Sri Lanka targets US$ 100 b by 2015
Sri Lanka is setting its sights on a US$ 100 billion economy by 2015, by increasing savings to 35%, accelerating FDIs, improving the capital market, and introducing what Central Bank Governor tagged as the “productivity factor”.Central Bank Governor Ajith Nivard Cabraal noted that to move from the current US$ 59 billion to reach the targeted amount will require an annual productivity increase from 2% in the country’s economic agenda and by using materials such as currency carefully by the population.(http://colombostockwatch.com/2012/10/sri-lanka-targets-us-100-b-by-2015/)
On 18th October 2012
Sri Lanka Central Bank to sell down Treasury bill stock: Governor
Sri Lanka's Central Bank will gradually sell down its Treasury bill stock, as they come up for maturity, Governor Nivard Cabraal said, in a move which can strengthen the island's rupee peg and increase foreign reserves.Sri Lanka's Central Bank has a little over 200 billion rupees in Treasuries it acquired during a balance of payments crisis in 2011 and 2012 when it printed money sterilize liquidity shortages stemming from foreign exchange sales.
(http://www.lbo.lk/fullstory.php?nid=1380736744)
On 12th October 2012
Asia growth to slow, but to remain fastest in world: IMF
The International Monetary Fund has downgraded Asia growth to 5.4 percent in 2012 from 6.0 percent with European troubles hurting export demand and domestic slowdowns in India and China.Asian growth in the first half of 2012 was the lowest in 2008, the IMF said releasing its World Economic Outlook report for the Asia Pacific region.
(http://www.lbo.lk/fullstory.php?nid=653746728)
On 02nd October 2012
Small Hydro Power Association cries foul over PUCSL’s move
The Small Hydro Power Association (SHPA) yesterday cried foul over the sudden withdrawal of new tariff announced by the Public Utilities Commission (PUCSL) and warned the move by regulator had put 50 MW of renewable energy at stake.
It said that developers and the investors of the renewable energy sector are hit by what SHPA described as “rather surprising and unprofessional” move by PUCSL when it withdrew the announced tariff for year 2012-2103 through its official web site on 11 September 2012 in the afternoon.Surprisingly, this web announcement came only few hours after the official announcement of tariff for renewable energy for years 2012 and 2013 was published in four national newspapers in all three languages on the morning of the same day.
(http://www.ft.lk/2012/10/02/small-hydro-power-association-cries-foul-over-pucsls-move/)
On 28th September 2012
Sri Lanka rupee strengthens
Sri Lanka's rupee strengthened above 130 to the US dollar in the spot market Thursday with banks being short of cash for six straight days while longer term market interest rates continued to ease.The spot US dollar which opened around 129.85/130.00 rupees strengthened to around 129.00/30 to the dollar later in the day.
(http://www.lbo.lk/fullstory.php?nid=270420006)
On 18th September 2012
Sri Lanka keeps policy rates unchanged, says credit slowing
Sri Lanka's Central Bank kept its key policy rate at which money is injected to the economy at 9.75 percent saying credit was slowing and balance of payments pressure and inflation was easing.The central bank said average monthly bank credit volumes had fallen to about 27 billion rupees from April to July compared to 52 billion rupees in the first quarter of 2012. The central bank said credit volumes were now good enough to keep the economy ticking with the economy estimated to have grown 7.2 percent in the first half of 2012.(http://lbo.lk/fullstory.php?nid=1772388889)
On 06th July 2012
Sri Lanka in final talks over India coal joint venture
Sri Lanka's state-run Ceylon Electricity Board is in the final stage of discussions with India's National Thermal Power Corporation to build a 500 MegaWatt coal plant, an official said."We are in final stage of discussion," deputy chairman of Sri Lanka's Ceylon Electricity Board Anura Senaka Wijayapala said.(http://www.lbo.lk/fullstory.php?nid=2002131785)
On 05th July 2012
Sri Lanka expropriated sugar firms begin to hit tax payers
Two sugar mills expropriated by the state last year has begun to burden ordinary citizens with the finance ministry channeling 557 million rupees from taxes extracted from the people to the firms. A mid-year fiscal report to parliament revealed that 550 million rupees had been given to cover day to day expenses of two expropriated firms, Pelwatte and Sewanagala Sugar Industries.(http://www.lbo.lk/fullstory.php?nid=486571697)
On 04th July 2012
Sri Lanka foreign financiers headed by India up to April 2012
India has committed 740.8 million US dollars out of 1,015 million US dollars of foreign financing to Sri Lanka in the first four months of 2012, including 275.1 million US dollars as an outright grant, official data shows.(http://www.lbo.lk/fullstory.php?nid=1913652670)
Big boost as US GSP is back on track
Sri Lanka’s external relations have received a boost following the decision by the US to continue with its duty free Generalised System of Preference (GSP) program for trade after a review that took over three years.
