Category: Economy and Markets
Squeezing Out
In a letter to the Central Bank, the Primary Dealers Association says the killer tax of 0.1 percent is threatening money market and gilt-edge securities transactions, despite the budget unveiling numerous measures to boost the financial sector. rnrnThe Association quote s President, Ajantha Madurapperuma identified the killer tax on financial transactions as ldblquote an apparent […]
Fiscal Prudence
The numbers speaks for itself.Tax breaks, lower interest rates and massive reforms, all delivered with little fanfare.
Smart Move – Budget Update 2
The Marxist party was planning to use the privatisation programme as a strategic weapon to frustrate the government quote s reform agenda, a top government source told Lanka Business Online today. rnrnldblquote The privatisation programme is going ahead as planned, with Sri Lanka Insurance Corporation and state utilities in the pipeline. We just did not […]
Thumbs Up! — Budget Update 5
ldblquote We will make our recommendations to the board within the next three days.The board will decide on the trench payment by late April dblquote , IMF Senior Representative, Dr.Nadeem Ul Haque told Lanka Business Online. rnrnThere is a possibility that the fund would combine two-tranch payments of US$ 30 mn each for the April […]
Cutting Red Tape – Budget Update1
Finance Minister K N Choksy officially said the economy contracted by 1.3 percent during 2001. rnrnHe outlined a range of measures that the government plans to streamline in its quest for revive the economy. rnA new Commissioner General is to be appointed to contain defence expenditure, which currently accounts for 20 percent of the total […]
New Paint — Budget Update 3
Finance Minister K N Choksy told parliament that the bonds will be issued in both rupee and US dollar denominations. rnrnDollar denominated bonds will be limited to non-resident Sri Lankans, while the local investors will be able to invest in the rupee bond with tax-exemptions on interest. rnrnChoksy estimated total government borrowing budgeted for 2002 […]
Moving On
The reversal comes after the bank raised the reverse repo rate by 10 basis points on Thursday in line with the bank quote s new policy of making regular changes to its key discount rates, to make it more responsive to market developments. rnThe bank on Wednesday cut rates by 50 basis points, lowering the […]
Shifting Direction
The Central Bank revised its short term discount rate today by raising the reverse repurchase rate (reverse repo) to 13.6 percent, from 13.5 percent.
Plugging The Hole
Tittawelle in his presentation about the role of the government at the financial reforms forum today, identified public service reforms and pension reforms as other key initiatives to bridge the fiscal deficit. rnrnContinues trend of budget deficits recorded during the past two decades has resulted in the mammoth public debt, which has a significant crowding […]
Jeremy Here
Carter was in the island early last month to carry out a review of the government fiscal performance that will lead to the release of the next US$ 30 mn tranche. rnrnThe fund would release the funds after checking the budget due this Friday for the reforms mutually agreed between the government and IMF. rnrnDr. […]
Paskiquote s Theories
High non-performing loans of Bank of Ceylon quote s and Peoples Bank were highlighted as the cause for the high intervention cost in the local financial sector, at the Financial Reforms forum that ended today. rnrnldblquote Banking supervision could have been more forceful on state banks to control their lending to dubious projects dblquote , […]
Wobble Start
The rupee wobbled sharply against the US dollar, following Central Bank quote s decision to cut its key short-term rates by 50 basis points this morning.