Category: Banking and Finance

“The government is interested in getting one (rating) as it will bring in financial discipline and also be a benchmark for local companies to raise money internationally.With the peace process going on we plan to restart the process this year,” Central Bank Governor A S Jayawardene said. rnInitially, the Central Bank had planned to go […]

Cheque imaging or cheque truncation as it is known, enables cheques to be scanned before directing it to the relevant banks electronically. rnrnldblquote Cheque truncation shortens clearing time from 1-7 days to just two days the maximum, dblquote Chairman R B Ekanayake said in an interview. rnrnThe present magnetic reader system, requires all banks to […]

The withholding tax on interest income is having reversal effect on treasury instruments, with the government effectively paying the tax up front at the time of the auction. rnWhile the 10 percent tax pushes the cost of borrowing up, dealers end up adding the tax when they bid at the auctions. rnImposing the tax on […]

The introduction of the Code of Best Practice for Audit Committees will require auditors to be more transparent with their fees, and the reporting of conflicts of interest with the management. rn rnThe Institute believes that this will enable the audit committee to differentiate audit work from the other services rendered. rn rnThe Code, despite […]

Brokers say that the buyer is looking for a strategic stake in Richard Peiris and perhaps the management of the company.rn rnThe trade propped the benchmark All Share Price Index by 0.44 points to close at 618.29.rn rnThe Milanka Price Index closed 1.8 points higher at 1034.67 at the close of trading. rn rnTurnover was […]

The Chamber believes that the re-introduction of private sector managed schemes would increase the benefits to its stakeholders and the capital market.rn rnSome private sector officials say that allowing private sector participation would introduce competition to the two government sector funds, which would lead to better returns and management of funds. rn rnAs an initial […]

The analysis follows the long standing criticism that commercial banks resort to parate executions extensively, killing the entrepreneur sprite in the country.rn rnThe study which looked at a three year period states that banks initiated parate executions only as a last resort when restructuring and rehabilitation of the loan failed. rn rnThe Central Bank also […]

Foreign companies can now invest up to 100 percent of the equity capital of financial sector companies, free of exchange controls, the Central Bank said in a statement. rnThe move is “subject only to the rules and regulations stipulated by the relevant regulatory authorities pertaining to the activities of the companies in which investment is […]

Recently, several commercial banks have pointed out the severe restrictions imposed by the forex holding limit, impedes the growth of a local derivatives and futures market. rnrnThe Central Bank has considered these concerns and plans to replace the restriction on holdings with a risk based capital requirement, as a prudence measure to prevent capital been […]

NDB is also planning to diversify its leasing business to under-banked Maldives with the expectation of boosting its forex earnings. rnrnldblquote We will be the first leasing company in Maldives, which is a dollarised economy. If the tourism industry recovers in the near future, there would be a wide scope for the leasing business dblquote […]

A steering committee set up under the aegis of the Finance Ministry is also scouting for restructuring expertise to help guide the process. rnldblquote The restructuring proposal has been sent for cabinet approval. Once the government quote s direction is clear, we will get an investment banker in to do a valuation, dblquote SLIC Chairman, […]

Peer Review is a popular practice in developed markets, where the auditing industry ensures that best practice is maintained by subjecting the audits carried out by one firm to a review by another member firm. rnrnThe recent Enron collapse in USA, brought the peer review programmes to limelight with the emphasis on growing instances of […]