Category: Economy

January 31 (LBO) – Consumer inflation in Sri Lanka’s capital Colombo soared to a new record of 20.5 percent in the year to January, beating the 19.8 percent high reached in November, a report from the government’s statistics office showed Wednesday. This is the highest inflation seen in Sri Lanka for more than a decade. […]

MUMBAI, Jan 31, 2007 (AFP) – The Reserve Bank of India on Wednesday raised its key short-term borrowing rate by a quarter percentage point to 7.50 percent citing inflation risks as it also hiked its full-year growth forecast. The central bank however kept other rates unchanged including its overnight deposit rate at 6.0 percent after […]

GALLE, Jan 30, 2007 (AFP) – Sri Lanka will lose millions of dollars unless it moves to end its bitter conflict with the Tamil rebels, diplomats and officials warned as a crucial review of international aid entered its second day. President Mahinda Rajapakse on Monday assured donors of a peaceful solution to end the Tamil […]

January 30, (LBO) – Sri Lanka’s top donors expressed concern at the internal conflict that shackled aid delivery and called for changes to the country’s development plan to tackle corruption and improve governance, at a two day aid and policy review forum that ended Tuesday. Donors earlier contrasted the economic recovery around the conference venue […]

GALLE, Sri Lanka, Jan 29, 2007 (AFP) – Sri Lanka must commit to peace and restore investor confidence if it is to develop its potential, a senior World Bank official said ahead of a crucial review Monday of international aid.The bank’s vice president for South Asia, Praful Patel, said it was “deeply concerned” about a […]

January 29 (LBO) – Sri Lanka’s top donors steered the focus of an annual aid review from cash to solving the internal conflict, giving relief to affected people and improving governance and human rights. “No amount of development assistance by the US or any other donor can have any lasting impact however, without finding a […]

GALLE, Sri Lanka, Jan 28, 2007 (AFP) – Sri Lanka’s key international donors will meet in the southern city of Galle on Monday, amid rising concerns that the cash may not be well spent.Escalating violence, allegations of widespread corruption in the disbursement of international aid and its overall economic management could hurt the island’s prospects […]

January 24, 2007 (LBO) – Sri Lanka’s treasury chief said Wednesday that the International Monetary Fund’s decision to close offices in the island was a good sign that the country is moving away from being overly reliant on foreign donors. The Washington based lender will wind up operations later this month, as they have no […]

Jan 22, 2007 (LBO) – Plantation companies are likely to post sizeable profits this year, though a recent wage hike will eat into earnings, analysts say. The price of a kilo of rubber, which was at 175 rupees in November, has crept up steadily to 190 rupees this January. Rubber prices moved up on top […]

Jan 18, 2007 (AFP) – Sri Lanka plans to sue heads of state agencies where crooked deals and kick-backs are believed to have cost the government over a billion dollars, the government’s chief whistle blower said Thursday. The head of the parliamentary Committee on Public Enterprises, or COPE, Wijeyadasa Rajapakshe, said the state will try […]

Jan 16, 2007 (AFP) – Kick-backs and crooked deals cost Sri Lanka over a billion dollars last year amounting to about a fifth of tax revenue, the country’s top official whistle-blower said. The head of the parliamentary Committee on Public Enterprises, or COPE, told AFP corruption and fraud runs deep in the main foreign investment […]

January 16, 2007 (LBO) – Sri Lanka’s Central Bank has handpicked few private sector professionals to lend a hand to shape the island’s monetary policy, governor Nivard Cabraal said Tuesday. Economist A D V de S Indraratne will head the Monetary Policy Advisory Committee which also includes Sohli Captain, Cubby Wijetunga, Mahen Dayananda, Prithi Jayawardene, […]