Category: Economy and Markets
Coming Out Party
So far, the bank has written to international rating agents, like Citibank and J P Morgan who currently have a local presence, about playing an advisory role in the rating process.rn rnPlans for a sovereign rating have been pending for several years, but have always been put off because of the war. rn rnBut a […]
Smooth Operator
Primary Dealers in government debt will be asked to raise their capital next year, as the Central Bank tries to strengthen the dealer network.The new regulations for dealers who operate in the primary government securities market comes, as the Central Bank steps up its drive to deepen the debt market.rn rnAt the moment primary dealers […]
Mega Interest
MIGA, the World Banks insurance arm, says it is entertaining 12 proposal from foreign investors, to fund projects worth over US$ 1 bn in Sri Lanka.ldblquote There is tremendous investor appetite since the ceasefire started and the economy is growing faster. There is lot of interest for infrastructure projects, so inquiries have come our way […]
Falling, Falling
The Central Bank cut its key short-term rates on Thursday, signalling that the economy was getting stronger.rnrnThe bank lowered its overnight repurchase rate (repo rate) by 50 basis points to 7.0 percent.rn rnThe reverse repurchase rate (reverse repo) was cut by 100 basis points to 8.50 percent, the bank said in a statement following its […]
Debt Call
Pan Asia Bank is coming out with an unlisted Rs. 400 mn debenture, to raise funds to boost its capital.The five-year issue is priced at floating rate of three percent above the six-months treasury bill rate. Six-month treasury notes are currently trading at 7.17 percent in the secondary market.rn rnThe bank said Tuesday that the […]
First Draft
Finance Minister K N Choksy told parliament on Wednesday that the government hopes to spend Rs. 352.7 bn in 2004 for development work.rnrnrnrnrnrnrnNew Page 1rnrnrnrnrn Ofrnthis, Rs. 209.1 bn will be spent on recurrent expenses to maintain publicrnservices and Rs. 143.6 bn on capital expenses.rn Capitalrnexpenditure on foreign funded projects will be raised to Rs. […]
Spinning Dollars
The Treasury of Sri Lankas largest state bank on Monday, snapped up the entire issue of the countrys first dollar denominated two-index linked commercial paper.Hayleys MGT Knitting Mills Ltd., the textile arm of the Hayleys Group, became the first local company to come out with a US$ 700,000 three month commercial paper.rn rnThe risk averse […]
Dollar Collar
Most of Sri Lanka quote s international trade is done in dollars (US) and significant movement in the US$-Rs rate, affects the pricing of both imports and exports.The rupee appreciated against the dollar over the last two months in line with the US currency quote s weakness against major currencies over the last eighteen months […]
Key Treasuries
Twenty-year government treasuries will hit the market on the 20th of this month, but debt market experts say the extended yield curve has failed to stimulate the corporate bond market.The yield curve that barely extended to two years has been extended to fifteen years by the issue of long-term treasuries.rn rnPublic debt department officials say […]
Longer Horizon
The Central Bank will launch its maiden 20-year treasury bond this month with an issue of Rs. 1 bn due on October 20.Superintendent Public Debt Dept, Dharma Dheerasinghe said the bank was hoping to raise Rs. 7.7 bn through Octobers borrowing programme.rn rnldblquote We have now revised it to include the 20 year issue, which […]
Dollar Rain
Aid disbursements for this year from the top three lending institutions to Sri Lanka endash the ADB, the World Bank and JBIC, is expected to reach US$ 1 bn.ldblquote This is as against normal disbursements of US$ 650 mn dblquote , World Bank Country Director Peter Harrold told journalists on Thursday.rn rnldblquote It is through […]
Rating Call
The Central Bank plans to hire Fitch Ratings International to give a sovereign rating for the countrys debt. A sovereign rating serves as an indication of a countrys ability to repay its debt and is a key requirement to raise money from the international capital markets.rn rnThe bank is in the process of securing the […]