Business

Revenue decline puts pressure on govt’s fiscal management

Published

5 years ago

2021/07/6

Sahan Weerasooriya

Moves underway to strengthen gross official reserves

Seeking support from IMF ruled out

by Sanath Nanayakkare

As government revenues have fallen below expected levels, fiscal management of the government is under pressure, Ajith Nivard Cabraal, State Minister of Finance, Capital Markets and State Enterprise Reforms said in Colombo yesterday.

He made this remark while speaking at a media briefing held at the Ministry of Finance.

“Although a sovereign bond of USD one billion needs to be settled this month, the actual outflow would be USD 700 million as Sri Lankan citizens own a share of USD 300 million of it. The current reserves are at USD 4 billion. After making this payment, the reserves will technically remain at USD 3 billion. Agreements have been arrived at with People’s Bank of China for a SWAP loan of USD 1.5 billion. In addition, the foreign exchange reserves will have contributions from Bangladesh Bank (SWAP) – USD 200 million, Reserve Bank of India (SWAP) USD 400 million. IMF (SDR allocation) USD 780 million and China Development Bank (Balance Loan) USD 200 million,” he said.

“In the next six months, the Central Bank will purchase USD 500 million from the forex market to consolidate the gross official reserves,” he said.

Further, a number of bilateral discussions are underway including for a USD 500 million syndicated loan while the Central Bank Governor has forecast a decline of imports by USD 700 million. he said.

The state minister said that the government has been able to collect only 34% of the government revenue in the first six months while 48% of the allocated recurrent expenditure has been spent during the period and 30% of the capital expenditure has already been invested in projects.

“Although the exchange rate is Rs. 200 to a USD, further depreciation is possible. The reasons for this are; reluctance of the exporters to convert their forex earnings and importers acting swiftly to import goods to top up their stocks for a longer time than it is necessary,” he said.

Further speaking he said,” The economy weakened from 2015 to 2019. Growth rate declined to 2.3% from 6.8%. Per capita income reported only a slight increase of USD 33 from USD 3,819 to USD 3,852. Gross Domestic Product was up by only USD 4 billion from USD 80 billion to USD 84 billion. Debt to GDP ratio increased to 87% from 72%. The debt stock increased to Rs.13 trillion from Rs. 7.5 trillion. The government’s interest expenditure in proportion to GDP increased to 6% from 4.2%. Due to rupee depreciation during the period, the debt stock rose by Rs. 1772 billion. Sovereign bond interest rate increased to 7.8% from 5.8%. Exports remained at an average of USD 11.1 billion while the trade deficit increased to USD 9.3 billion from USD 7.6 billion. Although sovereign bonds to the tune of USD 12 billion had been issued during the five years, foreign exchange reserved declined to USD 7.6 billion from USD 8.2 billion. The budget deficit increased to 9.6% from from 5.7%. Employed persons reduced to 8.2 million from 8.4 million. Central Bank’s treasury bill holdings shot up to Rs. 75 billion from zero. Rupee to USD exchange rate depreciated by 39% from Rs. 131 to Rs. 182. USD 3,089 million worth of Central Bank reserves were sold to maintain the value of the rupee. If this had not been done, foreign exchange reserves would have remained at USD 10.7 billion. The country’s credit rating downgraded to B (Negative) from BB- (Stable) – four notches during the period. Foreign debt versus domestic debt shifted to 48:52 from 42:58. From 2015 to 2019, government revenue was up by 65%, but as interest rates were high amid low growth, that advantage slipped through.”

“When Covid-19 hit Sri Lanka in 2020, in spite of the resilience some sectors of the economy had shown, the overall economy further weakened. As the economy had been completely shut for 66 days, it led to a negative growth of 3.6% while per capita income declined to USD 3,682 with the lowering of GDP to USD 81 billion. Debt to GDP increased to 101% from 87% while the debt stock increased to Rs.15.1 trillion from Rs. 13 trillion, therefore, interest expenditure was up by 6.5% to GDP in spite of low interest rate.”

