Category: Economy and Markets
Sri Lanka overnight rates hit two year high
Nov 24, 2011 (LBO) – Sri Lanka’s overnight gilt backed repos rose as much as 8. 35 percent and call rates hit a two year high of 9.25 percent Thursday, dealers said, as liquidity tightened amid defence of a dollar peg. Stocks closed 2.7 percent lower. Sentiment in Sri Lanka’s financial markets have also been […]
Sri Lanka private sector urged to increase investment
Nov 23, 2011 (LBO) – Sri Lanka’s private sector has been called upon to make big investments using tax savings and gains from incentives given by government, and banks urged to lend more to small business. Treasury secretary P B Jayasundera said the government was managing to maintain public investment at around six percent of […]
Sri Lanka unemployed graduates take aim at fresh tax grab
No 22, 2011 (LBO) – Sri Lanka’s unemployed graduates who have received a ‘free’ education at at tax payer’s funded universities are taking aim at another tax grab with a lifetime job and pensions in an already bloated state sector, according to media reports. Others who earn degrees with their own money from affiliated private […]
Sri Lanka has to balance bond markets against industry: Treasury Secy
Nov 23, 2011 (LBO) – Sri Lanka has to balance the needs of export and import substitution industries against bond markets, Treasury Secretary P B Jayasundera said two days after a step devaluation of the rupee announced in the budget. “We need to balance,” Jayasundera told members of the Institute of Chartered Accountants of Sri […]
Sri Lanka Treasuries yields sharply up
Nov 23, 2011 (LBO) – Sri Lanka’s Treasuries yields rose steeply across maturities at Wednesday’s auction with average one year yield touching 8. 50 percent, data from the state debt office showed. Following the auction there were quotes for a bond maturing in 2015 at around 10. 25/11.00 percent, dealers said. Update The 3-month yield […]
Sri Lanka rupee weakens further
Nov 23, 2011 (LBO) – Sri Lanka’s rupee weakened to 114.15/20 in the spot dollar market, after closing at 113. 88/90 rupees a day earlier, after the monetary authority adjusted a daily guidance rate, dealers said. The rupee fell more than 3.0 percent a day earlier after the a budget for 2012 said the rupee […]
Sri Lanka rupee adjustment in right direction: IMF
Nov 23, 2011 (LBO) – Sri Lanka’s rupee devaluation earlier this week was a step in the right direction, and a planned narrower budget deficit would reduce the country debt burden an International Monetary Fund official said. “We think that the exchange rate adjustment was a step in the right direction and should help support […]
Sri Lanka stocks end down 0.4-pct
Nov 23, 2011 (LBO) – Sri Lankan shares closed weaker again Wednesday with trading also drying up amid uncertainty about government policy towards investors despite mostly healthy quarterly earnings, brokers said. Some lands of listed plantations companies have also been taken over to be re-distributed among small farmers. The government also devalued the rupee by […]
Sri Lanka bonds illiquid, rupee weaker after devaluation
Nov 22, 2011 (LBO) – Sri Lanka’s bonds were illiquid with two way quotes absent for several maturities Tuesday as market participants looked for direction following a surprise devaluation of the rupee, dealers said. The Central Bank gave guidance to the market at 113.50/90 rupees through a state bank. Liquidity in bond markets dried up […]
Sri Lanka stocks end down almost one pct
Nov 22, 2011 (LBO) – Sri Lankan shares closed lower Tuesday with plantations stocks among the biggest losers after the government said in its 2012 budget it would seize estate lands lying unused, brokers said. The main All Share Price Index fell 0.96 percent (58.91 points) to 6,060.95, while the more liquid Milanka index fell […]
Sri Lanka rupee devalued, spot dollar at Rs113.80/90
Nov 22, 2011 (LBO) – Sri Lanka’s rupee traded at 113. 80/90 against the greenback in the spot market Tuesday moving within a band indicated by the central bank, after a rare devaluation announcement a day earlier. A day earlier, President Mahinda Rajapaksa said the rupee should be devalued 3. 0 percent to improve export […]
Sri Lanka cuts budget deficit, maintains investment: Treasury Secy
Nov 22, 2011 (LBO) – Sri Lanka has managed to gradually reduce the government budget deficit without cutting public investment which is needed to build the capacity to enable private investments, an official said. Treasury secretary P B Jayasundera said the government was maintaining the downward momentum in budget deficits and inflation had been brought […]