Category: Economy and Markets
Sri Lanka state finances busted, Rs118bn printed
April 08, 2009 (LBO) – Sri Lanka’s government finances had been busted in 2008 with revenues 95 billion rupees below target, 118 billion rupees being printed by the central bank, while foreign financing turned negative, the latest official data show. In recent years it has become the practice in Sri Lanka to present fairy tale […]
Sri Lankan shares becalmed
Apr 08, 2009 (LBO) – Sri Lankan stocks closed flat Wednesday as early gains were eroded by late selling pressure on Sri Lanka Telecom (SLT) and Hatton National Bank (HNB) in low volume deals driven by retailers, brokers said. Analyst said companies engaged in construction related businesses will benefit from infrastructure projects expected to start […]
Sri Lanka has space for monetary easing: Central Bank
April 07, (LBO) – Sri Lanka has space for easing policy with inflation coming down, Central Bank governor Nivard Cabraal said, as the monetary authority sounded strong warnings against runaway government spending.“What we like to say is when inflation comes down there is more space to relax monetary,” Cabraal told reporters Monday.“We cannot give amounts […]
Sri Lanka to lose aid from Netherlands: report
April 07, 2009 (LBO) – The Netherlands will stop giving aid to Sri Lanka due to an internal conflict, ending a longstanding partnership which had given 30 to 40 million Euros each year to the island, a media report said. A web report of the British Broadcasting Corporation’s Sinhala Service said the Netherlands government had […]
Sri Lankan stocks close up
Apr 07, 2009 (LBO) – Sri Lankan shares closed up on Monday, driven by index-heavy Sri Lanka Telecom (SLT) which moved up on speculation of a possible sell-down of a government stake in it, brokers said. Diversified Hayleys gained 2.50 rupees to close at 89.50. Chevron Lubricants gained 2.75 rupees to close at 109.75. The […]
Sri Lanka firms get no relief in tax refund delays
April 07, 2009 (LBO) – Sri Lanka’s cash-strapped government has been unable to offer relief to the private sector over lengthy delays in getting value-added tax (VAT) refunds.Private sector officials said companies were facing cash-flow problems owing to the delays in VAT refunds on the part of the Inland Revenue Department. Tax department officials said […]
Sri Lanka central bank urges curbs on state recruitment
April 07, 2009 (LBO) – Sri Lanka’s central bank has urged the government to curb recruitment into the hugely over-staffed and inefficient state sector, given the difficulties caused by economic slowdown.The government has said it expects growth to be boosted by an economic revival in the north and east, which has been cleared of Tamil […]
Sri Lanka offers tax break for forex income
Apr 06, 2009 (LBO) – Sri Lanka has given an amnesty for individuals and businesses that deposit foreign exchange in banks in the next two year years, as the country grapples with a severe balance of payments crisis. Advertisements placed in weekend newspapers by the island’s central bank and finance ministry said the tax waiver […]
Sri Lanka economic growth to slow to 2.5% in 2009
April 06, 2009 (LBO) – Sri Lanka’s economic growth is forecast to slow sharply to 2.5 percent this year, from six percent last year and then recover to five percent in 2010, the central bank said.“Hence, in order to maintain inflation at a single digit level in the medium-term, it is imperative to continue with […]
Sri Lanka small investors nibble at strong stocks
Apr 06, 2009 (LBO) – Sri Lankan shares edged up Monday supported by blue chip price increases in low volume trade, as small investors took tentative steps to invest in fundamentally strong stocks, brokers said.Mobile giant Dialog Telekom gained 10 cents to close at 4.90, while fixed line operator Sri Lankan Telecom gained 75 cents […]
Sri Lanka rupee has greater space for market determination: CB Governor
April 06, 2009 (LBO) – Sri Lankan Central Bank governor Nivard Cabraal said there was greater space for markets to determine the exchange rate, as the country heads for an International Monetary Fund bailout. The Central Bank lost more than two thirds of its reserve trying to defend a peg with the US dollar from […]
Sri Lanka urged to go slow on big projects
April 06, 2009 (LBO) – Sri Lanka should go slow on big projects because of funds shortages in order to be able to better cope with the economic slowdown this year, the central bank said. “Financial flows to the government and the private sectors are likely to decline in 2009 and recover gradually thereafter,” the […]