Category: Economy and Markets
Sri Lanka quantity targeting exercise fails; lessons for 2008
Jan 01, 2008 (LBO) – Sri Lanka’s central bank says it met the milestones of an ill-fated reserve money targeting exercise in 2007, though inflation went out of control during the year, showing up the pitfalls of quantity targeting. The bank said it achieved the year end target of 267.6 billion rupees with room to […]
Sri Lanka inflation eases in December
Dec 31, 2007 (LBO) – Sri Lanka’s consumer prices in the capital Colombo eased in December with the most widely watched index falling 0.4 percent in the month, lowering 12-month inflation to 16.4 percent from a peak of 19.6 percent a month before. The Colombo Consumer Price Index fell 21.3 points in the month to […]
Sri Lanka may be able to avoid money printing if deficit is lower in 2008: minister
Dec 28, 2007(LBO) – Sri Lanka can manage without printing money for next year if the government keeps to the budget deficit of around 7.5 to 8 percent of the domestic product, a senior minister said. The 2008 budget was designed to maintain the deficit at 7.5 percent but if anything unpredictable takes place, expenditure […]
Sri Lanka money rates spike above penal discount rate
Dec 28, 200 (LBO) – Sri Lanka’s overnight rates spiked to 21 percent despite two discount windows that give money at 12.00 percent and 19.00 percent, while a bond auction was rejected by the government’s debt office Friday, dealers said. The debt office was again fishing for money offering bills on ‘tap’ at around 21.30 […]
Sri Lanka meets reserve money targets, inflation goes haywire
Dec 26, 2007 (LBO) – Sri Lanka’s central bank kept its policy rates frozen in December with inflation raging close to 20 percent a month before, but said reserve money targets have been met this year. . Updated The Central Bank’s policy rates remained unchanged at 12.00 percent, far below inflation as the monetary authority […]
Sri Lanka 3-month treasuries soar to 21.30-pct
Dec 26, 2007 (LBO) – Sri Lanka’s 3-month treasury bill yield soared 116 basis points to 21.30 percent amid a year-end cash crunch as the Central Bank refrained from printing money to intervene in the bill auction Wednesday.During the past four weeks, 3-month yields have shot up 523 basis points, 6-month 220 basis points and […]
Sri Lanka tsunami survivors still struggle to recover
GALLE, Sri Lanka, Dec 25, 2007 (AFP) – Graft and renewed fighting has blocked relief to Sri Lanka’s tsunami survivors with less than a fifth of money pledged properly accounted for three years later, according to watchdogs.Sri Lanka’s government claims success in rebuilding homes destroyed by the disaster, but international agencies say big problems remain. […]
Sri Lanka floods subside, 40,000 in temporary shelters
Dec 25, 2007 (AFP) – Sri Lanka’s monsoon floods were subsiding but just over 40,000 people remained in temporary shelters, the disaster management centre said Tuesday.More than 210,000 people were initially affected by the floods, with 40,225 of them remaining in schools, temples and other public buildings, and receiving food from state agencies, the centre […]
Sri Lanka needs more money for tsunami house re-building: World Bank
Dec 24, 2007 (LBO) – The World Bank says Sri Lanka needs more money to re-build houses destroyed in the 2004 December tsunami, and its program is lagging behind in the island’s war-ravaged areas. World Bank says its program has helped restore the livelihoods of around 100,000 families and re-build 44,000 damaged houses. “Together, the […]
IMF urges more flexibility for Sri Lanka rupee
Dec 24, 2007 (LBO) – The International Monetary Fund (IMF) has said Sri Lanka’s exchange rate appears to be competitive but urged the government not to resist pressure on the rupee and allow it to depreciate. ” . . . greater downward flexibility in the exchange rate is needed to help reduce vulnerability and safeguard […]
Sri Lanka rupee closes higher on equity flows; money spikes
Dec 20, 2007 (LBO) – The Sri Lanka rupee closed higher against the greenback as money spiked in tight conditions Thursday, while the state debt office was again fishing for cash with short term bills offers, dealers said. Reserve money on Thursday was 270.4 billion rupees, marginally higher than the year-end target. Stocks closed marginally […]
Sri Lanka economy expands 7.0 pct in third quarter
Dec 19, 2007 (LBO) – Sri Lanka’s economy has expanded 7.0 percent in the third quarter up from 6.4 percent in the second quarter, putting the country on track to clock up 6.7 percent growth in 2007, officials said. However, growth slackened from the 7.7 percent for the same quarter in 2006 with a downturn […]