United States Trade Representative Ron Kirk announced on Friday said that the USTR has closed the GSP country practice review on worker rights in Sri Lanka without any change to Sri Lanka’s GSP trade benefits.
Following the loss of the European Union’s GSP+ a few years ago, the future of the US scheme had been in the balance with some fearing its end as well.(http://colombostockwatch.com/2012/07/big-boost-as-us-gsp-is-back-on-track/)
On 02nd July 2012
Sri Lanka budget deteriorates up to April
Sri Lanka's budget deficit has doubled in the first four months of 2012, with current spending growing at twice the rate of tax revenues and leading to unprecedented reliance on bank financing, official data show.(http://www.lbo.lk/fullstory.php?nid=2071161587)
Sri Lanka's inflation accelerates to 9.3-pct in June
Sri Lanka's consumer prices rose 9.3 percent in June 2012 from a year earlier, accelerating to a three and a half year high, from 7.0 percent in May, data from the state statistics office showed.The statistics office said Sri Lanka's Colombo Consumer Price Index rose 1.9 percent during the month of June to 165.2 points.(http://www.lbo.lk/fullstory.php?nid=240589093)
On 27th June 2012
Sri Lanka Treasuries yields up
Sri Lanka's Treasuries yields rose across maturities at Wednesday's auction with 6-month yields rising most by 14 basis points to 12.47 percent, data released by the state debt office showed.The 3-month yield rose 08 basis points to 11.12 percent and the 12-month yield rose 10 basis points to 12.88 percent.(http://www.lbo.lk/fullstory.php?nid=377379017)
Sri Lanka rupee hits new low
Sri Lanka's rupee hit new lows near 134 to the US dollar in the spot market Wednesday and spot-next deals went for as much 134.15, dealers said as excess liquidity increased in the banking system.Excess rupee liquidity in the banking system rose to 10.8 billion rupees Tuesday from 7.5 billion rupees on Monday, indicating that the Central Bank was buying inflowing dollars and flooding the markets with rupees.(http://www.lbo.lk/fullstory.php?nid=693659621)
Sri Lanka’s bourse looks at GICS classification for equities
Sri Lanka’s stock exchange plans to work with Standard and Poor’s to adopt an international standard to re-classify companies into sectors on the Colombo bourse, an official said.Global Industry Classification Standard or GICS, was developed by Morgan Stanley Capital International (MSCI), and Standard &Poor’s (S&P). (http://www.lbo.lk/fullstory.php?nid=1424015218)
On 26th June 2012
Sri Lanka state banks, insurers among top contributors to budget
Sri Lanka's state banks, two insurers and a state airport agency are among the top contributors to the budget by levies and dividends a finance ministry report showed.State-run National Savings Bank paid 4,560 million as levies, the Peoples' Bank 4,500 million rupees and Bank of Ceylon 4,500 million rupees.(http://www.lbo.lk/fullstory.php?nid=1996571848)
Sri Lanka economic forum to probe ease of doing business
An annual economic forum next month organized by Sri Lanka's Ceylon Chamber of Commerce will have a session focusing on the ease of doing business in the island.The Sri Lanka Economic Summit will be held in Colombo from July 10 to 12, held for the 13th successive year will have a session on 'Ease of Doing Business- Sri Lanka ranked 89- Fact or fiction?'.(http://www.lbo.lk/fullstory.php?nid=1380430380)
On 25th June 2012
Sri Lanka budget off track in first quarter 2012
Sri Lanka's budget has gone off track in the first quarter of 2012, with current spending far outpacing tax revenues, leaving a yawning revenue deficit for the three months that is bigger than the gap for the whole of last year.Current spending by Sri Lanka's rulers rose 24.2 percent in the first quarter of 2012 to 334.8 rupees, above the annually expected growth of 10.1 percent, while taxes extracted from the people only rose 5.6 percent to 228.0 billion rupees.(http://www.lbo.lk/fullstory.php?nid=1529960921)
Sri Lanka tourism receipts up 25-pct to May
Sri Lanka has earned 399.3 million US dollars from tourism in the first five months of 2012, up 25.5 percent from the 318.1 million US dollars earned a year earlier, official data showed.Tourist arrivals rose 18.2 percent to 387.622 in the same period. Sri Lanka's tourist sector has been booming since the end of a 30-year war in 2009.(http://www.lbo.lk/fullstory.php?nid=1130449751)
On 20th June 2012
Sri Lanka tea production down in May
Sri Lanka's tea production fell 8.4 percent to 30.8 million kilograms in May 2012 from a year earlier, the state tea promotion office said as the country was hit by dry weather.High grown tea fell to 7.36 million kilos from 9.0 kilos, mediums fell to 5.58 million kilos from 6.0 million and low growns fell to 17.8 million kilos from 18.6 million in May, from a year earlier.(http://www.lbo.lk/fullstory.php?nid=1437280216)