Due to rupee depreciation, the debt stock increased by Rs. 356 billion. The repayment of USD 1 billion sovereign bond, the loss of income from Tourism around USD 3.5 billion, foreign exchange reserves fell to USD 5.7 billion from USD 7.6 billion. The impact of Covid-19 saw a spike in expenditure by about Rs. 100 billion while the government revenue declined, hence the budget deficit increased to 11.1%. The rupee depreciated 2.6% versus the USD to Rs. 187. However, the Central Bank bought USD 283 million from the forex market, and in 2021, the Bank has bought USD 130 million up to now. While the credit rating was downgraded to CCC(Stable) foreign debt to local debt ratio turned favourable by becoming 40:60 from 48:52. Low interest rate in 2020 brought some relief to the overall economy while the government also gained from it. Although exports were down to USD 10 billion, thanks to import controls, the trade balance was reduced to USD 6 billion.”

The state minister said that although there is a challenge to managing the economy, the government would not run away from its responsibility and would restore it a point where there is space for Sri Lanka to make a favourable turnaround with expected non-debt creating inflows to the Port City, Hambantota Industrial Zone, Pharmaceutical Manufacturing Zone, and last but not least with Sri Lanka Tourism reopening its boarders for the lucrative industry as the vaccine rollout is progressing well.

He empasised the fact that the government would not look to the IMF to get any help from it as those who recommend it want the government to get into difficulty as we would have to fall in line with IMF’s stringent economic recipe and conditions which come in hand in hand with their support.

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Business

Cricket to speak for every life that can be saved on Sunday July 19

Published

9 hours ago

2026/07/12

Thilina Walpola

Pink match Dambulla Sixers vs. Jaffna Kings

Dambulla Sixers Pink Match calls Sri Lanka to wear pink, fill the SSC, and take the TLC (Touch, Look, Check) message home

There are days when cricket is about the result. There are days when it is about pride, rivalry, form and the final over. And then there are rare days when cricket is asked to carry something far greater than the game itself. Sunday, July 19, will be one of those days.

At 3.00 p.m. at the SSC Grounds, the Dambulla Sixers will meet the Jaffna Kings in the Lanka Premier League. But before the first ball is bowled, the country will be invited to stand together for a message that can save lives. This is the LPL Pink Match 2026.

It is not simply a match played in pink. It is a national reminder that breast cancer awareness matters, early detection saves lives, and every family has a role to play. The call to the public is direct:

Buy a ticket. Come to SSC. Wear pink. Bring your family and friends. Share the flyer. Post it on your WhatsApp Status and social media. Wear the official Pink Fan T-shirt. Most importantly, take home the message of TLC — Touch, Look, Check.

A match with a message

The Dambulla Sixers will take the field in specially designed pink playing apparel and pink helmets. The stadium will carry breast cancer awareness messages, the TLC logo will be displayed on giant screens, and the live broadcast will carry the message to homes across Sri Lanka. The Jaffna Kings will also take part in the Pink Match ceremony, reminding the country that while there may be opposing sides in cricket, there are no opposing sides in the fight against cancer.

Children from Suwa Arana – A Place for Healing, together with children from SOS Children’s Villages Sri Lanka, will join both teams on the field during the official ceremony. Their presence will give the day its deepest meaning. It will remind spectators that illness does not stop with the patient. It enters homes, affects siblings, changes routines, tests parents, and demands courage from entire families.

Three words that matter

The message of the Pink Match is simple enough for every home to remember.

Touch. Look. Check.

Touch — become familiar with your breasts and notice any lump, thickening or unusual change.

Look — check for changes in shape, size, skin or nipple.

Check — seek medical advice without delay if something feels or looks unusual.

In Sri Lanka, breast cancer remains the most common cancer affecting women. According to the campaign material, approximately 15 women are diagnosed every day, while three women lose their lives to the disease. Yet the central message is one of hope: when detected early, breast cancer is highly treatable.

That is why this match matters. Not because a cricket match can replace medical care. It cannot. But a cricket match can start a conversation. It can remind a daughter to speak to her mother. It can encourage a husband to support his wife. It can make a workplace talk about women’s health. It can help remove fear and delay.

Sometimes, the first step towards saving a life is not taken in a hospital. It is taken in a home, when someone says, “Please check.”

More than a one-day gesture

What gives this initiative particular strength is that it is not a cause attached to cricket for a day. It is rooted in a deeper relationship. Before the Pink Match, the Dambulla Sixers team will visit Suwa Arana – A Place for Healing, where children receiving cancer treatment and their families are supported with accommodation, meals, care and dignity while they travel for treatment at Apeksha Hospital. The team visit will include time with children and families, a guided experience through Suwa Arana, and the official launch of the LPL Pink Match 2026 and the TLC National Breast Cancer Awareness Campaign.

