Category: Economy and Markets
Sri Lanka coalition partner returns to opposition – Updated
Dec 12, 2007 (LBO) – Members of a key Sri Lankan minority party crossed over to the opposition Wednesday increasing uncertainty over the fate of the ruling coalition ahead of a crucial budget vote. The other members of the SLMC who crossed over were SLMC General Secretary Hassan Ali, Basheer Sagudawood, and Faisal Kassim, who […]
Sri Lanka rejects bids for six and 12-month bills
Dec 12, 2007 (LBO) – Sri Lanka has rejected bids for 6 and 12-month Treasury bills at Wednesday’s auction selling only 3-month bills at an average yield of 18.99 percent, up 96 basis points from last week..Updated/Corrected last week Dealers estimate the 3-month cut – off rate, the highest rate at which bids were accepted, […]
Sri Lanka fills vacancy in rate-setting monetary board
Dec 11, 2007 (LBO) – Sri Lanka has appointed Manohari Ramanathan, an attorney-at-law to fill a vacancy in the governing body on the country’s monetary authority which also sets interest rates. .Updated The Central Bank of Sri Lanka said Ramanathan’s appointment will take effect from December 06, 2007. She had joined the Legal Draftsman’s Department […]
Sri Lanka rupee volatile against greenback Monday
Dec 10, 2007 (LBO) – The Sri Lanka rupee came down from early highs of 108.10/20 against the greenback to lows of 109.50 in spot trade Monday showing unusual intra-day volatility, dealers said. Sri Lanka’s forex markets are not used to high levels of volatility as the Central Bank plays a market maker role to […]
Sri Lanka could stabilize economy with inflation targeting: IMF director
Dec 10, 2007 (LBO) – Sri Lanka could stabilize its economy and rein in galloping prices by moving to an inflation targeting framework and a flexible exchange rate, a top International Monetary Fund official said. Unlike East Asia and some Latin American countries, critics say five decades after creating a central bank with money printing […]
Sri Lanka inflation caused by govt. credit, not private sector: IMF
Dec 06, 2007 (LBO) – Sri Lanka’s inflation is strongly linked to government credit, the International Monetary Fund (IMF) said in a report released this week, clearing the private sector of blame for rapidly rising prices. . IMF said bank credit to the private sector has accelerated in Sri Lanka in recent years, but the […]
Sri Lanka rupee zooms amidst record exporter selling
Dec 06, 2007 (LBO) – The Sri Lanka rupee extended gains against the greenback Thursday as panicky exporters sold dollars fearing more ‘carry trade’ style activity from hedge funds, dealers said, after authorities relaxed foreign investor limits on local bonds. Sri Lanka government securities offer attractive rates of around 19.00 percent a year for macro […]
Sri Lanka rupee gains on the greenback; intra day peak of 108.70
Dec 05, 2007 (LBO) – Sri Lanka rupee rose sharply against the greenback in spot trade Wednesday on the back of foreign purchases of rupee bonds, dealers said.The rupee hit an intra-day high of 108.70/80 against the greenback in late afternoon trading until state names which usually represent the monetary authority started to buy into […]
Sri Lanka treasuries yields up
Dec 05, 2007 (LBO) – Yields on Sri Lanka government treasury bills rose sharply on Wednesday with the benchmark 3-month bills gaining 96 basis points to 18.03 percent, the government’s debt office said. One year yields rose 89 basis points to 19.96 percent and six months bills gained 94 basis points to 18.79 percent at […]
Sri Lanka economic shocks are home grown: IMF
Dec 04, 2007 (LBO) – Recent weaknesses in Sri Lanka’s economy have come from internal policies, and a plan to stop market pricing Diesel and Kerosene in 2008 may destabilize the economy further, the International Monetary Fund (IMF) has warned. “Fiscal consolidation, if delivered without delay, would provide scope for private sector-led growth, reduce debt […]
Sri Lanka urges private sector to spread benefits of export success
Dec 04, 2007 (LBO) – Sri Lanka’s government is trying to better spread the benefits of economic growth and reduce income disparities which have widened in recent years, a senior minister said. The government wants to help the private sector to improve its links with farmers in outlying rural communities, Minister of Export Development and […]
Sri Lanka new price index shows 19.3-pct inflation
Dec 04, 2007 (LBO) – A new index to measure inflation in Sri Lanka’s capital Colombo, showed that prices had risen by 19.3 percent in the past 12 months, a tad lower than the 19.6 percent measured by the existing index. The government’s statistics office which computes price indices says the Colombo Consumer Price Index […]