Category: Economy and Markets
Marching Orders
Sri Lanka President Chandrika Kumaratunga has removed 39 non-cabinet rank junior ministers ahead of parliamentary elections on April 2, a spokesman for her office said Wednesday.rnKumaratunga was sending letters to the ministers informing them of their formal removal following the dissolution of parliament at the weekend which turned the government into a caretaker body, a […]
Trade off
The Comprehensive Economic Partnership Agreement (CEPA) between India and Sri Lanka is looking to be the latest casualty of the political uncertainty that gripped the country since November.Thailand backed out of a bilateral trade pact earlier this week, refusing to sign it after the Sri Lankan parliament was dissolved.rn rnOriginally the Indo-Lanka CEPA was to […]
No Surprises
The Central Bank left its key short-term rates unchanged on Wednesday, signalling that the countrys economic fundamentals are sound, despite political uncertainty.The overnight repurchase rate (repo rate) was kept at 7.0 percent and the reverse repurchase rate (reverse repo) at 8.50 percent, the bank said in a statement following its monthly Monetary Policy Meeting late […]
In Use
Sri Lankas aid utilisation recorded an all time high of nearly US$ 1bn for 2003 and came close to forecast targets despite a politically volatile year that left the peace process in limbo.By end December the total disbursement of grants and loans came to US$ 986 mn compared to US$ 576 mn in 2002 despite […]
Zoo Politics
rnSri Lanka faces another expensive and possibly violent general election nearly four years before its due date leaving the peace process, donor decisions and economic policies in limbo.rnWhile a helpless UNF governments screamed lquote undemocratic and unethical the country is already in the process of breaking up under blue, green and red ranks with all […]
What Crisis?
Sri Lankas financial markets are likely to remain rudderless as election campaigning starts putting the budding economic recovery on ice.The stockmarket plunged 124 points wiping off Rs. 30 bn of its value on Monday, as President Chandrika Kumaratunga opted for a snap poll to ease the current political deadlock.rn rnThe Central Bank has forecast the […]
Tigers Domain
The LTTE will decide on how it and the territories under its paw would participate in the April 03, 2004 snap polls. The LTTE warned on Monday that it would honour the ceasefire agreement, but warned a snap poll was a setback to the budding peace process.rn rn”Our liberation organisation will rigidly observe the ceasefire […]
Dont Worry
The UNF government is upbeat of romping back to power with the promise of peace and economic prosperity, despite being caught behind by the President, a senior cabinet minister said.ldblquote We have delivered what we promised to give, that is peace and development. And we will continue with our mandate when we come back to […]
Dissolved
President Chandrika Kumaratunga dissolved parliament late Saturday, calling for a snap poll on April 2, to break the bitter political deadlock.Parliamentary polls are not due till 2007 and a poll of this magnitude costs nearly a billion rupees endash money the exchequer has little to spare these days.rn rnStarting February 17, nominations for elections will […]
Central Bank Online
Central Bank went online with scripless security settlement system earlier last week as rate uncertainty kept primary dealers away from the secondary market.The new system is integrated with the Real Time Gross Settlement (RTGS) system for settling primary dealer accounts.rn rnCentral Bank will provide a special seat for the Colombo Stock Exchange (CSE) on the […]
Black Day
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Double Edge
The State is losing an estimated average of Rs. 450 million in revenue each month in its effort to subdue a rise in the cost of living due to higher world market prices.Finance Ministry officials say the current tax and import duty concessions could be met with higher duties for non-essential commodities that do not […]