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| Building business between Sri Lanka, Europe and North America Business Sri Lanka is the premier business network for professionals focused on building and developing business opportunities between Europe, North America and Sri Lanka. |  Platinum Sponsor
Enterprise Lab : Strategy, Advisory, IP and International Business Development Support Services. Working with leading Sri Lankan Businesses internationally. |
Sri Lanka IT-BPO UK Trade Mission Outstanding Success 
EnterpriseLab has been widely praised for the success of their recent UK Trade Mission for Sri Lanka's leading IT-BPO firms. Ten leading Sri Lankan companies visited the UK for one week resulting in unprecedented success in creating new partnerships, business deals and new commercial opportunity development. The Sri Lankan companies who participated in the program offer a range of services in Finance & Accounting, Engineering Services, Legal Services, Publishing Services and IT Services/Software Development. More details here.... Get involved: Upcoming Events..... Sri Lanka Business and Economy News Snap | |
| Sri Lanka's Business Sector Fails to Reach Global Media With a growth economy at a time of Global recession, Sri Lanka represents a light in the darkness of Global economic gloom. However, reflecting the past year of tracking media content and focus on Sri Lanka, Business Sri Lanka's Head of Media Services Matt Talbot, says that it is striking that Sri Lanka's business sector is grossly under reported and under represented in the Global media. There have been the (now) usual stories of a political nature, about the recently concluded conflict and 'some' focus and content on the country's growth-oriented economy.
There have been exceptions, and there have been some excellent commentary on the economic development and economic potential of Sri Lanka. But for a country that is emerging from decades of war, where the economy has demonstrated growth in a global economy, and where the business community has shown strength and determination - it is clear that Sri Lanka's business community needs 'international media champions'.
Scanning and reviewing communications from various Sri Lankan embassies and diplomatic missions throughout 2011, the activities and communications from the Embassy of Sri Lanka in the US stands out for commendation. The regular communications and media releases from the Embassy in Washington, endorsed by Ambassador Jaliya Wickramasuriya have provided a regular positive, upbeat and encouraging perspective on Sri Lanka imbued with a sence of realism and sincerity. A role model for Sri Lanka's diplomatic missions elsewhere around the Globe. Fitch Issues Stable Outlook for Sri Lanka's Insurance Sector On December 14 Fitch Ratings Lanka in a new report has said that its Outlook for Sri Lanka's insurance sector is Stable. Fitch considers the credit fundamentals of agency-rated issuers to be underpinned by their healthy capitalisation and good profitability, supported by improved macroeconomic factors. Key challenges to local insurers remain that of maintaining underwriting profitability in the motor segment (given competitive pressures), and also in maintaining market shares in life and non-life insurance as new players enter the market.
Fitch notes that intensified competition in the motor segment, which could further weaken underwriting profitability (owing to higher claims ratios). Healthier competition with reduced pricing pressures and lower market share concerns could be positive for ratings. he report, entitled '2012 Outlook: Sri Lanka Insurance Sector', is available at: tp://www.fitchratings.com Feature Article Basil Rajapaksa Hits Out at Officials and Bureaucratic Red Tape The Sri Lankan Government, in the form of Basil Rajapaksa, recognises the economic cost of Sri Lanka's bureaucratic red tape. Not surprising to those who encounter the country's excesses by bureaucratic extremists, Basil points out that officials apply their excesses of bureaucracy even down to approvals to build a toilet. Clearly Sri Lanka needs to clean up its act.
The cost of such bureaucratic extremism is reflected in the country's ranking at 102 on the Ease of Doing Business Index (World Bank). It takes 217 days to get a building permit for that toilet in Sri Lanka compared with 26 days in Singapore. One assumes there will be many crossed legs to get around in the process!
Even more worryingly, according to the 2011 report it takes 1,318 days to enforce a contract in Sri Lanka. Not surprising that Basil is worried. Bureaucratic red tape is obstructing private sector business projects as well as government development projects.
