Business

CBSL continues accommodative monetary policy stance

Published

4 years ago

2020/11/27

The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on November 25, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 4.50 per cent and 5.50 per cent, respectively.

The Board arrived at this decision after carefully considering the macroeconomic conditions and expected developments on the domestic and global fronts. The Board, having noted the reduction in overall market lending rates so far during the year, stressed the need for a continued downward adjustment in lending rates to boost economic growth in the absence of demand driven inflationary pressures, particularly considering the significant levels of excess liquidity prevailing in the domestic money market.

In order to support the economic revival, the Board decided to introduce maximum interest rates on mortgage backed housing loans for salaried workers, while lending targets for selected sectors of the economy will be introduced in the near future. The second wave of COVID-19 has destabilised global growth prospects, but vaccine expectations have helped improve sentiments. Accommodative monetary policies adopted by almost all central banks across the globe continued amidst weak economic activity. Growing uncertainty, triggered by the second wave of COVID-19, has led central banks to further expand unconventional policy measures, including quantitative easing, while governments with adequate fiscal space continued to provide additional stimulus to their respective economies.

However, the recent breakthroughs in relation to COVID-19 vaccines have helped improve sentiments worldwide.

The Sri Lankan economy was seen as having recovered strongly during the third quarter of 2020, before the disruptions caused by the second wave of COVID-19

Available economic indicators suggest a notable recovery in economic activity in the third quarter of 2020. The onset of the second wave of COVID-19 in October adversely affected this momentum to some extent. However, the impact of the containment measures on economic activity is not expected to be large, as mobility restrictions were imposed only in selected areas, and most of these restrictions have already been lifted in many areas.

Despite this disturbance to the near term growth prospects, the economy is expected to rebound strongly in 2021 and sustain its growth momentum over the medium term, supported by the stimulus measures already in place and the effective implementation of the pro-growth policy proposals announced in the Government Budget 2021.

External sector remains resilient amidst challenging global developments Provisional data indicate that the deficit in the trade account continued to narrow significantly, on a year-on-year basis, for the sixth consecutive month in October 2020. Workers’ remittances increased for five consecutive months.

All News Advertisement

Business

US dockworkers suspend ports strike until January

Published

1 hour ago

2024/10/4

Priyan

The union representing tens of thousands of dockworkers across the US has agreed to suspend its strike while negotiations continue.

Members of the International Longshoremen’s Association (ILA) walked out on Tuesday at 14 major ports along the east and Gulf coats, halting container traffic from Maine to Texas.

The union says it has reached a tentative agreement on wages and will go back to work on Friday until 15 January, when they will return to the bargaining table to negotiate “all other outstanding issues”.

The action marked the first such shutdown in almost 50 years and threatened to wreak chaos amid the busy holiday shopping season and forthcoming presidential election.

The affected ports included some of the nation’s busiest, including in New York, Georgia and Texas. They are estimated by experts to handle more than a third of US imports and exports.

Businesses had been bracing for the possibility of a prolonged shutdown, which threatened to disrupt global trade and the US economy.

Many consumers had been fearful and were stocking up on some supplies, like baby formula and toilet paper.

US President Joe Biden applauded the tentative agreement in a Thursday evening statement, saying it “represents critical progress toward a strong contract”.

“I congratulate the dockworkers from the ILA, who deserve a strong contract after sacrificing so much to keep our ports open during the pandemic,” Biden said.

“And I applaud the port operators and carriers who are members of the US Maritime Alliance for working hard and putting a strong offer on the table.”

Biden noted the need for ports to be open to “ensure the availability of critical supplies” for those hit by Hurricane Helene, which has left more than 200 people dead in the US south-east.

Under the 2018 contract that expired on Monday, dockworkers earned a base hourly wage of $20-$39, as well as other benefits, including royalties linked to container traffic.

Harold Daggett, head of the ILA, demanded companies agree to boost hourly pay by $5 for each year of the contract.

The union, which has about 47,000 active members according to federal filings, is also seeking protections against automation.

[BBC]

Business

Korea spreading its ‘soft power’ across the globe with another tool: Korean delicacies

Published

2 hours ago

2024/10/4

Thilina Walpola

Korean ambassador to Sri Lanka, Miyon Lee (centre) at the ‘K-Food Showcase’ held at her residence in Horton Place, Colombo on Sep. 30, 2024

By Sanath Nanayakkare

Whoever coined the term soft power, defining it as a country’s ability to influence others without resorting to coercive pressure, Korea is arguably mastering the art like no other country.

The Korean cultural and entertainment wave has attracted millions of fans across the world. regardless of whether they can speak or understand Korean. They support favourite K-Pop artists and largely enjoy Korean entertainment programmes. This is a predominant prevalence here in Sri Lanka too.

