Category: Economy and Markets
Sri Lanka seeks to develop bond market to access foreign capital
Nov 22, 2007 (LBO) – Sri Lanka Central Bank governor Ajith Nivard Cabraal said Thursday the government wants to develop the bond market to be able to access new sources of capital and reduce reliance on concessionary lending. The government’s main funding sources were still mainly taxes and bilateral and multilateral loans but it wanted […]
Sri Lanka sovereign bonds plummet as govt. seeks new cash
Nov 22, 2007 (LBO) – Sri Lanka’s maiden sovereign bond has plunged in the secondary market just a month after its issue, as authorities indicated that the country may go to international markets again for new dollars. The 500 million dollar sovereign bond which was issued in late on October 23, was oversubscribed. But now […]
Sri Lanka treasuries yields shoot up as dollar honeymoon ends
Nov 21, 2007 (LBO) – Sri Lanka’s benchmark 3-month Treasury yields shot up 33 basis points to 16.07 percent Wednesday, ending a near month long honeymoon from a sovereign bond that made markets liquid and sent rates plummeting. Due a flaw in Sri Lanka’s monetary law the Central Bank could be used by the government […]
Sri Lanka central bank promises vigilance over liquidity as inflation rages
Nov 20, 2007 (LBO) – Sri Lanka’s central bank said it is countering a liquidity shock to the monetary system from a dollar bond issue, though policy rates frozen at 12.0 percent remained negative compared to raging 19.6 percent inflation. A sudden conversion of 500 million dollars worth state borrowings in late October drove up […]
Sri Lanka inequality on the rise despite growth: UNDP
Nov 20, 2007 (LBO) – Inequality is on the rise in Sri Lanka despite the island making much progress in economic development, an international expert said. Overall progress in Sri Lanka has been concentrated in the western province and hides wide regional income disparities, said Neil Buhne, UN Resident Coordinator, Sri Lanka. There were pockets […]
Sri Lanka to appoint town planners to all local bodies
Nov 20, 2007 (LBO) – Sri Lanka has decided to appoint professional town planners to all local government bodies in a move that will speed up approvals and reduce corruption, officials said. The number of town planners in these bodies today is woefully inadequate, resulting in delays in getting approvals for building permits and payment […]
Sri Lanka Central Bank rejects gold reserve sale charges as criticism mounts
Nov 20, 2007 (LBO) – Sri Lanka’s Central Bank has rejected allegations it had sold tonnes of gold reserves to fund government expenditure in recent months, while criticism mounts on the way foreign reserves are used by the authorities. It said in a statement that a fake letter was circulating that it had sold 7,000 […]
‘s Horana named best town for business
Nov 15, 2007 (LBO) – A town south-east of the Sri Lankan capital Colombo has emerged as the surprising choice of companies as the best place to do business. A study conducted by the international organization Asia Foundation in Sri Lanka on private sector business development and economic growth, found that Horana, 60 km from […]
Sri Lankan coastal towns threatened by rising sea level
Nov 14, 2007 (LBO) – Sri Lanka’s coastal settlements are at risk of rising sea levels caused by global warming while those in the central hills face landslide threats, a top official said. “If the water level rises Sri Lanka’s entire coastal belt is facing possible destruction,” said Lakshman Jayasekara, director general, National Physical Planning […]
Sri Lanka trade deficit widens in September; 9-month deficit still down
Nov 14, 2007 (LBO) – Sri Lanka’s trade deficit widened in September to 281 million from 199 million a year ago, but the gap for the first nine months of the year was still 7.5 percent lower than last year. Exports grew 19.2 percent to 724.6 million in September with imports also rising 24.9 percent. […]
Sri Lanka says US$500 million bond has been used to repay debt
Nov 13, 2007 (LBO) – Sri Lanka’s finance ministry confirmed Wednesday that the proceeds of its biggest ever foreign bond issue had already been spent to repay short term debt.The government originally said a 500 million dollar sovereign bond issue raised in October would be used for infrastructure development projects. A Sri Lanka finance ministry […]
Sri Lanka private sector calls for fewer, simpler taxes
Nov 12, 2007 (LBO) – Sri Lanka’s private sector Monday urged the government to do more to reduce the multitude of taxes and simplify the system in order to make payment and collection more efficient. It also warned against what appeared to be government moves to resurrect unsuccessful welfare measures in an attempt to cushion […]