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Govt. debt increased by Rs. 2.3 trillion within 11 months

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LKR depreciates against US dollar by 25.2 percent

Outstanding central government debt increased to Rs. 17,413.7 bn by end November 2021 from Rs. 15,117.2 bn as at end 2020, according to data given by the Central Bank of Sri Lanka.

During the year up to 18th March 2022, the Sri Lankan rupee depreciated against the US dollar by 25.2 per cent, the Central Bank said.

“Given the cross currency exchange rate movements, the Sri Lankan rupee depreciated against the Indian Rupee by 23.6 per cent, the

Euro by 23.6 per cent, the pound sterling by 23.2 per cent and the Japanese yen by 22.8 per cent during this period,” the Weekly Economic Indicators report issued by the Bank said.

It further said: “The reserve money increased compared to the previous week mainly due to currency in circulation. The total outstanding market liquidity was a deficit of Rs. 613.226 bn by the end of last week, compared to a deficit of Rs.703.572 bn by the end of last week.”

“By 18th March 2022, the All Share Price Index (ASPI) decreased by 3.03 per cent to 10,353.83 points and the S&P SL 20 Index decreased by 1.91 per cent to 3,585.47 points, compared to the index values of the previous week.”

“During the period under review (12.03.2022 to 18.03.2022), crude oil prices showed mixed performance. At the beginning of last week, oil prices fell on optimism that there would be a diplomatic end to tensions between Russia and Ukraine. Demand concerns on lockdowns in China also weighed negatively on prices. However, prices increased toward the end of the period under review on heightened investor uncertainties about the stalled progress in Russia-Ukraine peace negotiations. Overall, Brent and WTI prices decreased by US dollars 0.69 per barrel and US dollars 0.97 per barrel respectively, during the period.”

“Weekly AWPR for the week ending 18th March 2022 increased by 33 bps to 9.46 per cent compared to the previous week. Sustaining the expansion on a M-o-M basis, the Purchasing Managers’ Indices for both Manufacturing and Services activities increased in February 2022, recording 52.5 and 51.8 index values, respectively.

IIP in January 2022 decreased by 7.1 per cent to 100.5 compared to January 2021. Among the major sub divisions of the manufacturing industries, “coke and refined petroleum products” (92.9 per cent) has mainly contributed to this overall decrease,” Central Banks Weekly Economic Indicators showed.



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NCE highlights costs of Customs officers’ trade union action

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‘The recent actions taken by the Sri Lanka Customs Officers Union, including a two-day sick leave campaign and work-to-rule initiatives, have had profound implications across Sri Lanka’s business community, particularly affecting exporters and importers. These actions were initiated due to perceived grievances and unmet demands from the Customs Officers Union on various issues, the National Chamber of Exporters of Sri Lanka (NCE) is quoted as saying in a press release.

The release adds: ‘Jayantha Karunaratne, president of the National Chamber of Exporters of Sri Lanka highlighted the significant disruptions caused by these actions. He emphasized that the work-to-rule approach has resulted in substantial delays in clearing imported goods at ports and checkpoints, causing disruptions in production schedules and logistical operations. These delays have particularly impacted exporters, who face stringent deadlines to fulfill international orders, leading to strained relationships with overseas buyers and potential financial penalties for missed deliveries.

‘Additionally, these disruptions have imposed additional costs on businesses. Importers have incurred demurrage charges due to extended delays in clearing shipments, impacting profitability and operational efficiency. For exporters handling perishable goods like seafood and fresh produce, delays have posed substantial challenges, sometimes resulting in significant financial losses and resource wastage from spoiled goods.

‘The NCE underscored Customs’ critical role in facilitating trade and economic activity in Sri Lanka, stressing that efficient and predictable Customs processes are crucial for maintaining the competitiveness of Sri Lankan businesses globally. Given that exports are pivotal to Sri Lanka’s economy, disruptions to Customs operations can have far-reaching impacts on economic growth, employment, and overall national prosperity.

‘Expressing serious concern about potential escalations, the NCE warned that prolonged strikes or ongoing disruptions could further destabilize business confidence and investor sentiment. They urged swift and constructive dialogue between the Customs Officers’ Union and relevant authorities to address grievances and find mutually beneficial solutions. Restoring normalcy and reliability to Customs operations, they emphasized, is imperative to support the resilience and growth of Sri Lanka’s export sector amid challenging global economic conditions.

‘In addition to operational disruptions, exporters are increasingly voicing frustration and concerns about Sri Lanka’s future business environment. Many are contemplating relocating operations to countries offering more stable and predictable trade conditions. This potential exodus poses significant economic risks, including job losses, reduced export revenues, and diminished investor confidence.

‘Shiham Marikar, Secretary General/CEO of NCE, stressed the urgent need for Sri Lanka to address these challenges promptly to retain and attract businesses. He emphasized the importance of creating a supportive environment for exporters characterized by efficient Customs processes, regulatory stability, and supportive government policies. Such an environment is crucial for retaining existing exporters and attracting new investments, thereby fostering economic growth and enhancing competitiveness in global markets.

‘Highlighting the competitive nature of the global economy, the NCE emphasized the necessity for Sri Lanka to maintain a reliable and efficient trade infrastructure to remain competitive internationally. Addressing exporter concerns and ensuring a stable business environment should be a top priority for policymakers and stakeholders alike.

