• Special GST Bill deemed unconstitutional 

  The Supreme Court has determined that several clauses in the Special Goods and Services Tax (Special GST) Bill are inconsistent with the Constitution, and hence, require either a special majority in Parliament and a referendum to be passed, or amendments to be made to the said clauses that are inconsistent with the Constitution. The Supreme Court’s (SC) determination on the Bill has identified that several clauses are inconsistent with the Constitution and hence, must be passed with a two-thirds majority in Parliament and a referendum.    

• Vipula appointed as Jet Airways CFO

  Caption: Newly appointed Jet Airways CFO Vipula Gunatilleka Jalan Kalrock Consortium, the promoters of Jet Airways, have appointed former SriLankan Airlines Chief Executive Officer (CEO) Vipula Gunatilleka as the Chief Financial Officer (CFO) of the airline, NDTV reported.  Gunatilleka, who till last month, was the CEO of SriLankan Airlines, will join Jet Airways from 1 March onwards and has been tasked with reviving the grounded carrier.    

• 652-room luxury hotel coming up

  The Cabinet of Ministers on 22 February approved the construction of a luxury urban hotel comprising 652 rooms in Colombo 3.  It is an investment of $ 70.4 million and it is expected to be built as a joint effort by D.R. Home Appliances (Pvt.) Ltd. and D.R. Industries (Pvt.) Ltd. D.R. Home Appliances (Pvt.) Ltd. is a company under the group of Damro, Piyestra Furniture (Pvt.) Ltd.    

• Facility to manufacture, export advanced rubber material 

  A manufacturing facility is to be established in order to manufacture advanced rubber material for direct and indirect export in Getahetta, Avissawella. Accordingly, an agreement was signed by Board of Investment of Sri Lanka (BOI) Chairman Raja Edirisuriya and Associated Advanced Rubbers (Pvt.) Ltd. (AAR) Chairman Shazni Kamardeen and Managing Director Muhammmed Arshad Iqbal.  Edirisuriya noted: “We congratulate the company’s leadership for diversifying into new products and into export markets including Europe, Asia, South Africa, and the US while making a significant contribution to the country’s economy. We are confident that this new establishment will provide gainful opportunities to the country as well as the improvement of rural infrastructure and livelihoods.”    

• Missions to promote batik

  The Foreign Ministry and the State Ministry of Batik, Handloom, and Local Apparel Products held a joint session on 18 February to promote batik, handloom, and local apparel products through Sri Lankan missions worldwide. State Minister of Batik, Handloom, and Local Apparel Products Dayasiri Jayasekara requested Sri Lankan diplomats to vigorously promote Sri Lankan batik and handloom products in their respective countries of accreditation and presented samples to display at missions and events.    

• Construction industry laments cost increase

  Significant price variations in building materials such as cement and steel over the past two years have had a significant impact on the construction industry and profit margins due to construction costs being increased by over 50% during the period. Speaking to The Morning Business, Chamber of Construction Industry Sri Lanka (CCI) President Maj. Eng. Ranjith Gunathilake stated that over the last two years, the increase in construction costs is at a minimum of over 50%. He stated that he would not suggest anyone to commence construction of a house in this market unless one is absolutely desperate. “All construction materials have gone up by 20-65% or more, leading to an overall construction cost increase of over 50%. This situation is further exacerbated by the increase in labour costs, which has also increased by over 20%. However, I feel that this increase in labour costs will either come down or stagnate.”    

• Ruvini Fernando joins Sunshine Board 

  Caption: Ruvini Fernando  Sunshine Holdings (CSE: SUN) appointed Ruvini Fernando to the company’s Board as an Independent Non-Executive Director with effect from Monday (21). With the new appointment, the Board of Sunshine Holdings will comprise 10 directors, seven of whom are independent non-executive directors. Fernando is a consulting and capital markets professional with over 30 years of industry experience. She is presently employed at PricewaterhouseCoopers Colombo (PwC) as Director – Capital Projects and Infrastructure and Deals Strategy, where she handles advisory engagements related to capital raising, cross-border investments, policy recommendations, and large-scale projects.    

• Lanwa Sanstha Cement Corporation to open next month

  Lanwa Sanstha Cement Corporation (Pvt.) Ltd., a state-of-the-art cement manufacturing facility, is set to commence operations in early March 2022.  A venture by the Board of Investment of Sri Lanka (BOI), the total capacity of Lanwa Sanstha Cement Corporation (Pvt.) Ltd. would be four million metric tonnes (MT) with Phase 1 producing 2.8 million MT per annum.  Commenting on the completion of Phase One and commissioning of the plant, Lanwa Sanstha Cement Corporation (Pvt.) Ltd. Chairman Nandana Lokuwithana noted: “We are very excited to start operations in March 2022 at a juncture when the whole world is returning to normalcy after two years of pandemonium due to the global pandemic. In many ways we’re optimistic that this venture will be a major boost to the economy in terms of technological advancement, foreign revenue, and a solution to the shortage of cement, which is crippling the local construction sector currently.”    

