Category: Economy and Markets
Sri Lanka treasuries yields plummet
Jan 08, 2007 (LBO) — Sri Lanka’s short term treasuries yields plunged at Wednesday’s auction, while secondary market yields on longer term bonds also fell amidst foreign buying, dealers said. Three month treasury yields fell 118 basis points to 20.12 percent, 6-month bills fell 20 basis points to 19.79 percent and 12-month yields also fell […]
Sri Lanka capital rocked by blast
Jan 28, 2008 (LBO) – A powerful blast ripped through the Sri Lanka’s capital central business district in the Fort area, a reporter at the scene said. Ambulances rushed to the scene and a military bomb disposal squad is examining the area the reporter said. The defence ministry said a bomb has been placed inside […]
Sri Lanka bond yields fall, rupee gains against greenback
Jan 08, 2008 (LBO) – Sri Lanka’s government bonds rose on foreign buying and the rupee gained against the greenback to close at 108.30/40 Monday, dealers said. Bonds maturing in 15.03.09 which traded at yields as high as 19.85 fell to 19.30/40 levels in the secondary market. When yields fall the price of the bond […]
Sri Lanka needs better budgets for low inflation: central bank
Jan 03, 2008 (LBO) – Sri Lanka’s central bank governor Nivard Cabraal said better budgets were needed to lower inflation, as heavy government borrowings made it difficult to conduct effective monetary policy. “The conduct of a successful monetary policy, while facing a high budget deficit is a challenging task,” he said in a speech outlining […]
Sri Lanka rupee depreciates 1-pct in 2007, reserves US$3bn: central bank
Jan 01, 2008 (LBO) – Sri Lanka’s central bank says the rupee closed at 107.71 against the dollar in 2007 indicating that the domestic currency only depreciated by one percent against the greenback last year. . “This depreciation was substantially below some of the adverse expectations that prevailed in the market, based on certain claims […]
Sri Lanka central bank gives up on low inflation for 2008
Jan 02, 2007 (LBO) – Sri Lanka’s central bank has given up achieving low inflation in 2008 with Governor Nivard Cabraal saying that the bank may allow consumer inflation to go as high as 14 percent this year.. However, Cabraal said his institution would try to keep consumer inflation at around 10 to 11 percent […]
Sri Lanka treasury rates flat ahead of policy speech
Jan 02, 2008 (LBO) – Sri Lanka’s Treasury bill yields were flat at Wednesday’s auction ahead of a key monetary policy speech by Governor Nivard Cabraal, the government’s debt office said. Three month treasury yields remained at 21.30 percent, 6-months 19.99 percent and 12-months 19.96 percent. The debt office, which is run by the Central […]
Sri Lanka quantity targeting exercise fails; lessons for 2008
Jan 01, 2008 (LBO) – Sri Lanka’s central bank says it met the milestones of an ill-fated reserve money targeting exercise in 2007, though inflation went out of control during the year, showing up the pitfalls of quantity targeting. The bank said it achieved the year end target of 267.6 billion rupees with room to […]
Sri Lanka inflation eases in December
Dec 31, 2007 (LBO) – Sri Lanka’s consumer prices in the capital Colombo eased in December with the most widely watched index falling 0.4 percent in the month, lowering 12-month inflation to 16.4 percent from a peak of 19.6 percent a month before. The Colombo Consumer Price Index fell 21.3 points in the month to […]
Sri Lanka money rates spike above penal discount rate
Dec 28, 200 (LBO) – Sri Lanka’s overnight rates spiked to 21 percent despite two discount windows that give money at 12.00 percent and 19.00 percent, while a bond auction was rejected by the government’s debt office Friday, dealers said. The debt office was again fishing for money offering bills on ‘tap’ at around 21.30 […]
Sri Lanka may be able to avoid money printing if deficit is lower in 2008: minister
Dec 28, 2007(LBO) – Sri Lanka can manage without printing money for next year if the government keeps to the budget deficit of around 7.5 to 8 percent of the domestic product, a senior minister said. The 2008 budget was designed to maintain the deficit at 7.5 percent but if anything unpredictable takes place, expenditure […]
Sri Lanka meets reserve money targets, inflation goes haywire
Dec 26, 2007 (LBO) – Sri Lanka’s central bank kept its policy rates frozen in December with inflation raging close to 20 percent a month before, but said reserve money targets have been met this year. . Updated The Central Bank’s policy rates remained unchanged at 12.00 percent, far below inflation as the monetary authority […]