JANUARY

01/Jan/2002

• GDP declined by 3.7pc in last quarter (Daily News)

• Govt. re-imposes import surcharge (Daily News)

• The govt. yesterday re-imposed the 40% surcharge on imported goods which was earlier imposed on February 20 last year. The surcharge will be effective till March 31^st this year. However essentials such as wheat flour, sugar, potatoes, and other consumables such as coconuts, infant milk food have been exempt from this surcharge.
  Merchant Bank of Sri Lanka has revised the MBSL midcap index with effect from tomorrow. The index was launched in 1999 and is revised every year (The Island)

• Debt servicing to cost Rs. 295 billion. (The Island)

03/Jan/2002

• Negative start for stock market in New Year (Daily Mirror)
  ASPI declined by 10 points to close at 610.7
  Milanka Price Index (MPI) - revised blue chip index, dipped sharply by 20 points to finish at 1,011.9
  Turnover  Rs. 49.6 million (Rs. 126 million on 2001 closing)
  The Colombo stock market finished 2001 with a 7 year high.

5/Jan/2002

• Relief to small loan defaulters under 100 day program (Daily News)

• Minister of Rural Economy and the Deputy Minister of Finance yesterday directed Bank of Ceylon to withhold the implementation of the parate execution of properties of all persons who have taken loans up to Rs. 500,000from the state banks as a means of goodwill of the 100 day programme. (Daily News)

• Migrant remittances benefit state (Daily News)

• IMF urges new government to push reform plans (The Island)

6/Jan/2002

• Opening Northern Economy - Private sector inducted (The Sunday Times)

• Road to Jaffna to be reopened by Jan 15^th. Rs. 1 million allocated for route A9 repairs. (Sunday Observer)

• Local govt. polls to go for a fresh date, following a request by the Minister of Ports

• Development and Muslim Affairs, Rauf Hakeem, on account of the original date being Friday, a holy day for the community. (Sunday Observer)
   

15/Jan/2002

• Petroleum, energy, water liberalization on line (Daily News)

• The Government will shortly liberalize the petroleum, energy and water sectors, in a sweeping move aimed at reaping the full benefits of the market economy through healthy competition.(Daily News)

16/Jan/2002

• Euro currency accepted here. (The Island)

17/Jan/2002

• Coconut products trade in crisis over vegetable oil fiasco: over 40% of the global market share in Desiccated Coconut at stake warns the Coconut Product Traders Association(CPTA) (Daily Mirror)

• UNP trumpeted economic boom is a myth – JVP(Daily Mirror)

• NSB can play a crucial role to help govt. narrow deficit.(Daily News)

18/Jan/2002

• People’s Bank top management juggles with figures, claim employees(The Island)

•  Two to Two and half power cuts from tomorrow(The Island)

• Market’s downswing continues:
  The Colombo Stock Exchange (CSE) , driven down by retail selling due to profit taking and the need for brokers to meet the settlement deadlines, saw the CSE’s benchmark All Share Price Index (ASPI) fall by 14 points to closer at 549.5 points at the end of yesterday’s trading while the blue chip MILANKA Price Index (MPI) was down by 22.3 points to close at 889.3 points, sources and the data on a CSE release showed.(The Island)

•  Marginal declines in the WAYRs(The Island)

•  Bond yields slightly down(The Island)

• 16% drop in tourist arrivals last year when compared with the figures in 2000 (The Island)

• Highest sales average for tea:
  Last week’s total sales average of 159.06 is the highest ever recorded, a Forbes and Walker tea report said. This betters the previous high of Rs. 157.02 established in last year’s November 14 sale.
  The low grown weekly average of Rs. 175.81 at this sale is also a record. (The Island)

 18/Jan/2002

• Rs. 16 billion to boost SME sector (Daily News)

• Record price for Kehelwela tea (Daily News)

19/Jan/2002

• Controversial water policy for public review soon (The Island)

• Cumulative exports decline by 9.8% to $ 4,426 million during the first 11 moths last year (The Island)

21/Jan/2002

• London Experts here to review surcharge (Daily Mirror)  

 22/Jan/2002

• High-level committee to monitor essential imports (Daily Mirror)

• Government to review Emirates agreement (Daily News)

• Rs. 3m to Vavuniya GA for dry ration welfare centres(Daily News)

• London security audit here(Daily News)

23/Jan/2002

• Cost of War:

  Over 20,000 armed forces and service personnel sacrificed their lives
  Over 60,000 lives lost
  More maimed or disabled
  Rs. 80 billion spent on the war in the year 2001 alone
  Total expenditure on war for the 19 years surpasses Rs. 500 billion
  Huge brain drain overseas (Daily News)

• Economy to be regenerated in 2002 – PM (Daily News)

•  Rural Economy Ministry to focus on regional specialization programs (Daily News)

24/Jan/2002

• BOI chief gives his prescription to revitalize battered Sri Lanka (Daily Mirror)