Sri Lanka thermal power generation up
Sri Lanka's thermal power generation had picked up sharply in the first quarter of 2012 with total generation up 8.8 percent from a year earlier while hydro generation fell steeply, official data shows.Total generation rose 8.8 percent to 2,956 GigaWatt hours (millions of units) indicating strong demand in the quarter. (http://www.lbo.lk/fullstory.php?nid=1354903656)
Sri Lanka Treasuries yields up
Sri Lanka's Treasuries yields rose across maturities with 6-month bill picking up the most at Wednesday's auction, data released by the state debt office showed.The 3-month yield rose 09 basis points to 11.04 percent, the 6-month yield rose 18 basis points to 12.47 percent and the 12-month yield rose 11 basis points to 12.87 percent.(http://www.lbo.lk/fullstory.php?nid=1866014603)
On 19th June 2012
Sri Lanka state-carrier raises US$175mn from Islamic loan
Sri Lanka's state-run SriLankan Airlines had raised 175 million US dollars through an Islamic loan from banks in the United Arab Emirates chairman Nishantha Wickramasinghe said.Mashreq Bank lead managed the loan, with four other UAE based banks chipping in, which will give four year financing for Sri Lankan Airlines to the equivalent of 175 million US dollars.(http://www.lbo.lk/fullstory.php?nid=331957975)
On 18th June 2012
Sri Lanka warned to be careful about forex swaps by IMF
Sri Lanka should be careful about the inflationary effects of liquidity created by large foreign exchange swaps with the Central Bank, an International Monetary Fund official said.Sri Lanka's central bank has bought hundreds of millions of dollars from commercial banks that raised loans abroad for rupees through swaps to give then foreign exchange risk protection, creating large volumes of rupees.(http://www.lbo.lk/fullstory.php?nid=1670452217)
Sri Lanka eyes new deal with IMF as bailout draws to a close
Sri Lanka is eyeing a new deal with the International Monetary Fund with the end of three year program in July 2012 whose success was marred at its tail end by a new balance of payments crisis triggered by energy price manipulations.The three year 2.5 billion US dollar program restored confidence of international lenders, allowing the country to access foreign capital, boost growth to 8.0 percent and reduce inflation to low single digits for almost three years.(http://www.lbo.lk/fullstory.php?nid=1168877483)
Sri Lanka economy grows 7.9% in first quarter: statistics office
Sri Lanka’s economy expanded by a slower 7.9 percent during the first quarter of this year, from the same period a year earlier, dragged down by a fall in farm output, the national statistics office said. (http://www.lbo.lk/fullstory.php?nid=742496337)
On 15th June 2012
Sri Lankans suffering due to wrong policy: legislator
Sri Lankans are suffering due to wrong economic policy actions especially those involving state interventions in markets that are backfiring, a legislator who has earlier raised red flags about the balance of payments has said.(http://www.lbo.lk/fullstory.php?nid=489578175)
US to conclude review on GSP “soon”
Refuses to set timeline but happy with worker rights progress, reiterates need to improve investment environment
The US is satisfied with the “significant” progress of Sri Lanka’s worker rights and has expressed hope that a key concessional tax scheme will be concluded soon, a top official said yesterday.Assistant US Trade Representative for South and Central Asia Michael Delaney on concluding a visit to Sri Lanka told the media that discussions between the Government and other stakeholders have been fruitful and the negotiations have reached an “advanced stage”.(http://colombostockwatch.com/2012/06/us-to-conclude-review-on-gsp-soon/)
On 14th June 2012
Sri Lanka Treasuries yields up
Sri Lanka's Treasuries yields edged up at Wednesday's auction with the three and six month yields picking up data from the state debt office showed, while pressure also developed on forex markets.The 3-month yield rose 9 basis points to 10.95 percent, the 6-month yield rose 17 basis points to 12.29 percent and the 12-month yield rose one basis points to 12.67 percent.(http://www.lbo.lk/fullstory.php?nid=534611588)
On 13th June 2012
Sri Lanka May tourist arrivals up 17.5 percent
Tourist arrivals to tropical Sri Lanka, surged 17.5 percent in May, over the same month a year earlier, as visitors took advantage of the post-war peace three-years since the ethnic conflict ended.The tear-shaped island attracted 57,506 visitors in May, Sri Lanka Tourism said Tuesday, which helped raise arrivals from January to May by 18.2 percent to 387,622.
