Category: Economy
First Capital Research allocates 95-pct probability for a policy rate cut
May 27, 2019 (LBO) – First Capital Research has allocated a 95 percent probability for a policy rate cut in May 2019 as they are of the view that policy intervention is inevitable to revive the overly sluggish economy and credit growth. “Despite the Road Map towards a single policy rate, we believe a rate […]
Strong possibility of a rate cut; interest rate decline to boost stock market: Capital Trust
May 26, 2019 (LBO) – Sri Lanka’s Central Bank Governor Indrajit Coomaraswamy has hinted a strong possibility of a policy rate cut at the next monetary policy review meeting scheduled on 31 May 2019. According to the Governor there is a strong case for relaxing monetary policy. “All options are there, it could be a […]
IMF wants SEC to streamline enforcement program; expedite high-profile criminal actions
May 23, 2019 (LBO) – International Monetary Fund (IMF) advises Securities and Exchange Commission of Sri Lanka (SEC) to streamline the current enforcement program and bring several high-profile criminal actions soon that will have a positive impact on the public’s confidence in the SEC as a regulator. Releasing the technical assistance report for enhancing the […]
Circular issued to pay Rs 2500 monthly interim allowance to all public officials
May 22, 2019 (LBO) – Sri Lanka’s Finance Ministry said all public sector employees will be paid a special interim monthly allowance of 2500 rupees effective from July 01, 2019 as proposed in the Budget. A circular in this regard has already been issued by the Ministry of Public Administration and Disaster Management with the […]
Fishing For Sustainable Profits in the Northern Province
By Jekhan Aruliah I have so often heard from well meaning cash rich Diaspora that they can’t find sensible investment opportunities in the North. As the Good Book says, “seek and ye shall find”. For example, look at the Northern fisheries industry. It may surprise you to hear that the Northern Province has about 40%* […]
Sri Lanka inflation increased to 3.6-pct in April
May 22, 2019 (LBO) – Headline inflation as measured by the year-on-year change in the National Consumer Price Index increased to 3.6 percent in April from 2.9 percent in March due to the monthly price increases of Food and Non-food items, Central Bank data showed. In April, year on year Food inflation was -1.2 percent […]
CBSL intends to cut ownership limits of LFCs to 25-pct; invites stakeholder inputs
May 22, 2019 (LBO) – Sri Lanka’s Central Bank invites stakeholders to submit observations on the drafted master plan that intends to introduce ownership limits to the Licensed Finance Companies (LFCs). The Department of Supervision of Non-Bank Financial Institutions (DSNBFI) is in the process of introducing ownership limits for LFCs to strengthen the corporate governance […]
Sri Lanka official reserves fall to USD 7.2bn by end April; YTD rupee appreciation 3.7-pct
May 18, 2019 (LBO) – Sri Lanka’s gross official reserves were 7,212.7 million US dollars by the end of April, down from 7,621.9 million US dollars in March, latest Central Bank data showed. By the end of April, foreign currency reserves were 6,325.2 million dollars while the reserve position in the IMF was 66.3 million […]
Sri Lanka bombings increase economic, external risks; IMF key: Fitch Ratings
May 17, 2019 (LBO) – The tragic Easter bombings in Sri Lanka will result in lower economic growth this year and could increase external financing pressures, Fitch Ratings says. Full Statement: Fitch Ratings-Hong Kong/London-16 May 2019: The tragic Easter bombings in Sri Lanka will result in lower economic growth this year and could increase external […]
Sri Lanka projected to grow 3.6-pct in 2019; reach 5-pct over medium term: IMF staff report
May 17, 2019 (LBO) – Sri Lanka’s economic growth is projected to recover to 3.6 percent in 2019, and gradually reach 5 percent over the medium-term, with inflation in the mid-single digits, the IMF staff appraisal revealed. Inflation is expected to rise to 4.5 percent by end-2019, as economic activity recovers and food prices stabilize, […]
IMF approves extension & USD164mn disbursement; grants waivers to Sri Lanka for performance criteria
May 14, 2019 (LBO) – The Executive Board of the International Monetary Fund has completed the fifth review of Sri Lanka’s economic performance under the program supported by an extended arrangement under the Extended Fund Facility (EFF). Completion of this review, upon the granting of waivers of nonobservance for the end‑December 2018 performance criteria on […]
Govt announces debt relief for tourism sector
May 08, 2019 (LBO) – Sri Lanka’s government and cabinet yesterday gave a heads up for a ‘relief package’ to strengthen the tourism industry affected by the Easter Sunday attacks. “The Central Bank is now in the process of issuing circulars in this regard to banks,” State Minister for Finance Eran Wickramaratne told reporters in […]