25/Jan/2002

• Fitch Rating to pull out from Sri Lanka (The Island)

• Tea Production down by 10.75 million kg (The Island)

 26/Jan/2002

• Rs. 10 billion contract for roads: A contract worth of Rs. 10.5 billion to improve 234Km of national highways in five provinces to be signed by the Highways Ministry next week, officials said.(Daily Mirror)

 27/Jan/2002
 

• Spanish Red Cross funds disaster preparedness project here (The Island)

• Prima deal under scrutiny: rice, cooking oil to be imported (The Sunday Times)

 28/Jan/2002

• Big Japanese grant for public service project (Daily Mirror)

• Hakeem announces his 100-day program (Daily Mirror)

• War risk experts complete final audit, report to Lloyds (Daily Mirror)

 28/Jan/2002

• Sweeping tax reforms (Daily News)

28/Jan/2002

• Jaye container terminal become JCT Company Ltd. (The Island)

• Fish prices decline due to improved supply conditions (The Island)

29/Jan/2002

• Vote on Account on Feb 5  (The Island)
   

• Plantations workers’ wages should be raised, says ADWC president. (The Island)

29/Jan/2002

• War risk surcharge: removal imminent (Daily News)

• PMA expresses interest in Hambantota port (Daily News)

• CID after dollar racket suspect (Daily News)

• ADB loans to tea factory owners (Daily News)

• Role of Chambers to be strengthened: Five economic Commissions with autonomy, power (Daily News)

• Ceybank funds record 52% growth in 2001 (Daily News)

30/Jan/2002

• ‘Kick start economy with sectoral investment relief” – Ceylon Chamber urges Government in tis tax proposals for Budget 2002.Other Key recommendations:

Corporate tax structure and rates
Relief for repatriation of income on offshore equity investments
Support for non-oil power projects
Tax threshold
Treaties on avoidance of double taxation (Daily Mirror)

• Commercial Bank maintains 45% dividend rate. (Daily Mirror)

• International marketing of  teas: Kenya will be Sri Lanka’s major competitor and has already displaced Sri Lanka as the leader in both Pakistan and Egypt, which are amongst the leading importers of tea for domestic consumption. (Daily Mirror)

31/Jan/2002

• Laugfs threatens to take action on Shell’s Proposal to Ceylon Petroleum Corporation (The Island)

• Bourse records lowest turnover after elections:
  Yesterday the Colombo Stock Exchange recorded its lowest turnover after the elections yesterday, registering a total of Rs. 13.6 million, with retailers and high net worth individuals remaining largely inactive, while institutions continuing to keep away from the market.
  The CSE’s benchmark All share Price Index (ASPI) marginally gained by 0.67 to close at 564.58 and the blue-chip MILANKA Price Index (MPI) gained by 2.53 points to close at 915.13, at the end of yesterday’s trading. (The Island)

• Foreign purchases amounted to 1.8 million and foreign sales Rs124, 000. (The Island)

• Rs. 400 m port project to expedite cargo operations.(Daily News)

• Social Welfare programs to assist the needy. (Daily News)

• Canadian help sought to assist rural entrepreneurs. (Daily News)

• Holcim (Lanka) to invest $100 million to reconstruct KKS cement factory.
  The company is closely following the peace process. (Daily Mirror)

• Sanstha remains but Puttalam Cement changes to Holcim Lanka – Cement giant to invest $ 3.5 million to upgrade plant. (Daily Mirror)

•  Stock market turnover dips to 4-month low – Analysts query role of Govt. funds. (Daily Mirror)

•  Treasury Bill auction draws bids worth Rs. 10.2 billion. (Daily Mirror)

•  Sri Lanka Ports Authority to invest Rs. 400 million to boost conventional cargo. (Daily Mirror)

FEBRUARY   

01/Feb/2002

• Apparel trade agreement with US to be re-negotiated (The Island)
   

• ADB aid for Southern development (The Island)
   

• Sri Lanka exports 294mn kg of tea – earnings static at $ 691 mn. (The Island)
  Inflation: 13.5%.(The Island)
   

• $80 m road improvement project – The Asian Development Bank (ADB) will provide US$ 80 million (Rs. 7.5 billion) in a Rs. 10.5 billion road network improvement project that envisage the improvement of 274km of national highways and 42 bridges in 11 districts. (The Island)

 02/Feb/2002

• New vistas for plantations: The Government’s proposed deregulation of the plantation sector in its economic agenda for 2002 will enable the 23 Regional Plantation Companies enter new vistas through projects such as power generation, gem mining, tourism, forestry, crop diversification value added agro industry, Minister of Plantation Industries Lakshman Kiriella told the Daily News yesterday. (Daily News)

• Home grown economic reform package on way (Daily News)

03/Feb/2002

• Telecom boost for Jaffna: 4,000 lines planned (Sunday Observer)

