Business

Inflation likely to hit 70 per cent soon but would return to single digits in medium term- CBSL Governor

Published

4 years ago

2022/07/8

by Hiran H.Senewiratne

Sri Lanka’s inflation rate will soar above 70 per cent soon, which is now at 54.6 per cent, the highest such rate thus far. However, in the medium term it will come down to single digits or 4 per cent to 6 per cent, Central Bank Governor Dr Nandalal Weerasinghe said.

“The reasons for increasing inflation are, global energy price increases, food price increases, tax adjustments and the rupee depreciation. In the medium- term perspective, inflation will go down to 4 to 6 per cent, with the world food prices and oil price becoming stable, Weerasinghe told the media at the monthly monetary policy review meeting of the Central Bank. The media conference was held at the Central Bank auditorium yesterday.

Weerasinghe added: ‘Through the adoption of prudent economic and monetary policies the Central Bank is putting in every effort to control inflation. If the inflation rate goes beyond the 100 per cent level it would create a hyper- inflation situation. Under this condition no one will be able to do business.

‘At this juncture our responsibility is to provide relief to low-income earners and vulnerable sections of society through social security systems and the Samurdhi poverty alleviation scheme. But the UN Food Programme is looking at possibilities to do so as well.

‘The CBSL would continue to closely monitor domestic and global macroeconomic and financial market developments and would be prepared to take further policy measures as appropriate to help reinforce greater stability in the economy in the period ahead, while ensuring a faster return of inflation to the targeted 4-6 per cent range over the medium term, under the flexible inflation targeting framework.

‘Having noted the higher- than- expected escalation of headline inflation recently and the increased persistence of high inflation in the period ahead, the Board was of the view that a further monetary policy tightening would be necessary to contain any build-up of adverse inflation expectations.

‘The remedial policy measures adopted by the Central Bank need to be complemented by timely and appropriate policy adjustments by the government, including the need for the expeditious implementation of fiscal consolidation measures, alongside efficient and effective social welfare programs to support the vulnerable groups of society.

‘The Central Bank has issued a guideline to all banking and non-banking sectors to provide relief for small, medium and tourism sector entities. Under this guideline banks and non- banking entities could use their discretion to provide relief and grace periods for those sectors.

” Banks and non- banking sector entities could be considered case by case when awarding relief for SME and tourism sector entities.

‘Accordingly, the Monetary Board of the Central Bank has decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) to 14.50 percent and 15.50 per cent respectively. Statutory Reserve Ratio (SRR), meanwhile, remains unchanged at 4.00 percent .’

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Business

Commercial Bank scales up ADB credit line to empower Jaffna SMEs

Published

3 hours ago

2026/09/28

Thilina Walpola

Empowering Regional Enterprise: ADB Country Director Shannon Cowlin (right), T. Thivaharan, Manager of Commercial Bank’s Manipay Branch (center), and P. Prabakaran, Proprietor of New V.S.P. Gingelly Oil (left),at the production facility in Sandilipay, Jaffna (415 km north of Colombo). The visit highlighted how targeted ADB-backed financing helps local small and medium-sized enterprises overcome financing barriers, upgrade operations, and stimulate employment across regional supply chains.

By Sanath Nanayakkare

Continuing its mission to drive inclusive economic recovery and empower Sri Lanka’s grassroots business sector, the Commercial Bank of Ceylon PLC has actively accelerated the disbursement of the Asian Development Bank’s (ADB) Enhancing Small and Medium-Sized Enterprises Finance Project line of credit.

As Sri Lanka’s premier private sector lender, Commercial Bank drives regional development by bridging financial gaps outside the Western Province. Jaffna and the broader Northern Province remain pivotal focus areas due to their immense potential for industrial regeneration, vibrant agricultural output, and entrepreneurial resilience in the post-crisis economic landscape.

Directing targeted, affordable financing enables local enterprises to overcome historical financing barriers, expand production capacity, and stimulate employment across regional supply chains.

Quality at the Source: ADB Country Director Shannon Cowlin inspects a bottle of premium sesame oil at the New V.S.P. Gingelly Oil factory floor in Jaffna. Working capital facilities extended through Commercial Bank under the ADB line of credit enable manufacturers like Harish Industries to meet growing wholesale and retail demand across Sri Lanka while securing long-term economic resilience.

The dedicated credit scheme offers affordable interest rates to help small and medium-sized enterprises (SMEs) rebound from recent macroeconomic shocks, maintain employment stability, and build long-term sustainability. Designed to target underserved segments, the funding line prioritizes viable enterprises located outside the Colombo district, women-owned and women-led businesses, and ventures incorporating strong climate finance components. Eligible sectors span manufacturing, agriculture, animal husbandry, technology, tourism, and direct export industries.

