Governor of the Central Bank of Sri Lanka (CBSL) – Dr. Nandalal Weerasinghe has said that only around USD 200 million worth of Letters of Credit (LCs) have been opened so far for vehicle imports.

Speaking at the CBSL’s Monetary Policy briefing yesterday (March 26), the Governor announced the decisions of the Monetary Policy Board of the Central Bank of Sri Lanka (CBSL) made at the board’s meeting held March 25th for the second monetary policy review.

The Governor further said this year’s economic growth will depend on policies implemented within the year, mainly fiscal and structural policies.

He further mentioned that the Central Bank had anticipated managing around USD 1 billion for vehicle imports this year without difficulty.

However, as there are still about nine months remaining in the year, he stated that this amount is expected to be spent over that period.

Dr. Weerasinghe, who further clarified that the negative inflation is temporary, noted that it is mainly due to repeated reductions in electricity tariffs.

Deflationary conditions are expected to gradually ease in the third quarter of this year, moving toward the targeted level, he added.  

The formal inauguration of the 920-acre Sri Lanka-China Business Zone, established in Xinping Province, China to facilitate Sri Lankan entrepreneurs to expand their business operations in China, was held at the Jasmine Ballroom of the Bandaranaike Memorial International Conference Hall (BMICH) recently.

The initiative was organized by the Chairman of the Sri Lanka-China Business Council, Mr. Herbie Silva, and the Secretary of the Council, Ms. Sharmila Fernando, and the Council’s Business Finance and Management Advisor, Mr. Nipuna Wahalathanthrige. Distinguished representatives of the Sri Lankan government who attended the ceremony included the Secretary to the State Ministry of Defence, Retired Air Vice Marshal Sampath Thuyacontha; the Secretary to the Ministry of Fisheries, Mr. Sampath Mantrinayake; and the General Manager of the Fisheries Corporation, Mr. Mudalige Janaka Prasanna.

The ceremony was attended by high-ranking Chinese government officials, prominent Chinese investors, and a significant number of Sri Lankan entrepreneurs and business leaders. The discussions highlighted the mutual commitment to strengthening trade and economic cooperation between the two countries. It was emphasized that under the proposed business agreements, China will expand business opportunities for Sri Lankan entrepreneurs by providing financial assistance, technical assistance, and extensive infrastructure facilities.

The Chinese delegation included a group of distinguished representatives, including:
Mr. Li Jie, Deputy Director of Yuxi Investment Promotion Bureau, Mr. Shi Shufeng, Deputy General Manager of Yuxi Industrial Information Corporation Limited, Mr. Yang Shufeng, Deputy Commissioner of the Xining County Party Committee and Deputy Governor of the People’s Government of the Republic of China, Mr. Shi Shifu, Deputy Director of Xining Industrial Park Management Committee, Mr. Liu Jiaxi, Director of Xining County Investment Promotion Bureau, and Mr. Li Quan, Head of Yuxi Investment Promotion Bureau.

Mr. Herbie Silva, Chairman of the Sri Lanka-China Business Council, welcomed the participants and explained the investment strategy behind the establishment of the business zone. Retired Air Vice Marshal Sampath Thuyacontha, who was the special guest, expressed his gratitude to the Sri Lanka-China Business Council and the Chinese Government for creating this opportunity for Sri Lankan entrepreneurs.

During the event, representatives of the Chinese Government outlined the extensive facilities provided to Sri Lankan entrepreneurs in China. Ms. Sharmila Fernando provided insight into specific opportunities accessible to Sri Lankan businesses, while Mr. Nipuna Wahalathanthrige outlined a strategic roadmap for integrating local entrepreneurs into the global market.

A major highlight of the event was the signing of non-binding agreements aimed at facilitating cross-border trade and investment. For this initiative, TEMCO Cooperative Bank was selected as the official infrastructure provider to support Sri Lankan entrepreneurs in international markets and Dr. Ishantha Siribaddana, Chairman of TEMCO Banks Society, signed an agreement with the Sri Lanka China Trade Corridor. TEMCO Bank pledged to provide essential financial services to facilitate business links between Sri Lanka and China.

In addition, Mr. Gamini Kannangara, Chairman of Trico Logistics, formalized agreements with Chinese Business Assosiations AMCOT and ANLAN to streamline the export of finished goods from Sri Lankan entrepreneurs by ensuring the import of necessary raw materials and accessories. Furthermore, Mr. Nishantha Jayasuriya, CEO of CEC Agromart Sri Lanka, and Dr. Shammi Kumar, Director of Hiru Jaya Plantations, also signed MoUs to promote cooperation in the fields of agriculture, cash crop cultivation, tourism agriculture and green forestry.

Commenting on the importance of an entrepreneur’s contribution to a country’s economic stability, Mr. Nipuna Wahalathanthrige emphasized that entrepreneurs play a vital role in national development by producing what the country needs, thereby generating income, creating jobs and contributing to government tax revenue. He further stated that amidst a transformative political and economic landscape for the entire world and Sri Lanka, Sri Lanka would benefit immensely from utilizing the financial and infrastructure support provided by China, the world’s leading economic power.

The launch of the Sri Lanka-China Business Zone marks a significant milestone in bilateral economic relations, and aims to provide a dynamic platform for Sri Lankan entrepreneurs to thrive in international markets, while strengthening Sri Lanka’s position in the global trading arena.

The Cabinet of Ministers has approved the reactivation of the Co-operative Wholesale Establishment (CWE), which was previously slated for liquidation.
The decision to liquidate the CWE, established under the Co-operative Wholesale Corporation Act No. 47 of 1949, was made during a cabinet meeting on September 2, 2024.

However, recognizing the potential of the CWE to play a crucial role in market operations, the Cabinet has now decided to recommence its business activities.

The CWE is expected to contribute significantly to the government’s objective of ensuring a continuous supply of quality goods and services at reasonable prices, thereby promoting market competitiveness.

This move aligns with the “Rich Country—Beautiful Life” policy framework, which aims to drive sustainable economic growth and development.

The proposal to reactivate the CWE was presented by the Minister of Trade, Commercial, Food Security, and Cooperative Development.

The Cabinet’s approval includes the development of a feasible business plan to guide the CWE’s operations moving forward

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