Business
Inflation increased to 14% in December 2021
NCPI based headline inflation (Y-o-Y) increased to 14.0 per cent in December 2021 from 11.1 per cent in November 2021 due to increases of prices of items in both Food and Non-food categories. Meanwhile, Food inflation (Y-o-Y) and Non-food inflation (Y-o-Y) recorded at 21.5 per cent and 7.6 per cent, respectively, in December 2021, according to the weekly economic indicators of the Central Bank.
The report further said: Furthermore, the NCPI measured on an annual average basis, increased to 7.0 per cent in December 2021 from 6.2 per cent in November 2021.
Sustaining the expansion on a M-o-M basis, the Purchasing Managers’ Indices for both Manufacturing and Services activities increased in December 2021, recording 58.1 and 62.4 index values, respectively.
During the period under review (15.01.2022 to 21.01.2022), crude oil prices showed a mixed performance. The crude oil prices increased to 7-year highs at the beginning of the week as investors were concerned that geopolitical tensions involving major oil producers could worsen the already tight supply outlook. However, prices declined later on data that there was a significant weekly buildup of gasoline inventories in US and on the White House’s statement that there are ‘tools continue to
remain on the table’ to address the commodity price surge. Overall, Brent prices decreased by US dollars 0.92 while WTI prices increased by US dollars 2.33 per barrel, during the period.
On 20th January 2022, the Central Bank decided to increase its Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 50 bps each, to 5.50 per cent and 6.50 per cent, respectively. The Bank Rate, which is linked to the SLFR with a margin of +300 bps, automatically adjusted to 9.50 per cent.
Weekly AWPR for the week ending 21st January 2022 increased by 7 bps to 8.65 per cent compared to the previous week.
The reserve money increased compared to the previous week mainly due to the increase in currency in circulation.
The total outstanding market liquidity was a deficit of Rs. 543.367 bn by the end of this week, compared to a deficit of Rs. 459.932 bn by the end of last week.
By 21st January 2022, the All Share Price Index (ASPI) increased by 0.25 per cent to 13,371.61 points and the S&P SL 20 Index increased by 1.10 per cent to 4,604.99 points, compared to the index values of last week.
During the period from January to October 2021, government revenue increased to Rs. 1,154.8 bn compared to Rs. 1,133.6 bn recorded in the corresponding period of 2020.
During the period from January to October 2021, overall budget deficit increased to Rs. 1,575.2 bn compared to Rs. 1,317.2 bn recorded in the corresponding period of the previous year.
During the ten months ending October 2021, total expenditure and net lending increased to Rs. 2,731.7 bn compared to Rs. 2,453.7 bn recorded in the corresponding period of 2020.
During the period from January to October 2021, domestic financing increased to Rs. 1,717.4 bn compared to Rs. 1,669.4 bn in the corresponding period of 2020. Foreign financing recorded a net repayment of Rs. 142.2 bn during the period from January to October 2021 compared to a net repayment of Rs. 352.2 bn recorded in the corresponding period of 2020.
Outstanding central government debt increased to Rs. 17,343.9 bn by end October 2021 from Rs. 15,117.2 bn as at end 2020.
Since end 2020, total outstanding domestic debt increased by 19.4 per cent to Rs. 10,827.5 bn, and the rupee value of total outstanding foreign debt increased by 6.6 per cent to Rs. 6,516.4 bn by end October 2021.
During the year up to 21st January 2022, the Sri Lankan rupee depreciated against the US dollar by 1.1 per cent. Given the cross currency exchange rate movements, the Sri Lankan rupee depreciated against the Japanese yen by 2.2 per cent, the
pound sterling by 1.8 per cent, the Euro by 1.1 per cent and the Indian rupee by 1.1 per cent during this period.
Business
SLAF, Aviyana Ceylon partner to elevate high-end sports tourism with Eagles’ Monsoon Cup 2026
Aviyana Ceylon, Sri Lanka’s upcoming ultra-luxury seven-star hospitality project, has stepped decisively into the country’s high-end sports tourism space by coming on board as the principal sponsor of the prestigious Eagles’ Monsoon Cup Golf Tournament 2026, in partnership with the Sri Lanka Air Force (SLAF).
The international-standard golf tournament is scheduled to be held on January 11, 2026, and is expected to attract diplomats, corporate leaders, high-net-worth individuals and overseas golfers, reinforcing Sri Lanka’s positioning as an emerging premium leisure and sporting destination.
Under the patronage of Aviyana Ceylon chairman, Dr. Thisara Hewawasam, the company has committed a Rs. 2.5 million sponsorship, marking one of the most significant private-sector investments in elite golf events in recent years.
The sponsorship was formalised at a ceremonial cheque handover held at the Sri Lanka Air Force Headquarters, where Dr. Hewawasam officially handed over the cheque to Commander of the Air Force, Air Marshal Bandu Edirisinghe.
“Our decision to support the Eagles’ Monsoon Cup goes beyond sport. It is a strategic investment in positioning Sri Lanka as a global luxury tourism and lifestyle destination, Dr. Hewawasam said.
“International sporting events with strong networking potential play a critical role in shaping perceptions, attracting premium travelers and enhancing the country’s brand equity. Aviyana Ceylon is committed to supporting platforms that elevate Sri Lanka’s global standing, he added.
