Category: Money

The Colombo Stock Exchange has made an attractive offer to primary dealers, to entice them to make use of the exchanges top of the range debt trading system.To encourage greater participation, the stock exchange is waiving the Rs. 1 mn entry fee and also allowing the primary dealers to join in as separate members, CSE […]

The Central Bank on Tuesday opted not to cut its key benchmark interest rates, buoyed by strong economic recovery and an influx of foreign investments.In May, the bank lowered the overnight repurchase rate or repo rate by 75 basis points to 7.5 percent, while the reverse repurchase rate or reverse repo was reduced by 75 […]

Becoming the first in the South Asian region, Sri Lanka quote s inter-bank payment and settlement system went live on Monday, with Rs. 119 bn worth transactions settled at the close of trading.Now generally accepted as international best practice to settle urgent and high value inter-bank payments, the Rs. 900 mn Real Time Gross Settlement […]

The Central Bank on Friday revised the limits on the daily foreign exchange net open positions (NOP) of commercial banks starting from September 1. rn rnThe revision, the bank says would help deepen the foreign exchange market, making it attractive for commercial banks to carry out their international operations efficiently and strengthening prudential regulations relating […]

The government plans to retire some of its domestic debt starting next month, due to an influx of dollars into the market.The long-awaited US$ 100 mn loan from Citibank is expected to come through within the next few weeks.rn rnThe five-year syndicated loan, which is backed by Nippon Export Investment Insurance Company of Japan, was […]

The US Treasury has lent an official to give technical expertise to start off the new Public Debt Management Office.The Public Debt Management Office is due to take off next year, with officials reporting directly to the Finance Minister, said Treasury Secretary, Charitha Ratwatte.rn rnTo give legal status to this office, the government plans to […]

A new electronic system to settle inter bank transactions will come on line as scheduled next month with new interest free liquidity support offered by Central Bank.Bank officials say that an Intra day Liquidity Facility (ILF) will be made available to banks in settling their dues on the new Real Time Gross Settlement system.rn rnThe […]

The Central Bank cut its key short-term discount rates by 75 basis points on Friday after its monthly monetary policy meeting on Thursday evening.The overnight repurchase rate or repo rate was lowered to 7.5 percent, while the reverse repurchase rate or reverse repo was reduced to 9.5 percent. rn rnThe bank last reduced the rates […]

Scripless trading of government bonds is likely to be delayed till October after a delay in pushing through legal changes.The Registered Stock and Securities Ordinance which was originally scheduled to have been changed in time for scripless trading to start in on September 09, failed to receive cabinet approval in time.rn rnldblquote But the Real […]

The Central Bank will look at the possibility of permitting gilt stripping after the RTGS and scripless securities settlement system is up and running, opening up the possibility of making long-term bonds more liquid.ldblquote We will look again at coupon stripping after dealers have got familiar with the system, dblquote Deputy Governor W. A. Wijewardene […]

Long term bond yields fell again at this weeks auction, with the Rs 2000 mn issue being oversubscribed around three times.The weighted average ten-year yield fell to 7.71% (48 basis below January auction) and 15-year yield fell to 7.63% (down 145 basis points).rn rnThe secondary market was already trading around these levels, with traders having […]

The Colombo Stock Exchange on Wednesday admitted five new members to trade on its upcoming debt securities board, the DEX.The trading members are: Capital Alliance Holdings Ltd., Central Finance Co. Ltd., National Wealth Corp. Ltd., Sampath Bank Ltd and Seylan Merchant Bank Ltd.rn rnTrading members are second tier brokers, with access limited to dealing in […]