Business and Economics
Impact of internal and external shocks on Sri Lanka’s foreign exchange earnings

Sri Lanka, as a developing country, is highly sensitive to both internal and external shocks. Today, Sri Lanka is facing a big challenge of controlling the spread of COVID-19, which is a global pandemic. Even though Sri Lanka is far better than other developed countries in terms of controlling the spread of this decease, the Government Medical Officers’ Association (GMOA) warns that the situation will worsen in the month of April.

If we fail to control this pandemic as a nation, not only a large number of people will be victimised but also it will create a huge negative impact on the economy. Exactly around one year ago, in April in 2019, the Sri Lankan economy faced a negative internal shock: the Easter attack on April 21, 2019, which created bad impacts on the economy. This internal shock led to create a negative impact on the foreign exchange earnings, mainly through adverse effect on the tourism sector.

Irrespective of the fact that the shock is internal or external, the Sri Lankan foreign exchange sources are adversely affected.  Although it is too early to estimate the impact of COVID-19 at this stage, it is safer to be aware of the possible impact of external and internal shocks on foreign exchange earnings.


TVS Motor Company completes acquisition of Norton

TVS Motor Company, a reputed manufacturer of two-wheelers and three-wheelers in the world, today announced the successful acquisition of Britain’s most iconic sporting motorcycle, “Norton”, in an all-cash deal for a consideration of GBP16 million by acquiring certain assets of Norton Motorcycles (U.K.) Limited (in administration) through one of TVS Motor’s overseas subsidiaries. This will be one of the most interesting acquisitions of a storied motorcycle maker in recent times and will reflect TVS Motor Company’s and India’s rapidly rising prominence in the international two-wheeler market.

Founded by James Lansdowne Norton, in Birmingham, in 1898, Norton Motorcycles is among the most popular British motorcycle brands of all time and is one of the most emotive marques today.

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Watawala Tea Ceylon supports island-wide Quarantine Centres by providing Ceylon tea

Sri Lanka’s No. 1 branded tea company, Watawala Tea Ceylon Ltd (WTCL) – a subsidiary of the diversified conglomerate Sunshine Holdings PLC – recently commenced the donation of Ceylon tea for the consumption of individuals and staff placed in Quarantine Centres located around the country, which have been set up to flatten the curve and speed up Sri Lanka’s recovery from COVID-19.

The company’s contribution, which comprised of Zesta tea bags and Watawala Haritha tea bags, to be distributed among quarantine centers was handed over to Major K.G.L.R.N. Karunathilaka and Brigadier T.H. Draheem recently at the Sri Lanka Army Supply Depot in Kelaniya by Watawala Tea Ceylon Limited General Manager – Marketing Farman Nizar. WTCL’s latest initiative is a concerted attempt to support both the members of public and the hard-working staff stationed at these centres, as they fight to curb the spread of this pandemic.

The purpose of providing tea bags was to enable the inmates of the centres as well as medical staff to make their own cups of tea when they require. This will complement the tea that is provided by the centres. Ceylon Tea is a beloved beverage all Sri Lankans who are deeply attached to and place great value upon and consume several times a day to quench both thirst and fatigue. Every Sri Lankan looks to a cup of tea for comfort, in both good and ill health and hot or cold weather.

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