Category: Economy and Markets
Stopgap
State run Bank of Ceylon has lent US$ 75 mn to the government help bridge the budget deficit.The one-year loan is priced at 192 basis points above the six-month London interbank offered rate.rn rnThe government had opted for the loan after the Treasury put off a planned roadshow to raise funds up to US$ 150 […]
Short Break
The Central Bank has deferred its planned roadshow to raise dollar funds for the government.The US$ 100 mn fund raising exercise was due to kick off on Monday, but top Central Bank officials said the date has been deferred pending progress from the next round of peace talks and a recent cut in US interest […]
Higher Elevation
The Central Bank plans to raise the minimum capital requirement for primary dealers by Rs. 50 mn.Under the existing guidelines, dealers are expected to set aside Rs.150 mn in capital.rn rnThe Central Bank has told primary dealers last Friday that it is keen to raise the bar to Rs. 200 mn by next March.rn rnThe […]
The Grand Vision
The grand vision usually decorate the first part of the budget, and is usually not implemented was not much in evidence in this year quote s budget. rn rnIn fact most of the initiatives listed were already quietly underway.rn rnThe budget instead focused on what budgets are generally supposed to do, that is, laying the […]
Affordable Houses
Employees Provident Fund monies will be lent for lower middle class housing loans with a treasury subsidy.rn rnOf the Rs. 3 bn in loans the government plans to provide up to Rs. 1 bn through the Housing Development Finance Corporation or HDFC.rn rnOne and a half billion rupees are expected to be channeled through the […]
AID Flow
The concessionary loans, a total of US$ 50 million, topped off with US$ 10 million from the government will go towards poverty elevation and development of infrastructure and natural resources.rn rnFor the plantations sector the ADB facility, unlike previous assistance projects, will form a plantation fund to invest in equity and quasi-equity in the plantations […]
Capping Imports endash Budget Update
The government Wednesday proposed that all imported commodities excluding essential items such as wheat and crude oil to be subjected to import duties ranging from 2 per cent to 10 per cent.
Mutual Benefit – Budget Report
Unit trust and mutual funds will be taxed once, and income will be tax free in the hands of the unit holders according to the latest budget proposal.rn rnMutual funds that invest in specified areas will be taxed at only 10 per cent on interest and dividend income while others will be taxed at a […]
Credit Call endash Budget Report
The first in line includes all licensed commercial bank and specialised banking instructions, needing to have credit rating by January 2004.rn rnRegisterd finance companies and leasing companies that raise funds by issuing debt to the public will need a credit rating by 2005.rn rnMeanwhile, all other private companies that raise funds by issuing debt instruments […]
Road Rules – Budget Report
The government hopes to set up a road fund, monies of which will go towards maintaining and developing Sri Lanka quote s road network.rn rnContributions to the road fund will come from an additional charge to be imposed on licence renewals.rn rnThe government estimates to generate up to 500 million in 2003, and will directed […]
Broad Base endash Budget Report
VAT will be slapped on wholesale and retail trade from July 01 next year.This will apply to businesses with a turnover of more than Rs 1.8 mn a year.
Reform tracking endash Budget Report
A new Economic Management Law will be brought to parliament, which will compel each ministry to report to parliament the progress made on reforms every six months.rn rnldblquote Under that law, the budgets for the respective ministries will be directly linked with the progress made in implementing reforms, dblquote Finance Minister Chocksy told Parliament on […]