Business
Central Bank vows prudent management of Sri Lanka’s limited foreign reserves
Pins hopes on bold moves by fiscal authorities through the Budget
By Sanath Nanayakkare
On February 14, 2025, Dr. Sumila Wanaguru, Director of International Operations at the Central Bank of Sri Lanka, affirmed the Bank’s commitment to adhering to all guidelines and implementing necessary measures to maintain stable foreign reserve levels for the country. The International Operations Department, which oversees Sri Lanka’s foreign exchange operations, plays a critical role in monitoring commercial banks, intervening in markets to stabilize exchange rates, and facilitating cross-border payments. These efforts are central to ensuring the stability of Sri Lanka’s external financial system.
She gave the above affirmation in response to a question posed by The Island Financial Review whether her department could give the assurance to the people of this country that the county’s limited foreign reserves would be managed by the Central Bank prudently.
” Yes, we can assure the public that we will manage our foreign reserves prudently ensuring there is no pressure on external or internal payments,” she said when asked to elaborate on her response.
She said so at a press briefing where the Central Bank of Sri Lanka released its first Monetary Policy Report for 2025 in keeping with the requirements of the Central Bank’s mandate.
The Monetary Policy Report provides forward-looking insights about the economy, particularly in terms of inflation and economic growth. The Report also aims to provide an assessment of risks to the projections on inflation and economic growth, considering the ongoing and expected developments on domestic and global fronts. Through this Report, the Central Bank strives to improve transparency and accountability by communicating the rationale behind its recent monetary policy decisions.
The key highlights of the report are as follows
• The monetary policy stance was further eased in late 2024, while the accommodative monetary policy stance continued into January 2025
• The Central Bank implemented a single policy interest rate mechanism introducing the Overnight Policy Rate as the primary monetary policy tool
• Headline inflation (year-on-year) remained in the negative territory since September 2024 mainly due to significant reductions in energy prices
• Following the projected near term deflation in early 2025, headline inflation is forecast to increase and converge to the targeted level of 5 per cent over the medium term
• Economic activity continued its recovery in 2024, supported by eased monetary conditions and improving investor confidence.
• With the effective implementation of necessary structural reforms and growth oriented policies, the growth momentum of the economy is expected to continue
Based on leading economic indicators, survey findings, and staff evaluations, real GDP growth in Q4-2024 is expected to be robust. Accordingly, the annual economic growth for 2024 is projected to be around 5 per cent.
It is noteworthy the Central Bank clearly stated at the press briefing that in the post-debt restructuring scenario, the ongoing fiscal consolidation measures, in line with the Extended Fund Facility (EFF) of the International Monetary Fund (IMF) needs to be pursued as there is no room for any deviations from the current fiscal path.
“The Government has promised numerous growth-oriented policies, which are yet to be formalized through the Budget. If these policies are implemented effectively as planned, they could support the corresponding sectors directly, while possible improvements in the doing business environment and governance would help enhance the growth potential of the economy,” the Central Bank said.
Company stresses ambition to surpass this milestone
Eyes markets across Africa and beyond
In a groundbreaking achievement for Sri Lanka’s IT and electronics manufacturing industry, EWIS Colombo Ltd, the country’s first and only local computer manufacturer, has successfully exported its first consignment of locally built laptops to Zimbabwe.
This landmark event not only positions Sri Lanka as an emerging force in global IT hardware manufacturing but also highlights EWIS’s commitment to innovation, quality, and excellence on the international stage.
This historic shipment, dispatched from EWIS’s state-of-the-art manufacturing facility in Samajasewapura, Sooriyawewa, underscores the company’s dedication to delivering world-class technology solutions. With over 11 years of expertise in manufacturing and assembly, EWIS Colombo Ltd has played a pivotal role in driving Sri Lanka’s ICT sector forward. As a Board of Investment (BOI) Section 17-approved company, EWIS has established the country’s first and only local computer manufacturing plant, paving the way for the nation’s growth in high-tech exports.
