Category: Forex
Asia Securities reiterates view of no sovereign default; swap conclusion a confidence booster
In a report issued today, the research arm of leading independent Investment Banking firm Asia Securities, reiterated that it does not see a risk of sovereign default at this point. The eagerly anticipated announcement of the USD 1.5bn currency swap agreement with China this week is expected to provide a significant boost to local and […]
Central Bank & IFC launch Sri Lanka’s first National Financial Inclusion Strategy
Sri Lanka’s first National Financial Inclusion Strategy (NFIS), launched today, aims to make financial services more accessible, efficient, and affordable for all households and businesses in the country. The NFIS is a joint effort led by the Central Bank of Sri Lanka—with technical and financial assistance from IFC, a member of the World Bank Group—under […]
Recent volatility on yields of government securities is unwarranted: CBSL
Certain market interest rates, such as yields on government securities, have shown unwarranted volatility recently, which is not in line with monetary policy expectations, the Monetary Board of the Central Bank said announcing its commitment to continue the current accommodative monetary policy stance. The Central Bank reiterates that the high level of excess liquidity in […]
Veemansa Initiatives’ discussion on ‘external debt situation in Sri Lanka
Delivering the keynote address on the topic, External Debt Situation in Sri Lanka: Our Route to Resolution, the Governor of the Central Bank, Deshamanya Professor W D Lakshman said that despite the COVID-19 pandemic and its impact Sri Lanka will maintain its unblemished records of debt service. The Governor made these comments at the […]
Economy at a glance for 2020:Double whammy blow
Highlights ICRA Lanka estimates Sri Lanka’s GDP growth rate in 2020 to be -4%. In addition, our estimates indicate industry, services, and agricultural sectors to have contracted by 7.3%, 1.7% and 1.3% respectively. By mid-March the COVID crisis took center stage and the CBSL implemented a series of policy rate cuts further bringing the short-term […]
Central Bank updates rules for export proceeds & conversion of them into Sri Lanka Rupees
The Monetary Board of Sri Lanka’s Central Bank has issued rules as published in the Gazette Extraordinary No. 2215/39 in respect of receipt of export proceeds into Sri Lanka and conversion of such export proceeds into Sri Lanka Rupees. Accordingly, following Rules are imposed with effect from 18 February 2021 until further notice. Every exporter […]
I ask you to be confident; ongoing negotiations will produce results soon: CBSL Governor
Governor of Sri Lanka’s Central Bank, Professor W D Lakshman requests people to be confident as ongoing negotiations with overseas agencies will produce results within one and a half months time. Speaking to journalists in Colombo yesterday (12), the Governor emphasized that in spite of the doomsday predictions, they will continue to maintain the country’s […]
Sri Lanka official reserves down to USD4.8bn by end January; YTD rupee depreciation 4.2-pct
Sri Lanka’s official reserves were 4.8 billion US dollars (USD 4,814.6mn) by the end of January 2021, down from 5.7 billion US dollars in December last year, the latest Central Bank data showed. By the end of January, the foreign currency reserves were 4,343.9 million dollars while the reserve position in the IMF was 69.0 […]
Sri Lanka on positive and steady path for economic recovery, says Cabraal
Feb 08, 2021 (LBO) – State Minister of Finance, Capital Markets, and State Enterprise Reforms Ajith Nivard Cabral says Sri Lanka is on track now to enacting an effective economic recovery to swiftly close the gap between pre and post-COVID-19 output losses. He says the island’s growth prospects are now positive, underscored by a stabilizing currency and sound debt […]
‘s foreign currency reserves fall below foreign debt obligations
Sri Lanka’s foreign currency reserves which were at USD 5.7Bn as of December 2020, have now marginally fallen below the foreign debt obligations for the first time in the recent past as foreign currency reserve cover falls below 1.0x. Official reserve assets of the country stood at USD 5,665Mn as of 31 December 2020 while […]
Global equity interest in emerging markets expected to trickle down to CSE: Ceylon Asset Management
Jan 26, 2021 (LBO) – Local investors should exploit attractive valuations of the CSE before a Sri Lanka country rating revision and foreign investor confidence returns to the CSE, a new report says. “Invest in the Colombo Stock Exchange. Investors should include equity in portfolios during 2021, before PE ratio exceed 15X, ” the Ceylon […]
CBSL requests banks to refrain from entering into forward contracts of forex for 3 months
Sri Lanka’s Central Bank requests licensed commercial banks to refrain from entering into forward contracts of foreign exchange for a period of three months with immediate effect. The new banking act direction has been issued in view of the need to avoid excess volatility in the foreign exchange market and the impact on banks’ risk […]