This matters because compassion cannot be staged only under stadium lights.

It must begin in quieter places — in patient rooms, dining areas, kitchens, play spaces, healing gardens and waiting moments. By beginning at Suwa Arana and continuing at SSC, the Dambulla Sixers are connecting the human reality of cancer care with the national reach of cricket.

That is the bridge this campaign is trying to build.

Business

The Ceylon Chamber’s Commercial Document Registration Division expands export support

Published

1 day ago

2026/07/11

Thilina Walpola

The Commercial Documents Registration Division (CDRD) of The Ceylon Chamber of Commerce has expanded its export support services with the introduction of the Free Sale Letter for Pharmaceuticals, providing Sri Lankan pharmaceutical manufacturers and exporters with an additional document certification service to support their export processes and compliance requirements in international markets.

The new service expands CDRD’s portfolio of trade documentation solutions, which includes Certificates of Origin and the certification of key commercial documents required by overseas buyers, customs authorities, and regulatory bodies. These services assist exporters across sectors by helping ensure their documentation meets applicable requirements for international trade.

Established in 1925 as one of the authorised institutions to issue Certificates of Origin in Sri Lanka, CDRD has supported the country’s international trade for nearly a century. Today, the Division provides certification and verification services to exporters, manufacturers, freight forwarders, logistics providers, and other trade stakeholders, supporting businesses in meeting documentation requirements for global markets.

In addition to pharmaceutical certification, CDRD facilitates the certification of Commercial Invoices, Packing Lists, Price Lists, Health Certificates, Phytosanitary Certificates, Certificates of Analysis, Bills of Lading, Survey Reports, Beneficiary Certificates, and other export-related documents. The Division also issues Free Sale Letters and Surveyor Appointment Letters, while supporting exporters through the Ministry of Foreign Affairs’ Electronic Document Attestation System (e-DAS), enabling secure and efficient document authentication.

Through established processes, digital solutions, and its e-service platform, CDRD continues to enhance the efficiency and accessibility of trade documentation services. Available 24/7 and 365 days of the year, the platform enables exporters to submit and manage documentation requirements conveniently while ensuring that certified documents meet internationally accepted requirements. By providing reliable documentation support and adapting its services to changing trade needs, the Division assists Sri Lankan businesses in managing export requirements and accessing international markets.

For more information on obtaining commercial document registration services, contact Achala via achala@chamber.lk / 0115588886

Business

Siyapatha Finance unveils newest branch in Bandarawela

Published

1 day ago

2026/07/11

Thilina Walpola

Siyapatha Finance PLC recently expanded its island-wide footprint with the successful inauguration of its 64th branch in Bandarawela. Strategically located in scenic hill town in the Badulla District, the latest branch offers convenient and wider access to tailored, customer-centric financial solutions.

The branch was ceremoniously declared open by Siyapatha Finance PLC Chief Executive Officer (CEO) Mathisha Hewavitharana, joined by Chief Operating Officer (COO)Rajeev De Silva, Ms.D.M. Dewmi Tharindi, a student of Bandarawela Dharmapala Vidyalaya who won the Under-18 Girls’ 3,000m event at the Junior National Athletics Championship, the Senior Management and staff members as well as Traffic OIC Kandasami, Trade Association Secretary Sunanda Rathnayaka, representatives of the government and private banks and insurance companies and well-wishers.

Sharing his thoughts, Siyapatha Finance PLC CEO Mathisha Hewavitharana remarked: “We are deeply honoured to be of service to the people of Bandarawela. Opening this branch is a pivotal step in our 2026 expansion strategy and a reflection of our commitment to strengthen our presence in Sri Lanka. It is a region that showcases potential for greater economic development primarily through the country’s traditional agricultural practices. We look forward to reaching as many different communities as possible in the coming years.”

The Bandarawela branch offers a comprehensive product portfolio including leasing, fixed deposits, gold financing, business loans, personal loans, fast draft, and factoring to Smart Pay, the Company’s bill payment facility. With a thorough understanding about the current socio-economic dynamics of the region, the well-trained team at the newest branch is dedicated to providing flexible financial solutions to aspiring individuals as well as small and medium-scale enterprises (SMEs).