‘It is crucial for the government to take swift action to prevent recurring disruptions caused by the Customs Officers’ Union. The recent disruptions have disproportionately affected Small and Medium Enterprises (SMEs), which are the backbone of Sri Lanka’s economy. SMEs, operating with smaller margins and less flexibility, are particularly vulnerable to delays and uncertainties in trade operations.

‘These disruptions not only impact daily SME operations but also undermine their competitiveness in domestic and international markets. Many SMEs rely heavily on timely imports and efficient exports to sustain operations, making disruptions detrimental to their growth and viability. Prolonged instability in trade operations risks SMEs relocating or downsizing operations in Sri Lanka, posing significant threats to employment, economic growth, and overall stability.

‘The NCE urged the government to implement robust measures to prevent future disruptions, including constructive dialogue with Customs officers and reforms enhancing Customs efficiency and predictability. Creating a stable and supportive business environment is crucial for protecting SMEs and fostering their growth, thereby contributing to Sri Lanka’s economic resilience and prosperity’.

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Elevating customer experiences, Sampath Bank partners with Royal Colombo Golf Club

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The team from Royal Colombo Golf Club, including Amrith De Soysa – Captain, Gehan Siribaddanan – Vice Captain, Ms. Geera Gajamugan – Director of Administration and Shiran D. Rahuman – Manager of Marketing & Membership Services, stands on the left. De Soysa is seen receiving the main sponsorship from Ms, Ayodhya Iddawela – Managing Director of Sampath Bank PLC, surrounded by Tharaka Ranwala, SDGM – Marketing, Customer Care and Card Centre, Pujitha Rajapaksa, Chief Manager – Marketing and Shantha Kalawitigoda, Manager – Events & Activations.

Sampath Bank is pleased to announce its sponsorship of the prestigious July Monthly Medal Event at the Royal Colombo Golf Club (RCGC), scheduled for the 12th and 13th of July 2024. The sponsorship was formalised during a cheque-handing ceremony on the 10th of July, marking a significant collaboration between Sampath Bank and the RCGC.

The July Monthly Medal Event is a highlight on the golfing calendar, attracting over 300 golfers from across the country. The event will be held over two days, culminating in an award ceremony on the second day. Sampath Bank’s involvement acknowledges its commitment to fostering customer satisfaction and providing exceptional experiences for its valued customers.

Participants in the event will enjoy a variety of activities, including a golf practice session with coaching, the main golf tournament, and an exclusive Cheese & Wine evening on the first day for Sampath Bank customers. Following the two-day tournament, there will be a grand award ceremony and a cocktail event to honour the winners. This initiative not only promotes golf but also provides a unique platform for high-net-worth individuals to engage in a distinguished social setting.

Commenting on the sponsorship, Tharaka Ranwala, Senior Deputy General Manager Marketing, Customer Care & Card Centre, said, “Sampath Bank has always been a strong supporter of all sports, though golf has traditionally been less highlighted, despite its popularity among elite and high-net-worth customers within the banking industry. Sponsoring this event aligns perfectly with our new vision and strategy, which emphasises a greater focus on corporate customers and high-net-worth individuals. Although this is our first partnership with the Royal Colombo Golf Club, we bring extensive experience from our previous collaborations with the Tamil Golf Association’s events in the UK and Canada.”

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Asiri Hospitals and NITF sign landmark agreement to provide tangible healthcare benefits for all Agrahara members

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Asiri Group of Hospitals, trusted for high standards in patient-centered care has signed a landmark agreement with the National Insurance Trust Fund (NITF), to provide comprehensive concessions to all government employees through the Agrahara Medical Insurance scheme.

The Memorandum of Understanding (MoU) was signed by Dr. Manjula Karunaratne, Director/Group CEO of Asiri Hospitals, and Gamani N. Liyanarachchi, CEO of NITF, during a ceremony held recently.

The event was attended by several distinguished participants from both organizations. Representing NITF were Sagala Abhayawickrama, Chairperson, Samil Thushara, AGM Operations, Nimali Pathirana, AGM Insurance, Prathibha Welikanna, Asst. Manager Legal, Nuwan Dissanayake, Asst. Manager Marketing, Dammika Weerakoon, Acting AGM Finance.

Asiri Hospitals was represented by Nihal Ratnayake, Director Operations Asiri Central Hospital, Indresh Fernando, Chief Process Officer, Bhathiya Jayasinghe, Group Head, Business Development, Dhananjaya Bandara Dela, Head of Business Development, Government Sector.

The enduring partnership aims to offer tangible healthcare benefits and the renowned comprehensive healthcare services offered by Asiri Hospitals to all NITF Agrahara members. It marks a major milestone in Asiri Hospitals’ commitment to build long-term collaborations that benefits the community. It also reaffirms Asiri Hospitals’ position as a trusted healthcare provider ensuring healthcare is more accessible, affordable, while uplifting the living standards of the public service.

Importantly, Agrahara members are eligible to seek treatment from any hospital in the Asiri group or its laboratories. The agreement also introduces a cashless admission scheme for NITF members, simplifying the process and enabling seamless access to Asiri Hospitals’ services without the need for upfront payments. Members can benefit from waived admission fees, reducing the financial burden for those seeking medical care. Room rates are also heavily discounted.

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