• Hambantota port to get off the ground within 3 months(Sunday Observer)

• Estate sector to get boost from 100 days programme(Sunday Observer)

• Ceylon Chamber of Commerce submits tax proposals to Finance Minister. (Sunday Observer)

• Power drama in Jaffna peninsula: Dispute over insurance claim affects electricity supplies (Sunday Observer)

• Operation 100 days – too much hype: The government’s much-touted 100-day programme appears to have failed to generate enthusiasm among investors and the public, with the 25-day progress report, released last week, passing virtually unnoticed. (The Sunday Times)

• Stock brokers hire staff, prepare for market rally (The Sunday Times)

• Benefits not passed down to low-income user: Chamber cries foul over Laugfs-Government deal(The Sunday Times)

• Market’s lacklustre performance to continue this month. (The Sunday Times)

• Business Chamber makes their budget 2002 proposals: Entrepot trade, parate executions, some of the issues. (The Sunday Times)

• Foreign selling in blue-chips at the bourse – JKH, DFCC, Aitken Spence, the contributors. (The Sunday Time)

04/Feb/2002

• Food prices rise, rice continues to be sold at Rs. 40 (The Island)

05/Feb/2002

• Double digit percentage increase in food prices (The Island)

• Paddy crop down by 220,000 mt (The Island)

• Trade mission to Dubai (The Island)

• Shell invites bids for LPG supply (The Island)

• Prices for NRFC/RFC account holders (The Island)

• Sri Lanka Norway Industrial Cooperation Project: Chambers asks govt. support for twinning programme (The Island)

• Crude oil imports decline by 17%, prices by 13% (The Island)

• Apparel exporters identify 5 focus areas (The Island)

• Government debt: Rs. 1,405,858m (The Island)

• Vote on account today(The Island)

• New opportunities for investments, trade: Govt’s economic policies to be promoted among Indian entrepreneurs.(Daily News)

• Business investment mission to Bangladesh (Daily News)

• Rs. 100 million cosmetic plant to reproduce Paragon products (Daily News)

• SIDA to provide Rs. 93m to develop FCCISL regional Chambers. (Daily News)

• First IPO of the year: Touchwood opens ordinary share issue tomorrow. (Daily News)

• British trade mission due in Colombo in March 11th(Daily News)

06/Feb/2002

• New bank for rural folk soon(Daily News)

• Sri Lanka Ports Authority nets 68 m profit from the port  at Trincomalee during the year 2001 against the Rs. 54.3 million in the year 2000. (Daily News)

• 95,254 hectares under paddy in the North East: An extent of 143,312 hectares of land was targeted to be brought under paddy cultivation during 2001/02 Maha season in the eight districts of the North East province and of this 95,254 hectares have been cultivated up to the December 2001. (Daily News)

• Public debt surges to Rs. 1,464 billion (Daily News)

08/Feb/2002

• Prima to offer cheap Indian flour: but quality not good enough to bake bread (The Island)

• Blue-chips lose ground at yesterday’s trading(The Island)

• Commercial Banks can be primary dealers. (The Island)

• Bond rate: 14.2% (The Island)

• Record Low Grown average. (The Island)
  JKH’s profit down by 47% to Rs. 239.8 m : Pins hope on govt.’s budget to stimulate economy. (The Island)

• State bodies owe Rs. 251m to Land Reclamation Corporation for projects carried out by the Land Reclamation Board. (Daily News)

• Drought relief from Saudi Arabia (Daily News)

• BOI signs up 21 projects worth Rs. 5.8 billion investments. (Daily Mirror)

• Economy hit by excessive, irrelevant regulations: Enterprises are losing 30% of their profits, 13% of capital costs; White paper on deregulation in the offing says top committee. (Daily Mirror)

• Heavy foreign selling at Colombo bourse. (Daily Mirror)

09/Feb/2002

• Guaranteed price for paddy. (The Island)

• CEB to purchase power from private generators to ease crisis.(The Island)

• Weak corporate earnings will stymie growth in the bourse. (The Island)

• Govt. targests 8% - 10% growth in 2003, otherwise the country is doomed – Karunanayake. (The Island)

• NDB’s after tax profits increase by 18% to Rs. 613m. (The Island)

• Highest ever quantity exported: The 294 million kgs of  tea, inclusive of imports re-exported, is the highest ever recorded during a calendar year. (The Island)

• Private sector participation solicited for infrastructure development. (Daily News)

 10/Feb/2002

• CWE outlets fasce closure. (Sunday Times)

• Confusion over CPC, LAUGFS MoU. (Sunday Times)

• World Bank fund energy project. (Sunday Times)

• Prices up: CCPI passes 3,000 mark. (Sunday Times)

• Fraud alleged in Rubber Co, Tea Shakthi fund. (Sunday Times)

• Expansion of Central Bank primary dealer system. (Sunday Times)

• SLT to renegotiate with NTT of Japan. (Sunday Times)

