Category: Policy
Rs50 bln in bonds likely privately placed by Sri Lanka Central Bank
Dec 29, 2015 (LBO) – Sri Lanka’s Central Bank may have privately placed 50 billion rupees in bonds with state funds this month making an exception to its policy to rely solely on primary auctions, sources said. The central bank issued 744 billion rupees in treasury bonds through auctions this year compared with just 31.7 […]
Sri Lanka’s economic goals can be achieved through addressing brain drain: Eran
Dec 23, 2015 (LBO) – Sri Lanka’s deputy Minister of State Enterprise Development said that internationally exposed management skills of local expatriates are the need of the hour if the island nation is to achieve its expected economic targets in the near future. “Everyone only talks of capital and technology but in my experience it […]
We are not dictated by IMF policy: Finance Minister
Dec 17, 2015 (LBO) – Sri Lanka’s Finance Minister told Parliament Wednesday that the country has a strong balance of payments environment and rejected reports of a gloomy outlook for 2016. “There is no issue with the balance of payments. Our problem is with the trade balance. Our exports have decreased and imports increased,” Finance […]
“If required by MR, able to sell Mihin Air for one rupee” – Eran
Dec 17, 2015 (LBO) – Sri Lanka’s Deputy Minister of Public Enterprise Development Eran Wickramaratne proposed that if required by former President Mahinda Rajapaksa, the incumbent government is able to sell ‘Mihin Air’ over to him for a rupee. “Losses incurred by Mihin Air at present stands at Rs. 1600 million,” Wickramaratne said in a […]
US Fed raises rates by 25 bp, first hike since 2006
Dec 17, 2015 (LBO) – The US Federal Reserve has raised interest rates by 25 basis points, its first increase since 2006. Fed Chair Janet Yellen said the move would be followed by “gradual” tightening as officials watch for signs of higher inflation. The target for the Fed funds rate was unanimously set at 0.25 […]
IMF concludes fourth post-program monitoring
Dec 10, 2015 (LBO) – The International Monetary Fund concluded its fourth Post-Program Monitoring with Sri Lanka, noting a more challenging external environment, macro-financial imbalances and less room available for monetary easing.“Recent economic developments reflect a more challenging external environment as well as a sharpening of macro-financial imbalances that began to emerge late in 2014,” a […]
Two individuals arrested over misuse of funds at SEC: Police
Nov 04, 2015 (LBO) – Sri Lanka’s Criminal Investigations Division has arrested two individuals, including a Securities and Exchange Commission (SEC) official, over the misuse of funds in 2013, the Police Spokesman said.The investigation is into financial irregularities of 5 million rupees from 2013 involving the Tharunyata Hetak Fund.In May, the CID questioned several officials […]
Colombo International Financial Centre requires right talent: experts
Nov 27, 2015 (LBO) – Sri Lanka’s plans to set up an international financial district bodes well for financial sector development and should be set up with the right talent in place, experts said. “We have talked about this for many years, but this is a budget where we have heard for the first time […]
Interest rates unchanged after monetary policy meeting
Nov 24, 2015 (LBO) – Sri Lanka’s Monetary Board held interest rates unchanged after a monthly policy meeting citing low inflation and a lack of necessity to change rates given loose monetary policy in the region. The Standing Deposit Facility Rate (SDFR) was held at 6.00 percent, the Standing Lending Facility Rate (SLFR) at 7.50 […]
Major thrust of budget is formalizing economy: Ravi K
Nov 24, 2015 (LBO) – A major thrust of Sri Lanka’s budget for 2016 is formalizing the economy to bring in sectors that do not use formal banking channels, the finance minister said. “What we want to ensure is that the economy is made more formal,” Finance Minister Ravi Karunanayake said speaking at a post-budget […]
No need to raise interest rates, seek IMF funding: CB Governor
Nov 24, 2015 (LBO) – Sri Lanka has no need to raise interest rates at the moment given the loose monetary policy being followed in regional countries such as India, Central Bank Governor Arjun Mahendran said.He was speaking at a post-budget forum organized by HSBC. Although credit growth to the private sector was high it […]
Sri Lanka to increase bursary payment for university students
Nov 20, 2015 (LBO) – Sri Lanka’s Higher Education and Highways Ministry has taken steps to minimize the gap between Mahapola Scholarship holders and bursary payment holders by increasing the monthly bursary payment from 2,500 rupees to 4,000 rupees to enable university students to continue their studies without any economic difficulties, media spokesman said. Approximately, […]