Category: Economy and Markets
Warm Blessings
The Central Bank has agreed to let the Colombo Stock Exchange link up with its depository system to allow gilt-edge securities to be settled realtime.The historic move comes following a Monetary Board meeting late Friday to allow two additional members endash the Employees Provident Fund and the CSE endash to be given a special access […]
Maiden Run
The Central Bank will start issuing its maiden batch government treasuries in scripless form this week, allowing the market to settle their transactions electronically.The first issue of Rs. 6.890 bn worth of treasuries came out of Wednesday auction, but will be issued to the market on Friday, with secondary market transactions slated for next Tuesday.rn […]
Up for What?
Colombos benchmark All Share Price Index (ASPI) shot up about 100 points on the back of more reports of a breakthrough in the political deadlock. However, stockbrokers say the actual ground situation on the political front has not changed significantly from two months ago.rn rnThe only positive reports to come out of the political arena […]
Aid Ok
The international community will detach part of the US$ 4.5 billion in aid committed to rebuild Sri Lanka from progress with the peace process.Japanese special Envoy, Yasushi Akashi on Sunday said that donors were split over the decision to release aid, with some opting to hold back for a change in the current political impasse.rn […]
Secure Funds
Asian Finance Ltd has raised Rs. 100 mn by securitising its future cash receivables to fund its working capital.Structured and placed by National Wealth Corp (NatWealth), the issue raises funds by converting Asian Finances lease receivables into liquid and negotiable instruments.rn rnWith its strengths and expertise in the Real Estate Development sphere, the firm has […]
Tailspin
Hopes of securing US$ 80 mn from the International Monetary Fund (IMF) next month has been put off, due to the current turn of events in Sri Lanka, a top official said Tuesday.A review mission led by Jehangir Aziz, Deputy Division Chief of the IMFs Asia Pacific unit, gave the countrys macro fundamentals good marks.rn […]
Left Right Left
The new Janatha Vimukthi Peramuna (JVP) Sri Lanka Freedom Party (SLFP) alliance, if voted in, says it would renegotiate the terms of the US$ 4.5 billion in aid pledged by international donors last year.The Memorandum of Understanding (MOU), the result of over 10 months of conference between the SLFP and JVP, is the first concrete […]
Troubled Times
As the Marxist JVP and the Sri Lanka Freedom party joined camps today, they unveiled a reform agenda including agriculture and local industry led economic growth, devolution of power to the provinces, and defeating the UNF government. rnThe Janatha Vimukthi Peramuna and the SLFP, inked an alliance agreement today,with rumours rife of snap polls.rn rnThe […]
Foreign Pressure
The rebel Liberation Tigers of Tamil Eelam (LTTE) told representatives of donor countries and international aid agencies that the tug-of-war between the president and the prime minister could undermine the truce.rn rnLTTEs political wing leader S. P. Thamilselvan pointed out that President Chandrika Kumaratunga had sacked three ministers just four days after the rebels unveiled […]
Mute Market
Secondary market trading in government securities has tapered off to a fraction of last years levels with political uncertainty putting bond dealers on the defensive.Trading in long bonds has ceased while securities in the five-year range are seeing thin trading according to primary dealers.rn rnPolitical uncertainty and the expectation of a spike in rates have […]
Winning Runs
Continuing a robust recovery, Sri Lankas export earnings clocked in a double-digit growth for the first eleven months of this year, which saw the trade deficit expand marginally, the Central Bank said Friday.Despite higher export numbers, the trade deficit for November remained flat at US$ 135 mn year on year.rn rnHowever, an overall improvement in […]
Any Takers?
Saddled with debts of over Rs. 11 bn, the CEB is coming to the market again to securitise its future cash flows by borrowing over a billion rupees.CEB tapped the capital markets last year and raised Rs.1.4 bn through securitised paper, though it still relies on expensive bank overdrafts for working capital.rn rnIncidentally, the CEB […]