When such a groundbreaking feat was accomplished by some individuals in Korea, their astute governments picked up the trend, primed the game and ran with it to bolster their international reputation. For the Republic of Korea , it was not just K-Pop reaching the corners of the world; they saw the potential of turning it into a soft power and enhancing the nation’s ability to attract prospective partners and establishing Korean culture as a way of living even in countries like the United States of America.

The Korean master chef who flew all the way to Colombo from Korea for the K-Food festival Pic by Nishan S. Priyantha

Today Korea is nimbly threading a double weave on its soft-power fabric by promoting the country’s authentic cuisine in foreign countries.

Amid these developments, the Korean ambassador in Sri Lanka, Miyon Lee and her staff presented a ‘K-Food Showcase’ at her residence in Horton Place, Colombo recently, having flown in a master chef from Korea, which showed the strong emphasis they placed on this exercise.

Welcoming those who were part of the ‘K-Food Showcase’, the Korean ambassador said, “We all love to share food and make friends. It is a universal nature, because food is the bridge between body and soul, connecting societies and cultures. Every family boasts of its own secret recipes, and every nation and culture take pride in its own food and dishes. Just like Pol Sambol is for Sri Lankans, for Koreans, Kimchi is one of the traditional dishes that cannot do away with. There are more than 400 ways to make fermented vegetable dishes. But the spicy Kimchi we enjoy today was developed after chili pepper was first introduced in the 17th century. We make our own food by importing and adopting new ingredients and new methods from abroad.”

“Koreans love to eat, and love to watch eating as you may have guessed from Korean dramas and movies or YouTube. You may have wondered what they are eating and what they taste like. Thanks to the spread of K-culture worldwide, K-food has also become one of the trendy items to experience,” she noted.

The guests at the event got the opportunity to try dishes most often seen in Korean dramas and movies and enjoy first-hand their unique textures and flavors.

According to ambassador Miyon Lee, K-food is still an evolving trend, being created through adoption and adaptation, through their creative blend of tradition and modernity, uniqueness and universality, just like human society and culture.

A GKS ( Global Korean Scholarship) Alumni member in Sri Lanka who has spent many years in the Republic of Korea told this journalist that at first it was not easy to for her to get used to Korean food but after some time she ended up being a passionate eater of Korean delicacies given the food’s authentic taste and nutritional value.

Business

Sri Lanka Gem and Jewellery Association congratulates President Anura Kumara Dissanayake

Published

2 hours ago

2024/10/4

Thilina Walpola

The Sri Lanka Gem and Jewellery Association (SLGJA) the apex body and the voice of the country’s Gem and jewellery industry, with great pride and respect extends heartfelt congratulations to His Excellency on being sworn in as the 9th President of the Democratic Socialist Republic of Sri Lanka.

SLGJA is built on a vision to empower Sri Lanka’s Gem and Jewellery industry through innovation and sustainability superiority which aims to generate global recognition whilst upholding the rich heritage for future generations. The Association’s mission is to alleviate Sri Lanka’s Gem and Jewellery Industry through etical practices, facilitate market access, advocate sustainable sourcing nurture talent for the industry’s continued growth, global competitiveness and socio-economic contribution. Functioning as the advocate for Sri Lanka’s Gem and Jewellery sector, the SLGJA lobbies the industry related concerns to governmental and other related bodies. SLGJA is also the organizer of FACETS Sri Lanka International Gem and Jewellery Show over 31 years which is now the cornerstone for the industry players, fostering collaboration, innovation and international partnerships.

As an industry that has long been an integral part of Sri Lanka’s rich cultural heritage and economic strength, we are confident that under HE’s visionary leadership, our nation will continue to thrive and reach new heights of prosperity. His commitment to progress, national unity, and the well-being of all Sri Lankans aligns closely with the values and aspirations of the Gem and Jewellery sector, which remains a foundation of both the country’s identity and its economy.

Insightful discussions that were held with His Excellency and senior members of the party before the elections, where the party understood the unique challenges and opportunities faced by the gem and jewellery industry has given great confidence in HE’s leadership and the bright future that lies ahead for the Gem and Jewellery sector.

The gem and jewellery industry plays a vital role in enhancing Sri Lanka’s global reputation. SLGJA is eager to work closely with HE’s administration to further develop and promote this key industry. Together, more opportunities for sustainable growth could be created, increasing the international competitiveness, and ensure the long-term success of the industry for future generations.

SLGJA is confident that HE’s administration will continue to take progressive steps to support and strengthen industries that contribute significantly to the national economy. The SLGJA stands ready to assist in any initiatives that foster economic development, promote exports, and elevate Sri Lanka’s standing as a global leader in the gem and jewellery trade. (SLGJA)