Donate Now
Logo Logo
Donate Now
  • Home
  • Medical & Health
    • Symptoms and Preventions
  • News
    • General
    • Health
    • Defence
    • Transport
    • Economy
    • Education
    • Law and Order
  • COVID -19 Stats
  • Sectors
    • Medical and Health
    • Social Welfare
    • Tourism
    • Law & Order
    • Imports & Exports
    • Transport
    • Expats
  • Guidelines
  • Directory
  • Social Wall
  • Media
Logo Logo
Donate Now
  • Medical and Health
  • COVID -19 Stats
  • Directory
  • News
  • Home
  • Medical & Health
    • Symptoms and Preventions
  • News
    • General
    • Health
    • Defence
    • Transport
    • Economy
    • Education
    • Law and Order
  • COVID -19 Stats
  • Sectors
    • Medical and Health
    • Social Welfare
    • Tourism
    • Law & Order
    • Imports & Exports
    • Transport
    • Expats
  • Guidelines
  • Directory
  • Social Wall
  • Media
Economic Overall Outlook to Remain Gloomy-ICRA economy
Economic Overall Outlook to Remain Gloomy-ICRA
Apr 21, 2020

ICRA Lanka says that there is a great deal of uncertainty surrounding how COVID crisis will evolve in the next few months and hence the economic overall outlook remains gloomy.

ICRA Lanka does not expect the activities in the real economy to improve significantly in April. “Both short and long-term interest rates are likely to remain low.

Further the depreciation of rupee is likely as forecasted by the forward rates. Inflation is likely to edge up as a supply disruption may force prices to go up.”

In March the manufacturing and services sectors underwent a record contraction as the country went into a lockdown. The tourism industry grounded to halt as travel restrictions were imposed. Trade sector was also affected due to import restrictions and exchange rate depreciation.

Rising fears and global economic shutdown due to the economic impact of COVID-19 drove the global stock markets off the cliff in March. CSE crashed several times during the month and ASPI lost about 18% on a M-o-M basis.

Significant deterioration in value was observed in Transportation, Consumer Durables & Apparel, Telco, and Insurance sector shares.

Continued capital flight triggered the rupee to depreciate by about 4% and lose over USD 400 million reserves. The CBSL took several measures to slow down the worsening external position. As investors were rushing to exit, the SLISB prices plummeted.

The CBSL absorbed close to Rs 55 billion from the money markets through repos as the call market rates were tending towards 7%. However, following the policy rate cut towards mid-month, the call rates stumbled 30 bps.

Rupee depreciated by about 4% in March and it accelerated in the last 2 weeks of the month due to capital flight. Outstanding forward volume was seen rising over the weeks as importers rushed to counter further depreciation.

Further depreciation is likely in the month ahead as forecasted by the forward rates.

The reserve position also deteriorated by USD 422 million. The CBSL took several measures to slow down the worsening external position (i.e. suspending importation of vehicles and non-essential goods, and suspending purchase of SLISBs by banks).

Agriculture production in January fell as production of commercial crops (i.e. tea, rubber, and coconut) fell across the board. Manufacturing sector continued its slow expansion in February mainly due to the slowdown in new orders and employment.

Services sector expansion in February was at its lowest level since May last year. In March services PMI contracted significantly recording the lowest index value since May 2015.

The tourism industry grounded to a halt as travel restrictions were imposed. Trade sector was also affected due to import restrictions and exchange rate depreciation. In addition, the disruption to delivery and distribution channels also affected the trade sector.

Source: www.dailynews.lk
Related News
economy
Debt Moratorium for COVID - 19 Affected Businesses and Individuals
With a view to meeting the challenges faced by businesses and individuals due to the second wave of COVID-19, the Central Bank of Sri Lanka (CBSL) has required licensed banks to extend a debt moratori...
Nov 13, 2020
View All Economy News Read More
economy
The Gazette for rice - CONSUMER AFFAIRS AUTHORITY
The Gazette for rice - CONSUMER AFFAIRS AUTHORITY The Consumer Affairs Authority orders that no Producer/Miller shall sell, expose or offer for sale or display for sale the varieties of rice listed...
Nov 04, 2020
View All Economy News Read More
economy
Notice for Tay Payers - Furnishing Returns of Income for the Year of Assessment 2019/2020
According to the provisions of the Inland Revenue Act, No. 24 of 2017 (IRA) every person, who is liable for income tax shall file a return of income not later than eight months after the end of each...
Nov 04, 2020
View All Economy News Read More
  • Home
  • Medical and Health
  • News
  • COVID -19 Stats
  • Guidelines
  • Media
  • Directory
  • Social Wall
  • Sitemap

Address

National Operation Centre for Prevention of COVID - 19 Outbreak
No 1090,
Sri Jayawardhanapura Mawatha,
Rajagiriya

Contact Us

011 3401920 covid19sl20@gmail.com
1999 Covid-19
Response Alert
GET MY HEALTH SRI LANKA MOBILE APP
Designed & Developed by eMarketingEye
Facilitated by the ICT Agency of Sri Lanka