Category: Economy and Markets
Sri Lanka opposition warns of possible default of a proposed sovereign bond
August 29, 2007 (LBO) – Sri Lanka’s main opposition announced a protest in front of HSBC Bank’s Colombo office after its leader warned that the country may not be able to repay 500 million dollars the bank is helping to raise. United National Party leader Ranil Wickremesinghe informed HSBC chief Stephen Green that the proposed […]
Sri Lanka forex market uncertainty returns; no two way quotes yet
August 27, 2007 (LBO) – Expectations that two-way quotes would resume and exporters would start selling in Sri Lanka’s forex markets were dashed early Monday after official interventions spread unease among dealers.Banks stopped quoting two-way in the interbank forex market after the central bank started intervening and terrorizing dealers a few weeks ago. Heavy central […]
Sri Lanka property bubble on the bursting path
August 25, 2007 (LBO) – Sri Lanka’s land and condominium price bubble which has now peaked may pop with buildings now under construction expected to flood the market in the next two years and buyers turning cautious, analysts and developers have said. Speculators and foreign investors have been scared off by the flare up in […]
Sri Lanka rupee eases against greenback in early trade
August 24, 2007 (LBO) – The Sri Lanka rupee eased towards a resistant level on the figure with spot deals touching 112.67 against the greenback in intra-day trading Friday, dealers said.The Sri Lanka rupee has largely held steady against the greenback in recent weeks while most regional currencies, including the Australian dollar, lost ground sharply. […]
Sri Lanka rupee floats to new level
August 24, 2007 (LBO) – The Sri Lanka rupee closed Friday with bids at 112.70 against the greenback with the highest deal at 112.67 in spot trade in a day that it floated freely with no intervention from the authorities, dealers said. The week closed with bids for the spot dollar at 112.70 and offers […]
Sri Lankan corporates form alliance to combat HIV/AIDS
Aug 23, 2007 (LBO) – Sri Lankan companies have formed a business coalition on HIV/AIDS saying increasing awareness and gearing up workplaces to handle the pandemic helps reduce its financial and economic costs. “HIV affects the most productive segment of the society. We need to promote a coordinated, standardised HIV workplace program approach,” Jaspal Bindra, […]
Sri Lanka rupee tests new lows against greenback; cash rates stabilize
August 23, 2007 (LBO) – The Sri Lanka rupee tested new lows against the greenback Thursday while overnight cash rates moderated after the monetary authority relaxed access to its discount window.In mid-day trade the spot dollar changed hands around 112.25 rupees with offers at 112.30 levels, dealers said. Official intervention was seen in the market […]
Money printing Zimbabwe eases price controls after shortages
HARARE, Aug 22, 2007 (AFP) – Zimbabwe’s government has authorised retailers to raise the prices of basic goods in order to ease widespread shortages which followed the imposition of price cuts, state media reported Wednesday. Shops and businesses which were ordered to slash their prices two months as part of a controversial crackdown on so-called […]
Sri Lanka central bank opens discount window to primary dealers
August 22, 2007 (LBO) – Sri Lanka’s Central Bank opened its discount window to primary dealers allowing them to get overnight cash after overnight rates hit 49 percent in early trade Wednesday, dealers said.The monetary authority had cut primary dealers off the window earlier in a bid to stop arbitrage on rates with an artificially […]
Sri Lanka Treasury bill yields up; rupee eases to new low
August 22, 2007 (LBO) – The Sri Lanka rupee slipped to a new life low and three month treasury bill yields edged up 10 basis point to 17.55 percent Wednesday as the Central Bank stayed off the primary market, dealers said. Authorities have also been using heavy moral suasion to stop dealers from buying dollars […]
Sri Lanka central bank defends John Exter and itself against tide of criticism
August 21, 2007 (LBO) – Sri Lanka’s central bank law, devised by an international economist famed for his monetary prudence, has in-built safeguards to protect the economy unless it was abused, a top central banker said. Central Bank Deputy Governor W A Wijewardene defended the bank’s founder John Exter against a rising tide of criticism […]
Sri Lanka interbank rates touch 40%
August 21, 2007 (LBO) – Sri Lanka’s interbank rates touched 40 percent in early trade Tuesday after the market ran out of liquidity amidst pressure on the currency, dealers said. However a fresh inflow of foreign capital can reduce pressure. The overnight call rate, where banks borrow from each other without collateral in the interbank […]