Foreign Flow (US$m)
17 September 2021
18 September 2021
Sri Lanka off UK’s Red List from tomorrow (Daily FT)
Sri Lanka and seven other countries have been taken off the ‘Red List’ of the United Kingdom’s travel advisory from 22 September 2021, boosting the country’s prospects for tourism. UK Transport Secretary Grant Shapps said that, only the ‘red’ list will remain, requiring travellers to quarantine in government-approved hotels if they are arriving from COVID hotspots.
Tea exports up in August and first 8 months (Daily FT)
Tea exports in August have increased by 16% to 25.48 million kilos and cumulative first eight months performance rose by 8% to 187.57 million according to Forbes and Walker Tea Brokers. Further Forbes said in August 2021 although total Rupee FOB value has increased in 2021, in USD terms it reflects a decline of 0.09%.
COVID relief on tourism sector loans extended to June 2022E (Daily Mirror)
The Central Bank last week extended the loan payment holidays on the tourism sector reeling from the lingering effects of the pandemic-induced restrictions by a further nine months to June 2022E, as the most recent round of relief is coming to an end by the end of September 2021.
Prolonged ban on vehicle imports continues to dampen finance and leasing company earnings (DailyFT)
According to Fitch Ratings, vehicle leasing accounted for ~53% of total loans of the Finance Leasing Company (FLC) sector by the end of June 2021 down from 55% in FY19 but the actual exposure would be higher as a significant share of term loans is also backed by vehicles as collateral. Restrictions on vehicle importation will continue to constrain the growth prospects of Sri Lankan FLCs, dampening prospects for the sector’s earnings.
Sri Lanka’s largest cable manufacturer resorts to upfront cash only sales to sustain production (Daily Mirror)
Alarmed by the rising short supply of the required raw materials for manufacturing, due to the shortage of foreign currency in the country’s banking sector, Sri Lanka’s largest cable manufacturer ACL Cables (ACL) has decided to sell all its products on a cash upfront basis, as a survival strategy to stay afloat in prioritising the long-term interests of the stakeholders amid the looming crisis.
Commercial Bank of Ceylon (COMB) disclosed that the bank has received 120 applications for over 85.9mn debentures at the par value of Rs.100 each amounting to ~Rs.8.6bn pertaining to its debenture issue and accordingly the initial issue has been oversubscribed.