Business
All clear for a stronger GDP growth trajectory in 2021 – Asia Securities Research
Leading stockbroking firm Asia Securities (Pvt) Ltd., maintained that all signs point to a strong GDP growth trajectory in 2021. The latest Economic Outlook report titled Balancing the Priorities – The New Normal forecasts a GDP growth of 5.4% for 2021, driven by improved investor sentiment and consumer demand, an accommodative monetary policy environment, and a pickup in global demand.
Asia Securities’ report on 27 March 2020—the first such report to forecast the impact of COVID-19—forecasted the economy to contract by 13.0%—17.0% YoY in 2Q 2020. The report considered three probability-weighted scenarios combining a top-down and bottom-up analysis. The firm’s assessment was in-line with the 16.3% YoY contraction for 2Q 2020. While the outlook for 2021 remains largely positive due to improved policy certainty and a stable government, the firm notes that several challenges remain.
The 2021 budget emphasizes on a domestically driven recovery amidst fiscal support. With improving business and consumer confidence seen following the end of the first lockdown, a continued low interest rate environment bodes well for investments in the short-medium term. However, a negative real interest rate environment will likely continue in 2021.
Sri Lanka looks to head towards a negative real interest rate environment in 2021
Foreign Direct Investments (FDI) will take center stage in 2021 with the government’s focus on executing investment driven FDIs, particularly related to the Port City and Hambantota Port zone. The Asia Securities report notes that attracting long term non-debt related inflows is a key factor at this juncture of the Sri Lankan economy. Improving the FDI landscape can resolve two long-term issues: (i) the dependance on external financing and (ii) fiscal pressure. The report further highlights that there is potential for FDI to reach 4.0% – 5.0% of GDP in the long term if correct policy measures are in place.
One of the key challenges going into 2021 is the government’s debt obligations amidst a low credit profile. With a USD 4.5bn repayment schedule in place for 2021, the government would need to ensure that reserves are maintained at relatively healthy levels. We expect the government will continue to depend on domestic financing. However, with credit growth expected at ~8.0 – 10.0% YoY in 2021, Asia Securities expect interest rates to face upward pressure. While this may lead to higher debt rollover costs, it could be mitigated if non-debt related investments materialise in-line with expectations. In addition, Asia Securities forecast indicate that inflation will remain within the Central Bank’s threshold of 4.0% – 6.0% in 2021. While Asia Securities forecasts the fiscal deficit to weaken in 2021, the firm notes that an increase in the revenue base and higher growth can bring the overall deficit down by 2023.
Asia Securities is a leading investment firm in Sri Lanka providing Investment Banking, Research, Equities and Wealth Management services to local and international corporate, institutional and individual clients. Asia Securities’ clients can access the full research report titled Sri Lanka: 2021 Economic Outlook – Balancing the Priorities – The New Normal via the online Research portal or their investment adviser. To become a client of Asia Securities, reach out via inquiries@asiasecurities.lk.
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.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
