Category: Economy and Markets
Mute Market
Secondary market trading in government securities has tapered off to a fraction of last years levels with political uncertainty putting bond dealers on the defensive.Trading in long bonds has ceased while securities in the five-year range are seeing thin trading according to primary dealers.rn rnPolitical uncertainty and the expectation of a spike in rates have […]
Any Takers?
Saddled with debts of over Rs. 11 bn, the CEB is coming to the market again to securitise its future cash flows by borrowing over a billion rupees.CEB tapped the capital markets last year and raised Rs.1.4 bn through securitised paper, though it still relies on expensive bank overdrafts for working capital.rn rnIncidentally, the CEB […]
Winning Runs
Continuing a robust recovery, Sri Lankas export earnings clocked in a double-digit growth for the first eleven months of this year, which saw the trade deficit expand marginally, the Central Bank said Friday.Despite higher export numbers, the trade deficit for November remained flat at US$ 135 mn year on year.rn rnHowever, an overall improvement in […]
Aid Drip
The Asian Development Bank on Wednesday approved US$ 80 mn to rehabilitate conflict areas – a first such loan since the Tokyo aid parley last year. The Manila based bank will part fund a rehabilitation project in some of the worst affected areas and neighbouring towns, despite peace on the ground reaching a stalemate.rn rnThe […]
Good Marks
Fitch Ratings Lanka Ltd (FRL) has assigned SL A national credit rating to the Implied Long-term unsecured Senior Debt of First Capital Treasuries Ltd (FCTL).SL A rating denotes a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in […]
Steady Ship
The Central Bank left its key short-term rates unchanged on Wednesday, signalling that it was comfortable with the countrys economic fundamentals.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 Tuesday.rn […]
Hat Collection
The government is looking for donor assistance to give the local asset securitisation market some legal teeth.Securitisation allows firms to borrow against future cash flows, which are channelled into a separate legal entity or a special purpose vehicle (SPV). Though asset securitisation has been around since the mid-1990s, local laws do not recognise such transactions.rn […]
New Page
The government is looking at amending laws to allow foreign investors into the corporate debt market, without liberalising the capital account.Foreigners are currently restricted to equity investments. They can also invest in government debt through unit trust.rn rnOver the years, capital market players have been lobbying for a policy shift, as direct access to the […]
Bad Grade
Sri Lanka is set to score very low in a second review of the peace process by the international donor community set for January 23. The first review in September 2003 pleased donors, who, at the June Tokyo donor confab tied US$ 4.5 billion in aid to progress with the peace process. rn rnCabinet Spokesperson […]
Business Talk
Business leaders from SAARC countries are calling on the governments to initiate regional cooperation to develop eight identified areas in return for greater intra-regional investment and trade. The private sectors of the SAARC countries – represented by seven leading chambers of commerce – suggest regional cooperation in the areas of trade, services, investment, tourism, agriculture, […]
Greenlight
The Colombo Stock Exchanges debt trading system is likely to take off this month, giving smalltime investors closer access to the government debt market.Seylan Merchant Bank, who became the first of the five members to get a licence, says they plan to roll out operations this month.rn rnThe DEX allows the public to buy and […]
On Track
Central Bank said GDP growth was on track to meet annual target of 5.5 percent this year but warned that political instability and progress on peace would be important for faster growth. Service sector growth has been outstripping the agriculture and industry sectors by a fair margin.rn rnSince economic liberalization in 1977 the industry sector […]