Category: Economy and Markets
Cess Less
The Tariff Advisory Council (TAC) says that the import cess charged on luxury goods, should not be channelled towards the Export Development Board (EDB). The government charges duties over 45 percent on liquor, cigarettes and cars, but the monies are mainly used to meet the EDBs running expenses.rn “The cess is an indirect tax on […]
Direct Link
The US Treasury has lent an official to give technical expertise to start off the new Public Debt Management Office.The Public Debt Management Office is due to take off next year, with officials reporting directly to the Finance Minister, said Treasury Secretary, Charitha Ratwatte.rn rnTo give legal status to this office, the government plans to […]
Development Money
The Asian Development Bank (ADB) on Monday pledged US$ 105.3 million to support two projects linked to education and water and sanitation.The Distance Education Modernization Project will attempt to bridge the gap between the countrys postsecondary education system using technological advances through a million equivalent loan.rn rnThe project is expected to increase access to distance […]
Scrip less deals
A new electronic system to settle inter bank transactions will come on line as scheduled next month with new interest free liquidity support offered by Central Bank.Bank officials say that an Intra day Liquidity Facility (ILF) will be made available to banks in settling their dues on the new Real Time Gross Settlement system.rn rnThe […]
Steep Drop
The Central Bank cut its key short-term discount rates by 75 basis points on Friday after its monthly monetary policy meeting on Thursday evening.The overnight repurchase rate or repo rate was lowered to 7.5 percent, while the reverse repurchase rate or reverse repo was reduced to 9.5 percent. rn rnThe bank last reduced the rates […]
Gilt Strip
The Central Bank will look at the possibility of permitting gilt stripping after the RTGS and scripless securities settlement system is up and running, opening up the possibility of making long-term bonds more liquid.ldblquote We will look again at coupon stripping after dealers have got familiar with the system, dblquote Deputy Governor W. A. Wijewardene […]
Still falling
Long term bond yields fell again at this weeks auction, with the Rs 2000 mn issue being oversubscribed around three times.The weighted average ten-year yield fell to 7.71% (48 basis below January auction) and 15-year yield fell to 7.63% (down 145 basis points).rn rnThe secondary market was already trading around these levels, with traders having […]
Real Late
Scripless trading of government bonds is likely to be delayed till October after a delay in pushing through legal changes.The Registered Stock and Securities Ordinance which was originally scheduled to have been changed in time for scripless trading to start in on September 09, failed to receive cabinet approval in time.rn rnldblquote But the Real […]
Spurring Growth
A Sri Lankan contingent flying to China on August 08, will look to obtain technology transfers and investment partnerships for the local rubber and tea industries. The delegation lead by Primer Ranil Wickramasinghe will sign four key agreements to cover starting with one on closer economic co-operation, an agreement to avoid double taxation, and an […]
Trickling In
The first tranche of Japans commitment at the Tokyo donor conference rolled into the country today through a grant of Rs. 1.198 billion for a water supply project in the South.Considered a much needed project for the drought stricken south, the funds will give over 28,655 people access to pipe borne water, while enhancing the […]
Sand Castles
The Central Environmental Authority on Friday approved sand mining off the shores of Wadduwa and Kalutara. The Coast Conservation Department project will scoop sand off the seabed at depths of about 15 meters, roughly 2 km off the coast.rn rnThe initial phase of the project expected US$ 5 million is being funded with Dutch aid. […]
Sino Ties
Sri Lanka is moving to cement its ties with China, with a state visit by Prime Minister Ranil Wickremesinge next month.In addition to meeting Chinese Premier and President Prime Minister Wickremesinghe will also meet the Chinese Commerce and agriculture ministers, during the six-day visit, which will start on August 08th.rn rnSri Lanka is hoping to […]