Senior SLAF officials, including chairman, Eagles’ Golf Links, Air Commodore Erandika Gunawardhana, secretary of the Air Force Sports Council and Director Media, Group Captain Eranda Geeganage, Secretary of Eagles’ Golf Links, Group Captain Asanka Ratnayake and SLAF Golf Secretary, Wing Commander R.A.S.T.A. Fernando, along with Aviyana Ceylon representatives and invited guests were present at the event.
Air Marshal Bandu Edirisinghe welcomed the partnership, noting that collaboration between the military and private sector is vital in developing sports diplomacy and tourism-led economic activity.
“Eagles’ Monsoon Cup has evolved into a premier sporting event that brings together global and local stakeholders. The support extended by Aviyana Ceylon strengthens our ability to host events of international calibre and contributes meaningfully to sports tourism and national image-building, the Air Force Commander said.
Beyond the golf tournament, the partnership opens the door to new experiential tourism initiatives, including a proposed collaboration to offer luxury helicopter tours for Aviyana Ceylon’s clientele, operated in coordination with the Sri Lanka Air Force.
According to Dr. Hewawasam, the concept aims to provide discerning travelers with exclusive aerial experiences showcasing Sri Lanka’s landscapes, coastlines and heritage.
“Luxury heli-tours represent a new dimension in experiential tourism. They allow us to present Sri Lanka’s natural beauty from a unique vantage point, appealing to high-value travelers seeking privacy, exclusivity and unforgettable experiences, he said.
Industry observers note that such initiatives align with global trends where luxury hospitality brands integrate sports, aviation and curated experiences to differentiate destinations and increase average tourist spend.
The Eagles’ Monsoon Cup is widely regarded as one of Sri Lanka’s most elite sporting events, functioning not only as a golf tournament but also as a high-level networking platform linking diplomacy, business and leisure.
By Ifham Nizam
Business
‘Tea industry largely spared cyclone damage’
Reports received by us from tea brokers, the Colombo Tea Traders’ Association (CTTA) and other sources indicated that, by and large, the local tea sector has been spared by the recent weather havoc.
The CTTA in their recent communications said that although Cyclone Ditwah affected parts of Sri Lanka, production, sales, and exports of tea continued without interruption. Clearly, the report said, the well established and highly coordinated industry network was fully geared to confront these issues. Production and sales continued with least disruption . While some tea growing areas in Uva, and the Central Province experienced some impact no loss in manufacturing capacity was reported.
Damage was largely confined to specific roads, resulting in temporary disruptions to transportation. Some key routes connecting plantations to the city have now been reopened and transport services are resuming normal operations. Harvesting operations are gradually returning to normal with access roads being reopened and temporary roads have been constructed to facilitate transport of green leaf to manufacturing locations.
The tea small holders we met said, although their production routine was affected, quick return to normalcy was ensured thanks to the established Tea Small Holders’ Association whose action ensured speedy return to normalcy. They reiterated production was near normal; and the dismal situation was now in a controlled position. They assured that such losses were minimal and could be recouped with minimum delay.
The CTTA further said the majority of plantations and small holder lands in the South of the island were spared cyclone damage. Harvesting, manufacturing and transportation activities are continuing as usual.
Trading activities at the Colombo Tea Auctions continue to be held although with a revised calendar. The tea auction previously set for the 1st week December has been rescheduled for the last week December. This adjustment ensures uninterrupted financial flows to the producers , including small holders, maintaining the momentum of the industry.
Forbes and Walker Tea Brokers reported a national tea sale average for November of Rs. 1137.22 ( USD3.89) which shows an increase of Rs.61.17 and USD 0.02 YOY. The total National Sale Average for the year 2025 ( to date) was recorded at Rs. 1,164.97( USD 3.88). a decline of Rs . 63.49 ( USD 0.17) against the corresponding year’s average of Rs. 1228.46 (USD4.05). The report further said all elevations recorded negative variances during the period January to November 2025 in comparison to the cumulative corresponding year of 2024 in both LKR and USD terms.
By Steve A. Morrell
Business
Elephant House Ice Cream marks historic launch in Australia
Ceylon Cold Stores PLC (CCS), a subsidiary of John Keells Holdings PLC, has launched its iconic Elephant House Ice Cream in Australia, marking a bold step in the brand’s global expansion. The official unveiling took place on 4th December 2025 at the Novotel Melbourne Glen Waverley, where industry leaders, local distributors, and strategic partners gathered to celebrate the occasion. The launch was further honoured by the presence of Ms. Pradeepa Seram, Consul General Designate of Sri Lanka, and Ms. Cassandra Fernando, Member of the Australian Parliament, reflecting the deep and growing connections between Sri Lanka and Australia.
Elephant House is one of the highest-penetrated Sri Lankan brands among Sri Lankan communities living overseas, with a presence in 16 countries, including the Maldives, Australia, and the United Kingdom, among others.
In a significant milestone for the company, Elephant House Ice Cream is now manufactured locally in Melbourne to support wider availability in the ethnic market in Australia. The range currently available includes Vanilla, Karutha Kolomban, and Fruit and Nut in 500ml packs. This marks the first time in CCS’s 150-year legacy that Elephant House Ice Cream has been produced outside Sri Lanka, signalling a new chapter in the company’s international growth journey in collaboration with Millennium Imports Pty Ltd, it’s one of the franchise partners for Australia.
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