Category: Economy and Markets
‘s obsession with subsidies no help to the poor : Wolfowitz
SINGAPORE, Sept 16, 2006 (LBO) – The practice of Sri Lanka and other South Asian countries that spend massive public resources on subsidies do not help the poor, World Bank Chief Paul Wolfowitz said. “Subsidies are often given as an excuse to cushion the poor,” Wolfowitz said during an informal meeting with South Asian journalists […]
IMF asks domestic policymakers to be nimble to external risks
Singapore September 15, 2006 (LBO) – The International Monetary Fund Friday asked domestic policymakers to be nimble and adapt to external risks like inflation and high oil prices that is threatening to disrupt global economic growth. The Washington based global financial watchdog and biggest financial backer, is also keen to boost its surveillance role of […]
Singapore may soften ban on civil society involvement in World Bank-IMF meet
Singapore September 15, 2006 (LBO) — Singapore Friday appeared to be willing to soften on an earlier ban of allowing civil society groups to participate in the annual World Bank-IMF meetings next week, following sharp objections from the international lenders “However, we cannot guarantee that all 27 activists will be admitted to Singapore,” it said. […]
Will economic growth give political space for Sri Lanka to escape poverty?
SINGAPORE September 15, 2006 (LBO) – In addition to curries, saris and a passion for cricket, Sri Lanka shares similar problems with South Asian countries, but rapid economic growth is now creating the ‘political space’ for policy and institutional reforms, the World Bank said. “The Sri Lankan government was (last year) elected on a platform […]
Sri Lanka’s central bank combats inflation with negative real rates
Sept 15 (LBO) – Sri Lanka’s central bank said it was not raising interest rates despite expanding money supply, rising inflation and real interest rates being negative. . The bank said it was holding the repo rate at which excess money is drained from the banking system at 9.125 percent, and reverse repo rate, the […]
’s money changers to up collections, but new tax pushes dollars underground
Sri Lanka’s central bank is asking the country’s licensed money changers to raise more dollars to be allowed to continue in business. They are expected to buy foreign exchange from tourists and those who return from working abroad and deposit it in commercial banks. According to their license, money changers cannot sell foreign exchange back […]
Sri Lanka government dollar bond buyers demand higher yields and shorter maturities
Sept 13 (LBO) – Buyers of Sri Lanka government dollar bonds have demanded higher yields, and shorter maturities, at the latest action which closed this week. At the dollar bond auction which closed this week, weighted average yield for 2-year bonds were 144.06 basis points above the London Interbank Offered Rate (LIBOR) while the premium […]
Sri Lanka’s Industrial Finance may have to relax credit policies to grow faster: Fitch
Sept 13, (LBO) – Fitch Ratings has given a BB+ (lka) rating with a stable outlook for Industrial Finance Limited (IFL), a company which operates mainly in Sri Lanka’s western province, but the agency said it may have to relax credit policies and boost capital if it wanted to grow faster. Though the company had […]
‘s economy expands by 7.9% 1H06
September 12, 2006 (LBO) – Sri Lanka’s economy grew at a blistering pace of 7.9 percent for the six months to June the Central Bank governor said, aided by growth in manufacturing, services and agriculture produce. Analysts say reserve growth has tapered off since mid 2006, and the government has ratcheted up dollar borrowings to […]
Sri Lanka earns US$ 220 mn in foreign investments
September 12, 2006 (LBO) – Sri Lanka has bagged 220 million dollars in direct investments for the six months to June, the island’s key promotional agency said Tuesday, with money mainly coming from telecommunications and IT sectors. However, the BOI says smaller investors are also difficult to monitor or control, with some cases of fraud […]
Sri Lanka raises US$105 mn in dollar bonds
September 12, 2006 (LBO) – Sri Lanka Tuesday raised 105 million dollars through a bond issue aimed at the domestic market.The Sri Lanka Development Bonds carries tenures of two and three years and the Central Bank said the issue was oversubscribed when the issue closed this evening. The bank accepted 70 million dollars in two-year […]
Sri Lanka expects 7.7% GDP in 2Q06; plays host to Commonwealth Ministers parley this week
Sept 11, 2006 – (LBO) Sri Lanka’s recent economic growth performance fits well with the underlying theme of the upcoming Commonwealth Finance Ministers’ meeting, a top official said. “We have had economic growth of 8.1 percent in the first quarter and 7.7 percent is expected in the second quarter,” Deputy Governor of Sri Lanka’s Central […]