Sri Lanka Roundup: Debt restructuring deal, renewable energy, Elon Musk's Starlink approved
Debt restructuring deal
Sri Lanka is reportedly nearing the final stages of negotiations with a consortium of creditors to restructure its national debt. According to Bloomberg, confidential sources indicate that the discussions involve bilateral lenders. Anonymous insiders have informed the Daily Mirror that draft agreements, or memorandums of understanding, are being exchanged between the Sri Lankan government and the official creditor committee. This committee includes representatives from India, Hungary, and the Paris Club. These drafts are crucial for finalising a deal that was preliminarily agreed upon in November, aiming to resolve the last outstanding matters before reaching a conclusive settlement.
Renewable energy strides
On Thursday, Sri Lanka's legislative body passed a bill aimed at encouraging investments in renewable energy and diminishing deficits within its government-controlled electricity entity. This step is in line with the commitments made under a $2.9 billion agreement with the International Monetary Fund, reports Hindustan Times. The bill was ratified by a margin of 44 votes out of the total 225 members, as announced by Speaker Mahinda Abeywardena. The Minister of Power and Energy, Kanchana Wijesekera, informed the assembly that the newly enacted Electricity Bill is expected to enhance the profitability of the Ceylon Electricity Board and boost investments in the renewable energy domain.
Elon Musk's Starlink approved
Elon Musk's Starlink, the satellite unit of SpaceX, has received preliminary approval to offer internet services in Sri Lanka. This came after discussions between Musk and President Ranil Wickremesinghe. Reuters reports that the service aims to improve internet connectivity, particularly in rural areas, and is also being introduced in Indonesia. In addition, Musk's company xAI is planning to build the world's largest supercomputer in Memphis, Tennessee, which represents a significant investment in the city's future.
Sri Lankan shares surge
The stock market of Sri Lanka witnessed a significant uplift, predominantly propelled by advancements in the essential financial and industrial segments. Notably, Ceylon Tobacco Company Plc and LOLC Holdings Plc emerged as the leading performers, with their share prices escalating by 1.9%. The upbeat market sentiment was further evidenced by the surge in trading volume, which escalated to 49.2 million shares from the prior session's 37.2 million. According to Finimize, the market's turnover experienced a substantial increase, reaching 1.56 billion Sri Lankan rupees (equivalent to $5.15 million), up from 1.25 billion rupees ($14.9 million), signalling a heightened level of investor engagement and market dynamism.
Capital Alliance to expand
Capital Alliance (CAL), headquartered in Colombo and offering comprehensive solutions in frontier capital markets, is setting its sights on broader horizons. The company intends to venture into additional frontier markets, targeting areas with a collective GDP between 1-1.5 trillion over the coming 3-5 years. CAL Group's CEO, Kanishke Mannakkara, conveyed to Mirror Business that such strategic growth could bolster smaller markets, including Sri Lanka, in drawing international investments. The expansion is anticipated to enhance CAL's ability to present diverse arrays of products across different markets.
