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‘Lebanonization of Sri Lanka well under way’

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By Hiran H.Senewiratne

The Sri Lankan economy bombarded with multiple internal and economic shocks, is now starting to witness impacts similar to the Lebanon situation, stock market analysts said.

In the long-term, Lebanon’s annual GDP growth rate is projected to trend around 2 per cent in 2022 and 2.50 percent in 2023, according to econometric models. Lebanon has a services-oriented economy, with banking and tourism being the most important sectors.

Yesterday CSE trading activities remained sluggish, which indicated an extreme level of rupee depreciation as against the dollar, which sold Rs 350 per dollar recently in the black market and yesterday it reached Rs 375. This was a 100 per cent depreciation against the dollar, market analysts said.

The rapid rupee depreciation coupled with high oil prices in the global market put the Sri Lankan economy into a more painful situation. Despite its price revisions Lanka IOC has also not been able to supply fuel in an uninterrupted manner to fuel stations and this too has adversely impacted the economy, stock market analysts explained.

The Sri Lanka rupee was quoted at 295/315 to the US dollar in the spot market Monday, but only bids were firm, while bond markets were mostly inactive, dealers said.

Commercial Banks were offering dollars for telegraphic transfers at Rs 295 and buying at Rs 280. The Central Bank indicative spot rate was Rs 294.98.

Sri Lanka’s rupee has been made more flexible but a clean float has not yet been established.

Economists and analysts have urged the Central Bank to raise rates and halt a surrender rule that is taking dollars away from the banking system and creating rupees.

Further, IMF recommendations to the debt management and debt restructure mechanism of the country triggered some selling pressure on the market, analysts said.

Amid those developments both indices moved downwards. The All- Share Price Index went down by 313.03 points and S and P SL20 declined by 105.46 points. Turnover stood at Rs 2.13 billion with two crossings. Those crossings were reported in Sampath Bank, which crossed 1.5 million shares to the tune of Rs 81 million, its shares traded at Rs 54 and Expolanka Holdings 250,000 shares crossed to the tune of Rs 66.25 million; its shares traded at Rs 265.

In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 304 million (1.16 million shares traded), LOLC Finance Rs 195 million (13.9 million shares traded), HNB Rs 185.3 million (1.54 million shares traded), Sunshine Holdings Rs 145.5 million (3.45 million shares traded), Browns Investment Rs 112 million (11.1 million shares traded), Softlogic Insurance Rs 70.5 million (one million shares traded) and JKH Rs 62 million (400,000 shares traded). During the day 97 million share volumes changed hands in 21800 transactions.

Based on IMF staff analysis, fiscal consolidation necessary to bring debt down to safe levels would require excessive adjustment over the coming years, pointing to a clear solvency problem.

Releasing the Country Report No. 2022/091: Sri Lanka: 2021 Article IV Consultation, the IMF staff said that a more ambitious adjustment, required to significantly reduce debt, would put Sri Lanka even further into the upper tail.

Yesterday, the Central Bank announced the official US dollar rate. The buying rate was 288.74 and the selling rate was Rs 298.99. These rates came into being following the free float of the rupee as against the dollar, initiated by the Central Bank.



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Indra Traders launches Athwela Programme in partnership with Bank of Ceylon

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Rushanka Silva (Managing Director, Indra Traders) and Y. A. Jayathilaka (General Manager, Bank of Ceylon) appearing for a photograph after signing the agreement. Also present at the occasion (from left in the photo): Asitha Perera – Senior Sales Manager, Indra Traders, Dharma Ilangasinghe – Group General Manager, Indra Traders, Shashindra Silva – Sales Director, Indra Traders, R. M. N. Jeewantha – Deputy General Manager (Development Banking & Branch Credit Operations Range II), BOC, Samantha Wimalasiri – Assistant General Manager (Consumer & Development Banking), BOC, F. S. Naeem – Chief Manager (Development Banking), BOC, R. M. L. W. Ratnayake – Senior Manager (Consumer & Development Banking), BOC

Indra Traders recently introduced a special programme titled “Athwela” in collaboration with the Bank of Ceylon (BOC).

The programme was designed with a primary focus on customer convenience, aiming to provide essential support by simplifying the financial challenges often associated with vehicle purchasing and servicing. This initiative is regarded as a further strengthening of the trust and relationships Indra Traders has built over its decades of service excellence.

The partner for this program, the Bank of Ceylon (BOC), is Sri Lanka’s largest state bank and a premier financial institution. It offers an extensive island-wide branch network, exceptional customer service, and some of the most competitive interest rates in the market.

Speaking at the event, Rushanka Silva, Managing Director of Indra Traders, said: “Today is a very special day for us. As Indra Traders, a company engaged in business for over five decades, it is a great honor to enter into the ‘Athwela’ agreement with Sri Lanka’s largest bank. Through this program, we are working to provide various financial and service facilities, including leasing. As a company that imports everything from the smallest to the largest vehicles, we provide customers the opportunity to purchase any vehicle they need through our six yards located across the island. Even if a specific vehicle is not in our current stock, we are prepared to import it according to the customer’s requirement. I invite all customers to join hands with ‘Athwela’.”

