As international rating agencies highlight the rapid deterioration of Sri Lanka’s precarious debt situation as a result of the COVID-19 pandemic, the government has vowed to impose the austerity measures demanded by the financial markets in order to avoid a default.

Sri Lanka will be broadening tea industry under a strategic plan amidst Covid-19 crisis

The European Union (EU) has decided to provide a grant of 3.5 million euros (Rs. 728 million) to boost Sri Lanka’s tourism industry hit by the COVID-19 pandemic and calls on Sri Lanka Tourism Development Authority (SLTDA) to provide relevant proposals soon.

Tourism Minister Prasanna Ranatunga has requested health authorities to provide guidelines to reopen hotels and restaurants, which have been closed due to the COVID-19 pandemic.

The Government of Sri Lanka will duly honour all its debt service obligations in the period ahead.

A net capital outflow of around US$450 million (0.5 percent of GDP) was recorded as of April 29 since mid February, mostly from the domestic treasury securities market.

Taking an optimistic view, the Central Bank yesterday dismissed recent volatilities in sovereign bond yields insisting that the Government was focused on swap arrangements and syndicate financing rather than international financial markets to finance debt for this year and expressed confidence that despite the COVID-19 setback Sri Lanka would grow by 1.5% in 2020.

The Colombo Bourse sustained its upward momentum for the fifth consecutive market day yesterday thanks to continued buying on improved investor sentiments. The ASPI increased by 2.04% or 94.18 points to close at 4,701.03 points, while the S&P SL20 Index also increased by 2.11% or 38.94 points to close at 1,886.65.

Colombo Stock Exchange (CSE) is to conduct all core activities of the stock market digitally as well as to have measures in place to ensure electronic clearing and settlement in order to keep abreast with the development of technology, said SEC Chairman Viraj Dayaratne PC.