Category: Economy and Markets
‘ tag ripped by IMF
December 22 (LBO) – Sri Lanka’s exchange rate regime has been re-classified to a managed float from free float after violating International Monetary Fund articles and heavy official intervention, the IMF has said. Though fiscal prudence still seems to be out of reach, analysts say Sri Lanka’s central bank has started to tighten monetary policy […]
S&’s B+ rating; negative outlook remains on war fears
December 21, 2006 (LBO) – International rating agency Standard & Poor’s Thursday retained Sri Lanka’s B+ rating, but warned the island needs to make headway to tackle reforms and make a tangible progress in settling its long running separatists conflict. In April S&P downgraded Sri Lanka’s credit outlook to negative from stable, amidst an escalation […]
’s rich western province leads economic growth again in 2005
December 21 (LBO) – Sri Lanka’s rich western province has led the list again of top contributors to the island’s economic growth last year, the Central Bank said, though service sector expansion boosted fortunes of poorer areas. “Product diversification could reduce concentration in a few crops that dampen the marketability of such produce profitably due […]
’s government to acquire property in Fort to build a Presidential Square
December 20, 2006 (LBO) – Sri Lanka’s president Mahinda Rajapakse has given notice to owners of prime property around his official residence, that their land would be acquired urgently to develop a Presidential Square. Rajapakse has issued the order, on the recommendations of the minister in charge of Urban Development. More than 4 acres of […]
Treasury yields shoot up
December 20, 2006 (LBO)– Sri Lanka’s treasury bill rates rose sharply at Wednesday’s auction following after the central bank hiked its key policy rate by 37.5 basis points last Friday. One-year treasury yields climbed 18 basis points to 12.95 percent, while six-month paper rose 15 basis points to 12.78 percent and three-month treasuries jumped 20 […]
‘s Central Bank moves to sooth currency markets
December 20, 2006 (LBO) – Sri Lanka’s central bank Wednesday sought to pour oil on troubled waters saying currency depreciation to date is consistent with past trends. “It is seen that the current depreciation of 5.2 percent [against the U.S. dollar] is somewhat consistent with the usual trend in the past and movements in economic […]
Corruption swallows aid as Sri Lanka marks tsunami anniversary
Dec 18, 2006 (AFP) – Corruption and ethnic violence is blocking a flood of foreign aid for Sri Lanka’s tsunami survivors two years after the massive disaster, according to official records and whistle-blowers. This year, there are no ceremonies to remember the tsunami dead and the destitute, but instead the government has named December 26 […]
Consumer goods giant Singer goes for LKR300 mn debenture
December 18, 2006 (LBO) – Consumer goods giant Singer (Sri Lanka) is issuing a 300 million rupee debenture to support its growing hire purchase business. The unsecured four-year issue will not be listed but will carry a A+(lka) rating from Fitch Ratings Lanka Ltd, Singer’s Company Secretary, Asoka Pieris said Monday. Earlier in the year, […]
A window for Sri Lanka to catch-up and move forward using historical advantages
November 16 (LBO) – Sri Lanka should grasp the opportunities to grow its services sector using historical advantages, as India has already started to do, before that opportunity is also missed, a senior economist and central banker said.“If a country stubbornly and arrogantly refuses to accept this fact, it stands to lose, while others continue […]
’s top lenders meet to discuss future funding, development plans
December 15, 2006 (LBO) – Sri Lanka’s main international lenders are due to meet late next month to asses their ongoing projects and discuss future funding programmes, a top official said. “This will not be a pledging conference for money,” explains Central Bank governor, Nivard Cabraal. “We will discuss our ten-year development plan with donors, […]
Corruption watchdog slams Sri Lanka tsunami relief agencies for financial secrecy
December 15 (LBO) – Corruption watchdog Transparency International slammed tsunami relief agencies in Sri Lanka on Friday for sloppy work and scant regard for an independent financial audit. The agency audited six tsunami projects in Sri Lanka – the only six of 70 agencies approached, who agreed to a Value for Money audit by Transparency […]
Sri Lanka hikes rates; asks banks to raise deposit rates
December 15, (LBO) – Sri Lanka’s central bank raised its policy reverse repo rate at which cash is pumped into the system by 37.5 basis points to 11.5 percent Friday and asked banks to raise deposit rates. “The Central Bank has noted that despite several policy rate increases in the past, banks have not sufficiently […]