A standout beneficiary showcasing the transformative impact of this regional focus is Harish Industries, a flourishing manufacturing firm located within the purview of Commercial Bank’s Manipay branch in Jaffna. Owned and operated by proprietor Ponnuchamy Prabakaran, Harish Industries manufactures premium sesame oil under the popular brand name “New VSP Gingelly Oil”.

The working capital facility extended by the line of credit to Harish Industries helped to cater to short-term liquidity needs, ease out cash flow pressure, and operate the business in a sustainable manner.

Additionally, this financial backing helped create more employment opportunities, strengthen its supply chain, and expand business operations to meet growing wholesale and retail demand across Sri Lanka.

Business

A tech-savvy new generation stepping in to reinvent Sri Lankan hospitality

Published

3 hours ago

2026/09/28

Thilina Walpola

When the final twelve champions took the stage for their honours, the event shifted from a mere ceremony into a profound symbol of tomorrow

The grand halls of the Taj Samudra in Colombo buzzed with a distinct energy on the morning of September 25, 2026, as leaders gathered for the National Celebration of World Tourism Day.

Yet, beneath the formal discussions on digital agendas and artificial intelligence, a deeper, more vibrant narrative was quietly unfolding. This was not merely a story of algorithms and automated efficiency; it was a human story – a tale of Sri Lanka’s youth stepping forward to redesign the future of hospitality.

For generations, Sri Lanka’s allure has been rooted in its timeless landscapes, golden shores, and the legendary warmth of its people. But as global travel evolves, a new generation of tech-savvy local innovators is finding ways to weave cutting-edge technology into the rich tapestry of Sri Lankan culture. This shift took center stage during the Tourism Start-Up Competition 2026, held under the theme “AI-Driven Innovation for the Future of Tourism”.

Out of 52 competitive applications spanning tertiary and commercial levels, young minds proved that technology and tradition can go hand in hand.

The twenty-five shortlisted teams stood before expert panels to defend visions that bridge the gap between ancient heritage and modern data intelligence.

Behind every submitted AI solution was a young entrepreneur eager to protect local destinations, enhance visitor experiences, and elevate service delivery.

When the twelve winners were finally honoured, the celebration transformed into something much greater than an awards ceremony.

It served as a powerful reminder that the true engine of Sri Lanka’s digital transformation is its youth. Armed with code, creativity, and a profound love for their country, these young visionaries are ensuring that when travelers explore Sri Lanka, they do not just witness the future – they feel the heartbeat of a new, digitally empowered era of hospitality.

Business

IRD enforces mandatory TIN certificate submission for specified transactions starting November 01

Published

3 hours ago

2026/09/28

Thilina Walpola

The Inland Revenue Department (IRD) has announced a sweeping regulatory shift, confirming that the submission of a valid Taxpayer Identification Number (TIN) Certificate will become mandatory for a wide range of essential financial, commercial, and property transactions starting November 1, 2026.

The decisive directive, enforced under the legal framework of the Inland Revenue (Amendment) Act, No. 11 of 2026, applies directly to individuals specified under Section 102(3) of the principal Inland Revenue Act.

Under the new mandate, relevant authorities and corporate entities across the island have been instructed to withhold processing or completion of key procedures unless applicants present a verified TIN document. The specified transactions include:

Financial Services: Opening any account at a bank or financial institution, and obtaining a credit card.

Property and Construction: Obtaining approval for building plans, and registering land or titles to land.

Automotive Administration: Registering a motor vehicle or renewing a motor vehicle license.

Commercial Activity: Registering a new business.

Corporate Transfers: Transferring shares of a company incorporated in Sri Lanka—a requirement binding on both the transferor and the transferee.

The IRD has reiterated that acquiring a TIN remains a statutory obligation for all resident individuals who were aged 18 or older as of December 31, 2023, as well as those who attain the age of 18 on or after January 1, 2024, upon reaching that milestone. Officials handling the designated services have been sternly directed to verify compliance before moving forward with any customer requests.

To streamline the transition and prevent administrative bottlenecks, the department has encouraged members of the public who have not yet secured their numbers to register promptly via the official IRD e-Services platform. Furthermore, recognizing potential logistical hurdles, the IRD noted that a printout of the online TIN verification result—clearly displaying the applicant’s National Identity Card (NIC) number and TIN—will be accepted as a valid alternative to the official certificate.

As the November 1 deadline approaches, citizens are urged to secure their documentation beforehand to ensure uninterrupted access to essential public, financial, and legal services.