Category: Economy and Markets
Sri Lanka Central Bank says coins a plenty
May 8, 2007 (LBO) – Sri Lanka’s central bank says there is no ‘shortage’ of coins in the country, and a campaign to bring back coins into circulation has been mis-understood by the public. Authorities started a campaign to persuade children to break their piggy banks and exchange coins for notes and a 20 percent […]
Sri Lanka shrugs off British aid freeze
May 7, 2007 (AFP) – Sri Lanka Monday shrugged off Britain’s suspension of debt relief to the island, saying the amount of money was “too insignificant” to worry about. Foreign Minister Rohitha Bogollagama declined to discuss the move to stop nearly three million dollars in aid, but said it was “wrong” for London to hold […]
Sri Lanka anti-inflation fight mired in excess liquidity
May 8, 2007 (LBO) Sri Lanka’s fight against inflation has received a set-back with monetary authorities unable to sterilize excess liquidity in the banking system which is now reaching towards one percent of gross domestic product.Excess liquidity in the banking system reached 22 billion rupees, reminiscent of the ‘bad old days’ of 2004 and 2006 […]
Sri Lanka faces worsening fiscal policy and investment risks as conflict intensifies
May 05, 2007 (LBO) – The use of air power by Tamil Tiger guerrillas has raised the stakes in investing in Sri Lanka and prospects of higher defence spending is increasing fiscal risks, analysts said. Sri Lanka needs fiscal discipline and increases in turnover based value added tax (VAT) rates and its base to solve […]
Sri Lanka rupee closes at a record low, stocks edge down amidst war jitters
May 04, 2007 (LBO) – The Sri Lanka rupee closed at a record low against the dollar Friday while stocks edged lower with jittery investors remaining on the sidelines, dealers said. Spot dollar closed at 110.85 rupees, the lowest this year, showing a depreciation of 3.11 percent for the year with the rupee starting at […]
Sri Lanka aims to raid piggy banks as coins rise in value
May 4, 2007 (AFP) – Sri Lankan children are being encouraged to raid their piggy banks in a bid to end a serious shortage of loose change in a country where inflation is making coins worth more than their face value.State-owned banks are offering colour pencils, felt pens, drawing paper and books to children who […]
Sri Lanka money markets open quiet, stocks delayed in a rain-washed day
May 03, 2007 (LBO) – Sri Lanka’s inter-bank markets opened quiet after a two-day religious holiday with money at 13.25 percent, but stock trading was delayed in a rain washed morning, dealers said.The spot dollar was trading around 110.70 rupees in early trading. The Colombo stock market did not open at the scheduled time of […]
Sri Lanka inflation falls despite rising oil prices in April as money printing tapers off
April 30, 2007 (LBO) – Sri Lanka’s inflation fell for the third month in a row in April after the Central Bank stopped printing money to finance the budget deficit and tightened monetary policy from December 2006. Consumer price increases in the past twelve months measured by the Colombo Consumer Price index fell to 16.3 […]
Sri Lankans splurge on snacks and drinks for all night match viewing
April 28, 2007 (AFP) – Sri Lankans were stocking up on snacks, soft drinks, ice cream and liquor on Saturday to watch their home team battle Australia at the cricket World Cup finals in the Caribbean. Supermarkets, grocery and wine stores were reporting brisk sales as customers stood in lengthy queues. “It took us nearly […]
Sri Lanka counts on World Cup to boost image
COLOMBO, April 27, 2007 (AFP) – Sri Lanka is banking on the publicity from the cricket World Cup to attract foreign investment and tourism to the South Asian island nation better known for its separatist conflict.As the home team prepares for the final clash with Australia on Saturday, the Caribbean event has offered an unexpected […]
French businesses eye Sri Lankan investment opportunities
April 26, 2007 (LBO) – A team of French businessmen representing sectors such as textiles, shipping, energy, railways and environment is visiting the island, the French Embassy announced Thursday. The businessmen will be accompanied by French government officials from the Treasury, Finance Ministry and development agencies as well as trade advisors. The delegation will take […]
Sri Lanka treasury yields continue to move up
April 25, 2007 (LBO) – Sri Lanka Treasury bill yields edged up by an average 33 basis points to 15.84 Wednesday, while the 3-month cut-off yield topped 16.70 percent, dealers said. In April reserve money rose to 277 billion partly due to seasonal factors which the bank has to bring down as the money comes […]