• CEB urges consumers to conserve power. (Sunday Times)

• Shell gas seeks pricing mechanism. (The Island)

• The Ceylon National Chamber of Industries (CNCI) has submitted to the government a list of its budget proposals for 2002. (The Island)

11/Feb/2002

• BOI signs 21 new agreements(Nov. and Dec. 2001) generating 2,000 jobs. (The Island)

12/Feb/2002

• Touchwood IPO nets over Rs. 2 m (Daily Mirror)

• Major boost for tea exports. (Daily News)

• Tea Federation and Dollar auction: The Colombo Tea Traders’ Association (CTTA) has expressed concern. (Daily News)

13/Feb/2002

• Rs. 29m grant aid from Japan for purchase of goods. (The Island)

• Suntel’s debentures ‘prop’up market. (The Island)

• DFCC’s profits increase by 25% to Rs. 577m: The unaudited group profit after tax of the DFCC Bank for the nine months ended December 31 of last year was Rs. 577million an increase of 25% when compared with the Rs.460 million recorded for the corresponding period in the previous financial year, a bank communiqué said. (The Island)

• Top confab on power crisis. (Daily News)

• “Greens” concerned over oil palm cultivation. (Daily News)

• Project to generate 3MW to national grid: Okanda Finance to set up Rs. 100m mini hydro power plant in Hatton. (Daily News)

• Over 50 applicants seek permits to operate bus services to Jaffna. (Daily News)

• Rs. 10 billion surplus liquidity in money market: Interest rate cut likely? (Daily Mirror)
  Stock market indices sustains gains. (Daily Mirror)

17/Feb/2002

• Private sector welcomes govt. decision on power crisis. (Sunday Observer)

• US-Sri Lanka trade pact soon – PM (Sunday Observer)

19/Feb/2002

• Prima promises cheaper flour. (Daily news)

• Defence budget to be slashed. (Daily Mirror)

• Filipino co. to offer LP gas at Rs. 325 a cylinder- Makes entry in April. (The Island)

• ADB (Asian Development Bank) and the Government sign Rs. 16billion (US$ 176 million) deal to boost SMEs (Small and Medium Scale Enterprises. (Daily Mirror)

21/Feb/2002

• BOI starts 2002 with a 12 deals worth Rs. 1.05 billion (Daily Mirror)

• Ceylon Tea gets Rs. 110m international marketing push: Tea Board gears with major program for 2002. (Daily Mirror)

• Rs. 4.6 billion Treasury Bill auction draws Rs. 16 billion bids.(Daily Mirror)

22/Feb/2002

• SLT’s Rs. 100 m ‘Project Hope’ to give 10,000 lines to North(Daily Mirror)

23/Feb/2002

• All Share Price Index (ASPI) gains:
  With the Governement and the LTTE signing the peace MoU yesterday, the Colombo Stock Exchange’s benchmark All Share Price Index  (ASPI) gaied 19.2 point to close at 602.2 points and the blue chip Milanka Price Index (MPI) gained 40 points to close 978.1 points at the end of yesterday’s trading. (The Island)

24/Feb/2002

• Employer’s Federation of Ceylon calls on UNF government for extensive labour reform. (The Island)

• Trade chamber urges budget deficit cuts. (The Sunday Times)

MARCH

01/March/2002

• Day night power cuts from today. (Daily News)

• Colombo bourse spurred by two RPC sales: The sale of 19 percent Government owned minority equity stakes of two Regional Plantation Companies – Talawakele Plantations Ltd. And Malwatte Valley Plantations Ltd. On Tuesday spurred the Colombo bourse to double its daily turnover. (Daily News)

• The deputy minister of power an energy has reconsidered the level of the incentive payment made to the private sector for generatio0n of electricity and increased it from Rs. 3 to Rs. 4.80 per unit with effect from February 22. The total credit has thus increased from Rs. 8.70 to Rs. 10.50 per unit. (The Island)

• Treasury Bond rate declines by 0.1%. (The Island)

• Inflation 12.8%:

• Last month’s Colombo Consumer’s Price Index (CCPI) was 3084.8. This shows an increase of 38.4 index points or 1.3% from the January index number of 3046.4. This is an increase of Rs. 77.56 in the Expenditure Value of “Market basket” when compared with January. (The Island)

 02/March/2002

• Additional power cuts stultify bourse- Market to remain flat upto polls, budget, run-up. (The Island)

 03/March/2002

• Private sector hopes for clear economic policy frame work. (Sunday Observer).

• Business Community hails peace agreement- The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) has commended the efforts of the government in signing a ceasefire agreement with the LTTE. (Sunday Observer).