• Recently listed Hela commences operations in Egypt

  Following the conclusion of its listing on the Colombo Stock Exchange (CSE), Hela Apparel Holdings has expanded its global footprint by formally commencing operations at its latest factory in Egypt recently.  The expansion will enable the company to provide an attractive nearshore manufacturing offering, strengthening the organisation’s focus on providing the world’s apparel brands with innovative and sustainable supply chain solutions.     

•  Mini Oxford plant production halted 

  Production at Oxford’s BMW Mini plant has been suspended for a week due to a global shortage of computer chips. BMW said it was standing down production at its Cowley factory from Monday to Friday (21-25) and was “monitoring the situation very closely”. It comes after the firm suspended its production for three days in April over the shortage.    

•  BTS agency Hybe grows profits by 31%

  The South Korean entertainment company behind K-pop band BTS has seen a surge in profits, despite making less money from concerts during the pandemic. Hybe says its operating profits jumped by 30.8% in the past year. It almost tripled its revenue from content, such as games and digital comics featuring the popular group.    

•  Fines loom for late self-assessment tax returns

  Nearly 1.5 million people are risking fines by failing to complete their self-assessment tax return, HM Revenue and Customs (HMRC) has said. Fines for late filing have been delayed by a month beyond the normal deadline of 31 January. Interest is already building upon any unpaid tax, and anyone who fails to complete their return by the end of February faces an additional £ 100 fine.    

•  Home buyers see asking prices soar by nearly £ 8,000

  A shortage of homes being put up for sale has led to rising asking prices and frustration for buyers, two reports suggest. The average asking price for a property in Britain has risen by £ 7,785 in February compared with last month, property portal Rightmove said. This was the largest month-on-month rise for 20 years, it said.    

•  Russia-Ukraine crisis could hurt the economy

  As oil rapidly approaches $ 100 a barrel, JPMorgan warned Tuesday (22) that a spike in energy prices and other ripple effects from the Russia-Ukraine crisis could hurt both the stock market and the economic recovery. “An energy price shock amidst an aggressive central bank pivot focused on inflation could further dampen investor sentiment and growth outlook,” JPMorgan strategists wrote in a note to clients. Brent crude, the world benchmark, surged to a fresh seven-year high of $ 99.50 a barrel Tuesday morning before backing off. In recent trading, Brent was up 2% to $ 97.30 a barrel. US crude rose nearly 3% to $ 93.65 a barrel.    

•  EU proposes new law 

  The European Commission on Wednesday (23) proposed a law to make large companies operating in the EU check that their suppliers around the world respect environmental standards and do not use slave or child labour. The Corporate Sustainability Due Diligence law will also oblige directors of European Union firms to ensure that their business strategy aligns with limiting global warming to 1.5 Celsius, as agreed under the Paris climate agreement. “We can no longer turn a blind eye to what happens down our value chains,” EU Justice Commissioner Didier Reynders said.    

•  US to hold its biggest offshore wind auction

  The US will hold its biggest ever sale of offshore wind development rights on Wednesday (23), in an area covering nearly half a million acres off the coasts of New York and New Jersey. It will be the first offshore wind lease sale under the administration of President Joe Biden, who has made the expansion of offshore wind a cornerstone of his strategy to address global warming and decarbonise the US electricity grid by 2035.    

•  Hong Kong unveils $ 22 b budget 

  Hong Kong announced a HKD 170 billion ($ 21.79 billion) budget to boost its flailing economy on Wednesday (23), as the territory battles a fifth wave of coronavirus infections with its harshest pandemic restrictions yet. The budget is aimed at offsetting the shock of Hong Kong’s continuing strict pandemic restrictions on households and businesses, and mitigating long-term damage to the economy.    

•  US ports to get $ 450 m to ease supply chain congestion

  Clogged US ports are being given access to nearly $ 450 million in federal money from President Joe Biden’s infrastructure law as part of the administration’s recent stepped-up efforts aiming to ease supply chain congestion and lower prices for American consumers. Transportation Secretary Pete Buttigieg announced on Wednesday (23) the availability of a first batch of competitive grants for ports that will be double last year’s amount annually for five years. The grants are aimed specifically at reducing bottlenecks that have slowed the flow of goods to store shelves and pushed up costs. (Sources; CNN, BBC, Aljazeera)