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The International Monetary Fund, which put a deal with Sri Lanka on the shelf till at least May on a runaway budget, has backed the monetary policy stance of the island's central bank.

The central bank met its two performance criteria under the 2.6 billion US dollar deal, a target for foreign reserves and domestic reserve money, a very narrow money supply that is used to clear final transactions in the economy.

Opening another chapter in the country’s power generation sphere, the second and final stage of multi-fuel combined cycle power plant at Kerawalapitiya will be commissioned by President Mahinda Rajapaksa today. This will provide an additional 100 mega watts of power to the national grid. The first stage of project was commissioned in December 2008 augmenting the national grid by 200 mw. The combined capacity of the facility will now provide 300 mw of electricity to the national grid.

Sri Lanka should focus on capturing the Indian markets for export development said a businessman. The electronic sector has been identified as a potential sector for the development of the national economy due to the growing global demand for electronic products, trainable work force and the middle level talent existing in the country.

Cairn India which is exploring for oil in Sri Lankan waters is to start gathering meteorological data and monitor ocean currents next month ahead of a test drilling programme, an official said.

Sri Lanka has high potential for growth in the IT sector which could help the country’s economy grow rapidly, says a top Minister. "If the country is to establish itself as an emerging economy and gain the level of economic development we all aspire to, it would be necessary to understand the potentials and strengths of the country which could then be marketed to the world. This is where information communication technology comes in.

Sri Lanka's loans from commercial banks to private businesses expanded in December 2009 continuing a credit recovery that started in September, the latest official data shows. Loans to private businesses rose to 1,195.8 billion rupees in December from 1,188.1 billion in November and 1,176.4 billion in October.

Sri Lankan shares rose 1 percent on Friday, fuelled by local retail buying on strong earning hopes, coupled with post-war economic optimism, but foreigners sold stocks, data from the exchange showed. The All-Share Price Index .CSE of the Colombo Stock Exchange rose 36.04 points to 3,768.81, its highest close since Feb. 8.

Feb 17, 2010 (LBO) – Software piracy by private sector companies in Sri Lanka is the main problem facing software developers, the Business Software Alliance (BSA), an industry body said. The organization, which represents the commercial software industry and its hardware partners, said in a statement it has taken legal action against companies using pirated software. It is also trying to raise awareness on intellectual property rights (IPR) and software piracy in Sri Lanka with training for law enforcement officials..

Feb. 17 (Bloomberg) -- Sri Lanka’s government is in talks to buy Emirates Airline’s stake in the national carrier, SriLankan Airlines Chairman Nishanta Wickremasinghe said. “The government has decided to purchase,” Wickremasinghe said in an interview in capital Colombo yesterday. “They are negotiating,” he said, declining to elaborate. The government owns 51 percent of the airline while Emirates has 43.6 percent.

Emirates said two years ago it may consider selling its stake after abandoning a decade-long management of the airline. Sri Lanka’s government is seeking to lure back tourists into the island, rated by the New York Times as the top destination to visit in 2010, after ending a 26-year civil war.

COLOMBO, Feb 10 (Reuters) - Sri Lanka's economy will grow 5.5 percent in 2010 due to improving domestic demand and potential export growth after the 25-year war ended in 2009 and as global recovery takes hold, the IMF said on Wednesday. However, the International Monetary Fund said there were concerns about the country's fiscal deficit which needed to be addressed.

Dec 31 (Reuters) - Sri Lankan shares ended 2009 with a stellar 125 percent rally, the market's best performance in more than a decade and far ahead of other strong performers such as Indonesia, India and China. The recovery in stock markets after last year's crisis-driven plunges saw India and Indonesia post their biggest annual gains in a decade, driven in part by foreign money seeking Asia's relatively stronger balance-sheets, higher yields and growth potential.

COLOMBO, Nov 19 (Reuters) - Sri Lanka has approved $891 million loan from China's Export-Import bank to fund a coal power plant, an official said on Thursday, as the island nation focuses on infrastructure after the end of 25 years of war.

China along with India are now increasingly competing to win lucrative and strategic investments in Sri Lanka since the fighting stopped in May.

Road safety studies were done. Everything was in place and this project got underway. No knots and snags. Funds were signed in, 25th November 1999 (ADB Loan 1711).

The Sri Lanka Economic Summit 2009 will explore in depth the various strategies available to address the challenges faced by Sri Lanka and to make effective use of the new opportunities that would accelerate the economic and social development of the country.

MBSL Savings Bank Ltd has achieved steady progress and has built confidence among customers within a short period, said Chairman MBSL Savings Bank, Janaka Ratnayake.

Bank of Ceylon upto last week have collected and deposited Rs 380 mln from the Internally Displaced Persons(IDPs), said Chairman BOC Dr Gamini Wickremasinghe He said that when the IDPs crossed over to government controlled areas they brought the jewellery and cash with them.