Business

Arugam Bay World Surf League event shows Sri Lanka a safe destination: Officials

Wednesday September 11, 2019 6:32 am

ECONOMYNEXT – Sri Lanka will host a men’s qualifying series competition of the World Surf League at Arugam Bay with over a 125 surfers from 30 countries will take part, boosting the island’s positioning as a safe destination for surfers and tourists, officials said.

It is the second time the global body of professional surfers is holding the event in Sri Lanka.

The surfing completion is one of several events Sri Lanka is holding to mark World Tourism Day, as the country looks to boost its image as a safe destination and recover from the effects of a downturn after Easter Sunday events.

“This is an event that will help us tap into key Western markets,” Sri Lanka Tourism Promotion Bureau Chief Gomes said. “There will be competitors from the USA, Canada, UK, New Zealand, Australia.”

Tourism Minister John Amaratunga said over 135 participants from around 30 countries will be in the competition.

WSL events have a large online following according to the WSL in addition to coverage from the surfing press and other media.

The WSL had made a security assessment in the wake of Easter Sunday blasts and were satisfied with the status.

“They sent their own consultant who performed a security audit of the entire country,” he said. “He also spent time at the Eastern regions as well and had discussion with the military and police.

“They concluded that Sri Lanka was safe and decided to hold the event in Arugam Bay.”

Arugam Bay has right hand point break waves, which were admired by adventurers global surfers who trekked to the area during the island’s long running civil war.

“Sri Lanka is an incredibly beautiful country with an abundance of waves on offer for surfers of all levels so we are stoked to be heading back,” said WSL Asia Event Director Steve Robertson said in a statement..

“With world-class surf and solid qualifying points on offer at the So Sri Lanka Pro, we’re expecting a great international field to attend this year’s event. The event will be broadcast across all WSL channels and will show surf fans around the world just how incredible the surf in Sri Lanka really is.”

Australian Julian Wilson is the defending champion who participated in the last competition at Arugam Bay as a wild card. (Colombo/Sept11/2019)

Cancel reply

1 Sri Lanka picked by ADB as priority country for natural capital linked financing

2 Sri Lanka beverage maker recycles 311 tonnes of plastics

3 Sri Lanka recycled plastic exporter say orders falling, outlook 'grim'

4 Sri Lanka's Litro cooking gas price cut by Rs452

5 Sri Lanka's CPC owes almost billion dollars on India, Iran credit lines

Markets

Sri Lanka’s shares slip on profit taking and selling pressure

Wednesday June 7, 2023 5:18 pm

ECONOMYNEXT – Sri Lanka’s shares closed lower on Wednesday after four consecutive gains in previous sessions spiraled into selling interest and profit taking, an analyst said.

The main All Share Price Index was down 0.28 percent or 24.39 points to 8,722.06, this is the lowest the index has been since May 02, while the most liquid index S&P SL20 was down 0.40 percent or 9.92 points to 2,468.44.

“The market was gaining in the previous sessions and there is selling and profit taking present today, due to continuously being on green,” an analyst said.

In the previous sessions the market was seeing gains, due to lowered policy rates and low inflation stimulating buying interest and driving the sentiment up, an analyst said.

Sri Lanka’s inflation in the 12-months to May 2023 has eased to 25.2 percent from 35.3 percent a month earlier according to a revised Colombo Consumer Price Index calculated by the state statistics office.

The central bank cut the key policy rates by 250 basis points to spur a faltering economic growth as inflation was decelerating faster than it projected.

“There are gradual improvements in the market sentiment, with positive sentiments coming in from lowered policy rates and inflation,” an analyst said.

The market generated foreign inflows of 12 million rupees and received a net foreign inflow of 18 million rupees, due to low share prices and discounted shares followed by a dividend announcement.

The market generated a revenue of 554 million rupees, this is the lowest the turnover has been since May 10, while the daily turnover average was 1 billion rupees. From the total generated revenue, the banking sector contributed 120 million rupees, Diversified Banks contributed 115 million rupees and the Capital Goods Industry generated 78 million rupees.

Top losers during trade were Sampath Bank, Commercial Bank and Aitken Spence. (Colombo/June06/2023)

Bonds & Forex

Sri Lanka Treasuries yields plunge, 12-month down 318bp

Wednesday June 7, 2023 4:04 pm

ECONOMYNEXT – Sri Lanka’s Treasuries yields plunged across maturities at Wednesday’s auction with the 12-month yield falling 318 basis points, in one of the biggest one day falls, data from the state debt office showed.

The 3-month yield fell 244 basis points to 23.21 percent.

The 6-mont yield fell 339 basis points to 21.90 percent, along with the 12 months to 19.10 percent.

The short-term yield curve is inverted.

The central bank last week cut its policy rate 250 basis points in a signaling move but is not printing money to enforce the rate cut.

The debt office sold all 140 billion rupees of offered securities. (Colombo/June07/2023)

Bonds & Forex

Sri Lanka forex reserves rise US$722mn in May 2023

Wednesday June 7, 2023 3:48 pm

ECONOMYNEXT – Sri Lanka’s foreign reserves grew 722 million US dollars to 3,483 million US dollars in May 2023 from 2,761 million US dollars in April, official data showed amid weak credit and better inflows.

Sri Lanka lost almost all its reserve in over two years as the central bank sold reserves and printed money to keep rates down (sterilized reserves sales) including borrowed dollars from India.

Gross official reserves fell to a low of 1,705 million US dollars in September 2022.

Sri Lanka’s central bank hiked rates in April 2022 to slow credit and also stopped printing money after it ran out of borrowed Asian Clearing Union dollars from India.

Sri Lanka’s gross official reserves are made up of both monetary reserves of the central bank and any balances of the Treasury account from loans or grants it gets.

The central bank’s net foreign reserves are still negative after busting up borrowed reserves to suppress rates. By April (before the collection of reserves in May) the central bank’s net reserves were negative by 3.7 billion US dollars.

In May alone 662 million US dollars were bought from the market, Central Bank Governor Nandalal Weerasinghe said.

Borrowing dollars through swaps and busting them up, was invented by the US Federal Reserve as it was printing money and breaking the Bretton Woods system in the early 1970s.

Sri Lanka received a 350 million US dollar tranche from the Asian Development Bank and 331 million US dollars from the IMF to the Treasury for budget support.

The loans can be sold to the central bank by the government to generate rupees and spend. However, since credit is weak, not all the inflows go out of the country particularly as the central bank is conducting deflationary open market operations on a net basis.

By allowing the rupee to appreciate unlike in previous episodes of recovery in an IMF program, after a bout of money printing, the central bank is bringing down inflation – in some cases absolute prices – and restoring confidence and easing the ‘pain’ of ‘monetary policy’ or stimulus.

Related

Why is Sri Lanka’s rupee appreciating?

Though exports are falling, tourism revenues are also picking up.

The budget support loans, tourism receipts less the reserve collected will widen the trade deficit. Building foreign reserves involves lending money to the US or other western nations and is similar to repaying foreign debt. (Colombo/June07/2023)