Category: Economy and Markets
First Capital Research assigns 80-pct probability for no change in policy rates
Jan 28, 2020 (LBO) – First Capital Research assigns 80 percent probability for no change in policy rates amidst recently provided tax revisions and other benefits. Considering the recent major fiscal and monetary policy changes, First Capital Research believes that current accommodative monetary policy stance is appropriate, and that there is ample space for market […]
Sri Lanka vehicle registration in Dec 2019 subdued
Jan 28, 2020 (LBO) – Sri Lanka’s total car registrations recorded 2,057 units in December 2019 marginally up from 2,030 units in November but down from 2,669 units 12 months ago, a new report shows. Data compiled by JB Securities equities research shows in the overall segment Toyota is the market leader with a 64.2 […]
Opinion: How technology shapes apparel sector supply chains: Shifting to nearshoring and reshoring
Nipuni Perera Advances in technology have made nearshoring – the practice of shifting production operations to a nearby country closer to the end market – and reshoring – bringing back offshore production back to the home country – more viable for apparel manufacturers, compared to offshoring production to far-away, developing countries. For instance, ‘SewBots’ – […]
‘s National Rating at AA+; withdraws rating
Jan 27, 2020 (LBO) – Fitch Ratings has affirmed and withdrawn Sri Lanka-based National Savings Bank’s (NSB) National Long-Term Rating of ‘AA+(lka)’ with a Negative Outlook. Fitch has chosen to withdraw the rating for commercial reasons. KEY RATING DRIVERS NSB’s National Long-Term Rating reflects Fitch’s expectation of extraordinary state support stemming from its policy mandate […]
Forensic audit finds Rs20bn loss to Sri Lanka from bond sales from 2005 to 2016
Jan 24, 2020 (LBO) – Sri Lanka may have lost 20 billion rupees from direct placements as well as from auctions of bonds, between 2005 and March 2016, a forensic audit has estimated. BDO India has carried out two separate forensic audits for the period of 01 Jan 2002 to 28 Feb 2015 and from […]
First Capital Treasuries announces Rs750mn debenture issue
Jan 23, 2020 (LBO) – First Capital Treasuries, the Primary Dealer arm and a subsidiary of First Capital Holdings has announced that it intends to issue listed, rated, subordinated, unsecured, redeemable debentures with a principal value of LKR 750Mn maturing in five years. Following interest payment options will be payable semi-annually; Type A – 12.75% […]
Sri Lanka SMEs call for deadline extension
Jan 22, 2020 (LBO) – Sri Lanka’s Confederation of Micro, Small and Medium Industries (COSMI) said that the landmark loan moratorium for SMEs offered by the government in December 2019 is on track to revive SMEs but the stipulated reporting deadline is ‘too tight’. “We praise the government for its determined action last December to […]
Fitch revises outlook on 5 banks to negative; downgrades PLC; affirms HNB
Jan 22, 2020 (LBO) – Fitch Ratings has revised the Outlook to Negative from Stable on the Long-Term Issuer Default Ratings (IDR) and National Long-Term Ratings of the following Sri Lanka-based banks and has affirmed their ratings: Bank of Ceylon (BOC), National Savings Bank (NSB) and DFCC Bank PLC (DFCC) Fitch has also revised the […]
Tax changes included in proposed Inland Revenue Amendment Bill
Jan 22, 2020 (LBO) – Sri Lanka’s Finance Ministry announced the list of tax changes introduced in the proposed Inland Revenue Amendment Bill which is to be presented to Parliament for approval. Related: Cabinet nod to amend Inland Revenue Act The complete list of proposed tax amendments: (i). Interest Income (a) Interest paid up to […]
Viraj Dayaratne appointed as Chairman of SEC
Jan 22, 2020 (LBO) – Additional Solicitor General Viraj Dayaratne PC has been appointed as the Chairman of the Securities and Exchange Commission of Sri Lanka (SEC). The appointment was done by the Prime Minister and Minister of Finance Mahinda Rajapaksa. Other new members of the SEC appointed are Ernst & Young former Country Managing […]
‘s inflation increased to 6.2-pct in December
Jan 22, 2020 (LBO) – Sri Lanka’s headline inflation as measured by the year-on-year change in the National Consumer Price Index increased to 6.2 percent in December 2019 from 4.1 percent in November 2019. According to the Central Bank, this was driven by monthly increase of prices of items in the Food category along with […]
Five forensic audits completed at a cost of Rs275mn: Central Bank
Jan 21, 2020 (LBO) – Sri Lanka’s Central Bank says that out of the six forensic audits initiated, five forensic audits have been completed so far at a cost of 275 million rupees. Issuing a statement, the Central Bank said the procurement process of the sixth forensic audit is currently underway. The procurement of the […]