Category: Economy and Markets
What You Get
The governments budget for next year will give substantial salary hikes for government sector workers while creating new jobs and improving infrastructure.A top minister said that underdeveloped industries would be looked at closely as a means of new employment generation.rn rnThe budget will be presented to parliament on the 12th of this month rn rnSome […]
Your Attention Please
The Ceylon Chamber of Commerce say the government must introduce lquote group taxation dblquote as an incentive for further investment in Sri Lanka. rnThe Chamber says if a committee goes to work on the framework, scope and regulatory provisions relating to the implementation of Group Taxation, a workable model should be ready for implementation by […]
Skywards
Maintaining a positive growth trend over the past few months, Sri Lankas export earnings posted a double-digit growth for the first eight months of this year, a momentum that will help achieve better than forecasted year-end growth.The positive sentiment contributed to a rise in exports and a higher import bill in August.However, the trade deficit […]
Weeding Out
The Urban Development Authority (UDA) has drawn plans to dispose a number of its property holdings that dont reap a minimum Rs. 1000 monthly rent, under a policy level decision taken to streamline its operations.UDA Chairman, S Amarasekera says the decision will free resources for other development work and generate funds for capital investments.rn rnThe […]
Round II
Seylan Bank is raising over a billion rupees in debt, to meet its capital adequacy requirements.The bank said a billion rupees will be raised through a five-year debenture, with the option of raising a further Rs. 500 mn in the event of an oversubscription.rn rnThe issue carries a monthly fixed rate of 9 percent, 10 […]
Love From India
The far-reaching economic partnership agreement Comprehensive Economic Partnership Agreement between India and Sri Lanka will set up a new credit line and an economic cooperation fund of US$ 100 mn each to finance some of the countrys most pressing infrastructure bottlenecks.The economic cooperation agreement submitted to the Prime Ministers by two teams of top bureaucrats […]
Expensive Retirement
The Treasury plans to seek parliamentary approval shortly, to raise the governments Rs. 316 bn total borrowing limit by around Rs. 50 bn.Of the fresh issues, Rs. 33.4 bn will come from converting expensive Rupee Loans, which carry a call option, into low cost long-term bonds.rn rnMostly held by captive sources like the state pension […]
Bids Galore
The Central Banks maiden 20-year treasury bond issue was snapped up at 6.08 percent as investors put in bids for Rs.4.24 bn.The issue carried a coupon of seven percent.rn rnHowever, the bank offered and accepted bids for Rs. 1.035 bn. rn rnThe issue will extend the yield curve from the present 15 years to 20-years, […]
Bloom Time
Sri Lankas primary dealers signed up with Bloomberg to set up a bond-trading platform.At the moment the scripless securities system is not yet operational, but the electronic trading platform itself takes away some of the risks of the old market.rn rnldblquote In a bond market normally you deal on the word of mouth- the traders […]
Mega Interest
MIGA, the World Banks insurance arm, says it is entertaining 12 proposal from foreign investors, to fund projects worth over US$ 1 bn in Sri Lanka.ldblquote There is tremendous investor appetite since the ceasefire started and the economy is growing faster. There is lot of interest for infrastructure projects, so inquiries have come our way […]
Coming Out Party
So far, the bank has written to international rating agents, like Citibank and J P Morgan who currently have a local presence, about playing an advisory role in the rating process.rn rnPlans for a sovereign rating have been pending for several years, but have always been put off because of the war. rn rnBut a […]
Smooth Operator
Primary Dealers in government debt will be asked to raise their capital next year, as the Central Bank tries to strengthen the dealer network.The new regulations for dealers who operate in the primary government securities market comes, as the Central Bank steps up its drive to deepen the debt market.rn rnAt the moment primary dealers […]