Category: Economy and Markets
Sri Lanka central bank pours oil on troubled waters
Nov 17, 2011 (LBO) – Sri Lanka’s central bank said there may be room for former owners of seized assets to negotiate with competent authorities appointed by the state, after rating agencies raised fears of deteriorating property rights in the island. The government expropriated land in 36 enterprises and ordinary shares of listed Hotel Developers, […]
Sri Lanka seized assets re-offered to private managers: minister
Nov 17, 2010 (LBO) – Former owners of expropriated assets may be given a chance to manage the companies again if a competent authority appointed by the state finds them acceptable, a minister said. Cabinet spokesman and information minister Keheliya Rambukwelle said the government will shortly appoint competent authorities to the seized firms and they […]
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Nov 17, 2011 (LBO) – Fitch Ratings Lanka has assigned Commercial Bank’s (CB) proposed subordinated debentures of up to a billion rupees a national long-term rating of ‘AA-(lka)’. “The proposed debentures are rated one notch below CB’s National Long-Term rating to reflect their debt-like features,” a statement said. The debentures will have a maturity of […]
Sri Lanka Treasuries yields up
Nov 16, 2011 (LBO) – Sri Lanka’s 3 and 6 month Treasuries yields rose at Wednesday’s auction and all bids for 12 months bills were rejected, data from the state debt office showed. Three month bills rose 12 basis points to 7.51 percent, 6-month bills rose 9 basis points to 7. 54 percent. Last week […]
Sri Lanka expropriations will hurt investment: Fitch
Nov 16, 2011 (LBO) – Sri Lanka’s new law to expropriate 37 businesses would discourage investment and hurt growth, despite the state promising that it would be a one-off measure, Fitch Ratings has said. “While the Sri Lankan government has said that this is a one-off measure, and the list implies that the Act is […]
Sri Lanka stocks extend losses
Nov 16, 2011 (LBO) – Sri Lanka’s stocks extended losses falling 1.14 percent in thin trading Wednesday amid continuing negative sentiment over an expropriation law and margin sales, brokers said. Brokers said motor stocks were being sold due a hike in car taxes expected in the next budget, but some firms which had reported good […]
Sri Lanka holds rates despite falling inflation amid peg defence
Nov 16, 2011 (LBO) – Sri Lanka is holding policy rates at between 7.00 percent and 8.50 percent despite falling inflation, the Central Bank said as rapid credit expansion put pressure on a peg with the US dollar amid strong economic growth. Inflation fell to 5.1 percent in October 2011 from 6.4 percent in September. […]
Sri Lanka stocks plunge 2.3-pct
Nov 15, 2011 (LBO) – Sri Lanka stocks plunged 2.3 percent Tuesday to a 14-month low despite strong quarterly earnings amid low liquidity and an expropriation law casting a pall over sentiment, brokers said. Market participants were clearing margin accounts. “Punters are ignoring earnings,” an analyst said. “Of course they also ignored earnings when fundamentally […]
Sri Lanka to allay expropriation fears
Nov 15, 2015 (LBO) – Sri Lanka will explain to Moody’s, a rating agency that expressed alarm over policy uncertainty and deteriorating property rights, that there will be no more expropriations, Central Bank Governor Nivard Cabraal said. The State is seizing land in some 37 enterprises and expropriating one listed firm it is entirety for […]
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Nov 14, 2011 (LBO) – A law to expropriate assets of dozens of private firms including two listed companies could hurt the island’s credit, cloud its investment climate and has created uncertainty about property rights and policy, Moody’s a rating agency said. “Despite authorities’ statement that this is a one-off move and that further expropriation […]
Sri Lanka stocks end down 1.5-pct
Nov 14, 2011 (LBO) – Sri Lankan shares tumbled Monday with a rating agency warning a new expropriation law could hurt the investment climate and a listed hotel saying all its shares were now owned by the state. The main All Share Price Index fell 1.47 percent (92.95 points) to 6,239.52, while the more liquid […]
Sri Lankan nationalisation law criticised
November 13, 2011 (AFP) – Sri Lanka’s new law to nationalise “under utilised” private firms could shatter investor confidence and push the country into authoritarian rule, the opposition and press said Sunday. The bill was signed into law on Friday by parliamentary Speaker Chamal Rajapakse, the eldest brother of President Mahinda Rajapakse. The president, who […]