Category: Money

Saddled with debts of over Rs. 11 bn, the CEB is coming to the market again to securitise its future cash flows by borrowing over a billion rupees.CEB tapped the capital markets last year and raised Rs.1.4 bn through securitised paper, though it still relies on expensive bank overdrafts for working capital.rn rnIncidentally, the CEB […]

Fitch Ratings Lanka Ltd (FRL) has assigned SL A national credit rating to the Implied Long-term unsecured Senior Debt of First Capital Treasuries Ltd (FCTL).SL A rating denotes a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in […]

The Central Bank left its key short-term rates unchanged on Wednesday, signalling that it was comfortable with the countrys economic fundamentals.The overnight repurchase rate (repo rate) was kept at 7.0 percent and the reverse repurchase rate (reverse repo) at 8.50 percent, the bank said in a statement following its monthly Monetary Policy Meeting late Tuesday.rn […]

The government is looking for donor assistance to give the local asset securitisation market some legal teeth.Securitisation allows firms to borrow against future cash flows, which are channelled into a separate legal entity or a special purpose vehicle (SPV). Though asset securitisation has been around since the mid-1990s, local laws do not recognise such transactions.rn […]

The government is looking at amending laws to allow foreign investors into the corporate debt market, without liberalising the capital account.Foreigners are currently restricted to equity investments. They can also invest in government debt through unit trust.rn rnOver the years, capital market players have been lobbying for a policy shift, as direct access to the […]

The Colombo Stock Exchanges debt trading system is likely to take off this month, giving smalltime investors closer access to the government debt market.Seylan Merchant Bank, who became the first of the five members to get a licence, says they plan to roll out operations this month.rn rnThe DEX allows the public to buy and […]

So far, the bank has mandated Fitch Ratings Inc. to give Sri Lanka its first country rating. Fitch was selected for its local presence through Fitch Ratings Lanka Ltd. rn rnThe mandate for the second rating from either Moodys Investor Services or Standard & Poors will be given once the bank selects a rating advisor.rn […]

Treasury bill yields remained flat on Wed. amidst speculation that that the Central Bank is unlikely to tinker with its short-term interest rates on Thu.rnrnrnrnrnrnNew Page 1rnrnrnrnrn The Central Bank has been following a soft rate stance amid reduced government borrowing following the February 2002 ceasefire. rn The bank has cancelled several government bond auctions […]

The Central Bank left its key short-term rates unchanged on Thursday, signalling that it was comfortable with the country quote s economic fundamentals. The overnight repurchase rate (repo rate) was kept at 7.0 percent and the reverse repurchase rate (reverse repo) at 8.50 percent, the bank said in a statement following its monthly Monetary Policy […]

Merchant Bank of Sri Lanka is tapping the local debt market to raise up to Rs. 200 mn to fuel its expansion programme.rnrnrnrnrnrnNew Page 1rnrnrnrnrn Arnfour-year unsecured debenture, which comes with a combination of fixed andrnfloating interest rates starting from 10 percent, will be on offered to thernpublic shortly.rn rn rn rn THE ISSUE rn […]

The Central Bank plans to start mock runs for scripless trading on government securities next week after parliament approved the legislative amendments.Deputy Superintendent Public Debt, Dr.W M Hemachandra says trial runs for market participants starts off on Dec.9, with live runs schedule to take place at the end of January.rn rnAmendments to the Registered Stock […]

Upcoming debt market specialist, National Wealth Corp. wrapped up a complex debt-restructuring deal for the governments supermarket chain.rnrnrnrnrnrnNew Page 1rnrnrnrnrn Arnconsortium of six commercial banks endash Bank of Ceylon, Peoples Bank,rnCommercial Bank, HSBC, Hatton National Bank and Seylan Bank endash inked the dealrnon Monday, in what NatWealth claims is the largest debt restructuring deal inrnSri […]