• Lloyds of London has decided to completely remove the 0.05 percent additional war risk surcharge on vessels calling Colombo port form March 8, Ports and Shipping Minister Rauff Hakeem announced yesterday. (The Sunday Times)

• The five hour power cuts imposed from yesterday in controvercial and crisis ridden circumstances are likely to continue till April, but Power and Energy Minister Karu Jayasuriya pledged again that he will quit if he could not solve the crisis within 6 months. (The Sunday Times)

• Controversial expressway gets off ground this month – ADB and Japan provide 30 billion funding. (The Sunday Times)

• Support for forex market from Central Bank – The Central bank yesterday announced two key measures aimed at supporting the country’s foreign exchange market. It has enhanced the limit of the daily positive Net Open Position (NOP) of commercial banks from 10% of capital and reserves to 15% and extended the limit on the duration of the forward contracts in foreign exchange to one year with effect from 1 March 2002. (The Sunday Times)

04/March/2002

• Hapugastanna Plantations Ltd. (HPL) recorded a loss of Rs. Two million last year compared with a profit of Rs. 44 million in 2000. (The Island)

• The Uda Pussellawa Plantations Ltd. Recorded a loss of Rs. 2.8 million last year compared with a profit of Rs. 47 million in the previous year. (The Island)

• Reserves, $2.2b as at end 2001: (The Island)

• Total external reserves (TER) inclusive of FCBUs as at end December of last year stood at US$ 2,238 million; a 5% increase over the corresponding period in 2000, where the TER stood at 2,131 million, data on a Central Bank release showed. The total level of foreign reserves was sufficient to finance 4.5 months of imports.

• Meanwhile, gross official reserves increased by 27.7% to $1,338 million; compared with a figure 1,048 million registered in end December 2000.

• DFCC to introduce a new benchmark for Corporate Debt. (The Island)

• Power crisis: President delays urgent Bill. (Daily News)

05/March/2002

• Chamber asks Choksy to broadbase GST. (The Island)

• Policy changes will have to wait till the budget – Ministers Prof. G L Peiris and Ravi Karunanayake. (The Island)

06/March/2002

• India boldly takes FTA forward – Ups 50% duty concessions to 90% on 2,700 items for import from Sri Lanka.

• Saudi-local firms sign power generation agreement. (Daily News)

• Ceylon Chamber wants transparency, action plans in national Budgets. (Daily Mirror)

07/March/2002

• Shell claims Rs. 100 m damages from CPC. (The Island)

08/March/2002

• Government to cut budget deficit to 8.5 per cent. (Daily News)

• CEB will not be privatised. (Daily News)

• Energy Supply (Special Provisions) Bill Passed. (Daily News)

• Emergency measures to curb escalating rice and coconut prices. (Daily News)

• US$ 5 million loan for rural development. (Daily News)

09/March/2002

• War risk surcharge withdrawn. (Daily News)

• Samurdhi Bank Societies record Rs. 4,268 m at end Dec 2001. (Daily News)

11/March/2002

• EU to slash tariff barriers. (Daily News)

• The GT-7 power plant at Kelanatissa thermal power complex will be back on track by June. (Daily News)

19/March/2002

• 0.01% decline in Treasury Bond rate. (The Island)

22/March/2002

• UNF's sweeping polls win makes little impact on the market. (The Island)

• Treasury Bonds, Treasury Bills move in different directions. (The Island)

• UNF government's first budget this afternoon. (The Island)

23/March/2002

• House sole authority on public expenditure. (The Island)

• Mixed bag in budget: (Daily Mirror)
  -GST(Goods and Services Tax) out , but VAT for all
  -Payee tax relief for middle income groups
  -No free pensions for new entrants, public sector recruitments fallen
  -Major incentives for private sector and foreign investments

• Good budget says IMF: Recommends effective implementation of reforms; $250 million Stand-by Facility support likely to resume (Daily Mirror)

• BOI approvals in February moderate. (Daily Mirror)

24/March/2002

• BOI concentrates on putting its house in order. (The Island)

• Some confusion on interest tax. (The Island)

• Bungling continues at the Ceylon Electricity Board. (The Sunday Leader)

• Underdeveloped bond market an obstacle to economic growth. (The Sunday Leader)

• IMF says good riddance to free pension. (The Sunday Times)

25/March/2002

• Essential consumer items, services adversely affected: VAT worse than GST - Lanka Samasamaja Party (LSSP). (The Island)

26/March/2002

• Tax on interest: Interest will be excluded from the computation of assessable income. The tax rate will be only 10 per cent. Interest income of Rs. 6,000 or less per deposit per annum will not be liable to this tax. (Daily News)

• Ceylon Chamber of Commerce hails budget - Private sector aspirations largely met. (Daily News)

• Doubts about growth, inflation and deficit targets: Budget process should have integrity.- Hemaka Amarasuriya(Singer Group Chairman). (Daily news)

• CWE outlets for uncleared areas. (Daily Mirror)

• Master Divers buys 53% stake in Pelwatte Sugar for Rs. 300 million (Rs. 8.25 per share)

