Category: Economy and Markets
Mega Deal
Hatton National Bank on Thursday inked a deal to execute a US$ 36.5 mn interest rate swap for power generator Heladhanavi Ltd.Heladhanavi, a joint venture between the Hemas Group and Lakdhanavi, had last July signed up for US$ 47 mn in debt, payable over a seven-year period at three-percent over LIBOR (London Interbank Offered Rate).rn […]
Inching Up
Three month treasury rates edged up at Wednesdays auction, stoked on by market appetite for debt paper with shorter tenures.The Central Bank said that three-month yields inched up one basis point to 7.83 percent, while six and one-year paper remained flat at 7.78 percent and 7.75 percent respectively.rn rnA total of Rs. 6,906 mn worth […]
Murky Waters
With only a month and a half to go for an agreement by end July, the world multilateral trading system is facing an uncertain future if countries cannot settle their differences soon.The 148 member countries of the World Trade Organisation (WTO) have still not arrived at agreements on the highly sensitive trade of agricultural products […]
Sooner The Better
The Central Bank says sooner the oil price adjustment is made the better for the Sri Lankan economy, which has become increasingly open in recent years. Though there were signs that the immediate highs were easing, all indications pointed towards generally high crude prices for the foreseeable future.rn rn”Whatever the market, whenever the market prices […]
Country Gardens
The city of Nuwara Eliya is trying to clean up its trading activity to bring back its scenic beauty but the change of government put plans on hold.Nuwara Eliya endash also known as little England because of its climate difference from the rest of the country – is one of Sri Lankas main tourist hot […]
Make Up Please!
Twelve State entities handpicked for a commercial makeover, will be set targets to clean up their act and look for private investment, a top government official said Tuesday.Mano Tittawella, Senior Presidential Advisor said ailing state enterprises, which includes utilities, ports, airports and banks, will have to get a credit rating and be responsible for their […]
Alls Well
The overnight repurchase rate (repo rate) was kept at 7.0 percent and the reverse repurchase rate (reverse repo) at 8.50 percent, the bank said in a statement following its monthly Monetary Policy Meeting late Tuesday. rn rnSecondary market bond rates have been jittery in the last few weeks after the President Chandrika Kumaratungas government opted […]
Tough Talk
The Sri Lankan government said Monday that it will refrain from a mass hiring of management trainees for positions in 12 key state enterprises.The government plans to take in around 25,000 unemployed citizens for public sector jobs this year.rn rnMano Tittawella, an adviser to President Chandrika Kumaratunga, said key institutions such as the Sri Lanka […]
Hang On
US interest in Sri Lanka went inland to the conflict riddled Eastern districts of Ampara and Batticaloa this week to emphasise the benefits of peace.This week, the Deputy Chief of Mission at the U.S. Embassy in Colombo James F. Entwistle, visited six USAID funded projects in Ampara and Batticaloa.rn rnOn Monday, Entwistle met with residents […]
Debt Call
The governments US$ 100 mn bond issue opens on Tuesday, to raise funds to bridge the budget deficit.The Sri Lanka Development Bond issue will carry a minimum two-year tenure and will be linked to the six months London Interbank offered rate or LIBOR.rn rnInterest rates will be paid semi-annually, with minimum investment of US$ 100,000 […]
New Brooms
President Chandrika Kumaratunga promised to overhaul the countrys messy tax system, introduce laws to help sick companies and inject policies to achieve a six to eight percent growth in the medium term.rnOver the last two-years, she said that the national debt steadily rose to 106 percent of GDP from 103 percent, though the previous government […]
Load Of Gas
Concerns are rising among apartment developers that the proposed transfer tax on land may hit the industry.The Ministry of Lands announced a Cabinet decision to re-introduce the 100 percent tax on land purchased by foreigners on Thursday.rn rnIn the late nineties the tax was relaxed to allow the upper floors of an apartment block to […]