Business
China’s debt outlook downgraded as economy slows
The risks from China’s debt pile are mounting as the country grapples with an economic slowdown and property crisis, a leading credit ratings agency has said.
Moody’s issued the warning as it cut its outlook on the government’s debt to negative, from stable.The firm is the latest to raise concern about problems facing the world’s second largest economy.
China said it was disappointed by the move, calling the economy resilient.
The country has signalled plans to ramp up stimulus spending, as it battles soaring youth unemployment, weaker global demand hitting its manufacturing industry and deepening woes in the property sector. Some of the country’s largest construction companies are facing insolvency and have stopped building, leaving customers stranded.
Local governments, which have borrowed billions to build infrastructure and relied on land sales to bring in revenue, are also under strain.
Moody’s said the expected support for the local governments and other state-owned enterprises presented “broad downside risks to China’s fiscal, economic and institutional strength”.
Absorbing even some of the liabilities would be accompanied by “material costs, which would undermine China’s fiscal strength and potentially its creditworthiness”, it said.
The negative outlook is a sign that Moody’s could downgrade China’s credit rating, which is used by investors to help assess risks associated with investing in bonds and other debt and helps inform how lenders set interest rates.
The US, which has seen its national borrowing soar, is among the countries to have faced a debt downgrade in recent years.
For now, however, Moody’s kept intact the A1 rating for China’s long term national debt, a strong grade slightly lower than that of the US and UK. It said that reflected expectations the government would manage its economic challenges in an “orderly fashion”.
China’s finance ministry said the country’s long-term prospects had not changed and it expected to be able to manage the impact of the property sector slowdown.
“China’s macroeconomy continues to recover and high-quality development is steadily advancing,” it said. “It is unnecessary for Moody’s to worry about China’s economic growth prospects and fiscal sustainability.”
After decades of seeing its economy expand by more than 8% a year, China is on track to grow by 5.4% this year. However, growth is likely to slow to 3.5% by 2028, according to a forecast from the International Monetary Fund.
International economic groups have warned that the slowdown in China will weigh on the global economy in the years ahead, especially in regions such as sub-Saharan Africa which had seen an influx of Chinese investment.
(BBC)
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.”
