Category: Economy and Markets
Aid Drip
The Asian Development Bank on Wednesday approved US$ 80 mn to rehabilitate conflict areas – a first such loan since the Tokyo aid parley last year. The Manila based bank will part fund a rehabilitation project in some of the worst affected areas and neighbouring towns, despite peace on the ground reaching a stalemate.rn rnThe […]
Good Marks
Fitch Ratings Lanka Ltd (FRL) has assigned SL A national credit rating to the Implied Long-term unsecured Senior Debt of First Capital Treasuries Ltd (FCTL).SL A rating denotes a low expectation of credit risk. The capacity for timely payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in […]
Steady Ship
The Central Bank left its key short-term rates unchanged on Wednesday, signalling that it was comfortable with the countrys economic fundamentals.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 […]
Hat Collection
The government is looking for donor assistance to give the local asset securitisation market some legal teeth.Securitisation allows firms to borrow against future cash flows, which are channelled into a separate legal entity or a special purpose vehicle (SPV). Though asset securitisation has been around since the mid-1990s, local laws do not recognise such transactions.rn […]
New Page
The government is looking at amending laws to allow foreign investors into the corporate debt market, without liberalising the capital account.Foreigners are currently restricted to equity investments. They can also invest in government debt through unit trust.rn rnOver the years, capital market players have been lobbying for a policy shift, as direct access to the […]
Bad Grade
Sri Lanka is set to score very low in a second review of the peace process by the international donor community set for January 23. The first review in September 2003 pleased donors, who, at the June Tokyo donor confab tied US$ 4.5 billion in aid to progress with the peace process. rn rnCabinet Spokesperson […]
Business Talk
Business leaders from SAARC countries are calling on the governments to initiate regional cooperation to develop eight identified areas in return for greater intra-regional investment and trade. The private sectors of the SAARC countries – represented by seven leading chambers of commerce – suggest regional cooperation in the areas of trade, services, investment, tourism, agriculture, […]
Greenlight
The Colombo Stock Exchanges debt trading system is likely to take off this month, giving smalltime investors closer access to the government debt market.Seylan Merchant Bank, who became the first of the five members to get a licence, says they plan to roll out operations this month.rn rnThe DEX allows the public to buy and […]
On Track
Central Bank said GDP growth was on track to meet annual target of 5.5 percent this year but warned that political instability and progress on peace would be important for faster growth. Service sector growth has been outstripping the agriculture and industry sectors by a fair margin.rn rnSince economic liberalization in 1977 the industry sector […]
Steady Run
The Central Bank, Wednesday, left growth projections of 5.5 percent for 2003 intact, but warned that key structural reforms had to go ahead to maintain the momentum. ldblquote The downside is the slower implementation of structural reforms such as labour reforms, public administration and particularly infrastructure projects means we wont be able to sustain the […]
Third Opinion
So far, the bank has mandated Fitch Ratings Inc. to give Sri Lanka its first country rating. Fitch was selected for its local presence through Fitch Ratings Lanka Ltd. rn rnThe mandate for the second rating from either Moodys Investor Services or Standard & Poors will be given once the bank selects a rating advisor.rn […]
Hurry Up
The United States asked top Sri Lankan politicians to hurry up and sort out their differences, as the ongoing political impasse is hurting the peace process.US Deputy Secretary Richard Armitage said the current political impasse in Sri Lanka cannot be allowed to continue, and added that he will consult with the other donor co-chairs — […]