Category: Economy and Markets
Sri Lanka’s treasury bill rates rise by 50 basis points; speculation of a rate hike
October 11, 2006 (LBO) – Sri Lanka’s borrowing costs went up half a percentage during the weekly treasury bill auction Wednesday, sparking speculation that the central bank may hike its key policy rates for the fourth time this month. The bank offered 12.083 billion rupees worth of bills at this week’s auction but accepted only […]
‘s first LKR2,000 note to debut on Oct. 17
October 9, 2006 (LBO) – Sri Lanka plans to issue its maiden 2,000 rupee note on October 17, to keep pace with island’s galloping inflation, the central bank said Monday. The new note was in the making for nearly six-years with the bank taking stock of the currency last November. “This ‘Heritage series’ currency note […]
Sri Lanka plans to spend more and borrow further next year
October 5, 2006 (LBO) – Sri Lanka plans to spend more and borrow further next year as expenses for defence hardware and fuel related subsidies escalate. Total state spending will climb 42 percent to 804.6 billion rupees from 568.3 billion rupees in 2006, the government said Thursday while tabling the 2007 budget appropriation bill before […]
Sri Lanka logs 8.0% growth Jan-Sept: Treasury Secretary
October 3, 2006 (LBO) – Sri Lanka’s economy has beaten most forecasts to lodge a ‘near’ 8.0 percent growth for the first nine months, the secretary of the island’s finance ministry said, with robust performance driven by strong services, manufacturing, construction and agriculture numbers. Central Bank’s statistics director Anila Dias Bandaranaike last week warned that: […]
Sri Lanka halves foreign investment targets
October 3, 2006 (LBO) – Sri Lanka may miss its ambitious target of attracting a billion dollars in foreign investments and instead end the year with about 500 million dollars, according to official data. The tiny Indian Ocean Island attracts on average 250 million dollars worth of investments each year, despite an ethnic conflict that […]
Fitch rates The Finance Company’s Rs500 mn debentures BBB-(lka)
Sept 29, 2006 (LBO) – The Finance Company Ltd (TFC) gets ‘BBB- (lka)’ national long-term rating from Fitch for its upcoming 500 million rupee 5-year unsecured subordinated redeemable debentures.The Finance’s senior debt currently carries a BBB (lka) from Fitch. As at June, 76 percent of TFC’s funding portfolio had maturities less than a year and […]
Fitch affirms NDBs AA(lka) rating post merger with NDB Housing
Sept 29, 2006 (LBO) – Fitch Ratings Lanka Friday affirmed its AA (lka) rating for NDB Bank following its merger with NDB Housing Bank. NDB tookover the assets and liabilities of NDB Housing Bank on Sept 1 after securing the blessings of Sri Lanka’s Central Bank. The merger helps NDB Housing to overcome Central Bank’s […]
‘s inflation hits 15.4% in September
September 29, 2006 (LBO) – Consumer prices in Sri Lanka rose to 15.4 percent in Sept from 15.3 percent in August, the Census & Statistics Dept said Friday, due to price gains in electricity, fuel and vegetables. On 12 month moving average inflation for September rose to 11.2 percent from 10.8 percent in August. The […]
Sri Lanka starts work on compiling single set of national accounts
September 29, 2006 (LBO) – Two key agencies that prepare Sri Lanka’s national accounts, are working towards compiling a single set of numbers, to ensure credibility in growth figures, officials said Friday. The Census & Statistics Dept and the Central Bank now issue two sets of growth numbers for Sri Lanka, and they differ by […]
‘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 Central Bank hikes short term interest rates by half a percent
September 28, 2006 (LBO) – Sri Lanka’s Central Bank Thursday hiked short term rates by 50 basis points, two days after shutting the bank’s standby cash facility to market players. Gilt prices crashed in thin trading with some dealers quoting 14.0 percent for discounting treasury bills for small value customers of around 100,000 rupees, but […]