(http://www.lbo.lk/fullstory.php?nid=13825539)
Sri Lanka overnight rates at new high amid forex pressure
Sri Lanka's overnight interest rates rose to a high of 10.50 percent Tuesday, the highest since a balance of payments crisis began in the middle of 2011, as the rupee sank to a new low against the US dollar.Excess liquidity (the aggregate clearing balance of the banking system) remained below a billion rupees for the third day and some banks borrowed up to 1.5 billion rupees from the Central Bank's 9.75 percent reverse repurchase widow.(http://www.lbo.lk/fullstory.php?nid=42442000)
Sri Lanka policy rate unchanged, growth projected at 7.2-pct for 2012
Sri Lanka is maintaining it key policy interest rate at which money is injected to the banking system at 9.75 percent, and the growth is expected to be 7.2 percent for 2012, despite a contraction in trade, the Central Bank said.(http://www.lbo.lk/fullstory.php?nid=487237302)
On 12th June 2012
Sri Lanka among countries that cut Iran oil purchases: Clinton
Sri Lanka, India, Malaysia, Korea, South Africa, Turkey and Taiwan has been recognized as countries that have significantly cut oil imports from Iran, US secretary of state Hilary Clinton has said.Financial institutions of countries that traded with Iran faced the possibility of being penalized in international trade settlements by the United States, under sanctions imposed on Iran unless oil purchase volumes were cut.(http://www.lbo.lk/fullstory.php?nid=1901709296)
Sri Lanka rupee weakens to new low
Sri
Lanka's rupee was quoted as low as 133.60/90 to the US dollar in
intra-day spot trade Tuesday and recovered following some selling by a
state bank, dealers said as emerging data showed a gradual contraction
in external trade.Central Bank governor Nivard Cabraal said emerging economic data is
showing that imports are falling faster than exports and the rupee
should gain strength.(http://www.lbo.lk/fullstory.php?nid=342576844)
Sri Lanka's foreign reserves at US$5.8bn by April
Sri Lanka's foreign reserves rose to 5,835 million US dollars in April from 5,730 million US dollars in March, which was equal to about 3.3 months of imports, the Central Bank said.Though reserves are measured in months of imports, when a central bank sells foreign exchange to defend an exchange rate target, and sterilizes the sales with printed money to prevent interest rates going up, a rapid downward spiral starts in the economy.(http://www.lbo.lk/fullstory.php?nid=1589508103)
On 11th June 2012
TABLE-Sri Lanka April trade deficit widens 2.6 pct
Sri Lanka's April trade deficit edged up 2.6 percent year-on-year to $761 million, central bank data showed on Monday. (http://in.reuters.com/article/2012/06/11/srilanka-economy-trade-idINL3E8HB5QS20120611)
Sri Lanka energy utility circular debt up
Sri Lanka's state-run Ceylon Petroleum Corporation (CPC) has run debts of 65 billion rupees with other state entities by May 31 and talks are on to clear them with a Treasury bond, a minister has said.Petroleum minister Susil Premjayantha has told parliament furnace oil is still being sold to state-run Ceylon Electricity Board at a loss 37 rupees a litre.(http://www.lbo.lk/fullstory.php?nid=1964553873)
Sri Lanka rupee weakens, rates up
Short term rates picked up as liquidity dried up in money market and the spot US dollar rose as high as 131.80/90 Monday, dealers said.Overnight call money rates rose to around 10.00/15 percent levels from and repos were quoted around 9.10/20 percent levels.(http://www.lbo.lk/fullstory.php?nid=1833383517)
Sri Lanka exports drop 9.2 percent April
Sri Lanka's exports fell 9.2 percent to 680.1 million dollars in April, while the country’s import bill slipped 3.3 percent to 1,441.0 million dollars, due to slower sales of apparels and tea, official data showed.Industrial exports, which include garments, rubber products and food, fell 8.7 percent to 520.0 million dollars in April, as against the same month 2011, the Central Bank of Sri Lanka said Monday.(http://www.lbo.lk/fullstory.php?nid=1832030797)
Sri Lanka's foreign reserves at US$5.8bn by April
