Key View

• Our forecasts for IT spending in Sri Lanka have turned negative as we factor-in the impact of the Covid-19 emergency on the domestic economy.
• Enterprise demand for PCs was already expected to be muted given the surge in upgrades and replacements seen in 2019, but the lingering effects of economic disruption - which include job losses

Key View

• We at Fitch Solutions now expect the Central Bank of Sri Lanka (CBSL) to cut its Standing Deposit Facility Rate and Standing Lending Facility Rate by another 50bps, to 5.00% and 6.00%, respectively, following a 50bps cut on May 6.
• We have revised down our forecast for Sri Lanka’s real GDP growth to contract by 0.4% in 2020, from 1.4%

Key View

• We at Fitch Solutions now forecast Sri Lanka’s real GDP to slow to 1.4% in 2020, compared to 3.5% previously, from 2.3% in 2019.
• The services sector will continue to see weak growth in 2020 as the global Covid-19 outbreak will see tourist arrivals contract on year.
• We expect growth of the industrial sector to slow over the coming

Key View

• Analysis of Sri Lanka’s shifting dietary spending preferences highlights a growing preference for meat, specifically chicken. Chicken is a key ingredient in traditional recipes and so consumer performance for this over other meats is understandable.
• The increasing demand for this product is being driven by growth in disposable

Key View

• We at Fitch Solutions believe that the Central Bank of Sri Lanka (CBSL) will keep its Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) unchanged at 6.50% and 7.50%, respectively, in 2020, following a 50bps cut in both rates at its meeting held on January 29.
• Over the coming quarters, we expect economic

Key View

• We at Fitch Solutions expect the Central Bank of Sri Lanka (CBSL) to maintain its Standing Deposit Facility Rate and Standing Lending Facility Rate at 7.00% and 8.00% respectively, through 2020, following the CBSL’s decision to hold its policy rates on November 28.
• We believe that inflation being likely to remain within the CBSL’s 4