Category: Economy and Markets
Sri Lanka needs more fiscal, monetary tightening; growth 6.1% in 2007 – ADB
March 27, 2007 (LBO) – Sri Lanka needs more monetary tightening and a smaller budget deficit to improve its economic fundamentals and bring inflation down, the Asian Development Bank (ADB) said Tuesday. We do think monetary policy would have to be tightened further, ADB Country Economist Johanna Boestel said. The Central Bank can succeed in […]
Sri Lanka offers bonus for kids to return coins in their piggy banks
March 27, 2007 (LBO) – Sri Lanka would offer an immediate 20 percent bonus in stationary for kids who break their piggy banks and deposit the coins in the banking system, officials said. “If children break their piggy banks and bring the coins back to circulation we will give exercise books, pens and rulers to […]
‘s balance sheet
March 26, 2007 (AFP) – The first ever air attack by Tamil Tiger rebels is a psychological setback to Sri Lanka’s military but could cause an even bigger blow to the island’s economy, analysts said Monday.In the daring strike, the Liberation Tigers of Tamil Eelam (LTTE) used two light fixed-wing aircraft against the Katunayake airbase, […]
Japan gives 320 million dollar loan to Sri Lanka
March 23, 2007 (AFP) – Japan gave Sri Lanka a 320-million-dollar loan Friday to build roads and improve drinking water supply in key cities, the Japanese embassy here said.More than 4,000 people have died since December 2005 in fighting between Tamil rebels and government forces despite a Norwegian-brokered truce that has been in place since […]
Sri Lanka and India in trade talks in Colombo next week
March 22 (LBO) – Sri Lanka and India will hold another round of trade talks in Colombo next week on liberalizing professional services, investments and trade in goods. The talks on a Comprehensive Economic Partnership Agreement or CEPA, has been ongoing for three years, to widen trade to include areas like professional services. The two […]
Sri Lanka raises more dollars from rupee bonds, shoring up official reserves
March, 21 (LBO) – Sri Lanka has raised 40 million dollars this week by selling rupee bonds to foreign buyers bringing the total so far 140 million dollars, an official said. On Tuesday the rupee hit a low of 109.92 against the dollar. On Wednesday morning trade the rupee was trading around 109.85 to the […]
Sri Lanka money rates hit 12-year high in record busting week
March 17 (LBO) – Sri Lanka’s overnight money market rates came down from a 12-year high following a cash inflow from a dollar bond issue Friday, while the Central Bank took swift measures to keep markets on a tight path. Sri Lanka’s overnight call rates hit a high of 35 percent Thursday, the highest since […]
Sri Lanka switches to strong quantity targeting regime; policy rates unchanged in March
March 16 (LBO) – Sri Lanka’s central bank kept its now largely irrelevant discount rate unchanged Friday, while its monetary policy actions in recent weeks showed a firm reliance on quantity targeting. The release of the next regular statement on monetary policy is scheduled for 11 April 2007. Update 2 (graphics/reserve money targets) Though the […]
‘s exports grow but trade deficit widens
March 15 (LBO) – Sri Lanka’s exports grew by 11.2 percent in January led by industrial exports which surged 15.6 percent, the Central Bank said Friday. Tea exports were hit by production shortfalls following the strikes in December, but apparel exports surged 28.1 percent to 221 million dollars. “However, within the agricultural sector, the increase […]
Sri Lanka looks to raise more tax at local government level
March 14, 2007 (LBO) – Sri Lanka is looking for ways for local government bodies to collect more taxes to as part of the strategy to take economic development to rural areas, the office of the president said Wednesday. President Mahinda Rajapakse had met chairmen of local government bodies yesterday to discuss ways to push […]
Sri Lanka sells 100 million dollars worth of rupee gilts to foreigners
March 14 (LBO) – Sri Lanka has sold half of the targeted 20 billion rupees worth of bonds to foreign buyers this year, the country’s public debt office said.“Foreign investment in government Treasury bonds has shown a remarkable progress exceeding the total investment which now stands at over 50 per cent of the annual target […]
Sri Lanka rupee weakens; money rates ease
March 13 (LBO) – The rupee closed lower against the dollar but overnight call money rates came down from the previous day’s highs to around 16 to 18 percent on Tuesday dealers said. The government is expecting the proceeds of a 215 million dollar bond issue later this week. Updated-highest call rate/correction dollar rupee Call […]