Certainly if Sri Lanka wishes to attract major investors and achieve much needed development of trade, bureaucratic red tape needs to be abolished finitely and without delay. Those officials who persist in the old practices should be named, shamed and sacked. To do otherwise will serve only to hold the country back. | | Sri Lanka's Trade Deficit Widens
Sri Lanka's trade deficit has grown to worrying levels over the past year and points to an urgent need to implement a better and more aggressive export trade strategy. This needs to be coupled with an aggressive strategy on import substitution - with proper support and incentives for local companies.
Sri Lanka's Central Bank has released figures for November 2011. Overseas sales, at US$879m represent an 11.6% improvement over November 2010. However, Imports increased 78% reaching US$1.98b in the same month.
The bulk of export trade earnings in November derived from two key sectors of sectors:
- Textiles and garment: US$347.6m
- Agricultural exports: US$184.3m Sri Lanka's trade deficit widened to US$1.1b in November compared with to deficit of US$325m a year earlier. In the 11 months to end November 2011, Sri Lanka's trade gap widened by 111.3% to a record US$8.84b. For Sri Lanka, continued financial weakness is a key rating constraint and points to the need for urgent policy reform and action on export trade development. Sri Lanka and Spain Top for Value for Money Holidays from UK Britons looking for winter sun will find their spending money going considerably further in Spain and Sri Lanka than the Caribbean or Australia, a cost comparison survey has shown. The survey was undertaken by Post Office Travel Money in the UK.
Sri Lanka Bank of Ceylon Considering $500 mln, 10-yr Bond Issue (Reuters) Sri Lanka's state-owned Bank of Ceylon is considering a $500 million bond issue with a likely tenure of 10-years and expected to go the market in mid this year to meet the bank's increasing dollar lending demand, the head of the Bank said on Thursday.
"We are considering a $500 million bond issue, but there is a long way to go," the Bank's Chairman Gamini Wickramasinghe told Reuters.
"We are looking at more than five-years, may be ten-years and we may go towards the mid of the year. Tourism sector is improving and a lot of them need dollar borrowing. There are quite a few other projects have come to the bank and we are looking for dollars from foreign for local purposes." More British Interest in Sri Lanka British MP James Wharton recently visited Sri Lanka and is reported to be encouraging of trade and business development in Tourism between Britain and Sri Lanka. UK's EU MEP Geoffrey Van Orden: More Supportive Approach to Sri Lanka Needed
Sri Lanka has a new proponent in the EU - the UK Conservative Geoffrey Van Orden - who says "There needs to be a positive, generous and warm-hearted support from the international community for Sri Lanka- a friendly, democratic Commonwealth country with very strong historic links with the UK and other European nations.
Van Orden is pushing for fresh engagement and opening of new and transparent trade and business initiatives that will be of benefit all round. UK BBC Travel Clinic Highlights Sri Lanka's New Visa Tax The BBC in its Travel Clinic show has highlighted to the entire audience in Britian the incoming visa tax for travellers to Sri Lanka. Interestingly, it is likened to the US visa system - which is not seen in favourably light by the travelling community.
Media focus, such as that by the BBC, on Sri Lanka's 'tourist tax' can only serve to place Sri Lanka at a competitive disadvantage in a travel market hat is increasingly influenced by price considerations. As reported in this forum previously, this tax will be seen as a tax against families and will have a detrimental effect on growing Sri Lanka's tourism opportunity.
Gold Sponsor Business Sri Lanka Partners with Enterprise Lab Europe to Drive Trade Development with Sri Lanka. more.... | | Emir of Qatar visits Sri Lanka The Emir Sheikh Hamad bin Khalifa al-Thani has made a two day official visit to Sri Lanka in mid-January at the invitation of President Mahinda Rajapakse.
The Emir of Qatari led a delegation comprised of high-ranking government officials and leading businessmen of the country.
HH the Emir will held bilateral talks with the Sri Lankan president on the day of his arrival. Several agreements covering improvement of bilateral relations in economic, trade, investment, cultural and industrial sectors were scheduled to be signed during the visit.
