Business
Growing concerns about rapidly increasing government securities held by Central Bank
by Sanath Nanayakkare
The Central Bank was again forced to pump massive amounts of liquidity into the government, as the state coffers were running dry as the authorities reimposed travel restrictions and state tax revenue took another beating, analysts say.
According data, the Central Bank holdings of government securities or the printed money stock had surged by Rs.34.51 billion since travel restrictions came into effect on May 21 through June 18, 2021, bringing the total outstanding printed money stock to Rs.896.24 billion, they say.
“Now there is serious concern about growing holdings of government securities by the Central Bank, which is also referred to as printed money in the system by certain quarters as excessive liquidity has the effects of destabilising economy by stoking inflation, balance of payment crises and asset bubbles. However, the proponents argue that the economy, which is significantly battered by the virus, can and should be supported through easy money, until it reaches its equilibrium as the economy still remains subdued. And the Central Bank has repeatedly said it was willing to take its foot off the gas if it saw significant excesses as a result of the current monetary policy.”
“As the government will continue to have to rely on the Central Bank liquidity amid depleted tax revenues, it could keep the domestic interest rates low to support the government financing as well as to support lending to the private sector.”
“On the other hand, the government, which has limited options to raise foreign currency funding to bridge its budget gap, could also resort to the banking sector for borrowings, potentially leaving less money for the private sector – a scenario known as ‘crowding out effect’, albeit the possibility remains less of that happening, they said.
Sri Lanka is bracing for back-to-back years of blow out budget deficits in 2021, potentially reaching double-digit levels as a percentage of its gross domestic product (GDP) as it crimped its revenues through lockdowns while confronting with unexpectedly high expenditure on virus containment measures.
The fiscal deficit can also look higher than it actually appears when the output gets compressed as authorities have lost nearly a trillion rupees in GDP since April 23, 2021. they say.
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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