Import expenditure increased to US dollars 13,718 million

Export unit value declined by 5.6 per cent y-o-y

The deficit in the trade account widened to US dollars 4,200 mn during the nine months ending September 2024 from US dollars 3,341 mn in the corresponding period of 2023, the Weekly Economic Indicators report of the Central Bank of Sri Lanka states.

“Earnings from exports increased by 6.0 per cent (year-on-year) to US dollars 9,518 mn during the nine months ending September 2024 as a result of increased earnings mainly from exports of petroleum products (111.0%), textiles and garments (2.6%), food, beverages and tobacco (19.2%), rubber products (10.7%), tea (7.0%), and coconut related products (20.0%), among others,” it states.

Further notes from the report are reproduced below.

Import expenditure increased by 11.3 per cent (year-on-year) to US dollars 13,718 mn during the nine months ending September 2024, mainly due to higher imports of textiles and textile articles (18.2%), machinery and equipment (22.9%), chemical products (25.7%), and building material (25.3%), among others.

The export unit value index declined by 5.6 per cent, (year-on-year), in September 2024 mainly due to lower prices recorded in exports of industrial goods. The import unit value index in September 2024 declined by 4.4 per cent, (year-on-year), due to lower prices recorded in intermediate goods. Accordingly, the terms of trade deteriorated by 1.2 per cent, (year-on-year) to 85.2 index points in September 2024.

The average price of tea in the Colombo auction increased to US dollars 4.09 per kg in September 2024 from US dollars 3.63 per kg in September 2023.

On year-on-year basis, Colombo Consumer Price Index (CCPI) based headline inflation remained in the negative territory for the second consecutive month, recording a deflation of 0.8 per cent in October 2024 compared to 0.5 per cent in September 2024.

Food category recorded an inflation of 1.0 per cent, while the Non-Food category recorded a deflation of 1.6 per cent. Further, the CCPI based core inflation moderated to 3.0 per cent in October 2024 from 3.3 per cent in September 2024.

In September 2024, Purchasing Managers’ Index for Construction, as reflected by the Total Activity Index, indicated a contraction in construction activities, on a month-on-month basis.

At the start of the period from 26th October to 01st November, 2024, oil prices fell on signs of de-escalation of geopolitical tensions in the Middle East. However, prices picked up again towards the end of the week on concerns about retaliatory attacks. Overall, Brent and WTI prices rose by US dollars 0.36 and US dollars 1.96 per barrel, respectively, over the period.

Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 01st November 2024 decreased by 12 bps to 9.05 per cent compared to the previous week.

The Average Weighted Call Money Rate (AWCMR) recorded as 8.55 per cent on 01st November 2024 compared to 8.57 per cent at the end of the last week.

The reserve money decreased compared to the previous week mainly due to a decrease in the currency in circulation and deposits held by the commercial banks with the Central Bank.

The total outstanding market liquidity was a surplus of Rs. 80.050 bn by 01st November 2024, compared to a surplus of Rs. 86.268 bn by the end of the last week.

The gross official reserves were provisionally estimated at US dollars 5,994 mn as at end September 2024. This includes proceeds from the People’s Bank of China (PBOC) swap arrangement, which is subject to conditionalities on usability.

On the 29th of October, COYLE held its landmark 2024 Leadership Forum at Shangri-La Colombo, uniting thought leaders, entrepreneurs, and visionaries to shape the future of business. Designed to inspire the next generation of trailblazers, the event brought together influential voices in the world of entrepreneurship and business strategy, setting the stage for an extraordinary day of knowledge sharing and forward-thinking ideas.

This year’s forum was headlined by Ebraheem Al Samadi, a celebrated entrepreneur and luxury retail leader from Dubai. Known globally as a star of Netflix’s Dubai Bling, Al Samadi shared a compelling account of his entrepreneurial journey — one marked by calculated risks, relentless ambition, and remarkable success. His address highlighted the core tenets of perseverance and passion in achieving one’s goals, leaving the audience with invaluable insights into the realities and rewards of entrepreneurial resilience.

Adding to the forum’s stellar lineup was Harsha Fernando, an innovation strategist from Los Angeles, California. With a focus on purposeful innovation and inspiring future change-makers, Fernando’s talk, Lead with Vision, Innovate with Purpose, provided strategic advice for young entrepreneurs to drive meaningful change. His message resonated deeply with the audience, underscoring the need for vision, adaptability, and an unwavering commitment to social impact in business.

The COYLE Chairman, Thushira Radella, a visionary and boundary-breaker, also took to the stage. Known for his business acumen and achievements across industries, Radella shared insights on building sustainable enterprises, fostering growth, and redefining industry standards. His address reaffirmed COYLE’s commitment to creating a vibrant ecosystem for entrepreneurs to thrive, grow, and expand from Colombo to the world.

An investment of USD 82 million

DH Ceylon Energy Pvt Ltd, a subsidiary of Ceylon Energy (PTE) Ltd and DH Energy (SG) PTE. LTD Singapore in a landmark collaboration with Southern Nexus Pvt Ltd, recently announced the initiation of Project Apollo, a 110MW solar park in Hambantota.

With an investment of USD 82 million, this groundbreaking initiative positions Sri Lanka at the forefront of the renewable energy revolution, offering a significant leap toward a more sustainable energy landscape.

This project will feature an innovative 11x10MW Ground Mounted Solar Project at the Gonnoruwa Solar Energy Park, a state-of-the-art development that will power thousands of homes and industries with clean, renewable energy. The park will play a critical role in bolstering Sri Lanka’s energy grid while reducing the country’s carbon footprint—demonstrating DH Ceylon Energy’s commitment to addressing both the local and global energy challenges of the 21st century.

“Project Apollo is not just about energy generation—it’s about creating a sustainable future for all Sri Lankans,” said Madusanka Fernando, Chairman of Ceylon Energy PTE Ltd.

“Through this project, we are investing in the wellbeing of our communities ensuring that future generations have access to clean, reliable energy. It is a pivotal moment in our journey of ‘Lighting People’s Lives’ and making the world fueled with sustainable energy.