Business
Money supply on a decelerating path
Remains to be seen whether current pace is enough to contain higher prices
According to an analysis by First Capital Research (FCR) into the monthly change in the money supply in the economy, in the three months since August policy rate hike, the monthly growth has in fact fallen into the negative territory in September and November while the annual growth rate has also ebbed quite notably.
Thus , the growth in the money supply in the economy has eased in recent months in a sign that the August pivot to monetary tightening has caused some pullback on the fast pace at which the money supply grew since the onset of the pandemic.
However, it remains to be seen whether the current pace is enough or more needs to be done to contain the higher prices, which have engulfed the entire economy, as there is a substantial element of inflation coming from the supply side constraints than the demand side pressures.
There is also no guarantee that the pace of growth in money supply will continue on the current decelerating path given the massive fiscal handouts offered by the government without careful thought or analysis.
According to data, the money supply measured by Broad Money (M2b), which has currency in circulation, demand deposits in the commercial banks and the domestic and offshore banking assets with the commercial banks, has risen by 15.4 percent in the year though November 2021, decelerating from 17.3 percent in the year through October.
In November 2020, the broad money was growing at a high of 22.3 percent as the Central Bank slashed rates to record lows and unleashed liquidity at an unprecedented level since the beginning of the pandemic to resuscitate the economy beset by the virus related restrictions.
But as the excesses emerged in areas of foreign exchange and prices towards mid last year, the Central Bank raised its key policy rates by 50 basis points on August 19 to signal the markets that it was ending the pandemic era policy support.
This substantially decelerated the pace of private sector credit growth and created a massive liquidity shortage in the overnight money market, which as of last week stood at Rs.460 billion.
The Central Bank funds the shortage through its Standing Lending Facility at 6.00 percent and such overnight liquidity injections amounted to a massive Rs.514 billion on January 13. Economists point out that the rising liquidity injections are a sign of money going out of the country by way of forex payments.
At the first monetary policy announcement for the year, the Central Bank further increased the policy rates by 50 basis points last week.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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