Energy

Sri Lanka raises petrol price as government looks for more revenue measures

Sri Lanka has totally dependent on India for its fuel requirement from March to mid June.

Thursday February 2, 2023 12:21 am

ECONOMYNEXT – Sri Lanka raised the price of Octane 92 by 8.1 percent or 30 rupees to 400 rupees per litre with effect from February 1 midnight, the state-run fuel retailer said, as President Ranil Wickremesinghe administration is struggling to manage the government spending.

The state-run fuel retailer Ceylon Petroleum Corporation (CPC) left the prices of all other fuels steady.

Data revealed by Power and Energy Minister Kanchana Wijesekera on January 25 showed petrol Octane 92 was making a profit of 6.29 rupees per litre even after a tax of 80.46 rupees when it was sold at 370 rupees.

The CPC did not elaborate the reason for the price hike.

Lanka IOC, a subsidiary of Indian Oil Corporation (IOC) and the only competitor of CPC, also raised the price of Octane 92 by the same margin.

The increase also comes as the island nation is in discussion for a $2.9 billion International Monetary Fund (IMF) loan. The IMF has strongly asked the government to reduce its budget deficit either by increasing revenue or reducing the state spending.

The upward petrol price revision comes as Wickemesinghe’s move to raise personal income taxes up to 36 percent has met with strong protest mainly from the state sector.

The government has not decided to revise the new tax revision, but finance ministry officials have acknowledged that the move has put many middle income earners further under pressure.

Successive Sri Lankan governments have reluctant to increase direct taxes like personal income tax and instead, they have raised increased indirect taxes, (Colombo/Feb01/2023)

Comments (1)

As says:

February 2, 2023 at 10:19 am

When CPC was making a Profit on petrol 92 what kind of a Minister will put the price of it up by Rs 30 per litre from the 1st of Feb. Are they Crazy?

Reply

View all comments (1)

Comments (1)

Cancel reply

As says:

February 2, 2023 at 10:19 am

When CPC was making a Profit on petrol 92 what kind of a Minister will put the price of it up by Rs 30 per litre from the 1st of Feb. Are they Crazy?

Reply

1 Sri Lanka to start property tax, transfer, gift, inheritance tax from Jan 2025

2 Sri Lanka President decides against controversial cop

3 Sri Lanka mulling ways to re-structure domestic debt

4 Sri Lanka banks may need Rs1.4trn in capital, govt to inject cash

5 Sri Lanka gets Malaysian nod for 10,000 security guard jobs

Accidents

Sri Lanka establishes committee to investigate aircraft incidents

An aircraft lands at the Jaffna International Airport, which was opened in October 2019 and promises to push the tourism frontiers in Jaffna.

Roshani Fernando

Thursday March 23, 2023 5:39 pm

By Roshani Fernando

Thursday March 23, 2023 5:39 pm

ECONOMYNEXT: Sri Lanka’s has established an expert committee under the state-run Civil Aviation Authority to investigate aircraft accidents and to implement precautionary methods in the Sri Lankan airspace, an Official said.

“Even if it is only one flight, there is a chance an accident may occur,” Civil Aviation Authority of Sri Lanka, Director General, P. A. Jayakantha said.

“This particular committee is there to investigate aircraft accidents and act as a mechanism to take over if something goes wrong”.

Sri Lanka has encountered around 2,700 minor aircraft accidents and incidents mostly on the ground in the 19 years through 2021, the CAA annual reports showed.

The new committee will analyze the past accidents and take precautionary measures while also conducting investigations and provide independent reports in the future, Jayakantha said.

The team is provided with required training and qualifications by the CAA along with an International organization, free of charge.

“Internationally also it is a requirement to have a team to investigate the aircraft accidents,” Jayakantha added.

“For a long time we have not fulfilled this requirement and that is why we established this team with the cabinet approval. Moreover, recently, Sri Lanka’s two aircrafts, one training aircraft and a commercial aircraft met an accident”

The committee will be on active duty, until the Accident Investigation Act is passed and a proper Aircraft Accident and Incident Investigation Bureau is established. (Colombo/ Mar23/2023)

Bonds & Forex

Sri Lanka bond yields steady, Rupee 319/325 at close

Thursday March 23, 2023 5:35 pm

ECONOMYNEXT – Sri Lanka’s treasury bond yields closed steady on Thursday while rupee closed weaker, dealers said.

A 01.07.2025 bond closed at 30.60/31.00 percent on Tuesday, down from 30.25/75 percent on Wednesday.

A 15.09.2027 bond closed at 27.80/28.10 percent, steady from 27.90/28.00 percent from Wednesday.

Sri Lanka rupee closed at 319/325 against the US dollar depreciating from 318/320 from a day earlier. (Colombo/ March23/2023)

Markets

Sri Lanka shares dive to two-week low on local debt restructuring fears

Thursday March 23, 2023 5:35 pm

ECONOMYNEXT – The Sri Lanka market fell for a fourth session to a two-week low on Thursday, led by financials, as worries over domestic debt restructuring continued after the IMF loan was approved earlier this week resulting in investors adopting a wait-and-see approach until further clarity was provided, analysts said.

The main All Share Price Index (ASPI) closed down 1.38 percent or 131.07 points to 9,395.98, lowest since March 02.

Analysts said, majority of the banks have been on slower investment trends on fears of domestic debt restructuring after the IMF approval and waiting for more clarity on the local debt restructuring.

“The market is on muted sentiments despite the IMF loan being approved and is going through a period of consolidation,” Ranjan Ranatunga of First Capital Holdings said.

The market saw a net foreign outflow of 298 million rupees and the total offshore inflows recorded so far in 2023 to 3.3 billion rupees.

The most liquid index, S&P SL20, closed 1.64 percent, or 45.33 points, down at 2,722.94.

The market saw a turnover of 3.4 billion rupees on Thursday, above this year’s daily average of 1.8 billion rupees.

This is the highest turnover generated since March 08, which is when the market was driven off of positive sentiments from International Monetary Fund deal hope after Chinese assurances.

Top contributors to revenue was Agalawatte Plantations, on off board transactions of a stake change, contributing revenue of 1.6 billion rupees, Ranatunga said.

Top contributors to revenue industry wise was Food and Beverage and Telecommunications.

Sri Lanka Telecom has been seeing positive uptrends as the Secretary to the Treasury has informed the Board of Directors of Sri Lanka Telecom PLC (SLT) and Lanka Hospitals PLC that the Cabinet of Ministers has granted approval in principle for the divestment of the stakes held by the Treasury Secretary in the two companies.

Top losers were Sampath Bank, Hatton National Bank and Commercial Bank.

Sri Lanka is looking at options to re-structure domestic debt, or local law local currency debt (LLLC), without harming the banking sector and announce them the International Monetary Fund said in a report.

Banks have been witnessing profit taking and selling pressures after continuous uptrends prior to the IMF loan had been approved.

Analysts said, selling pressures is expected to ease as the IMF hopes to reduce inflationary pressures which will in turn lead to reductions in interest rates. (Colombo/Mar23/2023)