Category: Economy and Markets
Sri Lanka achieves reserve money target for June
July 3, 2007 (LBO) – Sri Lanka’s central bank says its reserve money target for June has been achieved comfortably, even as emerging fiscal signals continued to unsettle market participants. Short term rates have also become volatile this week, reaching towards 40 percent again. The interbank market has become after several weeks of excess liquidity […]
Sri Lanka call rates edge up despite cash injections
July 3, 2007 (LBO) – Sri Lanka’s call rates moved above 35 percent with liquidity disappearing from the banking system despite the monetary authority pumping billions of rupees of new money into the system. Ministers told the media that the government may lose up to ten billion rupees through cuts of value added tax on […]
India software exports head for 60-billion-dollar mark
BANGALORE, India, July 2, 2007 (AFP) – India’s exports of software and related services are expected to almost double in three years to 60 billion dollars, maintaining the country’s lead over rivals such as China, the industry said Monday.But the rupee’s strength and a shortage of talent are major concerns for an industry that posted […]
‘s central bank keeps 7.5 percent growth forecast; halts release of GDP numbers
June 30, 2007 (LBO) – Sri Lanka’s economy would still grow by 7.5 percent this year despite first quarter growth sliding to 6.1 percent, the Central Bank has said, while a rising budget deficit pushed interest rates to new highs. Analysts also say a slowdown in reported growth numbers is inevitable partly because of statistical […]
Sri Lanka inflation jump 3.2 percent in June; yearly numbers trend down
June 29, 2007 (LBO) – Sri Lanka’s inflation rose 3.2 percent in June, though the 12-month increase in consumer prices fell to 13.0 percent from 13.7 percent, the government’s statistics office said. The seasonally adjusted increase in the Colombo Consumer Prices fell to 17.0 percent from 17.4 percent in May, the Department of Census and […]
” economy
June 27, 2007 (LBO) – Areas bordering Sri Lanka’s western province, which is open to the world and has good infrastructure, grew fastest last year with a rapidly advancing service sector, the Central Bank has said. “In contrast, all the other provinces had per capita value added below the country average, ranging between 0.8 in […]
Sri Lanka rejects treasuries auction; rupee falls to new low
June 27, 2007 (LBO) – Sri Lanka rejected a weekly treasury bills auction Wednesday as the rupee fell to a new life low against the dollar, dealers said.The local currency traded as low as 111.52 against the dollar before picking up to 111.45, after crossing the psychological 111 rupee barrier just two days earlier. The […]
‘s Law drives Indian coins into the melting pot
KOLKATA, India, June 27, 2007 (AFP) – Businesses and public transport in India have been hit by a shortage of small change as rupee coins are being turned into razor blades, police said Wednesday. Demand for coins in Kolkata has soared as word spread that 100 one rupee coins could fetch 125 rupees from workshops […]
Sri Lanka to set up prosperity index to track rural growth
June 26 (LBO) – Sri Lanka’s Central Bank is to introduce a prosperity index to track the progress of the island’s provinces which are lagging behind and have high levels of poverty, Central Bank governor Ajith Nivard Cabraal said. It will also set up a results-based monitoring and evaluation system to see how development in […]
Sri Lanka scraps tax on imported food
June 26, 2007 (LBO) – Sri Lanka Tuesday scrapped value added tax on ten key food items in a bid to bring down food prices driven to high levels by money printing to finance the budget deficit last year.Last year the Central Bank printed 38.5 billion rupees to finance a fiscal deficit 8.4 percent of […]
Sri Lanka central bank says overnight rate volatility and inflation would moderate
June 25, 2007 (LBO) – Sri Lanka’s reserve money targeting regime is showing results and volatility in overnight rates and inflation will moderate, Central Bank said Monday, days after short-term treasury yields went up by 30 basis points. The bank no longer operates a full policy rate regime, with the discount window nominally at 12.00 […]
Zimbabwe currency crashes while Sri Lanka regains stability
June 23, 2007 (LBO) – Zimbabwe’s currency has started to freefall with heavy money printing to finance state expenses reports said, while Sri Lanka’s central bank has maintained some stability despite a widening budget deficit. Analysts are now predicting that Zimbabwe may soon see the end of a populist regime headed by Robert Mugabe that […]