Category: Money

The Sri Lankan rupee is on course for a firmer footing against the US dollar, despite recent political cross currents that have shaken the currency.After appreciating some two percent against the dollar, the currency has hit some rough weather due to the ongoing political tussle.rn rnThe rupee closed weaker at 96.00 against the greenback on […]

Sri Lanka enters the penultimate lap for its 2004 budget, with a great deal of apprehension as to whether Parliament will be dissolved on Tuesday midnight.Finance Minister K N Choksy by Tuesday evening was still scheduled to present the 2004 budget in parliament on Wednesday at 2.30 pm. rn rnThe air of speculation was high […]

Suntel wants to buy back Rs 300 mn of its 750mn high yielding medium term debentures, which yield in excess of 22 percent per annum.The wireless operator issued Rs 1 bn worth of debentures in five, six and seven year maturities yielding 22.00 percent, 22.25 percent and 22.5 percent.rn rnNow Suntel wants to buy back […]

The Central Bank has cut its domestic borrowing programme for Nov. by Rs. 2 bn, as the Treasury is expecting some dollar funds to come in.The bank was earlier planning to raise Rs. 2 bn through a four-year issue on Thursday, with settlement on Nov. 17.rn rnldblquote The Treasury has informed us that around US$ […]

The Central Bank left its key short-term rates unchanged on Tuesday, signalling that it was business as usual on the interest rate front.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 […]

Six investment banks are vying to take up the post of international ratings advisor to the government, as it embarks on the process of seeking a sovereign rating.Central Banks Superintendent Public Debt, Dharma Dheerasinghe says HSBC, Standard Chartered Bank, Citibank, Deutsche Bank, UBS Warburg and JP Morgan have sent in their proposals.rn rnldblquote We will […]

Seylan Bank is raising over a billion rupees in debt, to meet its capital adequacy requirements.The bank said a billion rupees will be raised through a five-year debenture, with the option of raising a further Rs. 500 mn in the event of an oversubscription.rn rnThe issue carries a monthly fixed rate of 9 percent, 10 […]

The Treasury plans to seek parliamentary approval shortly, to raise the governments Rs. 316 bn total borrowing limit by around Rs. 50 bn.Of the fresh issues, Rs. 33.4 bn will come from converting expensive Rupee Loans, which carry a call option, into low cost long-term bonds.rn rnMostly held by captive sources like the state pension […]

The Central Banks maiden 20-year treasury bond issue was snapped up at 6.08 percent as investors put in bids for Rs.4.24 bn.The issue carried a coupon of seven percent.rn rnHowever, the bank offered and accepted bids for Rs. 1.035 bn. rn rnThe issue will extend the yield curve from the present 15 years to 20-years, […]

Sri Lankas primary dealers signed up with Bloomberg to set up a bond-trading platform.At the moment the scripless securities system is not yet operational, but the electronic trading platform itself takes away some of the risks of the old market.rn rnldblquote In a bond market normally you deal on the word of mouth- the traders […]

So far, the bank has written to international rating agents, like Citibank and J P Morgan who currently have a local presence, about playing an advisory role in the rating process.rn rnPlans for a sovereign rating have been pending for several years, but have always been put off because of the war. rn rnBut a […]

Primary Dealers in government debt will be asked to raise their capital next year, as the Central Bank tries to strengthen the dealer network.The new regulations for dealers who operate in the primary government securities market comes, as the Central Bank steps up its drive to deepen the debt market.rn rnAt the moment primary dealers […]