Category: Policy
Recent volatility on yields of government securities is unwarranted: CBSL
Certain market interest rates, such as yields on government securities, have shown unwarranted volatility recently, which is not in line with monetary policy expectations, the Monetary Board of the Central Bank said announcing its commitment to continue the current accommodative monetary policy stance. The Central Bank reiterates that the high level of excess liquidity in […]
Veemansa Initiatives’ discussion on ‘external debt situation in Sri Lanka
Delivering the keynote address on the topic, External Debt Situation in Sri Lanka: Our Route to Resolution, the Governor of the Central Bank, Deshamanya Professor W D Lakshman said that despite the COVID-19 pandemic and its impact Sri Lanka will maintain its unblemished records of debt service. The Governor made these comments at the […]
70-pct probability to hold policy rates: First Capital Research
First Capital Research believes that there is a 70 percent probability to hold policy rates due to the considerable improvement in high-frequency indicators and with fiscal and monetary measures implemented so far. As per their view, the Central Bank either can choose to hold policy rates steady or cut by 25 bps or 50 bps […]
Sri Lanka January inflation at 3.7-pct
The overall rate of inflation as measured by NCPI on Year-on-Year basis is 3.7 percent in January 2021 and inflation calculated for December 2020 was 4.6 percent. Year-on-Year inflation of both food group and non food group have decreased from 7.5 percent in December 2020 to 5.9 percent in January 2021 and from 2.2 percent […]
Economy at a glance for 2020:Double whammy blow
Highlights ICRA Lanka estimates Sri Lanka’s GDP growth rate in 2020 to be -4%. In addition, our estimates indicate industry, services, and agricultural sectors to have contracted by 7.3%, 1.7% and 1.3% respectively. By mid-March the COVID crisis took center stage and the CBSL implemented a series of policy rate cuts further bringing the short-term […]
Driving growth-bridging deficits – outlook 2021 report of Ceylon Chamber
The Ceylon Chamber of Commerce launched its annual Outlook Report for 2021, at the Economy and Sector Review and Outlook 2021 webinar recently. The Outlook 2021 report published by the Economic Intelligence Unit (EIU) of the Ceylon Chamber of Commerce (CCC) explores the macroeconomic and sector outlook for the year ahead. The theme for the report […]
Sri Lanka on positive and steady path for economic recovery, says Cabraal
Feb 08, 2021 (LBO) – State Minister of Finance, Capital Markets, and State Enterprise Reforms Ajith Nivard Cabral says Sri Lanka is on track now to enacting an effective economic recovery to swiftly close the gap between pre and post-COVID-19 output losses. He says the island’s growth prospects are now positive, underscored by a stabilizing currency and sound debt […]
Sri Lanka inflation at 3-pct for Jan 2021
Feb 02, 2021 (LBO) – The overall rate of inflation as measured by CCPI on Y on Y basis is 3.0 percent in January 2021 and Y on Y inflation calculate for the month of December 2020 was 4.2 percent. As per the Statistics Department, Year on Year inflation of both the Food Group and […]
Global equity interest in emerging markets expected to trickle down to CSE: Ceylon Asset Management
Jan 26, 2021 (LBO) – Local investors should exploit attractive valuations of the CSE before a Sri Lanka country rating revision and foreign investor confidence returns to the CSE, a new report says. “Invest in the Colombo Stock Exchange. Investors should include equity in portfolios during 2021, before PE ratio exceed 15X, ” the Ceylon […]
Gross official reserves estimated at USD 5.7bn at end 2020
Sri Lanka’s gross official reserves were estimated at US dollars 5.7 billion at the end of 2020, with an import cover of 4.3 months, the Central Bank said continuing its accommodative monetary policy stance. The trade deficit is expected to have narrowed by over US dollars 2.0 billion in 2020 in comparison to the previous […]
Policy rates to hold steady, amidst sweeping measures to insulate economy: FCR
Jan 12, 2021 (LBO) – First Capital Research believes that there is a 60% probability to hold rates due to the considerable improvement in high-frequency indicators and with fiscal and monetary measures implemented so far. However, there is a 20% probability each for 25 bps and 50 bps rate cut to support economic growth. “As […]
Fallout from Pandemic prompts an unprecedented rate cut: FCR
Jun 30, 2020 (LBO) – First Capital Research (FCR) believes that there is a higher likelihood of 90% that CBSL may provide a rate cut to ensure the continued supply of credit at a low cost of funding. The firm also believes that there is a probability of 40% for a 100bps rate cut to […]