Category: Economy

December 13, (LBO) – A newer price index covering a larger geographical area, which represented a broader socio-economic category is being scrapped because trade unions opposed it’s use to link wages, Sri Lanka’s statistics office said. This year the CCPI was spiking higher than the SLCPI with October 12-month point-to-point registering 17.2 percent in the […]

November, 05 (LBO) – Sri Lanka’s finance ministry said Tuesday it was cutting duty on imported potatoes and onions in a bid to control rising food prices in December, as inflation in November rose to 19.8 percent. A kilogram of potatoes and onions were charged a cess of 20 rupees per kilo in a bid […]

December 01 (LBO) – Six Sri Lankan regional development banks were put on a ratings watch on Friday, rating agency Fitch Lanka said, following government plans to merge with a newly set up state bank with 30 percent dud loans. Fitch intends to resolve the Rating Watches within a period of six to nine months […]

November 30, 2006 (LBO) – Consumer prices in Sri Lanka shot up to 19.8 percent in November from 17.2 percent in October, the Census & Statistics Department said Thursday, as Central Bank credit to government climbed to 100 billion rupees, and real interest rates were pushed further into negative territory. Economists had been predicting that […]

November 30 (LBO) – Sri Lanka’s Central Bank showed the first signs of ending its loose monetary policy after shunting the country into a balance of payments crisis and driving consumer inflation to 19.8 percent in November, as credit to government from the monetary authority climbed towards a billion dollars. In an unusual move, the […]

NEW YORK, Nov 24, 2006 (AFP) – The euro soared against the dollar Friday in volatile trading which saw the euro surpass the 1.30 dollar mark, hitting the highest level against the US currency since April 2005, traders said. The euro was changing hands at 1.3094 dollars at 1900 GMT, up from 1.2948 dollars late […]

COLOMBO, Nov 25, 2006 (AFP) – Sri Lankan war planes bombed a suspected base of Tamil Tiger suicide bombers in the island’s north Saturday, the defence ministry said, as the rebels commemorated their war dead. The defence ministry said a base housing “Black Tiger” suicide bombers was hit causing “heavy damage”, but gave no details […]

November 18 (LBO) – An online poll shows that more LBO readers believe the economic growth numbers generated by the Central Bank of Sri Lanka than the Department of Census and Statistics, but a vast majority disbelieved both. The Central Bank data set has a slightly higher weight for agriculture, as a result the two […]

Nov 17 (LBO) – Sri Lanka Customs says it will shore up revenues to 240 billion rupees next year, despite a host of import duty waivers in the country’s latest budget. Full Coffers Meanwhile, the Inland Revenue Department’s tax revenue’s have also grown on improved collections and is expected to reach 260 billion rupees this […]

November 16, 2006 (LBO) – Sri Lanka’s Central Bank Thursday cut the island’s next year economic growth to 7.5 percent from 8.0 percent announced earlier. In its half yearly review of this year’s economy, the bank expects year-end gross domestic product to touch 7.4 percent, led by growth in telecom, ports, industrial and agricultural services. […]

November 15, 2006 (LBO) – Sri Lanka’s trade deficit expanded 38.4 percent to 2,597 million dollars for the nine months to September, over the same period 2005, the central bank said Wednesday, as the island spent more to import fuel. Sri Lanka’s 24 billion dollar economy is forecasted to expand by 7.0 percent by end-2006, […]

Sri Lanka’s is now experiencing stronger growth, and declining unemployment. Though oil prices are now falling, expansionary fiscal policy and accommodative monetary policy continue to destabilize the economy by pushing inflation up and putting pressure on the country’s balance of payments. The International Monetary Fund this month presented its report on this year’s Article iv […]