Category: Economy and Markets
Alliance Calling
Wooing support for its ticket to govern the country, the newly formed SLFP-JVP alliance flirted with the Colombo based business and international community on Tuesday. The gala two-hour PR campaign, the first major public appearance since the alliance was signed in late January was mooted to ally fears of an anti-private sector regime in the […]
Saffron Power
Nationalist party, Sihala Urumaya said Tuesday that it was exclusively fielding Buddhist monks to contest the 225 seats up for grabs at snap parliamentary elections.rnThe Party said it will bank on saffron power for the April 2 elections called by President Chandrika Kumaratunga after she dissolved parliament nearly four years ahead of schedule on February […]
No Brakes
The rupee slipped up against the US dollar to end at 99.15, despite a state bank selling some dollars to shore up the currency.The rupee opened at 99.25, before the intervention brought it down to 98.90. Dealers said there was heavy import demand, on slim volumes.rn rnDealers said Bank of Ceylon had sold some dollars […]
Dusting Cobwebs
The Merchant Bank of Sri Lanka (MBSL) is exploring ways to wipe off its accumulated losses through a balance sheet clean up process.The bank is contemplating converting Rs. 800 mn worth of preference shares issued to Bank of Ceylon, into ordinary shares.rn rnThe move, if approved, would wipe off Rs. 1.4 bn in accumulated losses. […]
Moral Support
A state bank crept into the foreign exchange markets on Tuesday morning to shore the rupee up, to prevent it from touching the psychological 100.00 rupee barrier against the US dollar.The rupee fell to 99.25 against the US dollar in early Tuesday trade, after closing at 98.95 against the greenback on Monday.rn rnThe Central Bank […]
Flat Out
Treasury bond yields for two-year papers remained flat, despite Mondays auction being oversubscribed, the Central Bank said.The bank offered Rs. 1 bn, but accepted only bids for Rs.476 mn. The bank received offers for Rs.2.766 bn. The coupon rate was 7.95 percent.rn rn -LBO Newsdesk: LBOEmail@rnrn
Back to Basics
The problem with subsidies is that the rich enjoy them as much as the poor. The cross subsidy on diesel is a classic example.Owners of fuel guzzling sports utility vehicles enjoy a significant portion of the subsidy.rn rnMoney spent on subsidies and free services like water and education are often enjoyed by the richest quintile […]
Project lquote Put Off
The Colombo Commercial Company property facing the Beira Lake is owned by the UDA.A part of the property has been given on a 50-year lease to the Commercial Company while the rest of it is on a shorter lease, which ends next year.rn rnThe lease agreements have forced potential investors to talk to the Colombo […]
Listing Debt
The Central Bank has allowed the Employee Provident Fund to list its Rs. 240 bn government treasury portfolio on the CSEs new debt trading system, the DEX.The giant pension fund with over Rs.330 bn in its kitty, is currently negotiating a fee structure with the Colombo Stock Exchange. rn rnLive transactions are expected to start […]
Good Tidings
The US Agency for International Development said it has finalised a five-year US$ 120 mn plan to support peace and reform in Sri LankaVisiting USAID Deputy Assistant Administrator Mark Ward said the new strategy demonstrates Washingtons commitment to lquote sticking to Sri Lanka so long as progress is made towards peace and economic reform.rn rnHe […]
Be Careful
Asian countries are enjoying some of their best years after the East Asian crisis. But a top IMF official says the party might end quickly if emerging economies dont continue to strengthen their financial sector.ldblquote Perhaps the most urgent need is the further strengthening of the financial sector. In many countries, banks and companies are […]
Flying Visit
The US embassy said Mark S Ward, Deputy Assistant Administrator of the Asia and Near East Bureau, USAIDs highest-ranking official covering South Asia, visited the Jaffna Jaipur Center for Disability Rehabilitation (JJCDR) in Jaffna Town. rn rnThe JJCDR, originally known as the Jaipur Foot Program, was founded by local women in 1987 to meet a […]