Category: Economy and Markets
Sri Lanka minister block queries over pension fund losses; new questions emerge
Sept 20, 2007 (LBO) – A government minister blocked reporters from questioning officials about real losses made by a pension fund of private sector workers, as disturbing new information about its management in state hands continued to emerge. The Employees’ Provident Fund (EPF), Sri Lanka’s largest pension fund, is estimated to have made a 37 […]
Sri Lanka opposition accuses govt of misusing public funds
Sept 19, 2007 (LBO) – Sri Lankan opposition leader Ranil Wickremesinghe Wednesday accused the government of illegally channeling state funds to a new budget airline and a bank.He said the right of the Parliament to control public finances is a fundamental principle of democracy. The transfer of funds to set up the new state-owned budget […]
Sri Lanka central bank says narrow trade gap is good for rupee
Sept 19, 2007 (LBO) – Sri Lanka’s central bank says a recent fall of the rupee is not in line with a narrowing of the trade gap, as the rupee dipped to a new low Wednesday but closed firmer. The bank said exports have grown 15.8 percent and the trade gap had narrowed to 1,806 […]
Sri Lanka trade deficit narrows in July, import growth slows
Sept 18, 2007 (LBO) – Sri Lanka’s trade deficit has narrowed in July with oil imports slowing and exports growing by 33.9 percent, the Central Bank said Tuesday. Exports had grown to 690 million US dollars in July 2007 against 516 million US dollars in July. “The persistently strong demand for apparel has continued to […]
Sri Lanka rupee edges lower on state name buying
Sept 18, 2007 (LBO) – Strong buying interest from a state name that usually represent government accounts pushed the rupee lower in late afternoon trading with deals done at 113.60 against the greenback, dealers said. Sri Lanka’s cash markets have been tight with some market participants were seen generating rupees through dollar swaps. The rupee […]
Sri Lanka busts US$250mn to prop up exchange rate
Sept 17, 2007 (LBO) – Sri Lanka has spent more than 200 million US dollars to prop up the rupee during the past four months in an intervention campaign analysts say helped worsen exchange and demand pressure. There are fears among some market analysts, that if the bond price is manipulated it will give opportunities […]
Sri Lanka struggling to reach inflation target: economist
Sept 16, 2007 (LBO) – A World Bank economist said Sri Lanka should trim the budget deficit if it wanted to achieve eight percent economic growth and monetary policy should be tightened to reduce inflation. All this will take its toll on future growth. “Unfortunately I think policy makers are not quite clear about what […]
Sri Lanka property firm says real estate is a sound buy
Sept 15, 2007 (LBO) – A top Sri Lankan property developer says real estate is a sound investment because house prices do not fall, and construction costs goes up rather than down. The Ceylinco group says the property market has been a shock absorber to act as a hedge against inflation and other economic concerns […]
Sri Lanka cuts growth forecast for 2007: report
Sept 15, 2007 (LBO) – Sri Lanka’s central bank has cut the economic growth forecast for 2007 to 7.0 percent from an earlier 7.5 percent, a report said days after the government’s statistics office released the latest growth numbers. Sri Lanka’s economic expansion slowed to 6.2 percent in the first half of 2007 from a […]
Sri Lanka statistician propounds new theory; takes on central bankers
Sept 14, 2007 (LBO) – Sri Lanka’s top statisticians put forward a new theory on exchange rates and took on the central bank governor and Fed chairman Ben Bernanke in a bid to explain rising inflation with long discredited failed ideas. . Hidden Theory Questioned by journalists about the falling Sri Lanka rupee, especially at […]
Sri Lanka bond yields plummet; rupee at new record low
Sept 14, 2007 (LBO) – Foreign names bought into a popular rupee bond sending yields crashing down and raising fears of manipulation Friday, while the Sri Lanka currency closed at a new low against the greenback with deals done at 113.40 rupees, dealers said. The rupee which opened at 113.30/32 in spot trade closed at […]
Sri Lanka economy slows to 6.2% in 1H2007
Sept 13, 2007 (LBO) – Sri Lanka’s economy expanded 6.4 percent in the second quarter clocking up a 6.2 percent growth for the first half, coming off record highs in 2006, the government’s statistics office said. The growth in gross domestic product (GDP) has slowed compared to an expansion of 7.8 percent in the first […]