Category: Economy and Markets
’07 budget may lift taxes, foreign borrowing
November 10, 2006 (Dow Jones)–The Sri Lankan government is likely to lift taxes and increase foreign borrowing in its 2007 budget in a bid to meet bloated defense costs and fund large development projects, say analysts. They expect the budget deficit next year at 7.5%-8.0% of gross domestic product, down from an expected 9% this […]
Sri Lankan markets jittery as bullets fly ahead of next week’s budget
November 10, 2006 (LBO) – Sri Lankan share prices are breaking records amidst flying bullets, but financial markets are uneasy that the government may use next Thursday’s budget to tax capital gains, analysts said. One of Asia’s best performing indexes, the island’s tiny stockmarket is up over 30 percent since January, largely on deal making […]
’07 Budget gap at 5% of GDP
November 8, 2006 (Dow Jones)–The Sri Lankan government expects the budget deficit to narrow to 5 percent of gross domestic product in 2007 from an estimated 9 percent this year due to higher tax collections and increased borrowings, the deputy finance minister said. “A key focus will be the small and medium scale industries.We plan […]
Main opposition in Sri Lanka blows hot and cold over upcoming budget
November 05, 2006 (LBO) – Sri Lanka’s opposition United National Party which has pledged to support the ruling party in the budget vote says, it will criticize harmful features of the budget, because economic policy is not included in a recent co-operation deal signed between the two parties. “We were not consulted on the upcoming […]
Sri Lanka rupee gains on dollar inflows; cash markets awash
November 03, 2006 (LBO) – The rupee gained against the dollar to hit an intra-day high of 106.40 Friday, to settle around 106.70 levels, while cash markets also turned liquid on offical capital flows, dealers said. The rupee closed at 107.20 against the dollar Thursday while cash markets turned liquid from rupees generated through an […]
’s financial community
November 02, 2006 (LBO) – Sri Lanka’s central bank met senior executives of the country’s financial community this week, in a bid to de-mystify recent monetary policy measures taken to stabilise the economy and reinforce its resolve to fight inflation. Governor Nivard Cabraal said measures taken to contain credit growth were aimed at curbing inflationary […]
Fitch rates Seylan Bank’s debt; says bank needs fresh capital, tight risk management
November 2, 2006 (LBO) – Fitch Ratings Lanka has given a ‘BBB+(lka)’ rating for Seyl Bank’s upcoming five year unsecured subordinated redeemable debentures, the rating agency said Thursday. Seylan’s long-term debt is rated A-(lka) by Fitch with a stable rating outlook. The ratings reflect Seylan’s market position as the fifth-largest licensed commercial bank in Sri […]
Sri Lanka’s Central Bank not unduly worried about weak exchange rate
November 02, 2006 (LBO) – Sri Lankan rupee briefly sank to a lifetime low on Wednesday, but the Central Bank says they are not worried about it, despite regularly pumping 390 million dollars to defend the currency. “Public enemy no: 1 is inflation,” says deputy governor W A Wijewardena. “Its like people have a good […]
HSBC to raise US$ 100 mn syndication loan for Sri Lanka’s Bank of Ceylon
November 01, 2006 (LBO) – Global banking giant HSBC is in the process of finalizing a 100 million dollar syndicated loan for Sri Lanka’s Bank of Ceylon, its President and CEO, Michael R P Smith said Wednesday.“We have been in Sri Lanka for nearly 114 years and we are confident that you can overcome your […]
‘s sovereign bonds; Central Bank
November 01, 2006 (LBO) – Sri Lanka Wednesday, threw open the government bond market for overseas investors to buy rupee-denominated sovereign debt for the first time beginning today, the Central Bank said. Prior to this, overseas investors were only allowed to invest in equities and dollar bonds issued by the government, also known as Sri […]
‘s inflation hits 17.2% in October, despite falling oil prices
October 31, 2006 (LBO) – Consumer prices in Sri Lanka bounced up to 17.2 percent in October from 15.4 percent in September, the Census & Statistics Dept said Tuesday, due to higher prices of fuel, cigarettes, alcohol and certain types of food. The rise in inflation came despite a fall in international oil prices, and […]
Sri Lankan rupee gets closer to another record low
October 31, 2006 (LBO) – The Sri Lankan rupee sank further against the U.S. dollar Tuesday on sustained import demand, while share prices stayed in the red in the absence of any market moving news, dealers said. The rupee opened lower at 107.60 against the dollar from Monday’s close of 107.45 and steadily rose to […]