Category: Economy and Markets
‘s central bank restores cash facility to calm markets; emergency 50bp rate hike
September 28, 2006 (LBO) – Sri Lanka’s central bank Thursday regained control of the country’s runaway short-term rates by restoring a standing liquidity facility after a two-day cash squeeze experiment spread panic in money markets and sent bonds plunging.The government has been heavily borrowing commercial dollars this year and selling to the central bank, which […]
Sri Lanka economy grew 7.2% 2Q06: Statistics Dept
September 28, 2006 (LBO) – Sri Lanka’s economy expanded 7.2 percent for the second quarter of this year, on the back of good rainfall and higher export volumes, the Census and Statistics Dept said Thursday. Economic growth during the same period last year was 6.0 percent, the statement said. Good rainfall helped agriculture sector to […]
‘s cash markets hit treasuries; dealers refuse to discount gilts
September 27, 2006 (LBO) – Aftershocks of Tuesday’s withdrawal of the central bank’s standing cash facility has hit short-term treasuries, with Sri Lanka’s public debt office rejecting bids at Wednesday’s auction and dealers refusing to discount gilts as prices crashed. Meanwhile the Sri Lanka rupee closed sharply down against the dollar at 103.70 against the […]
Sri Lanka not doing enough to communicate reforms to masses: World Bank
September 27, 2006 (LBO) – Sri Lanka is not doing enough to communicate reforms to the masses, making it difficult for investors to do business here, the World Bank said Wednesday. “Our studies have shown that countries that embrace reforms, reduces taxes, brings businesses and workers into the formal sector. People benefit from jobs, pension […]
‘s Central Bank takes the lid off short term rates; cash markets in shock
September 26, 2006 (LBO) — In a major policy shift, Sri Lanka’s central bank Tuesday allowed the rate at which it injects overnight cash, to move above its policy rate, sending shockwaves through the country’s money markets.However since April the government has raised fuel prices which helps strengthen the fiscal side and in turn reduce […]
Developing states aim to lift millions out poverty with new G11 forum
NEW YORK, Sept 20, 2006 (AFP) – Eleven developing economies clubbed together Wednesday to unveil a new forum aimed at easing their debt burden, narrowing the income gap with rich countries and lifting millions of people out of poverty. Jordan’s King Abdullah II unveiled the Group of 11 (G11) mostly lower-middle income countries on the […]
Sri Lanka to lead South Asian initiative to study impact of oil prices
SINGAPORE, September 20, 2006 (LBO) – Sri Lanka is leading a South Asia initiative to study the impact of oil prices and its effects on macro economic policies, Bangladesh’s Central Bank governor said. Finance misters of the South Asian Association for Regional Corporation (SAARC) – an eight member regional grouping – who met on the […]
End bloodshed to restore Sri Lanka business confidence: IMF-WBank
SINGAPORE, Sept 20, 2006 (AFP) – Sri Lanka has shown economic resilience but needs to end violence to restore much-needed business confidence, the World Bank and IMF said Wednesday. The South Asian nation forecasts a blistering 8.0 percent growth this year, the biggest in nearly three decades, despite soaring violence that has claimed more than […]
Sri Lanka GoldQuest controversy takes new turn with Central Bank denial
Sept 19 (LBO) – The controversy over the sudden recall of police investigators probing the GoldQuest scheme took a new turn, with the authorities denying that the move would affect an ongoing anti-pyramiding drive. The withdrawal of the police investigators from the bank’s unit investigating pyramid schemes will not affect ongoing investigations, the Central Bank […]
Government policies in Sri Lanka and elsewhere keep poor at bottom end
SINGAPORE, September 18, 2006 (LBO) – The World Bank rapped politically hungry governments saying short sighted policies fail to uplift the poor, keeping them at the ‘bottom end of the pyramid’. It’s a bad cycle. When projects are scaled up, they bump against the governments which failed their people in the first place, which is […]
Civil society groups slam IMF reforms
SINGAPORE, September 18, 2006 (LBO) – Civil society groups Sunday slammed IMFs plan to overhaul its governance structure, saying they mean very little to poor countries. The Washington based Fund’s policymakers backed the 61-year old International Monetary Fund’s reform agenda today, giving more voting power or influence to fast growing economies of China, Turkey, South […]
’s new thrust on linking aid and graft busting
SINGAPORE, September 18, 2006 (LBO) – World Bank’s policy body Monday asked the bank’s president not to lose sight of reducing poverty, as the global lender ups the tempo to curb corruption and promote good governance through lending programs. We strongly endorse the Bank’s role and mission is to eradicate poverty among middle income and […]