Category: Economy and Markets
‘s cash rates rocket to a new 7-year high amidst cash crunch
March 09 (LBO) – Sri Lanka’s overnight rates reached 30 percent amidst tight liquidity, with monetary authorities restricting access to its discount window, dealers said. The central banks key discount rate was raised by 50 basis points to 12.00 per in February after inflation rose to 20.5 percent in January. Updated – highest call rate […]
Sri Lanka rakes in US $ 215 mn from dollar bonds while risk premium edges up
March 09 (LBO) – The risk premium demanded by buyers of Sri Lanka dollar bonds edged up Friday, but the government raked in all offers raising four times the money it originally sought. Raising dollar debt has become an important part of bridging Sri Lanka’s fiscal deficit over the past four years, but relatively short […]
Sri Lanka tea exporter calls for economic stability rather than inflation-depreciation cycle
March 09, 2007 (LBO) – In a departure from the usual cry, a top tea exporter in Sri Lanka has called for lower fiscal deficits and economic stability rather than depending on currency depreciation to regain competitiveness lost through fiscally-induced domestic inflation. James Finlay last traded at 143 rupees. Earnings per share on ordinary revenues […]
Sri Lanka in tsunami tax crackdown
COLOMBO, March 9, 2007 (AFP) – Sri Lanka’s finance ministry said Friday it was planning action against charities that are using vehicles imported duty-free for tsunami relief operations beyond the agreed tax shelter period.The government had allowed duty-free imports on condition that they would re-shipped once relief work was over, and aid groups wanting to […]
Treasury bill yields in Sri Lanka edge upwards
March 07 (LBO) – Sri Lanka’s treasury yields moved up by an average 15 basis points at Wednesday’s auction, despite the central bank purchasing two billion worth of bills off the 12-billion rupee auction. “Commercial Banks should pursue prudential measures to suppress the excessive growth in consumption credit while mobilising more deposits from public to […]
Sri Lanka sovereign rating weighed down by weak budgets, war, public employment
March 02 (LBO) – Sri Lanka’s weak public finances which leave little room for the country to counter shocks and an ongoing war are weighing heavily on its credit rating, Fitch Ratings said.Sri Lanka has a BB- sovereign rating with the outlook downgraded to negative in April 2006 after the conflict intensified, which is now […]
Sri Lanka stock exchange blacks out foreign trading stats online
March, 01 (LBO) – Colombo Stock Exchange blacked out foreign trading statistics off automated trading terminals Thursday in a bid to reduce ‘market manipulation and discriminative practices’, the exchange said. “This is not an exercise to hide foreign buying and selling,” Rajeeva Bandaranaike, CSE’s head of marketing told LBO. “It would be shown at the […]
Sri Lanka point-to-point inflation eases, but still at 10-year highs
February, 28 (LBO) – Consumer prices in Sri Lanka’s capital Colombo fell 1.3 percent in the month of February easing 12-month inflation to 19.2 percent from 20.5 percent a month ago, the government statistics office said. The Colombo Consumer Price Index, the most widely watched index in the country, fell to 5116 points from 5184 […]
‘s Sampath to raise 250 million rupees of 5-year money
February 26 (LBO) – Sampath bank is raising 250 million rupees through a privately placed debenture to boost its tier two capital, the bank said. It has a 30.8 percent stake in Lankabangala Finance, a Bangladeshi non-bank institution engaged in leasing and credit cards. It also has a 24.6 percent stake in Union Bank of […]
‘s lingerie hopes
BIYAGAMA, Feb 25, 2007 (AFP) – For some engineers in this Sri Lankan industrial town, making women happy is their main job — they design sexy bras which are comfortable too. Ranil Vitarana is one of hundreds of Sri Lankans developing exotic undergarments for top international brands including Victoria’s Secret, Marks and Spencer and Triumph […]
Zimbabwe asked to stop money printing by IMF as Sri Lanka trail 1600:20
February, 24 (LBO) – The International Monetary Fund (IMF) has asked Zimbabwe not to print money and called for fundamental policy changes to stabilize its economy as inflation hit 1,600 percent in January, echoing advice given to Sri Lanka not so long ago. But Sri Lanka is trailing way behind Zimbabwe with inflation at only […]
Sri Lanka Central Bank raises interest rates by 0.5% to contain inflation
Feb 23 (LBO) – Sri Lanka’s central bank Friday raised its key policy interest rate by 50 basis points to 12.00 percent to dampen rising prices as inflation rose to a record 20.5 percent in January. The bank also said finance, energy and trade ministries have been ordered to co-ordinate their efforts to reduce inflationary […]