Connect with us

BIZ

Real estate companies to go bankrupt?

Published

on

The sale of housing units and condominiums in apartment complexes and mixed development projects has fallen by 91% in the first quarter of this year compared to last year, a report by the Central Bank of Sri Lanka (CBSL) revealed.

This is a 40% drop compared to the last quarter of 2022.

According to the reports, 50% of the condominium trades that took place in the first quarter of this year were houses and businesses worth between Rs.25 million and 50 million, while only 7% of houses and properties were purchased with a price of more than Rs.75 million.

It stood at 16% in the last quarter of 2022.

The decline in the purchase of apartments and business premises is mainly due to the increase in property prices. The prices in the Colombo District have increased by 24% compared to last year and by 10% compared to the last quarter.

Almost 50% of the properties purchased are for immediate occupation and about 28% are for future occupation.

According to the CBSL report, the purchase of these properties as investments has decreased by about 8% compared to last year.

Meanwhile, sources said that this situation will worsen due to Sri Lankans leaving the country in large numbers and due to excessive bank loan interest rates.

They also warned that real estate companies may go bankrupt since many companies have taken bank loans that they cannot afford to pay back.

They pointed out that Blue Mountain Company, which was one of the leading real estate companies in Sri Lanka, is an example of bankruptcy due to excessive borrowing.

BIZ

CBSL maintains policy interest rates

Published

on

By

The Monetary Policy Board of the Central Bank of Sri Lanka (CBSL), at its meeting held yesterday (May 27) decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 8.50 per cent and 9.50 per cent, respectively. 

The Board had arrived at this decision after carefully assessing the current and expected macroeconomic developments and possible risks on the domestic and global fronts with a view to maintaining inflation at the targeted level of 5 per cent over the medium term while supporting the economy to reach its potential. 

While the medium term inflation outlook remains compatible with the current level of policy interest rates and inflation expectations are well anchored, the Board had observed the need for a further reduction in market lending interest rates in line with policy interest rates and other benchmark interest rates, which is imperative for the easing of domestic monetary conditions and domestic economic recovery.

Continue Reading

BIZ

Google to make Pixel phones & drones in India

Published

on

By

Tech giant Google will soon begin making its Pixel smartphones in India, sources aware of the development have told the BBC.

Google is set to manufacture the phones at an existing Foxconn facility in the southern state of Tamil Nadu.

The firm is also set to independently manufacture drones in the state.

India has emerged as a key destination for global firms looking to diversify supply lines outside China in the midst of geopolitical tensions with the West.

Last year, Google had announced plans to make Pixel smartphones in India, beginning with the Pixel 8.

“India is a priority market for Pixel smartphones, and we’re committed to bringing the best of our hardware and underlying built-in software capabilities to people across the country,” it said in a blog post.

On Friday, sources told the BBC that Alphabet’s Google would make advanced versions of Pixel smartphones at the Tamil Nadu facility and that manufacturing would begin within this calendar year.

Google and Foxconn have signed a contract to this end, the source said.

Foxconn currently has two facilities in Tamil Nadu. At one of its facilities near Chennai city, it assembles Apple’s iPhones.

Google’s decision to make Pixel phones in Tamil Nadu came after state officials met company executives recently.

According to a statement from the Tamil Nadu government, officials from Google are also set to meet state Chief Minister MK Stalin in Chennai soon.

(BBC News)

Continue Reading

BIZ

PhonePe UPI payments launched in SL

Published

on

By

Adding further momentum to the UPI services in Sri Lanka, PhonePe in partnership with LankaPay, launched the PhonePe UPI payments in Sri Lanka yesterday (May 15). 

The launch event of India’s leading digital wallet & payments app in Sri Lanka was graced by the presence of Shri Santosh Jha, the High Commissioner of India to Sri Lanka, Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), along with a strong presence of banking sector executives, Payment System Providers, business associations and media.

High Commissioner Jha in his remarks at the launch highlighted that the ease of a familiar digital payments system would further encourage tourism from India. He also urged the companies in Sri Lanka to engage with Indian companies to build on the UPI stack for innovations in hotel bookings, cab bookings and delivery services.

It may be recalled that Prime Minister, Shri Narendra Modi along with the President of Sri Lanka, Ranil Wickremesinghe jointly inaugurated the launch of Unified Payment Interface (UPI) services in Sri Lanka, in collaboration with LankaPay on February 12, 2024.

Referring to the Vision Document that was adopted during the visit of President Ranil Wickremesinghe in July 2023, Prime Minister Shri Narendra Modi had highlighted the strengthening financial connectivity as its key component.

Since its launch, over 6000 transactions have taken place in Sri Lanka, with a value of over SLR 240 million. It is expected that the PhonePayUPI launch would further enhance the extant digital fintech connectivity, including through additional linkages for instance with PickMe, a leading taxi services and food delivery app of Sri Lanka.

Expanding linkages in digital spheres not only gives strength to people-to-people connectivity, it is also a stellar example of India-Sri Lanka partnership in new and emerging domains of technology, keeping pace with the aspirations and expectations of the people of the two countries.

Continue Reading

Trending

Copyright © 2024 Sri Lanka Mirror. All Rights Reserved