The Sri Lankan Economy Capsule for 2011

1. Research & Development Unit March 2011

3. Back to Contents  Corporate Earnings Review 2010  Withholding Tax Rates  PAYE Tax Table  Financial Soundness Indicators – Licensed Commercial Banks  Corporate Earnings Review 2010  Corporate Earnings Review 2010  Financial Soundness Indicators – Licensed Commercial Banks  Corporate Earnings Review 2010  Withholding Tax Rates  Branch Openings  Branch Openings  Corporate Earnings Review 2010 Financial Sector News > >

5. Back to Contents PAYE Tax Table - 2011/2012 PAYE tax applicable with effect from April 1, 2011 for making monthly income tax deductions from the remuneration of employees is given below: Source: Department of Inland Revenue Research & Development Unit Monthly Remuneration (M.R.) Tax (Rs.) Monthly Remuneration not exceeding Rs. 50,000/- Nil Monthly Remuneration exceeding Rs. 50,000 but not exceeding Rs. 91,667 4% of M.R. less Rs. 2,000 Monthly Remuneration exceeding Rs. 91,667 but not exceeding Rs. 133,333 8% of M.R. less Rs. 5,667 Monthly Remuneration exceeding Rs. 133,333 but not exceeding Rs. 175,000 12% of M.R. less Rs. 11,000 Monthly Remuneration exceeding Rs. 175,000 but not exceeding Rs. 216,667 16% of M.R. less Rs. 18,000 Monthly Remuneration exceeding Rs. 216,667 but not exceeding Rs. 300,000 20% of M.R. less Rs. 26,667 Monthly Remuneration exceeding Rs. 300,000 24% of M.R. less Rs. 38,667

6. Back to Contents Withholding Tax Rates w.e.f. April 1, 2011 Source: ICBS Department, Commercial Bank of Ceylon PLC Research & Development Unit Assessable Income Withholding Tax Rate I. For Individual and Joint Accounts (Persons) Below Rs. 500,000 0% Between Rs.500,000 to Rs.1,500,000 2.5% Above Rs.1,500,000 or for those who do not submit declarations 8.0% II. For Charitable Institutions Below Rs. 500,000 0% Above Rs. 500,000 or for those who do not submit declarations 8% III. Proprietorships, partnerships, clubs & societies etc. 8% IV. Limited Liability Companies (No Change) 10%

7. Back to Contents Financial Soundness Indicators – Licensed Commercial Banks Source: Financial System Stability Review 2010 - Central Bank of Sri Lanka Research & Development Unit 2007 2008 2009 Sept. 2010 Gross NPL (Net of Interest in Suspense) Ratio 5.0 6.0 9.9 6.3 Net NPL Ratio 1.5 2.1 3.7 2.8 Sector-wise NPL to Total Sector Loans Agriculture & Fishing 6.3 6.7 3.7 3.4 Manufacturing 8.5 8.3 11.2 10.8 Tourism 4.2 3.3 4.9 7.3 Transport 6.6 7.1 6.3 5.4 Construction 3.8 6.8 10.3 8.6 Traders 8.1 10.2 10.9 9.2 New Economy 1.1 2.4 3.9 4.2 Financial and Business Services 2.3 2.3 4.7 3.4 Infrastructure 0.2 4.1 7.3 5.7 Other Services 3.3 2.0 6.2 5.9 Other Customer 3.5 3.5 5.9 3.9 Return on Equity (ROE) – After Tax 15.0 14.8 11.0 21.3 Return on Assets (ROA)– Before Tax 1.9 2.0 1.7 2.7 Interest Margin 4.5 4.7 4.8 4.7

8. Back to Contents Branch Openings Research & Development Unit Weliveriya 19 th MiniCom Centre Peliyagoda Customer Service Point Velanai Branch Vavunia Extension Office 193 194 195 196

