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‘Recent Economic Developments: Highlights of 2020 and Prospects for 2021’

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The Central Bank of Sri Lanka released its report on “Recent Economic Developments: Highlights of 2020 and Prospects for 2021”. The Report can be downloaded from the website of the Central Bank of Sri Lanka in all three languages. In addition to the regular update on economic developments, the report also presents an update to the medium term macroeconomic projections published by the Central Bank in April 2020, taking into account the information available up to mid-October 2020.

The publication of the report this year comes at a crucial juncture as the economy continues to navigate through multipronged socio-economic challenges and uncertainties caused by the COVID-19 pandemic.

According to the report, the Sri Lankan economy, experienced below potential growth in recent years, encountered renewed challenges amidst the outbreak of COVID-19. Reflecting the combined effects of the spread of COVID-19 locally and the introduction of lockdown measures, the slowdown in global economic activity, and the adverse weather conditions in the country, the economy contracted by 1.6 per cent in the first quarter of 2020, year-on-year, as per the provisional estimates of the Department of Census and Statistics (DCS). GDP estimates for the second quarter have not yet been released by the DCS citing difficulties in capturing the true nature of disruptions and new activities as well as novel ways of working that emerged this year with the onset of the pandemic. Nevertheless, high frequency data point towards a strong recovery in many areas of economic activity in more recent months prior to the resurgence of COVID-19 infections and resultant containment measures in October 2020.

The recovery of activity was facilitated by the concerted efforts of the government and the Central Bank. Relief measures and large scale policy stimuli were introduced to help businesses and individuals affected by the pandemic. The Central Bank initiated a series of monetary easing measures, including multiple reductions of the policy rates and the Statutory Reserve Ratio (SRR), thereby injecting ample liquidity into the market and lowering borrowing costs significantly, given the unprecedented circumstances caused by the pandemic.

The adverse effects of the pandemic also prompted the introduction of concessional credit schemes to fulfil the needs of small and medium scale enterprises (SMEs), alongside debt moratoria for businesses and individuals affected by the pandemic. Responding to these measures, credit to the private sector showed a significant improvement in August and September 2020, reversing the slowdown observed in previous months.



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Business

From import to export – Finch Foods expands international retail presence to Australia

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Finch Foods booth exhibiting at Foodex Japan in Tokyo

Finch Foods – pioneering Sri Lankan FMCG brand – is furthering its international expansion with the launch of its retail presence in Australia. The move marks yet another turning point for the homegrown company, following four international market launches under the Finch Foods brand within the space of just three years, a company news release said on Wednesday.

This milestone entry includes a dedicated e-commerce site, a listing on Amazon AU, and ongoing discussions with major supermarket chains, specialty stores, and distributors. Australian consumers can now access Finch Foods’ extensive portfolio of high-quality signature spices and seasonings, coconut products, gluten-free flours, ayurvedic and herbal products, and natural food colourings that showcase the rich variety and distinctiveness of Sri Lankan ingredients, it said.

“Australia has always been a key market for Finch Foods – one with immense potential to enter, develop, and scale,” says Fawaz Fassi, Founder & Managing Director of Finch Foods. “This expansion reflects the growing global demand for authentic Sri Lankan heritage ingredients, and we are excited to bring our unique offerings to Australian consumers.”

Founded in 2015 as a 100 per cent import-driven company, Finch Foods entered the food industry by becoming the exclusive agent for renowned international brands such as Bragg Live Foods (USA), The Berry Company (UK), Kewpie (Japan/Malaysia), Cornish (UK), Pokka (Singapore), and Nando’s Grocery; bringing superior flavours and ingredients from around the world to Sri Lankan consumers.

However, the global pandemic followed by local economic instability severely tested this business model, and in just a few years since inception, it was time for the company to rethink its operations. In 2022 Finch Foods set its sights outwards by looking inwards; having discovered that there was a wealth of incredible spices, herbs, and ingredients to be found right here in Sri Lanka – robust and nuanced flavours that would surely intrigue culinary tastebuds from around the world.

“As a pioneer in culinary innovation, our vision is to harness the rich and diverse culinary tradition of Sri Lanka while also bridging the growing disconnect between food and its heritage,” Fassi adds. “At Finch Foods, we recognized the need to add unique value to our products—offering new and exciting options for consumers while distinguishing ourselves from more traditional exporters in the market.”

In 2023, Finch Foods celebrated the opening of its first independent store in Havelock City Mall, Colombo, and expanded its international footprint; establishing a retail presence in Hong Kong, the Czech Republic, and Canada, becoming a key supplier to Japan, and securing a partnership with global retail giant Lulu Group in the UAE. This shift to exports has allowed the company to adapt to different market requirements, leveraging its wide product range to remain flexible in catering to diverse consumer needs.

“As Finch Foods continues to expand its distribution network and strengthen its presence in Australia, the company is also poised to to focus on accelerating its global expansion, breaking into new markets, while also further diversifying its product portfolio,” the release concluded.

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The Residencies Kotte by ICC nears completion ahead of schedule

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The Residencies Kotte by ICC is making remarkable progress, moving ahead of schedule towards completion (December 2025). With ICC’s proven track record of on-time delivery and availability running low, this is a rare opportunity to invest in a home that blends modern luxury with a thriving community, said a release.

It said: Now in its final phase, key milestones are being completed at an accelerated pace. From the striking façade to the finishing touches within each apartment, every element is meticulously crafted to meet ICC’s highest standards.

As The Residencies Kotte nears completion, demand has surged. With all two-bedroom apartments already sold out, only a limited number of three-bedroom units remain available. This overwhelming response is a testament to the unmatched value, world-class amenities, and most importantly, the prime location. Nestled in the heart of Kotte, this development offers unparalleled convenience—situated in a highly sought-after neighbourhood that seamlessly blends urban connectivity with the tranquillity of a well-established residential area.

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Dearo Investment partners with Ceylinco General Insurance to enhance customer benefits

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Officials of Dearo Investment and Ceylinco General Insurance exchanging the MoU

Dearo Investment Pvt. Ltd. has signed an MoU with Ceylinco General Insurance to provide an insurance scheme for its customers. Under this agreement, every customer who transacts with Dearo from anywhere in the country will receive insurance coverage. The MoU was officially signed on 26 Feb, 2025. The signing ceremony was attended by key representatives from both organisations. Dearo Investment was represented by Chief Executive Officer and Managing Director Prasanna Sanjeewa and Chief Operating Officer Niranjan Warnasooriya, while Ceylinco General Insurance was represented by General Manager S. Thilakesh, Assistant General Manager V.K. Gunathilaka, Area Sales Manager N.G.C. Gunarathna, and Senior Marketing Executive Keshara Hasun. Dearo Investment has flourished as a trusted name in the financial sector with its highly experienced Board of Directors, including Prabash Gunaratne, Upul Edirisuriya, Tharindu Dhananjaya Samarawickrama, Niranjan Warnasooriya, and Thilini Kalhari Ekanayake.

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