Tag: economy

Apr 16, 2009 (LBO) – Sri Lanka’s central bank, which has a monopoly on money issue in the island, has made a 5.04 billion rupee loss in 2008, badly hit by a 22.8 billion rupee forex loss, despite running a dollar peg which has to be backed by US assets. The process reversed thereafter, as […]

NUSA DUA, April 15, 2009 (AFP) – People traffickers are licking their lips as the world economic downturn pushes more people to migrate in search of work, Australia’s foreign minister told Asian ministers Wednesday.Stephen Smith told a gathering of ministers and high-level officials from more than 60 countries, mostly from the Asia-Pacific region, that the […]

Apr 14, 2009 (LBO) – Sri Lanka will become more attractive for investors once an International Monetary Fund stamp of approval comes with a bailout package, a top central bank official has said. “Once the IMF come in there would be more confidence, where you will find more development partners and foreign investors who would […]

ISLAMABAD, April 14, 2009 (AFP) – Pakistan’s president signed an accord to put part of the country under Islamic law as part of efforts to end a Taliban insurgency, despite fears Tuesday that it would encourage extremism. President Asif Ali Zardari’s move formalises a controversial deal between a pro-Taliban cleric, who led thousands of supporters […]

Apr 13, 2009 (LBO) – Sri Lanka’s pampered state-enterprises, often overstaffed, and usually distinguished with poor customer service, are to get tax-write offs, a media report said, as the private sector is squeezed by yet new taxes. State-run Sri Lanka Broadcasting Corporation which has borrowed 150 million rupees from the Treasury will qualify for relief […]

Apr 12, 2009 (LBO) – Sri Lanka’s central bank is urging commercial banks to cut lending rates to stimulate growth while heavy government borrowing continues to crowd out the productive sectors. On April 08, Sri Lanka’s average commercial bank prime lending rate was 19.34 percent. Banks are taxed to the hilt, and have to cope […]

Apr 11, 2009 (LBO) – Sri Lanka’s inflation will hit zero by the middle of the year, a senior central banker said, with 12-month price inflation in the capital Colombo already down to 5.3 percent in March 2009. However, analysts expect the rupee to weaken from May onwards adjusting to previous loose monetary policy under […]

April 11, 2009 (AFP) – At least one in four children displaced by Sri Lanka’s ongoing fighting between troops and Tamil Tigers was malnourished, the health ministry said Saturday.Supplies to the area have been few and far between because of the intensity of fighting while the authorities have also severely restricted access for humanitarian agencies […]

April 10, 2009 (LBO) – Sri Lanka has said it plans to entice the Tamil diaspora to invest in reviving the war-ravaged north and has set up a separate division to oversee all rehabilitation activities. “The institutional impediments to commencing productive activities in all sectors of the province will also be addressed gradually.” The government […]

April 08, 2009 (LBO) – Sri Lanka is tripling a newly introduced non-recoverable business turnover tax from May 01, 2009 as the country grapples with a currency crisis, and state revenues fall with a slowing economy. Profligate fiscal policies followed since 2004 have now landed the island in a currency crisis and made it ill-prepared […]

April 08, 2009 (LBO) – Sri Lanka’s government finances had been busted in 2008 with revenues 95 billion rupees below target, 118 billion rupees being printed by the central bank, while foreign financing turned negative, the latest official data show. In recent years it has become the practice in Sri Lanka to present fairy tale […]

April 07, (LBO) – Sri Lanka has space for easing policy with inflation coming down, Central Bank governor Nivard Cabraal said, as the monetary authority sounded strong warnings against runaway government spending.“What we like to say is when inflation comes down there is more space to relax monetary,” Cabraal told reporters Monday.“We cannot give amounts […]