Y. A. Jayathilaka, General Manager of Bank of Ceylon, added “At a time when restrictions on vehicle imports have been relaxed, it is a great pleasure for Bank of Ceylon, the strongest bank in the country, to partner with Indra Traders – a company with over 50 years of trusted history. Our goal is to provide a comprehensive and convenient service to leasing customers across the island by combining BOC’s extensive branch network with Indra Traders’ expertise.”

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Launch of new Beijing-Colombo air link announced in China

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Ambassador Majintha Jayasinghe and representatives of Beijing Capital Alliance at the destination promotion event where the new Beijing-Colombo air link was announced.

The Sri Lankan Embassy in Beijing together with Beijing Capital Airlines last week organized a destination promotion event and announced the launch the Capital Airlines direct flights from Beijing to Colombo.

While congratulating Beijing Capital Airlines for expanding the connectivity between Beijing and Colombo, the Sri Lanka Ambassador Majintha Jayesinghe highlighted the longstanding bilateral relations between the two countries and the significance of strengthening connectivity in line with the Joint Statement issued following the meeting in January 2025 between President Xi Jinping and President Anura Kumara Disanayaka, a news release from the embassy said.

The President of the Beijing Capital Airlines Liu Jun expressed appreciation and stated that the new route is an important milestone in expanding the airline’s South Asian network while strengthening the Air Silk Route. He also highlighted that this is the only direct flight connecting Northern China with Sri Lanka and a key Capital-to-Capital air link, it added.

There was no word about the flight frequency and when the service will begin.

Ambassador Jayesinghe reiterated that Sri Lanka is more than a holiday destination and is positioned as an exotic, experienced-rich, year-round travel destination offering warm and pleasant weather. He emphasized that Sri Lanka, as a stand-alone destination, provides a blend of rich history, eight UNESCO heritage sites, diverse landscapes, pristine beaches, dense forests, and scenic mountains, inviting Chinese travellers to explore and enjoy Sri Lanka.

The commencement of the Beijing – Colombo route will contribute to the social and economic development of both countries. The Beijing- Colombo service has filled a longstanding gap in the aviation market and will further promote the economic, trade, cultural and tourism development, while offering more convenient travel options, the news release said.

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SLT-MOBITEL and Fintelex empower farmers with the launch of Yaya Agro App

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From left to right – Supipi Nawarathne, Head, Department of Food Technology, UCIARS, Dr. Nisansala Widanapathirana, Head, Department of Agro Technology, UCIARS, Professor Champathi Gunathilake, Director, UCIARS, Dr. Nath Dharmasena, CEO, Fintelex Pvt Ltd, Sudharshana Geeganage, COO, Mobitel, Professor Indika Mahesh Karunathilaka, Vice Chancellor, University of Colombo, Pradeep Arunasiri, Consultant Agronomist – Digital Inclusion, Fintelex Pvt Ltd, and Madura Hewage, Senior Manager – VAS, Mobitel, at the launch of Yaya Agro.

SLT-MOBITEL Mobile, in collaboration with Fintelex (Pvt) Ltd, has launched ‘Yaya Agro’, an exclusive all-in-one smart agriculture app designed to empower Sri Lankan farmers with the tools they need to grow smarter, safer, and more sustainably.

Yaya Agro represents a new era of digital farming in Sri Lanka combining technology, expert knowledge, and community empowerment to provide farmers the confidence to make smarter decisions, improve productivity, and build a sustainable future.

Developed with support from GIZ and Hatch and validated by leading academic and professional institutions including the University of Colombo, Institute for Agrotechnology and Rural Sciences, and the Sri Lanka Red Cross Society, Yaya Agro combines agricultural expertise, real-time weather updates, first aid support, and AI-powered assistance into a single, easy-to-use platform.

The launch of Yaya Agro positions SLT-MOBITEL as an innovative, inclusive, and collaborative technology leader. Partnering technology and academic institutions, the company extends its role outside the sector into agriculture, empowering farmers with AI-driven tools, multilingual access, and market connectivity. The initiative also strengthens SLT-MOBITEL’s image as a champion of digital empowerment and sustainable development in Sri Lanka.

Functioning as a comprehensive digital companion, Yaya Agro is positioned as a digital farming companion, bringing precision agriculture, real-time support, and market access to the fingertips of every Sri Lankan farmer.

Whether managing a small home garden or a large commercial farm, the app equips farmers with vital insights to improve crop yield, reduce risks, and connect directly with buyers through the integrated online marketplace.

Yaya Agro offers farmers daily crop information with expert tips on management, pest control, and best practices, all validated by the University of Colombo. It provides accurate, location-based weather forecasts to help plan farming activities more effectively. The app also delivers life-saving first aid tutorials and safety information verified by the Sri Lanka Red Cross Society, ensuring farmers are prepared for emergencies. With the AI chatbot assistant, farmers can access instant, personalized advice around the clock, with smart notifications delivering timely alerts and reminders tailored to crop cycles.

To make learning inclusive and accessible, Yaya Agro is available in Sinhala, Tamil, and English, offering interactive educational content such as videos, voice guides, and infographics. The app also integrates an online marketplace, developed in partnership with GIZ and Hatch, enabling farmers to connect directly with buyers and expand their reach.

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