Sri Lanka sells Rs15 bn in 07 and 09 year bonds; rupee falls to record low
June 12, 2015 (LBO) – Sri Lanka has sold 15 billion rupees of seven and nine year bonds after calling bids for 12 billion rupees of bonds, the state debt office said.
The debt office on Friday sold 5.35 billion rupees of seven year bonds maturing on 01 October 2022 at a weighted average yield of 8.56 percent.
A nine year bond maturing on 15 March 2025 was sold at an average yield of 8.
89 percent, raising 9.65 billion rupees.
The state debt office of the Central Bank offered 2.
0 billion rupees in four year bonds, 3.0 billion rupees in seven year bonds and 7.
0 billion rupees in nine year bonds.
All bids for the four year bond were rejected.
Meanwhile, the Sri Lankan rupee has fallen to a record low of 134 on Friday ahead of a possible Parliamentary election in the near future.
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The counter proposal for an annual fee based on profits as detailed in the above article is fair. As a start-up company facing multiple challenges, this fee (60K) is a kick in the face. I can’t stress how unfair this is, and to this day wonder what rational thought process lead to this decision. At a time when companies need all the help they can get, this is a complete let-down.
A tax on profits is justified if the country needs to top-up its coffers. But to charge a blanket fee on all companies ‘whether profitable or not’ is silly and might I add very amateurish. Further, will these costs not be passed down to consumers?
It’s sad, no matter what political party we vote for, one thing seems to be certain – the politicians win and the people lose.
I hope that the government will reconsider this!
This Budget has been a top down process instead of down up. This is sort of bull dozing and imposing. Many anomalies and contradictions in the budget. Some private companies make very small profits less than even Rs.50,000/- Some are making losses and directors spend out out of their pockets to maintain the company. Business means there will be profits and losses. In this context this Rs.60,000 annual levy reflects highest degree of stupidity. This will nip in the bud SMEs. Kill the SMEs. Ruining the local economy without understanding such a simple matter, roaming all over the world seeking aid and advise is really an unimaginable low our country has reached. What ordinary average child would understand the top ranks of the government seams to have failed to understand. If they are adamant on this type of proposals this government will go in history as the one losing in a big way within the shortest period of time.
These guys are trying to balance some high-interest loans taken by the MR regime using low interest loans.
At present USD index that measures it’s strength against a basket 6 major rivsl world currsncies is at around 95.5 whilst few weeks back was 93..Conciquanyly Hundreds of currancies fell against it.SL since few years back stsrted to use the strategy using borrowings to prop up currancy instead earning forex.Hig priced low yielding cspital expediture projects by borrowings too won’t help much.Back to drawing boards + methodical reoriented focus & methodical work may help.
The present govt is benifitting from the low interest rate regime and excess liquidity engineered by the MR govt. Heavy domestic borrowing ! What can we expect down the road ?