Category: Economy and Markets
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 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 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 […]
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 […]
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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 […]
Sri Lanka expropriation law slammed in newspaper poll
Nov 13, 2011 (LBO) – An overwhelming 98.4 percent of respondents in a newspaper poll found fault with a law to selectively expropriate some three dozen firms which lawyers said was deeply flawed and trespassed on a constitutional separation of powers. The newspapers a respondent labelled chamber chiefs a set of “spineless leaders, lolling in […]
Sri Lanka struggling to revive 23 busted state firms: report
Nov 14, 2011 (LBO) – Sri Lanka is struggling to revive 23 troubled state enterprises, with salaries being paid with people’s tax money and hundreds of million rupees more to be paid as voluntary retirement compensation, a media report said. Other troubled state firms awaiting revival included Lanka Mineral Sands; Lanka Phosphate Ltd; Paranthan Chemical […]
Sri Lanka could cooperate more with South Asia on tax: experts
Nov 13, 2011 (LBO) – Sri Lankan tax authorities should cooperate more with South Asian counterparts to be more vigilant of tax evasion by cross-border enterprises, international experts said in Colombo. “African national tax administrators have been cooperating on technical professional issues over quite a few years,” Allen Kagina, commissioner general of the Uganda Revenue […]
Sri Lanka stocks end up 0.3-pct
Nov 11, 2011 (LBO) – Sri Lankan stocks closed firmer Friday but trading sank to a new recent low with uncertainty over a business expropriation law adding to the negative sentiment, brokers said. The main All Share Price Index rose 0.25 percent (15.60 points) to 6,332.47, while the more liquid Milanka index rose 0.31 percent […]
Sri Lanka BOI deletes page promising freedom from expropriation
Nov 11, 2011 (LBO) – Sri Lanka’s Board of Investment, the state investment promotion agency, has deleted a page which ‘guaranteed’ investors freedom from expropriation, raising questions of heightened political risk, lawmakers said. Sri Lanka passed a law to expropriate assets of 37 businesses, in several of which foreign investors were involved, after rushing it […]