Sri Lanka in third rate cut after Easter bombings

Sri Lanka's central bank announced a 50 basis point cut in its benchmark interest rates, the third reduction since the Easter bombings that killed at least 269 people. The Central Bank of Sri Lanka (CBSL) said it was reducing its lending rate from 8.0 percent to 7.5 percent while the deposit rate was also cut by 50 basis points to 6.5 percent.

It said the two previous rates cuts of 50 basis points each since the April 21 suicide bombings against three churches and three luxury hotels had not adequately brought down market interest rates for consumers.

The Monetary Board of the CBSL "was of the view that it is essential that market lending rates reduce further in order to support the envisaged pickup in credit growth and economic activity," the bank said in a statement.

It said tourism had picked up after the devastating Easter bombings, but the number of tourist arrivals and income from the sector was below 2018 levels.

Sri Lanka's new government which came to power in November has also initiated several schemes to freeze repayments on bank loans of local companies affected by the downturn following the attacks. The bank said domestic economic activity remained subdued last year, but it expected a revival after a raft of stimulus measures announced by the government to help private enterprises.

Sri Lanka's growth picked up to 2.7 percent in the third quarter of last year compared to 1.5 percent in the previous quarter, but down from 3.5 percent in the third quarter of 2018.

Sri Lanka expects growth of about 3.0 to 3.5 percent in calendar 2020.

The EU will not ban Chinese telecom giant Huawei or any other company in Europe, a top official said, despite intense pressure from Washington to shun the firm over spying fears.

The European Commission, the EU's executive arm, will officially unveil recommendations to member states on Wednesday, but commissioner Thierry

Breton told MEPs that Brussels will choose tight scrutiny over any blanket ban. "It is not a question of discrimination, it is a question of laying down rules. They will be strict, they will be demanding and of course we will welcome in Europe all operators who are willing to apply them," he said.

The EU, while never explicitly naming the Chinese giant, is struggling to find a middle way to balance Huawei's huge dominance in the 5G sector with security concerns pressed by Washington. The proposal is part of a so-called "toolbox" of recommendations that will guide the EU's 27 post-Brexit member states as they build crucial 5G networks.

British Prime Minister Boris Johnson is also expected to risk Washington's anger with a similar decision to trust strict rules instead of a ban on Huawei. A ban on Huawei would ultimately be up to an individual member state, but the commission's middle road recommendation gives cover to European capitals to resist pleas from Washington.

Huawei is one of the world's leading network technology suppliers, and one of the few-along with European telecom companies Nokia and Ericsson-capable of building 5G networks.

The United States sees the company as a potential threat to cybersecurity and fears it would facilitate cyber espionage by the Chinese government, to which it is said to have close links.

Malawi's Constitutional Court will on Monday hand down a ruling on the contested presidential election narrowly won by President Peter Mutharika.

Alleging rigging, the main opposition leader Lazarus Chakwera of the Malawi Congress Party (MCP), petitioned the court claiming he was robbed of victory at the May 21 vote.

He asked the court to annul results.

His legal challenge was supported by another opposition party the United Transformation Movement (UTM).

Mutharika secured his second term in office with just 38.5 percent of the ballots cast, and 159,000 votes more than his closest rival Chakwera.

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