Sri Lanka - Latest News/Current Events, Economic Overview & Trade Relations
Quick Facts about Srilanka
| Official Name | Democratic Socialist Republic of Sri Lanka |
| Capital | Colombo |
| Location | Southern Asia, island in the Indian Ocean, south of India |
| Area | total: 65,610 sq km land: 64,740 sq km water: 870 sq km |
| Climate | tropical monsoon; northeast monsoon (December to March); southwest monsoon (June to October) |
| Terrain | mostly low, flat to rolling plain; mountains in south-central interior |
Editor PicksBrowse Asia News Archive
First Private Equity fund from Sri Lanka
Singapore based investment company, Calamander, is going to create the first private equity fund focused on Sri Lanka, after three decades of civil war.
Calamander plans to invest between $50 million and $75 million in the island nation's rubber, tea, timber, coconut, bank and ceramics businesses in the next 18 months, Managing Director Roman Scott said in a telephone interview on June 19. The fund aims to earn a return of as much as 35 percent, he said. "It's not a big fund by world standards but for Sri Lanka you can actually do a lot of damage with that kind of money," Scott said. "There's a huge opportunity to do a lot." Interest in Sri Lanka is growing after its military defeated the Tamil Tiger rebels last month, ending Asia's longest running civil war. Investor Jim Rogers, who correctly predicted a commodity price rally in 1999, says he sees "wonderful opportunities" in Sri Lanka, while HSBC Private Bank says the country could become the "Hong Kong of India." "The end of the war has greatly enhanced Sri Lanka's prospects," said Jan Zalewski, a London-based analyst at IHS Global Insight, an economic forecasting company. "But the future depends upon the government's initiative to satisfactorily address the root causes of the conflict." Calamander's Scott said the private equity market in Sri Lanka could grow to between $1 billion and $3 billion in five years provided the government gets its "economic and political policies right."read source article
Hope to rebuild life after the war
The central Bank of Sri Lanka is planning to open credit re-finance for people at refugee camps. it is more than 200.000 people live in this locations. According to government, more than 80 percent would have a better live condition in less than a year.
Credit scheme would help people to start over and rebuild lives. The Central bank governor Nivard Cabraal said that "re-finance credit scheme would be within our reserve money." Analysts don't agree with governor Cabraal because credit scheme is printed money that increase inflation and unbalance the currency. However, Mr. Cabraal is very determinate to keep the inflation under control. In fact, the inflation went down in the one year to April to 2.9 percent. The rural credit schemes re-financed with printed money stimulated high inflation numbers in the 80's decade. The Sri Lanka's central bank has cutting rates by 750 points in 2009, however the reserve money growth is almost flat after a seasonal spike last month.Sri Lanka Negotiates with IMF for $1.9 Billion Loan
The global economic crisis is sending many national government looking for temporary financial assistance.
The global economic crisis is sending many national government looking for temporary financial assistance. Earlier today, the Central Bank of Sri Lanka announced that it has been working with the International Monetary Fund to receive a loan worth $1.9 billion to help support its economy of $32 billion. Although details of the agreement have not been announced, Central Bank Governor Ajith Nivard Cabraal reported that the Central Bank would not be restricted in using the funds to support the rupee, which is expected to continue to decline in value.read source article
Sri Lanka Trade Deficit Rises Sharply in 2008
Sri Lanka's trade deficit increased to $5.871 billion during 2008, compared to last year's trade deficit of $3.656 billion.
Sri Lanka's trade deficit increased to $5.871 billion during 2008, compared to last year's trade deficit of $3.656 billion. But on a positive note Sri Lanka's cumulative exports recorded a growth of 6.5%. As a result of the economic meltdown, the trade deficits increased in part to the decline in commodity prices. Tea exports fell 22.5% in December, despite prices at the Colombo Auction remaining higher than similar auctions centers around the world. The Central Bank in Sri Lanka expects the low import growth to continue through this year.Sri Lanka's BoI Gives Approval to UAE Firms to Build Refinery in Hambantota
The Sri Lankan Board of Investment (BOI) has given its approval to two UAE petroleum firms to build a refinery in the southern town of Hambantota.