9. Back to Contents Sri Lanka Economy Grows 8% in 2010 Tourist Arrivals up by 15% in February, 2011 External Sector Performance - January 2011 Inflation - March 2011 Forbes: World's Billionaires 2011 Fortune: World's Most Admired Companies 2011 Effects of the Japanese Disaster Analysis & Forecast Effects of the Japanese Disaster Tourist Arrivals up by 15% in February, 2011 Analysis & Forecast HSBC Bullish on Lanka than Rating Firms Economy & Business News > >

11. Back to Contents IMF Releases USD 218.3 Mn under the SBA Facility Research & Development Unit Received on Tranche USD Mn July, 2009 1 st 322.0 Nov, 2009 2 nd 329.0 June, 2010 3 rd & 4 th 407.8 Sep, 2010 5 th 212.5 Feb, 2011 6 th 216.6 April, 2011 7 th 218.3 Total funds received up to now 1,706.2 Funds to be to be received 893.2 Full Amount of the IMF SBA 2,599.4

12. Back to Contents Private Sector Credit Growth % (y-o-y) Year-on-year growth in credit to the private sector increased to 28.1 % in January 2011 , having turned positive in March 2010. Private sector credit from commercial banks has increased by around Rs.300 bn in 2010. Research & Development Unit

15. Back to Contents Inflation - March 2011 Meanwhile, Core inflation on the year-on-year basis increased to 3.6 % from 2.9 % in February 2011 while the annual average rate continued to decrease to 5.3% in March from 5.5%in the previous month. The rate of inflation as measured by the CCPI on a Year on Year basis increased to 8.6 % in March 2011 from 7.8 % recorded in February 2011. the highest contribution to the overall increase of around 80 % came from food commodities which increase by 7 % in March 2011. Inflation on an annual average basis recorded a slight increase to 6.2% in March 2011 from 6.1% in the previous month. Research & Development Unit

16. Back to Contents World's Most Admired Companies 2011 World's Billionaires 2011 Research & Development Unit Rank Name Net Worth (USD Bn) Source Age Citizenship 2011 2010 2011 2010 1 1 Carlos Slim Helu & family 74.0 53.5 Telecom 71 Mexico 2 2 Bill Gates 56.0 53.0 Microsoft 55 United States 3 3 Warren Buffett 50.0 47.0 Berkshire Hathaway 80 United States 4 7 Bernard Arnault 41.0 27.5 LVMH 62 France 5 6 Larry Ellison 39.5 28.0 Oracle 66 United States 6 5 Lakshmi Mittal 31.1 28.7 Steel 60 India 7 9 Amancio Ortega 31.0 25.0 Zara 74 Spain 8 8 Eike Batista 30.0 27.0 Mining, oil 53 Brazil 9 4 Mukesh Ambani 27.0 29.0 Petrochemicals, oil & gas 53 India 10 12 Christy Walton & family 26.5 22.5 Wal-Mart 56 United States

17. Back to Contents World's Most Admired Companies 2011 Research & Development Unit Top 50 Rank Name Industry/Category Industry Rank Industry Top 03 1 Apple Computers 1 2 - Hewlett-Packard 3 - EMC 2 Google Internet Services and Retailing 1 2 - Amazon.com 3 - Netflix 3 Berkshire Hathaway Insurance, Property and Casualty 1 2 - Zurich Financial Services 3 - Travelers Cos. 4 Southwest Airlines Airlines 3 1 - Delta Air Lines 2 - Singapore Airlines 5 Procter & Gamble Soaps and Cosmetics 1 2 - L'Oréal 3 - Reckitt Benckiser Group 6 Coca-Cola Beverages 1 2 - Anheuser-Busch InBev 3 - Diageo 7 Amazon.com Internet Services and Retailing 2 1 - Google 3 - Netflix 8 FedEx Delivery 2 1 - UPS 3 - Deutsche Post (DHL) 9 Microsoft Computer Software 3 1 - Adobe Systems 2 - Oracle 10 McDonald's Food Services 1 2 - Yum Brands 3 - Starbucks

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