Business

Sri Lanka’s hawkish stance on hawala tougher than ever before

Published

5 years ago

2021/12/6

Sahan Weerasooriya

Country lost USD 300 million worth remittances to ‘unlawful’ operatives in just one month

by Sanath Nanayakkare

About USD 300 million remitted by Sri Lankan migrant workers in the month of November 2021 alone appears to have been handled by hawala operatives that pay Rs. 240 per US dollar in highly suspicious unofficial transactions, Central Bank Governor Ajith Nivard Cabraal told reporters in Colombo on Saturday.

Hawala is a system of transferring money whereby the money is paid to an agent who then instructs an associate in the relevant country or area to pay the final recipient.

“If someone collected an amount of USD 300 million overseas from migrant workers there, and their associates here distributed an equivalent sum of Rs. 72 billion in just one monthy; we have to wonder how it happened and where all that money came from? Who had got that kind of money here to credit to various accounts? We are now observing this development which smells an act of money laundering. If someone credits or gives cash to individuals in such non-transparent transactions, and the Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka detects suspicious activity, it can freeze such accounts. The FIU will probe into such incidents along with the police and take necessary action. So, we request our migrant workers to send their hard-earned money through banks without using unofficial channels, We suspect that this parallel payment industry is mainly operated by cohorts of drug traffickers. Don’t get ‘addicted’ to sending your money through unofficial channels of this nature because at times when we investigate instances, the recipients also could face issues although we don’t like to see that happen,” Cabraal said.

“We will be paying an additional incentive of 8 rupees per dollar for workers’ remittances which are converted in the month of December, in addition to an existing offer of 2 rupees, when such funds are sent through licensed banks and other internationally accepted formal channels,” he noted.

“Such workers will also have access to pension and insurance programmes and duty free concessions. We are working on providing them with such rewards,” the Governor said.

Sri Lanka, which faces $1.5 billion of debt maturities next year, is looking for a revival in its Covid-hit tourism industry with the reopening of the country after extended lockdowns. It is also depending on increased remittances to tide over its liquidity issue.

The monetary authority is forecasting foreign reserves to increase to $3.5 billion by end-2021. Foreign reserves fell 16% to $2.27 billion in October, the lowest since July 2009.

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Business

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

Published

32 mins 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

40 mins 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

40 mins 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.