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Release of 'Economic and Social Statistics of Sri Lanka - 2018' Publication

The 'Economic and Social Statistics of Sri Lanka - 2018' an annual publication of the Central Bank of Sri Lanka, is now available for public access.

This publication contains economic and social indicators of Sri Lanka in the areas of national accounts, agriculture, industry, external trade and finance, government finance, banking and financial institutions, money and capital markets, prices and wages, population and labour force, transportation, education, health, telecommunication services, climate and selected information on economic and social indicators of other countries. 

Commencement of Compensation Payment to CIFL Depositors

The Monetary Board cancelled the licence issued to Central Investment and Finance PLC (CIFL) with effect from 05.03.2018 in accordance with Section 37(3) of the Finance Business Act.

The Central Bank of Sri Lanka is pleased to announce the commencement of compensation payments for insured depositors of CIFL with effect from 27 August 2018 in terms of Sri Lanka Deposit Insurance Scheme Regulation No.01 of 2010 (as amended) (SLDILSS Regulations).

The payment process will be continued until all eligible depositors of CIFL who have claimed their dues are paid. Therefore, eligible depositors are kindly requested to wait patiently until CBSL officially inform the collection of their payment.

Further, with the Monetary Board decision to cancel the licence of The Standard Credit Finance Ltd effective from 25.07.2018, the compensation payment for the eligible depositors will also be paid in terms of the SLDILSS Regulations in due course.

Financial Intelligence Unit of Sri Lanka entered into a Memorandum of Understanding with Insurance Regulatory Commission of Sri Lanka

In terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), the Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the Insurance Regulatory Commission of Sri Lanka (IRCSL) on August 01, 2018 at the Central Bank of Sri Lanka to establish a framework for sharing information on supervisory findings based on comprehensive risk-based supervision focused on Anti-Money Laundering (AML) /Countering the Financing of Terrorism (CFT) in the Insurance Sector.

Mrs. Damayanthi Fernando, Director General of the IRCSL and Mr. D M Rupasinghe, Director, FIU signed the MOU on behalf of the respective institutions in the presence of Dr. Indrajit Coomaraswamy, the Governor of the Central Bank of Sri Lanka, who is also the Chairman of the AML/CFT National Coordinating Committee and Mr. Mano Tittawella, Chairman of the IRCSL.

External Sector Performance - June 2018

Sri Lanka’s external sector displayed a mixed performance in June 2018. Even though the lowest trade deficit so far during the year in absolute terms was recorded in the month of June, the trade deficit widened significantly in comparison to June 2017 as the growth in import expenditure outpaced the increase in export earnings. Earnings from tourism increased notably in June 2018 continuing the growth momentum observed since the beginning of the year, although workers’ remittances declined during the month in comparison to June 2017. The financial account of the Balance of Payments (BOP) was supported by the fifth tranche of the Extended Fund Facility of the International Monetary Fund (IMF-EFF) and the third tranche of the divestiture of the Hambantota Port, however, outflows of foreign investment from the government securities market and the secondary market of the Colombo Stock Exchange (CSE) exerted some pressure on the BOP.

Inflation in July 2018

Headline Inflation, as measured by the change in the National Consumer Price Index (NCPI, 2013=100), which is compiled by the Department of Census and Statistics (DCS), increased to 3.4 per cent in July 2018 from 2.5 per cent in June 2018, on year-on-year basis, mainly driven by low base that prevailed in the previous year as well as the monthly increase in the prices of items in the Non-food category. The change in the NCPI measured on an annual average basis decreased from 5.3 per cent in June 2018 to 5.1 per cent in July 2018.

Clarification on the EPF’s equity investment in Weligama Hotel Properties Limited (WHPL)

Attention of the Central Bank of Sri Lanka has been drawn to recent media reports and the corporate disclosure to the Colombo Stock Exchange (CSE) by East West Properties PLC, the parent company of Weligama Hotel Properties Limited (WHPL).

The Employees’ Provident Fund (EPF) Department received a letter from the Chairman of WHPL in June 2018 to sell its stake in WHPL to HPL Properties Group. Subsequently, the EPF Department held several discussions with WHPL in this regard. Accordingly, the Monetary Board of the Central Bank of Sri Lanka has decided to obtain a valuation of EPF’s equity stake in WHPL and the above valuation process is currently in progress.

A comprehensive valuation would be essential to determine the value of EPF’s stake in WHPL prior to divesting, in order to ensure an adequate return to the Fund to maximize the benefits for its members. Therefore, the EPF wishes to reiterate that it has taken necessary measures to obtain a valuation.

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