Business
‘Lebanonization of Sri Lanka well under way’
By Hiran H.Senewiratne
The Sri Lankan economy bombarded with multiple internal and economic shocks, is now starting to witness impacts similar to the Lebanon situation, stock market analysts said.
In the long-term, Lebanon’s annual GDP growth rate is projected to trend around 2 per cent in 2022 and 2.50 percent in 2023, according to econometric models. Lebanon has a services-oriented economy, with banking and tourism being the most important sectors.
Yesterday CSE trading activities remained sluggish, which indicated an extreme level of rupee depreciation as against the dollar, which sold Rs 350 per dollar recently in the black market and yesterday it reached Rs 375. This was a 100 per cent depreciation against the dollar, market analysts said.
The rapid rupee depreciation coupled with high oil prices in the global market put the Sri Lankan economy into a more painful situation. Despite its price revisions Lanka IOC has also not been able to supply fuel in an uninterrupted manner to fuel stations and this too has adversely impacted the economy, stock market analysts explained.
The Sri Lanka rupee was quoted at 295/315 to the US dollar in the spot market Monday, but only bids were firm, while bond markets were mostly inactive, dealers said.
Commercial Banks were offering dollars for telegraphic transfers at Rs 295 and buying at Rs 280. The Central Bank indicative spot rate was Rs 294.98.
Sri Lanka’s rupee has been made more flexible but a clean float has not yet been established.
Economists and analysts have urged the Central Bank to raise rates and halt a surrender rule that is taking dollars away from the banking system and creating rupees.
Further, IMF recommendations to the debt management and debt restructure mechanism of the country triggered some selling pressure on the market, analysts said.
Amid those developments both indices moved downwards. The All- Share Price Index went down by 313.03 points and S and P SL20 declined by 105.46 points. Turnover stood at Rs 2.13 billion with two crossings. Those crossings were reported in Sampath Bank, which crossed 1.5 million shares to the tune of Rs 81 million, its shares traded at Rs 54 and Expolanka Holdings 250,000 shares crossed to the tune of Rs 66.25 million; its shares traded at Rs 265.
In the retail market top seven companies that mainly contributed to the turnover were; Expolanka Holdings Rs 304 million (1.16 million shares traded), LOLC Finance Rs 195 million (13.9 million shares traded), HNB Rs 185.3 million (1.54 million shares traded), Sunshine Holdings Rs 145.5 million (3.45 million shares traded), Browns Investment Rs 112 million (11.1 million shares traded), Softlogic Insurance Rs 70.5 million (one million shares traded) and JKH Rs 62 million (400,000 shares traded). During the day 97 million share volumes changed hands in 21800 transactions.
Based on IMF staff analysis, fiscal consolidation necessary to bring debt down to safe levels would require excessive adjustment over the coming years, pointing to a clear solvency problem.
Releasing the Country Report No. 2022/091: Sri Lanka: 2021 Article IV Consultation, the IMF staff said that a more ambitious adjustment, required to significantly reduce debt, would put Sri Lanka even further into the upper tail.
Yesterday, the Central Bank announced the official US dollar rate. The buying rate was 288.74 and the selling rate was Rs 298.99. These rates came into being following the free float of the rupee as against the dollar, initiated by the Central Bank.
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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