Category: Markets
First Capital recommends investors to reduce exposure in low yield bonds
Aug 01, 2019 (LBO) – Sri Lanka’s First Capital recommends investors to reduce overall portfolio exposure to 45 percent from 60 percent. The firm recommends cutting 2021 and 2022 maturities of the carrying portfolio amidst the significant reduction in yields. They also recommended an increase in 2023 and 2024 maturities in the trading portfolio amidst […]
Sri Lanka’s 1st dollar sovereign bond fund poised for global investors
Jul 26, 2019 (LBO) – Strong demand on the recent issuance of Sri Lankan International Sovereign Bonds (ISB) signals potential for a strong economic recovery according to Ceylon Asset Management (CAM)) Director and Economic Advisor, Rainer Michael Preiss. “The decline in Sovereign Bond Yields indicate that the worst is over for Sri Lanka. The coupon […]
Sri Lanka Central Bank expects lending rates to reduce further in immediate future
July 19, 2019 (LBO) – Sri Lanka’s Central Bank expects lending rates of banks and NBFIs to reduce further in the immediate future, and borrowers, particularly SMEs, can expect to obtain credit facilities at reduced interest rates from banks and NBFIs. The Central Bank of Sri Lanka requested licensed banks and Non-Bank Financial Institutions (NBFIs) […]
Sri Lanka’s possible fiscal slippage, main argument for not relaxing policy: CBSL Chief
July 12, 2019 (LBO) – Sri Lanka’s possible fiscal slippage is the main argument against relaxing monetary policy, the Central Bank Governor Indrajit Coomaraswamy said. Speaking to journalists in Colombo after the monthly monetary policy announcement, he said the government’s revenue has come down with increased expenditure, opening doors for a possible fiscal slippage. Monetary […]
Sri Lanka reserves improve to USD 8.9bn by end June; YTD rupee appreciation 4.1-pct
July 11, 2019 (LBO) – Sri Lanka’s gross official reserves have reached 8.9 billion US dollars by end June 2019, following the receipt of 2 billion US dollars from the issuance of ISBs, providing an import cover of 5.1 months, the Central Bank said. The successful issuance of the International Sovereign Bonds (ISBs) in June […]
Monetary Policy to be maintained allowing impact of previous rate cut to materialize: FCR
July 08, 2019 (LBO) – Sri Lanka’s Monetary Board would continue the policy rates with no change, considering the fact that it is too early to assess the impact of the previous 50 bps rate cut, First Capital said in a research note. “We believe that Monetary Board may first consider, CBSL’s ability to implement […]
‘s capital markets
July 6, 2019 (LBO) – Foreign investors continue to be net sellers of Sri Lankan stocks and bonds with net outflows reaching their highs for the year. Net outflows from stocks and bonds hit a high of close to Rs30bn (US$170mn) for 2019. This comes on the back of net outflows of one Rs180bn (USbn) […]
Perpetual Treasuries suspension of business activities extended by 6 months
July 05, 2019 (LBO) – Monetary Board of the Central Bank has decided to extend the suspension of Perpetual Treasuries Limited (PTL) from carrying on the business activities of a Primary Dealer for a period of six more months with effect from today. The Central Bank said the extension was made in terms of the […]
World Bank classifies Sri Lanka as upper-middle income country under new revision
Jul 02, 2019 (LBO) – Sri Lanka has moved up to the upper-middle income category from lower-middle income category under the World Bank’s new country classification by income level. As of July 1, 2019, under the new revision, Sri Lanka’s Gross National Income (GNI) per capita is 4,060 US dollars, up from 3,840 dollars reported […]
Sri Lanka securities regulator files charges on market manipulation
Jun 26, 2019 (LBO) – Sri Lanka’s Securities and Exchange Commission (SEC) has filed an action in the Magistrate’s Court against two investors on charges of having committed the offence of market manipulation with regard to the shares of E-Channelling PLC. The action was filed on the basis of evidence elicited during the course of […]
First Capital upgrades exchange rate outlook for 2019E to LKR 180 from 194
Jun 13, 2019 (LBO) – Sri Lanka’s First Capital Research has upgraded their exchange rate outlook for 2019E to 1 USD: LKR 180 from 194 as their 65 percent base case scenario. The firm has also introduced a 12-month target for Jun 2020E of 1 USD: LKR 185 as a 60 percent base case scenario. […]
‘s bonds after CBSL cuts rates
June 8, 2019 (LBO) – Sri Lanka’s government bond market saw net foreign outflows of US$20mn in the week after the Central Bank of Sri Lanka (CBSL) cut interest rates. These outflows reversed all the inflows that were seen in the previous two weeks and sent net foreign outflows for the year 2019 to an […]