Category: Economy and Markets

June 30, 2010 (LBO) – The International Monetary Fund has lifted a ceiling on foreign commercial borrowing placed on Sri Lanka in 2009, in a new deal agreed with the government this month. Earlier this month, a part of a maturing 2-year dollar bond tranche was extended to 3-years. Meanwhile the budget presented to parliament […]

June 30, 2010 (LBO) – An expansion of the public service, losses in state enterprises, high oil price and lower than expected global growth could put a government deficit reduction plan at risk, a finance ministry report said. Sri Lanka is planning an 8.0 percent of gross domestic product budget deficit for 2010 down from […]

June 30, 2010 (LBO) – Consumer prices in Sri Lanka’s capital Colombo rose 4.8 percent in June 2010 from a year earlier, down from 5. 3 percent in May, the fourth straight monthly fall, the government statistics office said. In the month of June the Colombo consumer price index rose 0. 8 percent in absolute […]

June 30, 2010 (LBO) – The Ceylon Chamber of Commerce said the Sri Lankan government should involve the private sector when implementing its latest budget proposals which include reforms in taxation, education and administration. The chamber said it was confident that once the proposals are implemented and consistency prevails, it will boost investor confidence and […]

June 29, 2010 (LBO) – The International Monetary Fund has released 407.8 million US dollars to Sri Lanka held back after last year’s budget went off the rails, and extended the deal by a year on the promise of more responsible fiscal management this year. The IMF held back the disbursement of a third tranche […]

June 29, 2010 (LBO) – Sri Lanka is planning a budget with a deficit of 8.0 of gross domestic product or 438.3 billion rupees in 2010 compared with 9.9 percent or 476.3 billion rupees in 2009 while there would be a revenue deficit of 2.0 percent or 110.5 billion rupees. The government was planning to […]

June 29, 2010 (LBO) – Sri Lanka has a complex tax structure which is discouraging savings and the government is expecting a comprehensive tax reform plan in August, deputy finance minister Sarath Amunugama said. An interim report from a presidential tax commission has recommended a simplified tax structure which is more equitable and is being […]

June 29, 2010 (LBO) – Sri Lanka presented a broad policy budget outlining a commitment to cut deficits over the medium term, bring down interest rates and inflation and also held a state salary hike until next year. Though the gap is high, it is lower than the 9. 9 percent (10.4 percent with grants) […]

June 29, 2010 (LBO) – Sri Lanka’s latest budget should ensure the island maintains macro-economic stability that would help accelerate economic growth, the International Monetary Fund representative in the island said. The key element is in ensuring macro-economic conditions remain stable, said Koshy Mathai. “Inflation, interest rates and the exchange rate must remain stable to […]