Category: Economy and Markets
Scrip less deals
A new electronic system to settle inter bank transactions will come on line as scheduled next month with new interest free liquidity support offered by Central Bank.Bank officials say that an Intra day Liquidity Facility (ILF) will be made available to banks in settling their dues on the new Real Time Gross Settlement system.rn rnThe […]
Steep Drop
The Central Bank cut its key short-term discount rates by 75 basis points on Friday after its monthly monetary policy meeting on Thursday evening.The overnight repurchase rate or repo rate was lowered to 7.5 percent, while the reverse repurchase rate or reverse repo was reduced to 9.5 percent. rn rnThe bank last reduced the rates […]
Still falling
Long term bond yields fell again at this weeks auction, with the Rs 2000 mn issue being oversubscribed around three times.The weighted average ten-year yield fell to 7.71% (48 basis below January auction) and 15-year yield fell to 7.63% (down 145 basis points).rn rnThe secondary market was already trading around these levels, with traders having […]
Real Late
Scripless trading of government bonds is likely to be delayed till October after a delay in pushing through legal changes.The Registered Stock and Securities Ordinance which was originally scheduled to have been changed in time for scripless trading to start in on September 09, failed to receive cabinet approval in time.rn rnldblquote But the Real […]
Gilt Strip
The Central Bank will look at the possibility of permitting gilt stripping after the RTGS and scripless securities settlement system is up and running, opening up the possibility of making long-term bonds more liquid.ldblquote We will look again at coupon stripping after dealers have got familiar with the system, dblquote Deputy Governor W. A. Wijewardene […]
Spurring Growth
A Sri Lankan contingent flying to China on August 08, will look to obtain technology transfers and investment partnerships for the local rubber and tea industries. The delegation lead by Primer Ranil Wickramasinghe will sign four key agreements to cover starting with one on closer economic co-operation, an agreement to avoid double taxation, and an […]
Trickling In
The first tranche of Japans commitment at the Tokyo donor conference rolled into the country today through a grant of Rs. 1.198 billion for a water supply project in the South.Considered a much needed project for the drought stricken south, the funds will give over 28,655 people access to pipe borne water, while enhancing the […]
Sand Castles
The Central Environmental Authority on Friday approved sand mining off the shores of Wadduwa and Kalutara. The Coast Conservation Department project will scoop sand off the seabed at depths of about 15 meters, roughly 2 km off the coast.rn rnThe initial phase of the project expected US$ 5 million is being funded with Dutch aid. […]
Sino Ties
Sri Lanka is moving to cement its ties with China, with a state visit by Prime Minister Ranil Wickremesinge next month.In addition to meeting Chinese Premier and President Prime Minister Wickremesinghe will also meet the Chinese Commerce and agriculture ministers, during the six-day visit, which will start on August 08th.rn rnSri Lanka is hoping to […]
Housing Carrots
The government is kicking off a housing scheme for government officers in a bid to attract and keep the top quality administrative officers.ldblquote We need to give additional incentives outside the salary to attract good people to government service dblquote , Cabinet Spokesman G. L. Pieris said.rn rnThe low cost housing units will range from […]
Leveraged Funds
The Urban Development Authority (UDA) has negotiated with local banks to raise upto Rs. 1 bn to build 1300 houses for the middle and high income segments.The loan will pay for initial work, with the UDA planning to front sell the homes to raise the balance requirement of Rs. 9 bn. rn rnThe monies will […]
New Faces
The Colombo Stock Exchange on Wednesday admitted five new members to trade on its upcoming debt securities board, the DEX.The trading members are: Capital Alliance Holdings Ltd., Central Finance Co. Ltd., National Wealth Corp. Ltd., Sampath Bank Ltd and Seylan Merchant Bank Ltd.rn rnTrading members are second tier brokers, with access limited to dealing in […]