Category: Money

Nov 30, 2011 (LBO) – Sri Lanka’s average overnight rates have eased over the past two days after the Central Bank stopped its repo auctions to withdraw excess liquidity but some banks who are short of cash are still borrowing at high rates, dealers said. A 2013 bond was quoted at 8.85/9.00 percent. In forex […]

Nov 28, 2011 (LBO) – Sri Lanka’s Central Bank will stop repo auctions which drained money at rates higher than a 7. 00 percent standing facility and also allow banks to swap dollars for cash to stabilize money markets, an official said. “We are stopping the repo auctions,” Deputy Governor Dharma Dheerasinghe said. The repo […]

Nov 28, 2011 (LBO) – Sri Lanka will maintain its policy rates and maintain reserve ratios for the moment despite falling inflation in a bid to curb credit, Central Bank Governor Nivard Cabraal said. The rupee has come under pressure from excessive credit growth in recent months and there have been steady interventions in forex […]

Nov 24, 2011 (LBO) – Sri Lanka should reveal data on interventions and foreign exchange reserves and the rationale for a step devaluation of the rupee instead of a market determined float, a civil society activist has said. Chandra Jayaratne, a former head of Sri Lanka’s largest business chamber, said the Central Bank should reveal […]

Nov 24, 2011 (LBO) – Sri Lanka’s overnight gilt backed repos rose as much as 8. 35 percent and call rates hit a two year high of 9.25 percent Thursday, dealers said, as liquidity tightened amid defence of a dollar peg. Stocks closed 2.7 percent lower. Sentiment in Sri Lanka’s financial markets have also been […]

Nov 23, 2011 (LBO) – Sri Lanka’s rupee weakened to 114.15/20 in the spot dollar market, after closing at 113. 88/90 rupees a day earlier, after the monetary authority adjusted a daily guidance rate, dealers said. The rupee fell more than 3.0 percent a day earlier after the a budget for 2012 said the rupee […]

Nov 23, 2011 (LBO) – Sri Lanka’s rupee devaluation earlier this week was a step in the right direction, and a planned narrower budget deficit would reduce the country debt burden an International Monetary Fund official said. “We think that the exchange rate adjustment was a step in the right direction and should help support […]

Nov 22, 2011 (LBO) – Sri Lanka’s rupee traded at 113. 80/90 against the greenback in the spot market Tuesday moving within a band indicated by the central bank, after a rare devaluation announcement a day earlier. A day earlier, President Mahinda Rajapaksa said the rupee should be devalued 3. 0 percent to improve export […]

Nov 21, 2011 (LBO) – Sri Lanka will depreciate the rupee 3. 0 percent to help export competitiveness, President Mahinda Rajapaksa told parliament in his budget speech for 2012. Central Bank Governor Nivard Cabraal said the rupee will be depreciated from tomorrow The rupee is pegged to the US dollar and traded around 110.20 on […]

Nov 18, 2011 (LBO) – Sri Lanka’s currency weakened to 20 cents to 110. 40 rupees to the US dollar in the spot market Friday, with market quotes at 110.35/40 rupees dealers said. The central bank has been intervening steadily in forex markets. The rupee had come under some pressure over the past few months […]

Nov 16, 2011 (LBO) – Sri Lanka is holding policy rates at between 7.00 percent and 8.50 percent despite falling inflation, the Central Bank said as rapid credit expansion put pressure on a peg with the US dollar amid strong economic growth. Inflation fell to 5.1 percent in October 2011 from 6.4 percent in September. […]

Nov 14, 2011 (LBO) – A law to expropriate assets of dozens of private firms including two listed companies could hurt the island’s credit, cloud its investment climate and has created uncertainty about property rights and policy, Moody’s a rating agency said. “Despite authorities’ statement that this is a one-off move and that further expropriation […]