Category: Policy
Central Bank directs banks to reduce loan ratio on motor vehicles
Sept 15, 2015 (LBO) – Sri Lanka’s Central Bank has issued a directive to commercial banks, speciaized banks and financial institutions to reduce the loan to value (LTV) ratio to 70 percent in respect of loans granted for purchases or utilisation of motor vehicles. “The Central Bank of Sri Lanka has observed with concern the […]
‘s rate decision
Sept 14, 2015 (LBO) – U.S. analysts are deeply divided on whether the Fed should increase rates on September 17, it’s first rate hike in nearly a decade. Some believe a hike will be a major blunder slowing down an already vulnerable global economy, while others say the expansion is healthy enough and a cycle […]
US DOJ issues new guidelines on corporate fraud prosecution
Sept 11, 2015 (LBO) – The U.S. Department of Justice says it would be better off focusing on individuals that commit corporate crimes rather than focus on companies, in new guidelines issued this week.This is a tacit acknowledgment of failure to prosecute individuals following the 2008 financial crisis, the Wall Street Journal reported. New rules […]
‘s stock crash a direct result of authoritarian policies: Razeen Sally
Sept 10, 2015 (LBO) – China’s stock bubble and subsequent crash that sent shockwaves across the global economy is the direct result of authoritarian policies, Razeen Sally from the National University of Singapore told Lanka Business Online.“The stock bubble is the direct result of government policies because the state-run financial system has few other profitable […]
Emerging market central bankers want Fed to raise rates: report
Sept 10, 2015 (LBO) – Central bankers in emerging markets want the US Federal Reserve to increase interest rates sooner rather than later to end market uncertainty.Central bankers in Indonesia, Peru and Mexico have commented that a rate hike at the September 16-17 or October Fed meetings would be good for their economies.“We think US […]
Foreign holding of Sri Lanka govt securities falls during week
Sept 05, 2015 (LBO) – The holding of Sri Lanka government securities by foreign investors reduced to 350 billion rupees in the week to September 02, from 375 billion rupees in the previous week, information from the central bank showed.Foreign investors held 457 billion rupees worth of government securities at the beginning of the year. […]
Sri Lanka to receive USD1.1 bn under RBI swap arrangement: Central Bank Governor
Sept 03, 2015 (LBO) – Sri Lanka will receive the balance 1.1 billion dollars from the Reserve Bank of India to boost foreign reserves under a 1.5 billion dollar swap arrangement, the Central Bank Governor Arjuna Mahendran confirmed to Lanka Business Online. On April 30th, Sri Lanka obtained 400 million dollars under this arrangement, which […]
Sri Lanka accounting body urges govt to maintain & publish accounts
Sep 02, 2015 (LBO) – Sri Lanka’s Institute of Chartered Accountants, a professional accounting, body urged the government to maintain accounts and publish them, as the government is answerable to the public for how they use income.“Public sector is a very important area.We are making all endeavors for government to move in to accounting which […]
Sri Lanka key interest rates held unchanged in monetary policy review
Aug 31, 2015 (LBO) – Sri Lanka’s Monetary Board held key interest rates unchanged on Monday citing low inflation, steady foreign remittances and earnings from tourism. Dollar inflows expected to bolster foreign reserves contributed to the decision, the monetary authority said. The Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of […]
Rare positive correlation between stocks and bonds in US, China
Aug 29, 2015 (LBO) – A rare positive correlation was seen between equities and bonds this week with China’s equities plunging and demand for 30-year US treasuries falling at the same time. On Tuesday and Wednesday, when US equity markets were tumbling, demand for 30-year US Treasury bonds fell, the opposite of what happens when […]
Interview: Sri Lanka BOP pressured by consumer spending, external woes
Aug 28, 2015 (LBO) – Post-war stimulus packages by Sri Lanka’s government have pushed up consumption demand which is now having an adverse impact on the trade deficit and balance of payments. This is one reason for the negative BOP position so far this year, Shiran Fernando at Frontier Research said. “We are in consumption […]
Finance ministry calls for proposals for 2016 budget
Aug 27, 2015 (LBO) – Sri Lanka’s Ministry of Finance has requested public and private sector institutions and the general public to submit proposals for inclusion in the proposed budget for 2016.Building the economy, fighting corruption, ensuring freedom, developing infrastructure and investment and developing education are the new government’s “five point plan spelled out in […]