27/March/2002

• Electricity tariffs have been raised effective from April 1, the Ceylon Electricity Board announced yesterday. A spokesman for the board said that the revision was around 38 per cent but could not say whether that figure was in relation to an average increase or a blanket revision across the board, covering all blocks. It is the first hike since march when tariffs were raised by 25%. A statement from the CEB said that the tariff for the first 30 units consumed remained unchanged at Rs. 3.00 per unit. However the cost of consumption between 31 and 60 units have been raised to Rs. 4.00 per unit; between 61 and 90 Rs. 4.40 per unit; between 91 and 180, Rs, 4.00 per unit and above 180, Rs, 7.20 per unit. The fixed charge is Rs. 30. A separate set of rates were also specified for industries. (The Island)

• Market plunges by 12 & 21 points due to 'heavy' selling. (The Island)

28/March/2002

• Rs. 23 billion loan from Japan for Kotmale project. (The Island)

• Budget second reading passed with 121 voting for and 87 voting against (The PLOTE, TULF and EPDPvoted with the government while the PA and the JVP voted against. (The Island)

• Decline in January 2002 trade deficit - Central Bank yesterday said that the trade deficit in January this year declined by US$ 97 million to US$131 million compared with US$ 228 million in January 2001. (The Island)

• 2002 Jan exports higher than 2001 but lower than December. (Daily Mirror)

• Exemption on deposit interest tax (of 10%) increased to Rs. 72,000 per year.This is a twelve fold increase from the original Rs. 6000 per year. (The Island)

29/March/2002

• February Tea crop down 18% - 21.5 Mn kg compared with 26.3 last year. (Daily Mirror)

• Profit making or weak fundamentals cause for the bear-run after budget 2002?- Judging by the performance of the Colombo Stock Exchange (CSE), investors do not seem to be bullish about the Government's 2002 Budget. (Daily Mirror)

• Government's 2002 privatisation program: Entities listed for privatisation this year are:

  Plantation companies and Sugar companies
  49% remaining stake in National Insurance Corporation
  49% remaining stake in Shell Gas Lanka Ltd.
  Sale of Lanka Marine Services Ltd, the CPC subsidiary enjoying bunkering monopoly
  Lotteries boards
  Restructuring of Sri Lanka Insurance Corporation
  Shares of Sri Lanka Telecom
  Unbundling of CPC operations
  (Daily Mirror)

•   Aitken Spence debenture oversubscribed. (Daily Mirror)

31/March/2002

• Sri Lanka Telecom announces revised tariff structures that will be effective from 1st May 2002. (The Island)

• Chambers (Ceylon Chamber of Commerce), private sector hail budget as a step in the right direction under difficult conditions. (Sunday Observer)

APRIL

 01/April/2002

• Proposed changes in the taxation of dividend income. (Daily Mirror)

• Big defence budget despite peace times. (Daily Mirror)

 03/April/2002

• Small holders produce 65 per cent of of tea. (The Island)

 04/April/2002

• Talawakelle Plantations record Rs. 91.4 million after tax profit. (Daily News)

• Coal-fired power project: Norochcholai out, Trincomalee/Hambanthota in. (The Island)

• Talawakele Plantation's profit down by 40% to Rs. 91.4 million. (The Island)

• Treasury Bill raters increase. (The island)

 05/April/2002

• Market gains with 'renewed' buying interest.(The Island)

 08/April/2002

• Central Bank's January - February statistics paint gloomy economic scenario. (The Island)

09/April/2002

• VAT implementation deferred by a month. (Daily Mirror)

• The market records the 2nd lowest turnover figure (Rs. 17.2 million) for the year. (The Island)

10/April/2002

• Development Forum in June: ADB provides US$ 915 million. (Daily News)

• Salaries Commission proposes Rs. 6,000 minimum wage. (Daily News)

• New laws for Gramodaya Sabhas: Rural Economy Revival Fund for village reawakening. (Daily news)

11/April/2002

• No new quota apparel factories till 2005. (Daily news)

12/April/2002

• [Prime Minister], welcomes Prabha's remarks,[at the press conference] but Sinhala leaders hit out. (Daily Mirror)

• The UNF government's first budget was passed with a 27-vote majority yesterday. (Daily Mirror)

• ADB earmarks US$ 711m as adi to Sri Lanka. (Daily Mirror)

14/April/2002

• ADB forecasts economic turnaround in 2nd half of 2002. (Sunday Observer)

17/April/2002

• IMF releases US$ 60 million - Standby Agreement extended by two months. (Daily News)

18/April/2002

• IMF releases $60 million under Stand By Agreement. (The Island)

• Government's pledge to IMF: Postal rates to be increased, recruitment & wage hike freeze. (The Island)

23/April/2002

• There are no day time power cuts from yesterday (April 22) and on Sunday the power cut will be confined only to one hour. (Daily News)