Qatar hosts more than 100,000 Sri Lankans, according to the information provided by relevant agencies.
Last month the Qatar prime minister, accompanied by Finance Minister HE Yousef Hussain Kamal, visited Sri Lanka and expressed the country’s desire to strengthen bilateral relations with Colombo. The prime minister met the Sri Lankan president, Foreign Minister G K Peiris and many cabinet ministers.
That was the first official visit of a Qatari delegation to Sri Lanka after diplomatic relations began between the two countries in 1995. The Sri Lankan embassy was established in Qatar in 1997. Sri Lanka has most reasons to worry about Iran oil (Reuters) - Sri Lanka's only refinery -- the 50,000 barrels-a-day Sapugaskanda refinery -- is almost entirely reliant on imports of Iran's crude. Switching to alternatives is not easy because the refinery has been configured to handle Iran's high-sulphur and high-density crude oil.
"We don't have any other alternative than getting oil from Iran," Petroleum Resources Minister Susil Premajayantha told Reuters. "Our main problem is that you can't use all types of crude here for our machines.
The United States is Sri Lanka's biggest trade partner, so much is at stake in its relationship with Washington.
The Sapugaskanda refinery relies on Iran crude, but for Sri Lanka to qualify for a waiver from the U.S. sanctions it would have to demonstrate to Washington a significant cut in the crude it imports from the world's fifth-largest oil exporter.
U.S. President Barack Obama signed a new law on New Year's Eve that imposed sanctions on financial institutions that deal with Iran's central bank, which clears oil payments.
Sri Lanka's petroleum ministry is looking for other sources, but unlike most other buyers is limited in its options.
Sri Lanka's Petroleum Resources Minister Premajayantha says Sri Lanka will continue to import from Iran and is looking at changes to payment modes, following the lead of other Asian nations.
Sri Lanka is also considering buying Iranian crude through a Middle East intermediary, or possibly via a Chinese company that would then convert the cost of imports to a long-term loan or other financing facility, three officials from the central bank and petroleum ministry said. They spoke on condition of anonymity.
Sri Lanka presently enjoys a four-month credit facility from Iran for crude imports - favourable terms that the country is unlikely to find elsewhere. UK Financial Times: Sri Lanka - An Unlikely Shelters in the Storm
"Sri Lanka: Despite international criticism… the Sri Lankan government’s tight control of the security situation has made the island much safer. With recent offshore gas finds there will be renewed interest from foreign companies in licenses of oil and gas concessions in the Mannar Basin, expected in early 2012… Contributing in the thermal power sector is limited by India and China’s presence on the island." http://tinyurl.com/bwycwmq Rizana Nafeek Appeal. Despite a worldwide appeal on behalf of Rizana, the authorities of Saudi Arabia has failed to take action to release her.
The Asian Human Rights Commission has now made a submission on behalf of Rizana to the United Nations Human Rights Council.
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| Toward Inflation Targeting in Sri Lanka IMF Working Paper authored by: Rahul Anand, Ding Ding, and Shanaka J. Peiris This paper develops a practical model-based forecasting and policy analysis system (FPAS) to support a transition to an inflation forecast targeting regime in Sri Lanka. The FPAS model provides a relatively good forecast for inflation and a framework to evaluate policy trade-offs. The model simulations suggest that an open-economy inflation targeting rule can reduce macroeconomic volatility and anchor inflationary expectations given the size and type of shocks faced by the economy. Sri Lanka could aim to target a broad inflation range initially due to its susceptibility supply-side shocks while enhancing exchange rate flexibility and strengthening the effectiveness of monetary policy in the transition to an inflation forecast targeting regime. Read Article.... WEATHER FORECAST
Colombo, LKA
Updated 27 January 2012 23:30
Partly Cloudy | 26°C | High: 32°C
Low: 23°C
Wind: 4 kph
Humidity: 82%
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London, England
Updated 27 January 2012 18:50
Clear | 6°C | High: 7°C
Low: 2°C
Wind: 10 kph
Humidity: 70%
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