Category: Money

The Central Bank cut its key short-term rates on Thursday, signalling that the economy was getting stronger.rnrnThe bank lowered its overnight repurchase rate (repo rate) by 50 basis points to 7.0 percent.rn rnThe reverse repurchase rate (reverse repo) was cut by 100 basis points to 8.50 percent, the bank said in a statement following its […]

Pan Asia Bank is coming out with an unlisted Rs. 400 mn debenture, to raise funds to boost its capital.The five-year issue is priced at floating rate of three percent above the six-months treasury bill rate. Six-month treasury notes are currently trading at 7.17 percent in the secondary market.rn rnThe bank said Tuesday that the […]

The Treasury of Sri Lankas largest state bank on Monday, snapped up the entire issue of the countrys first dollar denominated two-index linked commercial paper.Hayleys MGT Knitting Mills Ltd., the textile arm of the Hayleys Group, became the first local company to come out with a US$ 700,000 three month commercial paper.rn rnThe risk averse […]

Most of Sri Lanka quote s international trade is done in dollars (US) and significant movement in the US$-Rs rate, affects the pricing of both imports and exports.The rupee appreciated against the dollar over the last two months in line with the US currency quote s weakness against major currencies over the last eighteen months […]

Twenty-year government treasuries will hit the market on the 20th of this month, but debt market experts say the extended yield curve has failed to stimulate the corporate bond market.The yield curve that barely extended to two years has been extended to fifteen years by the issue of long-term treasuries.rn rnPublic debt department officials say […]

The Central Bank will launch its maiden 20-year treasury bond this month with an issue of Rs. 1 bn due on October 20.Superintendent Public Debt Dept, Dharma Dheerasinghe said the bank was hoping to raise Rs. 7.7 bn through Octobers borrowing programme.rn rnldblquote We have now revised it to include the 20 year issue, which […]

The Central Bank plans to hire Fitch Ratings International to give a sovereign rating for the countrys debt. A sovereign rating serves as an indication of a countrys ability to repay its debt and is a key requirement to raise money from the international capital markets.rn rnThe bank is in the process of securing the […]

HSBC says its Sri Lankan operation has successfully raised funds for the government this year, including a US$ 33 mn long-term loan to develop the Northern peninsular.The bank also recently acted as the single largest lender under a syndicated US$ 100 mn loan the government borrowed recently.rn rnStructured by Citibank N.A., the five-year loan was […]

The US$ 100 mn loan to the government arranged through Citibank NA, will come into the Treasury quote s coffers next Monday.The treasury is expected to retire Rs. 7 bn worth of bills next week with the money, says Central Bank quote s Deputy Governor, W A Wijewardene.rn rnBacked by the Nippon Export Investment Insurance […]

Central Bank has started issuing Central Bank securities to check reserve money growth, as its own supplies of treasury bills dwindle away.ldblquote We started issuing Central Bank Securities this week, dblquote says Deputy Governor W A Wijewardene.rn rnThe Bank issued about Rs. 2.5 bn worth of Central Bank (CB) securities mainly to EPF endash the […]

The provision, generally known as Section (t) exempted trading profits from dealing treasury securities.rn rnThough trading profits is actually the small spread between buy and sell quotes, some tax experts have argued that it applied to all interest income from treasuries.rn rnThe government is expected to take away this ambiguity and apply the effect retrospectively.rn […]

The rupee closed up at Rs. 94.55 against the US dollar on Friday, as exporters asked the government to step in and support falling prices.So far, the rupee has appreciated by about three percent since Sept.eroding profit margins and competitiveness of local exports.rn rnThe appreciation of the rupee comes on top of rising utility prices, […]