• Oil prices up: Oil price have been increased by Rs. 2 with immediate effect, the Ceylon Petroleum Corporation (CPC) announced yesterday. Lanka Super Petrol will now be sold at Rs. 52 a liter, Lanka Uncleaned Petrol at Rs. 55, Lanka Super Diesel at Rs. 33.30, Lanka Super Kerosene Oil Rs. 19.40 and Lanka Industrial Kerosene at Rs.21.70. The prices of all lanka Furnace Oil rpoducts have alos been increased by Rs. 2 per liter respectively. (Daily Mirror)

21/April/2002

• Offshore call centres take off in Sri lanka. (Sunday Times)

22/April/2002

• Sri Lanka-USA Free Trade Agreement proposed. (The Island)

26/April/2002

• 'Educated', 'Unemployed' an acute problem - Ceylon Chamber of Commerce. (The Island)

• 60% of garment factories to close at end of MFA: The year 2005 will be a significant year for the local apparel industry, which accounts for 53% of the copuntry's exports, as it will see the cessation of the Multi-Fibre Agreement (MFA). (The Island)

• Diesel tax won't be reimposed. (The Island)

• ADB to grant Rs. 40 million to Jaffna. (Daily News)

• Health minister visits Jaffna with Rs. 20 million equipment. (Daily News)

27/April/2002

• Local textile industry on verge of collapse. (Sunday Times)

28/April/2002

• India to lease out oil tanks in Trincomalee. (Sunday Observer)

• Transport charges go up - Impact of fuel price hike takes its toll. (Sunday Observer)

•  Leaded petrol to be banned. (Sunday Observer)

• 'Conduct more research before dollarising tea auction' - The Exporters Commission of the National Chamber of Commerce. (Sunday Observer)

• Textile sector needs stitch in time to avoid total disaster. (Sunday Observer)

• VAT will force tea exporters to borrow millions. (The Island)

29/April/2002

• Loan scheme ensures high prices for paddy - No collateral required. (Daily News)

• Half an Hour reduction in power cuts. (The Island)

30/April/2002

• An Economic and Social Survey of  Asia and Pacific 2002 of the United nations Economic Commission for Asia and the Pacific (ESCAP) will be launched world wide including Sri Lanka Today. (The Island)

MAY

21/May/2002

BOI signs 21 agreements worth Rs. 2.5 billion. (The Island)

18/May/2002

• Cabinet paper on Colombo-Matara highway contract suspended. (The Island)

03/May/2002

• Emirates boss says "deal is a deal": Sri Lanka cannot cancel agreement till 2008. (Daily Mirror)

• With ceasefire Rs. 1 million has been saved - Minister Rajitha Senatatna. (The Island)

02/May/2002

• Government aims at 10 percent growth rate. (Daily News)

• Withholding tax jacks up government borrowing cost. (Daily Mirror)

• Central Bank appoints Financial sector reforms committee. (Daily Mirror)

01/May/2002

• Central Bank wants drastic changes in labour laws. (Daily Mirror)

• The dark night is over: The power cuts will be in force only one hour once in two days while there will be absolutely no blackouts on Saturdays, Sundays and public holidays. (Daily Mirror)

• Debt burden a stumbling block to SL's economic recovery - Dr. Dushni Weerakoon, Institute of Policy Studies. (The Island)

24/May/2002

• The Sri Lankan cabinet which met on 24 may decided to offer a key oil tank installation in the eastern port town of Trincomalee to India's public sector giant Indian Oil Corporation (IOC) on long-term lease/ The decision is to give all the 99 oil tanks in Trincomalee to India to be run by a joint venture company comprising the Indian Oil Corporation (IOC), and a Sri Lankan partner. The IOC will have a majority stake in the new company. (Tamil Times 15May/June 2002)

JUNE

06/June/2002

• "Sri Lanka should move faster in securing peace and implementing economic reforms, the wise president of the World Bank's South Asian region, Mieko Nishimizu, said in her concluding statement to the Sri Lanka Development Forum meeting in Colombo. "Speed is of essence", she said adding "it is important to begin action in places where strategic priority, tactical advantage, enabling opportunity,...exist. (Tamil Times 15May/June 2002)   

22/June/2002

• Oil prices up again. (Daily Mirror)

25/June/2002

• Unions wants true picture of EPF and ETF funds. (Daily Mirror)

28/June/2002

• Water tariff too up from July 1: Accordingly the minimum fixed charge will increase from Rs. 40 to Rs. 50. The cost per unit for usage of between one to 10 units will rise from Rs. 1.00 to Rs. 1.25; between 11 to 15 units from Rs. 2.00 to 2.50 ; between 16 to 20 from Rs. 5.00 to Rs. 6.50 and between 21 to 25 from Rs. 13.00 to 20.00. Every unit used over 25 units will now cost Rs. 45.00. The earlier rate was Rs. 24.00. (The Island)

30/June/2002

• Colombo Stock Exchange (CSE) records highest monthly turnover since 1994:  The CSE recorded a total turnover of Rs. 5,204.7 million for June 2002, the highest monthly turnover since March 1994 and the third highest monthly turnover recorded in its history. In February 1994, the CSE recorded its highest ever monthly turnover of Rs. 5,510.3 million, a CSE release said yesterday. The average daily turnover for June 2002 was Rs. 274.3 million. This is the second highest average daily turnover recorded for a month.
  It is significant to note that during the first half of 2002 (January to June)  the CSE has recorded a total turnover of Rs. 14,961.7 million. In comparison the CSE recorded total turnover of Rs 14,056.9 million for the entire year 2001. (Daily News).

