Lanka Business News Roundup: Top Headlines and Market Updates
Keeping track of news and updates on the Sri Lankan business scene can be a daunting task. The country’s economy has been growing steadily in recent years, supported by various sectors such as tourism, services, and manufacturing. However, challenges such as political turmoil and external shocks have also affected its growth trajectory. In this article, we’ll provide you with a roundup of the latest business news and market updates from Sri Lanka.
Tourism sector on the rise
The tourism industry in Sri Lanka has been gaining momentum in the last few years. According to the Sri Lanka Tourism Development Authority, the number of tourist arrivals in the country reached 1.91 million in 2019, a 9.6% increase compared to the previous year. The highest number of tourists came from India, followed by China, the UK, and Germany. However, the COVID-19 pandemic has caused a slump in the industry, with Sri Lanka closing its borders to foreign tourists in March 2020. The industry is expected to pick up in the second half of 2021.
Manufacturing sector expands
The manufacturing sector has been a key driver of Sri Lanka’s economic growth. In 2019, the sector accounted for 27.9% of the country’s GDP and employed about 14% of the workforce. The government has been promoting foreign investment in manufacturing, particularly in sectors such as textiles, apparel, and electronics. The Board of Investment of Sri Lanka reported that foreign direct investment (FDI) in the country rose by 44% in the first half of 2020 compared to the same period in the previous year, led by investments in the manufacturing sector.
Banking sector adapts to the new normal
Like many other countries, Sri Lanka’s banking sector has had to adapt to the challenges brought about by COVID-19. With social distancing measures in place, more customers have turned to digital banking services. This has prompted banks to ramp up their online presence and improve their mobile banking apps. In addition, the Central Bank of Sri Lanka has introduced measures such as reduced interest rates and loan moratoriums to help businesses weather the economic impacts of the pandemic.
Stock market performance improves
The Colombo Stock Exchange (CSE) has seen a rebound in performance in recent months. In October 2020, the CSE’s All Share Price Index (ASPI) recorded a year-to-date gain of 4.6%, despite the challenges posed by COVID-19. The improved performance can be attributed to increased investor confidence, particularly in sectors such as banking, manufacturing, and healthcare. The CSE has also introduced measures such as reduced trading fees and simplified processes for new listings to attract more investors.
In conclusion, Sri Lanka’s economy has been navigating through a challenging period, but there are positive moves in sight. The tourism sector is expected to rebound in the second half of 2021, FDI in manufacturing is on the rise, banks are adapting to the new normal, and the stock market is performing well. Keeping up with the latest business news and market updates is crucial for anyone interested in the Sri Lankan business scene.
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