Category: Economy and Markets
Sri Lanka raises more dollars from rupee bonds, shoring up official reserves
March, 21 (LBO) – Sri Lanka has raised 40 million dollars this week by selling rupee bonds to foreign buyers bringing the total so far 140 million dollars, an official said. On Tuesday the rupee hit a low of 109.92 against the dollar. On Wednesday morning trade the rupee was trading around 109.85 to the […]
Sri Lanka money rates hit 12-year high in record busting week
March 17 (LBO) – Sri Lanka’s overnight money market rates came down from a 12-year high following a cash inflow from a dollar bond issue Friday, while the Central Bank took swift measures to keep markets on a tight path. Sri Lanka’s overnight call rates hit a high of 35 percent Thursday, the highest since […]
Sri Lanka switches to strong quantity targeting regime; policy rates unchanged in March
March 16 (LBO) – Sri Lanka’s central bank kept its now largely irrelevant discount rate unchanged Friday, while its monetary policy actions in recent weeks showed a firm reliance on quantity targeting. The release of the next regular statement on monetary policy is scheduled for 11 April 2007. Update 2 (graphics/reserve money targets) Though the […]
‘s exports grow but trade deficit widens
March 15 (LBO) – Sri Lanka’s exports grew by 11.2 percent in January led by industrial exports which surged 15.6 percent, the Central Bank said Friday. Tea exports were hit by production shortfalls following the strikes in December, but apparel exports surged 28.1 percent to 221 million dollars. “However, within the agricultural sector, the increase […]
Sri Lanka looks to raise more tax at local government level
March 14, 2007 (LBO) – Sri Lanka is looking for ways for local government bodies to collect more taxes to as part of the strategy to take economic development to rural areas, the office of the president said Wednesday. President Mahinda Rajapakse had met chairmen of local government bodies yesterday to discuss ways to push […]
Sri Lanka sells 100 million dollars worth of rupee gilts to foreigners
March 14 (LBO) – Sri Lanka has sold half of the targeted 20 billion rupees worth of bonds to foreign buyers this year, the country’s public debt office said.“Foreign investment in government Treasury bonds has shown a remarkable progress exceeding the total investment which now stands at over 50 per cent of the annual target […]
Sri Lanka gets budgetary support grant from Japan
March 13, 2007 (LBO) — Sri Lanka has secured a 10.2 million dollar grant from Japan to support the island’s balance of payments, with the funds to be used to import goods and material, the Japanese Embassy said Tuesday.Japan, Sri Lanka’s biggest bi-lateral donor, had disbursed 198.8 million dollars from January to September 2006, according […]
Sri Lanka rupee weakens; money rates ease
March 13 (LBO) – The rupee closed lower against the dollar but overnight call money rates came down from the previous day’s highs to around 16 to 18 percent on Tuesday dealers said. The government is expecting the proceeds of a 215 million dollar bond issue later this week. Updated-highest call rate/correction dollar rupee Call […]
Sri Lanka cash rates hit a new 32% high, equities slide
March 12 (LBO) – Sri Lanka’s overnight cash rates hit a new high of 32 percent Monday, as the central bank stayed away from injecting liquidity through an open market auction, dealers said. On Friday morning rates hit 30 percent, before easing slightly, with a market short by about 1.9 billion rupees. Sri Lanka’s overnight […]
Sri Lanka tea exporter calls for economic stability rather than inflation-depreciation cycle
March 09, 2007 (LBO) – In a departure from the usual cry, a top tea exporter in Sri Lanka has called for lower fiscal deficits and economic stability rather than depending on currency depreciation to regain competitiveness lost through fiscally-induced domestic inflation. James Finlay last traded at 143 rupees. Earnings per share on ordinary revenues […]
Sri Lanka in tsunami tax crackdown
COLOMBO, March 9, 2007 (AFP) – Sri Lanka’s finance ministry said Friday it was planning action against charities that are using vehicles imported duty-free for tsunami relief operations beyond the agreed tax shelter period.The government had allowed duty-free imports on condition that they would re-shipped once relief work was over, and aid groups wanting to […]
‘s cash rates rocket to a new 7-year high amidst cash crunch
March 09 (LBO) – Sri Lanka’s overnight rates reached 30 percent amidst tight liquidity, with monetary authorities restricting access to its discount window, dealers said. The central banks key discount rate was raised by 50 basis points to 12.00 per in February after inflation rose to 20.5 percent in January. Updated – highest call rate […]