JULY

05/July/2002

• Government aims to achieve 3.7% growth by end 2002:Accellerated economic development drive soon - Prime Minister. (Daily News)

06/July/2002

• India provides US$ 51 million to Sri Lanka. (The Island)

08/July/2002

• The Tamil National Alliance (TNA) supports a mixed electoral system which is a combination of "first past post system" and the proportional representation and will submits its proposals when the party meets the Prime Minister on July 10, TULF President Anandasagari said. (Daily News)

• Government announces steps to reduce cost of essentials. (The Island)

• Exclusive EPZ for Indians in Trincomalee. (The Island)

12/July/2002

• Lanka-Pakistan FTA: Framework agreement to be signed next month. (Daily News)

• Indian FM's visit: Focus on Economic ties. (Daily News)

14/July/2002

• Consumers will get fuel price reduction bonus from next week with prices to come down more than previously announced - diesel to come down by Rs. 3 per litre, petrol by Rs. 7 and Kerosene by 80 cents. (The Island)

• Major trade unions representing the bulk of plantation workers of the central hill country are due to meet the Ceylon Employers' Federation (CEF) tomorrow to negotiate fresh collective agreement covering wages and terms of employment of these workers. The Ceylon Workers' Congress(CWC) led by Minister A Thondaman, the pro-UNP Lanka Jathika Estate Workers' Union (LJEWU) led by Ranjith Seneviratne, and the Joint Plantation Trade Union consisting of 12 smaller plantation trade unions will negotiate worth the CEF which represents the 21 Regional Plantation Companies.
  The collective agreement that has been in force for 2 and 1/2 years as at June 2002, gave the worker a basic daily wage of Rs. 101/- with a cost of living supplement of Rs. 15/- and an attendance allowance of Rs. 5/-. (Sunday Observer)

16/July/2002

• Port to off load 6,000 workers: In a major breakthrough of public sector restructuring the over-staffed Sri Lanka Ports Authority (SLPA) is going for a phased out voluntary retirement scheme (VRS) from next month to reduceits workforce from 18,000 to 12,000. The first phase of the VRS, which has been approved by the SLPA Board pending formal Treasury consent, is targetted at clerical, minor and unskilled employees. (Daily Mirror)

• The government has embarked on a new drive to make the state enterprises more accountable on the money they spend. As a first step the government has ordered all state enterprises to finalise accounts and present the books to parliament at the end of the calendar year to ensure greater transparency and good governance, Power and Energy Minister Karu Jayasuriya said yesterday. (Daily News)

• Equity participation invited up to 50 percent: Govt.-Private partnerships in thirteen bus companies- The government will shortly enter into partnership with the private sector where the latter participates in equity in each of the 13 peoplised bus companies.(Daily News)

21/July/2002

• Private bus fares down by 2.5 per cent from weekend. (Sunday Observer)

25/July/2002

• VAT passed without debate, comes in to force in August. (The Island)

26/July/2002

• IMF assures uninterrupted help. (The Island)

• Export earnings record $ 345 million up to May 2002. (Daily News)

27/July/2002

• Pakistan to sign first FTA with Lanka next week. (Daily News)

• US_SL sign trade and investment framework deal. (The Island)

• Over 600,000 plantation workers to launch work-to rule. (The Island)

• Plantation companies propose two-year wage increase. (The Island)

28/July/2002

• Wage hike for estate workers delayed. (Sunday observer)

29/July/2002

• Rs. 625m Chinies grant for Sri Lanka. (Daily News)

30/July/2002

• Rice, flour, infant milk, etc. cheaper come Aug. 1 (The Island)

• The Inland Revenue Department (IRD) yesterday announced new items which would come under the Value Added Tax (VAT) These imports and supplies which were exempted from the Goods and Services Tax (GST) would be liable to the VAT which would be implemented from 1st August 2002. (The Island)

• Factories Ordinance to be debated on August 6: Amendments to Industrial Disputes Act before cabinet. (Daily News)

31/July/2002

• The commercial banks have responded favourably to the Central Bank's decision to lower interest rates which they described as a positive move to stimulate the economy. Five top banks have already decided to reduce their interest rates on lending by 0.5% to 1%. (Daily News)

• Banks pledge 2000 Rs. 2000m for Govt. housing program. (Daily News)