Category: Economy and Markets
Yen Deposits
Sri Lanka on Tuesday signed up for Rs. 26.1 bn in long-term funds from the Japanese government to develop key sectors in the economy.The loan carries a 2.2 percent interest rate payable over a 30-year period, inclusive of a ten-year grace period, Finance Minister K N Choksy told journalists.rn rnJapanese Ambassador Seiichiro Otsuka says the […]
Bigger Cushion
Primary Dealers in government debt were asked to raise their capital this month as the Central bank tried to strengthen the dealer network.The new regulations for dealers in the primary market for debt came in to effect at the beginning of the month.Primary dealers now have a minimum of Rs. 150 mn in Tier I […]
Big Catch
The Ministry of Fisheries is pushing for new infrastructure to harbour foreign vessels fishing in international waters off Sri Lanka. Thernproposal along with a number of other projects is part of a ten year plan setrnout by the Ministry to tap the potential of the industry in its 2002 NationalrnFisheries Policy, Development Plan and Progress […]
Home Loans
The Urban Development Authority (UDA) is drawing plans to raise money from the local financial market for a mega housing project in the Colombo area. The total cost of the 1,200 house project has not been finalised, but officials estimate each house to cost Rs.1.2 million including the land. rn rnUDA lands in and around […]
A/L Revision
Lessons from Tharuna Aruna scheme for the unemployed graduates will help structure a new project aimed at the G.C.E. Advanced level qualified labour population.The Asian Development Bank (ADB) has agreed to a US $ 10 million allocation for the project, Minister of Employment and labour, Mahinda Samarashighe said on Tuesday.rn rnSamarashghe said the project was […]
Yo-Yo Reforms
The Asian Development Bank warned on Saturday that the governments rocky relationship with the powerful executive presidency is stalling economic reforms.“The absence of a bipartisan process makes it more difficult for us to be comfortable as to whether key reforms will take place,” ADBs Country Director, John Cooney told a media briefing.rn rnThe countrys present […]
Smooth Run
The Central Bank quote s new money market auction started off on Monday, with the bank offering and accepted bids for Rs. 6 bn at 9.26 percent.Earlier, dealers had put in bids worth Rs.13.4 bn.rn rnThe market is flushed with Rs. 13.6 bn in excess liquidity, and dealers were expecting the bank to auction the […]
Open Sesame
The Central Bank will start open market operations for the money market on Monday. The market friendly move will give the Central Bank a new monetary policy instrument to influence short-term rates.Central Bank says market participants will play a greater role in determining over night interest rates under its plan to introduce open market operations.rn […]
Small Mercies
The Central Bank said Friday, that inflation measured by the Colombo Consumer Price Index for February dropped 1.1 percent over January to 3423.1.Central Bank said the availability of food items, mainly of upcountry vegetables, led to a drop in Februarys inflation.rn rnThe CCPI is the official measure of price changes within the Colombo Municipality for […]
Rough Times
The Central Bank has issued a draft guideline to allow primary dealers to transact in derivative instruments.The guidelines include limits for credit risks and capital adequacy exposures.rn rnThe move comes as market players met on Tuesday to try and activate the local derivative market.rn rnParticipants at a seminar organised by the Primary Dealers Association lamented […]
New Wicket
The Asia Capital Group on Monday disposed its shareholding in its associated company, Capital Alliance Ltd., for Rs. 36 mn.Capital Alliance which specialises in debt market transactions, secured a primary dealer licence last November.rn rnTwo years ago, Asia Capital floated the debt market operation taking up a 20 percent stake for Rs. 20 mn. rn […]
SWAP Talk
The Primary Dealers Association is meeting industry experts on Tue. to discuss ways to promote interest rates swaps and forward rate agreements.Talks by resource personnel invited by the association will centre on International Swap Dealers Association master agreement, taxation, accounting and documentation issues that prevent these two derivative instruments from flourishing.rn rnThe three-hour brainstorming session […]