The Sri Lankan Board of Investment (BOI) has given its approval to two UAE petroleum firms to build a refinery in the southern town of Hambantota. UAE's Trans Asia Gas International LLC and Star Petro Energy LLC will invest 1.2 billion dollars for this project. The refinery is said to produce about 100,000 barrels-per-day and its entire output will be exported to overseas markets. The refinery will create employment opportunities for 700 people in the town of Hambantota, one of Sri Lanka's underprivileged districts where rates of unemployment and poverty are high.read source article
Harvard Business School Invites Sri Lankan to Speak at Asia Business Conference
The Harvard School of Business has invited Sri Lankan economist Mr. Chandula Abeywickrema to speak at the upcoming Harvard Asia Business Conference.
The Harvard School of Business has invited Sri Lankan economist Mr. Chandula Abeywickrema to speak at the upcoming Harvard Asia Business Conference. Mr. Chandula Abeywickrema is the Chairman of the Banking With The Poor (BWTP) Network and the Deputy General Manager of Personal Banking & Network Management at Hatton National Bank. Mr. Abeywickrema has a background in micro finance and leads the largest Micro Finance Network in Asia with membership of over 50 international financial institutions. Mr. Abeywickrema is the first Sri Lankan to speak at the conference. The annual conference is held by the Harvard School of Business and Alliance for Financial Inclusion. The conference is held in Boston and seeks to foster meaningful discussion on policies and trends that dominate the business and legal institutions of Asia. The conference is a collaborative effort between Harvard Business School, the Harvard Law School, and the Harvard Kennedy School of Government and attracts dignitaries with immense expertise and experience in Asian economic and legal affairs.Browse Asia News Archive
Trade Agreements
Global System of Trade Preferences among Developing Countries
Algeria
Argentina
Benin
Bolivia
Brazil
Cameroon
Chile
Colombia
Cuba
Ecuador
Egypt
Ghana
Guinea
Guyana
Iran
Iraq
Libya
Mexico
Morocco
Mozambique
Nicaragua
Nigeria
Peru
Sudan
Tanzania, United Republic Of
Trinidad And Tobago
Tunisia
Venezuela
ZimbabweThe Global System of Trade Preferences arose out of the United Nations Group of 77. The Group first appeared interested in 1976 to develop a global system of trade for developing countries. Over years of negotiations, the agreement was signed by the participating members of the Group of 77. The members are currently looking to expand their economic ties to other developing countries in Asia, Latin America and Africa. http://www.unctadxi.org/templates/Page____6207.aspx
India – Sri Lanka Free Trade Agreement
Trade has grown immensely among the two countries since the signing of a trade agreement. India is the 4th largest investor in Sri Lanka and their economic, political and social relationship remains close. India grants nearly 1/6th of its total development credit to Sri Lanka. Currently both countries are looking to establish a Comprehensive Economic Partnership Agreement. http://commerce.nic.in/ilfta.htm
South Asian Free Trade Area
Introduced at the South Asian Association for Regional Cooperation summit, the South Asian Free Trade Area created a free trading zone that reaches 1.4 billion people. The SAFTA contains zero customs duty on practically all products. http://www.saarc-sec.org/data/summit12/saftaagreement.pdf
Trade Organizations
Bay of Bengal Iniative for MultiSectoral Technical and Economic Cooperation (BIMSTEC)
The Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation involving a group of countries in South Asia and South East Asia. The member nations of this group are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
South Asian Association for Regional Cooperation (SAARC)
The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in Southern Asia. It was established on December 8, 1985 by India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan. In April 2007, at the Association's 14th summit, Afghanistan became its eighth member.