nation’s potential to leverage evolving geopolitics for trade and investment gains.

Jayasundara didn’t miss the opportunity to urge Sri Lankan trade chambers to collaborate with the Export Development Board (EDB) to diversify exports and maximise foreign exchange earnings.

“Businesses and banks present here should explore to forge stronger B2B linkages for mutual benefit at the breakout sessions,” she added, referencing discussions at the forum that connected SMEs and large firms in agriculture, fintech, pharmaceuticals, industrial manufacturing among other sectors.

The secretary’s optimism aligns with Sri Lanka’s broader strategy to navigate global economic headwinds by capitalising on diplomatic shifts and expanding its export portfolio.

According to the EDB, the total export value from Sri Lanka to Russia was USD 144.25 Mn in 2023 and total imports from Russia to Sri Lanka for the same period were USD 393.55 Mn. Official data for 2024 remains pending.

The Russian delegation that took part in the B2B meetings was headed by Dr. Alexander Rybas, Trade Commissioner of the Russian Federation.

By Sanath Nanayakkare

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Hemas Hospitals named Official Healthcare Partner for JOE-PETE Big Match 2025

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Hemas Hospitals has proudly partnered with the JOE-PETE Big Match 2025 as the official healthcare provider, continuing its strong tradition of supporting community events and ensuring the safety and well-being of all participants and spectators.

As one of Sri Lanka’s most anticipated annual school cricket encounters, the JOE-PETE Big Match brings together passionate fans, students, and alumni from St. Joseph’s College and St. Peter’s College. With thousands expected to attend, Hemas Hospitals steps in once again, marking its fifth consecutive year of involvement, to provide expert medical support on-site.

“As a leading private hospital network, we’re proud to be a part of this iconic event. Our partnership reflects our commitment to community health and to being there where it matters most,” said Dr. Pradeep Edward, Director General Manager, Hemas Hospital Thalawathugoda. “We want all attendees to enjoy the event with peace of mind, knowing that their health and safety are in good hands.”

During the match days, Hemas Hospitals will deploy on-site medical teams, ambulances, and a qualified sports medicine medical officer to respond to any health emergencies or injuries. From first aid to injury management, the team is equipped to handle a wide range of situations with the efficiency and professionalism that Hemas is known for.

“Our practice of having highly trained medical staff and emergency support continues,” said Anjana Cramer, Business Development Manager. “Our aim is to be proactive, responsive, and accessible throughout the event.”

In addition to healthcare support, Hemas Hospitals will have a strong brand presence at the event, with Hemas flags, A-boards, a branded ambulance, and the medical team visibly positioned throughout the grounds.

“We want this partnership to not only represent medical readiness but also our larger message of promoting health and unity through sport,” said Duwayne Rozario, Executive – Business Development. “It’s about more than just treatment, it’s about being an active part of the community.”

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Sunsiyam Pasicuda; unique cluster of luxury chalets looking out to Eastern sea

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Sunsiyam Pasicuda; irresistible appeal

Weddings on the beach, an aqua platform to be served dinner in the sea; four ocean pavilions, informal camaraderie, more so, come as you are atmosphere for informality and bonhomie unmatched in any resort.

What are we talking about? Just a cautious; yet unavoidable blend for a holiday; and an atmosphere of ‘let your self go’, experience unmatched in a resort hotel.

Where are these ‘happenings’? At the Sunsiyam Pasicuda.

Just so, assuming you’ve been to the Maldives, and factually, it’s a demand driven destination, to the US, so too, we assume, Sunsiyam Pasicuda, is a growing destination for holidays in the warm waters of the Indian Ocean surrounding the East coast of this island.

Why surrounding? Simple; just that Sunsiyam Pasicuda perched by the sea, apart from the warm waters bordering the resort; we are also of the positive atmosphere of the shallow sea abutting the picturesque appeal viewed from the sea. Appealing to tourists already enjoying the numerous attractions of this resort facility.

Our observations were French, Germans and other Europeans were already enjoying the facilities of Sunsiyam Pasicuda.

General Manager Arshed Refai was on hand to give us detailed explanation on facilities guests could expect and enjoy and numerous offerings that appeal for long stays. Quite regularly, he said, guests are quite reluctant to depart. Particularly Europeans who we observed enjoying the sun and more so walks along the beach.

Two flights each week bring tourists from Colombo who prefer the resort atmosphere of the East coast, more so attractions of Sunsiyam Pasecuda. Additionally, Ministry of Tourism provided train services as well to encourage tourist traffic to the East to enjoy the growing popularity of this resort and other resorts we observed in the area.

GM Refai further said the dining experience, and varied choice of cuisine catered to each national from West to East; which, he said, was quite in order to cater to choices in food and individual taste desires.

Formal opening of the hotel was in 2014 and was classified a Luxury Boutique Hotel. ‘Was it popular among local tourists’? He responded positively that its appeal was growing, related to the chain of other destinations in the East. Additionally, its popularity and appeal, particularly to its chalets and Five Star luxury was in reality not an available concept elsewhere.

Chef Dilan Jayasundera, explained varied cuisine and food flavours he was adept in producing to ensure guests were not in need, food vice.

He further said a broad cross section of tastes was catered to.

Asst General Manager Keerthi expanding on additional facilities said 34 rooms were villa style accommodation spread over the land. Four ocean pavilions complemented a formal atmosphere.

GM Refai further said 90 guests at peak accommodation enjoyed international cuisine.

Excursions, to the fish market, sea observations in glass bottom boats to observe fauna and flora under water, including the varied amphibian fish population were of great appeal.

Questioned on any Maldivian influence, he said, Sunsiyam was not influenced by the Maldives, but its style was of broad appeal.

By Steve A. Morrell

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