Speaking on this momentous achievement, Sanjeewa Wickramanayake, Chairman of EWIS Colombo Ltd, said: “This milestone is not just for EWIS but for Sri Lanka as a whole. It proves that our country has the talent, capability, and ambition to manufacture and export high-quality IT products, competing confidently on the global stage. As we continue expanding beyond local markets, we take immense pride in showcasing Sri Lanka’s excellence in technology and innovation to the world. EWIS’s commitment to world-class quality is reinforced by its ISO 9001:2015, ISO 14001:2015, CE, FCC, and RoHS certifications, ensuring compliance with international quality, safety, and environmental standards.”
Speaking further he said:
“For nearly four decades, EWIS has been a trailblazer in Sri Lanka’s ICT sector, delivering cutting-edge solutions for education, businesses, and government enterprises.
With over 11 years of local manufacturing and assembly expertise, EWIS has continuously refined its capabilities to produce high-quality, internationally competitive IT hardware. The successful export to Zimbabwe represents a bold step toward expanding EWIS’s global footprint, reinforcing Sri Lanka’s potential as a world-class technology and manufacturing hub.”
Dialog Television, Sri Lanka’s #1 Pay-TV service provider, has partnered with Emerging Media to enhance the convenience and effectiveness of advertising. This collaboration brings together Dialog Television’s world-class entertainment, featuring 18 advertisable channels across genres such as movies, edutainment, kids, music, sports, and local content, with Emerging Media’s expertise in digital advertising and targeted marketing. This synergy creates a seamless platform for businesses to maximize brand exposure across multiple channels.
With a reach of over 1.7 million households, Dialog Television provides advertisers with a powerful avenue to engage diverse audiences. Brands can place advertisements on leading international and local channels such as &flix, Star Movies, TLC, Animal Planet, AXN, Zee Café, Comedy Central, Star Plus, A+, Nickelodeon, Star Vijay, Zee Tamil, Star Sports, Ten Cricket, Sony SIX, ThePapare TV, Channel One, Citi Hitz and Channel C. Through this partnership, Emerging Media will facilitate advertising sales, allowing businesses to target specific viewer segments while simplifying the media buying process with a single point of contact.
Commenting on the partnership, Lim Li San, Group Chief Operating Officer at Dialog Axiata PLC, stated, “As Sri Lanka’s premier Pay-TV service provider, we serve more than 1.7 million households with over 6 million pairs of captive eyeballs across Sri Lanka. Today, we are excited to embark on this partnership with Emerging Media to avail our Dialog Television platform and brand strength to provide quality advertisement exposure and customer engagement to local businesses across Sri Lanka.”
The International Institute of Health Sciences (IIHS), a pioneer in healthcare training for over 23 years, has partnered with the University of Surrey, UK, to revolutionise healthcare education in Sri Lanka and the broader South Asian region. This will create a world-class academic pathway for aspiring nursing and healthcare professionals, as well as young individuals seeking careers in the field. Under this agreement, IIHS and the University of Surrey will introduce a series of academic initiatives to enhance healthcare training and accessibility.
These include delivering internationally recognised nursing programmes that allow Sri Lankan and regional students to earn globally competitive qualifications in Sri Lanka.
Commenting on the move, Dr. Kithsiri Edirisinghe, CEO & Dean of Undergraduate Studies at IIHS, said: “This MOU marks a significant step in our mission to deliver world-class healthcare education to Sri Lanka and the region. IIHS remains dedicated to shaping the future of healthcare professionals and fostering global healthcare leadership.” Dr. Shelini Surendran, Associate Dean (International) at the University of Surrey, emphasised: “Sri Lanka is establishing itself as a regional education hub, and this partnership ensures students across Asia can access top-tier UK healthcare education at IIHS. By bridging academic excellence with accessibility, we provide students with a clear pathway to their professional goals.”
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