Category: Economy and Markets
Yo-Yo Reforms
The Asian Development Bank warned on Saturday that the governments rocky relationship with the powerful executive presidency is stalling economic reforms.“The absence of a bipartisan process makes it more difficult for us to be comfortable as to whether key reforms will take place,” ADBs Country Director, John Cooney told a media briefing.rn rnThe countrys present […]
Smooth Run
The Central Bank quote s new money market auction started off on Monday, with the bank offering and accepted bids for Rs. 6 bn at 9.26 percent.Earlier, dealers had put in bids worth Rs.13.4 bn.rn rnThe market is flushed with Rs. 13.6 bn in excess liquidity, and dealers were expecting the bank to auction the […]
Open Sesame
The Central Bank will start open market operations for the money market on Monday. The market friendly move will give the Central Bank a new monetary policy instrument to influence short-term rates.Central Bank says market participants will play a greater role in determining over night interest rates under its plan to introduce open market operations.rn […]
Small Mercies
The Central Bank said Friday, that inflation measured by the Colombo Consumer Price Index for February dropped 1.1 percent over January to 3423.1.Central Bank said the availability of food items, mainly of upcountry vegetables, led to a drop in Februarys inflation.rn rnThe CCPI is the official measure of price changes within the Colombo Municipality for […]
Rough Times
The Central Bank has issued a draft guideline to allow primary dealers to transact in derivative instruments.The guidelines include limits for credit risks and capital adequacy exposures.rn rnThe move comes as market players met on Tuesday to try and activate the local derivative market.rn rnParticipants at a seminar organised by the Primary Dealers Association lamented […]
New Wicket
The Asia Capital Group on Monday disposed its shareholding in its associated company, Capital Alliance Ltd., for Rs. 36 mn.Capital Alliance which specialises in debt market transactions, secured a primary dealer licence last November.rn rnTwo years ago, Asia Capital floated the debt market operation taking up a 20 percent stake for Rs. 20 mn. rn […]
SWAP Talk
The Primary Dealers Association is meeting industry experts on Tue. to discuss ways to promote interest rates swaps and forward rate agreements.Talks by resource personnel invited by the association will centre on International Swap Dealers Association master agreement, taxation, accounting and documentation issues that prevent these two derivative instruments from flourishing.rn rnThe three-hour brainstorming session […]
Last Chance
The government and the World Bank will sit together for a final round of talks soon to finalise a big budgetary finance loan.The third meeting will be the last between the two parties before a proposal is put before the World Bank board in May.rn rnIf a final deal is struck at the meeting the […]
Signals Up
The ADB expects Sri Lanka will clock in a 5 percent growth in 2003, building on the back of renewed economic stability and a global recovery in the second half of the year. rnldblquote This performance builds on the progress the Government has made in achieving short-run macroeconomic stability in 2002 dblquote , the Bank […]
Booking Profits
Chairman Lal Nanayakkara says the turnaround has come from higher recoveries in its bad loan portfolio and profits from its investment portfolio.rn rnIn 2001, the bank recorded an impressive Rs. 345.29 bn profit reversing a loss of Rs. 1.77 bn in 2000 after providing Rs.821.75 mn for loan losses and Rs. 25.68 mn for the […]
Taxing Tigers
Government is planning to take up the taxation issue with the LTTE as key donors to the island refuse to pay tax in any form.rn rnThe issue is to be taken up at the next round of peace talks with the LTTE.rn rnEconomists point out that development aid will be key to rebuilding war damaged […]
Cashing The Tigers
The government is discussing ways of financing the administrative units to be set up in a possible devolution and has also taken up the Tiger tax issue, Cabinet Spokesman G.L. Pieris said.rn rnAt present the LTTE is using various ruses to collect taxes from the people in the North and East.rn rnThough prices have come […]