Category: Economy and Markets
Sri Lanka stocks close down 0.2-pct; Banking and finance losses following CB directive
Sep 16, 2015 (LBO) – Sri Lankan stocks closed down 0.21 percent on Wednesday with losses in the banking and finance stocks following a Central Bank directive to banks to reduce loan ratio on motor vehicles, brokers said. The Colombo benchmark All Share Price Index closed down 15.03 points at 7,137.40 lower 0.21 percent. S&P […]
Sri Lanka economy grew 6.7-pct in Q2 2015
Sep 16, 2015 (LBO) – Sri Lanka’s economy has grown 6.7 percent in the second quarter of 2015 against the 6.4 percent growth rate recorded in the first quarter, the statistics department said.Agriculture sub sector has grown by 5 percent, industry by 2 percent and services by 7.9 percent, the department said. After a re-basing […]
Asia’s Bonds Pressured by Interest Rate, Currency Concerns – ADB Report
Sep 16, 2015 (LBO) – Bond markets in emerging Asia came under pressure in the past quarter amidst concerns over softer growth, depreciating currencies, and US interest rates, ADB says. “Asian bond markets were buffeted by strong headwinds, including anticipation of the US Federal Reserve rate hike, which has led to an outflows of funds […]
Bank of Japan holds rates flat despite economic contraction
Sept 16, 2015 (LBO) – The Bank of Japan held interest rates unchanged on Tuesday despite calls for further monetary policy easing from the central bank after a 0.3 percent contraction of the Japanese economy in the second quarter. The contraction follows a similar 0.3 percent contraction in the third quarter of last year. “Japan’s […]
‘s vehicle import bill, says Murtaza
Sept 15, 2015 (LBO) – A rash of credit-fueled vehicle imports is affecting Sri Lanka’s balance of payments at the moment. But the bigger problem is not addressing fundamental monetary and fiscal policy issues, says Murtaza Jafferjee, the chief executive at Colombo-based JB Securities.“The primary factor fueling the demand for vehicles is credit. When the […]
Sri Lanka sells 05, 07, 10 and 13 year treasury bonds at 9.58–10.88-pct
Sep 15, 2015 (LBO) – The issue of treasury bonds amounting to 16 billion rupees have been oversubscribed with 73 billion rupees of bids received from investors.The Central Bank has accepted 3.1 billion rupees of 05 year bonds maturing on 01 May 2020 at a weighted average yield rate of 9.58 percent. The bond auction […]
Sri Lanka stocks close down 0.14-pct: Lack of direction for investors
Sep 15, 2015 (LBO) – Sri Lankan stocks closed down 0.14 percent on Tuesday following with low investor sentiment and losses in index heavy stocks, brokers said. The Colombo benchmark All Share Price Index closed down 10.01 points at 7,152.43 lower 0.14 percent. S&P SL20 closed 4.48 points lower at 3,915.15 down 0.11 percent. “There […]
Central Bank directs banks to reduce loan ratio on motor vehicles
Sept 15, 2015 (LBO) – Sri Lanka’s Central Bank has issued a directive to commercial banks, speciaized banks and financial institutions to reduce the loan to value (LTV) ratio to 70 percent in respect of loans granted for purchases or utilisation of motor vehicles. “The Central Bank of Sri Lanka has observed with concern the […]
Sri Lanka female labor force should shift into technology-related sectors: ADB
Sep 15, 2015 (LBO) – Sri Lanka’s female labour force needs to shift from traditional jobs in education and health sector to more technology-related ones, a recent ADB study indicates. “Few women have reached the highest level in the employment hierarchy in the judiciary, universities, scientific professions, and in private enterprises,” the Asian Development Bank […]
World Bank says Shortage of Long-Term Finance Blunts Progress in Developing Countries
Sep 15,2015 (LBO) – A shortage of long-term financing since the 2008 crisis is choking the investment-backed growth of companies in developing countries and hampering the ability of credit-worthy families to borrow for education and housing needs and escape poverty, a new World Bank report warned.“It would be a challenge to achieve high and sustainable […]
Sri Lanka Planters Association says tea industry might survive with new pay model
Sep 15, 2015 (LBO) – Sri Lanka’s Planters Association says that tea industry, which is in a revenue crisis, might have a chance to survive if its new productivity-linked wage model presented to employees is accepted by them.“The employers’ ability to pay is a very important and critically fundamental aspect when labour wages are negotiated,” […]
Fitch Withdraws Rating on Ceylon Income Fund; Ceylon Asset Management responds
Sep 14,2015 (LBO) – Fitch Ratings said it has withdrawn Ceylon Income Fund’s National Fund Credit Quality Rating of A(lka)’ saying there is no National Volatility Rating assigned to the fund, which is managed by Ceylon Asset Management.Following the Securities and Exchange Commission of Sri Lanka not renewing the license of Lanka Rating Agency (LRA), in July 2015, […]