Category: Economy and Markets
Peace dividends
ldblquote We expect a resurgence of economic activity in consequence to the commencement of these talks, dblquote Prof.G. L. Pieris said in a media briefing last week. rnldblquote Soon after the talks the Prime Minister will preside over a high profile investor forum meeting in New York. The Secretary General of the UN Mr.Kofi Annan […]
NICe Deal
Janashakthi Chairman Chandra Schaffter said the acquisition was funded through a bank loan from Commercial Bank.rn rnJanashakthi earlier, picked up a 51 percent of NIC for Rs. 450 mn. Janashakthi has also picked up the 10 percent stake gifted to NIC quote s employees.rn rnSchaffter says the balance acquisition paves the way for the formal […]
Debt Call
The Central Bank on Friday sought proposals from reputed international investment banks to raise dollar funds.The government is looking at raising up to US$ 350 mn via long term funds. The issue will carry a minimum tenure of five years and will form part of the governments borrowing programme. rnrnBanks have been asked to submit […]
Apparel Woes
Exports fell to US$ 336 mn in June from US$ 437 mn a year earlier.Imports on the other hand slipped 9 percent to US$ 465 mn during the period, mainly due to lower imports of food and beverages, investments and defence equipment. rnThe overall result, pushed the trade deficit up by 11 percent to US$ […]
Price Hiccups
Though GST was charged at 12.5 per cent and NSL at a nominal rate of 6.5 per cent the effective rate was around 21 per cent. rnrnUnder VAT the highest rate is only 20 per cent. rnrnThe finance minister is calling on the business community not to raise prices without cause. rnrnldblquote You should consider […]
Nobly Curve
Central Bank officials say that an initial Rs. 5 bn worth 10 or 12-year bonds will hit the market soon. rnrnThe bank expects long term investors like insurance companies and the captive funds like EPF and ETF to subscribe to the issue. rnrnldblquote We have spoken to the investors like insurance companies and provident funds […]
Exports Award
There will be more focus on value added exporters. rnrnAwards will be given for Traditional Agriculture, Non-traditional agriculture, value added tea, industry, gems and jewellery and service providers to exporters, like government departments.rn
Extended Debt
Superintendent Public Debt, Dharma Dheerasinghe told journalists that the bank hopes to offer around Rs.5 bn at the initial issue. rnrnThe issue is targeted at captive sources like pension, EPF, ETF and insurance funds. rnrnThe 12-year issue will carry yearly interest rates, unlike the present half yearly rates. ldblquote Our discussions with the captive sources […]
Green Money
Assistant to the Governor, W A Wijewardene says Cabinet approval has been sought to raise the five-year issue, which will form of the government quote s Rs.350 bn borrowing programme. rnThe funds could either via a syndicated loan or a medium term note. The government will also not seek a sovereign rating for the issue. […]
Southern Tip
Tuesday quote s auction saw yields for two, three and four years come under the hammer. rnrnThe bank offered and accepted Rs. 2.000 bn two-year notes carrying a 12.50 percent coupon. The issue was oversubscribed with bids amounting to Rs. 9.350 bn. The weighted average yield slipped 148 basis points to 14.16 percent (with tax). […]
VATquote s The Reason – Updated
Deputy Finance Minister Bandula Gunawardana says the government sector initiative to reduce prices to reflect the zero duty on essential items is intended to set an example for the private sector to follow suite. rn rnMost state institutions that benefit from the zero duty will in effect absorb the 6.5 per cent National Security Levy […]
To Cut Or Not
The Central Bank is strongly tipped to lower its short-term discount rates by up to 100 basis points within the next few days.Central Bank officials had intimated its thoughts to Chief Executives of commercial bank quote s at a meeting on Thursday. rnrnMarket sources said the Central Bank had asked the banks to cut lending […]