Tag: economy

November 27, 2008 (AFP) – At least two government soldiers drowned and more than 230,000 civilians were driven from their homes in Sri Lanka’s embattled north Thursday after monsoon floods and a mini-cyclone, officials said.The Disaster Management centre said the northern peninsula of Jaffna was the worst hit, with 2,032 homes completely destroyed and another […]

Nov 27, 2008 (LBO) – Sri Lanka should be prepared for a prolonged external slowdown as the world recovers from excessive debt brought on by paper money central banks, especially the Federal Reserve, says a Netherlands-based economist. Howard Nicholas from the Institute of Social Studies in the Netherlands spoke to LBO during a visit to […]

Nov 26, 2008 (LBO) – Sri Lanka has clamped down on new spending, with the Treasury asking government departments to freeze new capital projects and current spending till next year, amidst tight revenues.The government has also been finding it difficult to borrow abroad. A Treasury circular said the government had decided to “manage public expenditure […]

Nov 25, 2008 (LBO) – Sri Lanka has cut its statutory reserve ratio for commercial banks from 9.25 percent to 7.75 percent, releasing 17 billion rupees in cash to the banking system, the central bank said. The statutory reserve ratio (SRR) cut will release 17 billion rupees to the banking system when it becomes effective […]

KUWAIT CITY, November 23, 2008 (AFP) – Most stock markets in the energy-rich Gulf slumped on the week’s opener Sunday as intervention by governments failed to restore sentiment among investors worried by global financial turmoil. Riyadh cut interest rates for the third time in six weeks, slashing the repo rate by one percentage point a […]

WASHINGTON, November 22, 2008 (AFP) – A new US intelligence forecast identifies China and India as rising heavyweights in a coming multi-polar world but says both face a potentially bumpy ride to the top.“Although we believe chances are good that China and India will continue to rise, their ascent is not guaranteed and will require […]

WASHINGTON, November 22, 2008 (AFP) – The economic team of US president-elect Barack Obama came into view Friday as fears mounted on the global financial crisis and more mass job cuts loomed worldwide.Reports said Obama was set to appoint New York Federal Reserve chief Timothy Geithner as his Treasury secretary to take charge of fixing […]

Nov 20, 2008 (LBO) – Sri Lanka has a chance to attract industries from advanced nations in the wake of current turmoil if the country can put its house in order with a longer term view and create a strong base for industry, an economist has said. To receive instant alerts from LBO on your […]

Nov 20, 2008 (LBO) – Sri Lanka has plans to borrow abroad next year at commercial rates to repay maturing loans and keep its infrastructure projects on track. While raising new money is difficult, ongoing global turmoil is tempering commodity prices, helping price stability. ETV’s Lanka Business Report programme discussed the challenges facing Sri Lanka […]

WASHINGTON, November 19, 2008 (AFP) – US consumer prices plunged a record 1.0 percent in October amid an accelerating global financial crisis, government data showed Wednesday. The one-month decline in the Labor Department’s consumer price index (CPI) was the steepest since the department began publishing seasonally adjusted changes in February 1947 and exceeded analysts’ consensus […]

Nov 18, 2008 (LBO) – Sri Lanka’s infrastructure projects could face delays if the island is unable to raise over half a billion dollars though commercial loans amid tough conditions in global financial markets, a top official said. “The government needs external financing of around 500 million dollars in commercial money for financing counterparty funds […]

Nov 17, 2008 (LBO) – Sri Lanka should tap the International Monetary Fund for a stabilization package early as the country is heading for balance of payments trouble and unsustainable budget deficits, a top economist has said. IMF conditions bring fiscal prudence, and tight monetary policy, making it difficult for politicians to coddle loss making […]