Sri Lanka's foreign reserves rose to 5,835 million US dollars in April from 5,730 million US dollars in March, which was equal to about 3.3 months of imports, the Central Bank said.Though reserves are measured in months of imports, when a central bank sells foreign exchange to defend an exchange rate target, and sterilizes the sales with printed money to prevent interest rates going up, a rapid downward spiral starts in the economy.(http://www.lbo.lk/fullstory.php?nid=1589508103)
On 11th June 2012
TABLE-Sri Lanka April trade deficit widens 2.6 pct
Sri Lanka's April trade deficit edged up 2.6 percent year-on-year to $761 million, central bank data showed on Monday. (http://in.reuters.com/article/2012/06/11/srilanka-economy-trade-idINL3E8HB5QS20120611)
Sri Lanka energy utility circular debt up
Sri Lanka's state-run Ceylon Petroleum Corporation (CPC) has run debts of 65 billion rupees with other state entities by May 31 and talks are on to clear them with a Treasury bond, a minister has said.Petroleum minister Susil Premjayantha has told parliament furnace oil is still being sold to state-run Ceylon Electricity Board at a loss 37 rupees a litre.(http://www.lbo.lk/fullstory.php?nid=1964553873)
Sri Lanka rupee weakens, rates up
Short term rates picked up as liquidity dried up in money market and the spot US dollar rose as high as 131.80/90 Monday, dealers said.Overnight call money rates rose to around 10.00/15 percent levels from and repos were quoted around 9.10/20 percent levels.(http://www.lbo.lk/fullstory.php?nid=1833383517)
Sri Lanka exports drop 9.2 percent April
Sri Lanka's exports fell 9.2 percent to 680.1 million dollars in April, while the country’s import bill slipped 3.3 percent to 1,441.0 million dollars, due to slower sales of apparels and tea, official data showed.Industrial exports, which include garments, rubber products and food, fell 8.7 percent to 520.0 million dollars in April, as against the same month 2011, the Central Bank of Sri Lanka said Monday.(http://www.lbo.lk/fullstory.php?nid=1832030797)
On 8th June 2012
Sri Lanka to choose lead managers for bond sale
Sri Lanka has received proposals from eight investment banks for a sovereign bond planned for the second half of 2012, which are being evaluated, Central Bank Governor Nivard Cabraal said.Bank of America, Citi, JP Morgan and HSBC are among the respondents. (http://www.lbo.lk/fullstory.php?nid=93158011)
On 7th June 2012
Sri Lanka short term Treasuries yields fall
Sri Lanka's short term Treasury bill yields fell as much as 15 basis points at Wednesday's auction though one year yields edged up slightly, data from the state debt office showed.The three month yield fell 15 basis points to 10.86 percent and the 6-month yield fell 17 basis points to 12.12 percent. But the 12-month yield edged up 6 basis points to 12.66 percent, data released by the state debt office, a unit of the Central Bank showed.(http://www.lbo.lk/fullstory.php?nid=55523131)
Sri Lanka in final run to demutualise stock exchange
Sri Lanka is putting the final touches to a draft bill to demutualise, or make the Colombo Stock Exchange a shareholder owned limited company, the island's Securities and Exchange Commission (SEC) said.(http://www.lbo.lk/fullstory.php?nid=1480713174)
Sri Lanka car registrations fall in IQ
Sri Lanka's motor car registrations fell 16.1 percent in the first quarter of 2012 to 12,496, with a steeper 23.3 percent fall to 4,246 in the month of March, official data show. Interest rates on leases, which are used to buy cars, had gone up steadily since the last quarter of 2011 and the rupee also fell steeply in March, pressured by earlier sterilized sales of foreign exchange by the central bank.(http://www.lbo.lk/fullstory.php?nid=1623539198)
Sri Lanka vehicle transshipping drive flagged off by Hyundai
Vehicle transshipment from Sri Lanka is getting underway, with Asia's second largest automaking group starting to use a new port in the south of the island, where up to four vessels are expected to call each month.(http://www.lbo.lk/fullstory.php?nid=1682743129)
On 6th June 2012
Sri Lanka's Board of Investment approves over US$ 730 million worth projects this year
Sri Lanka's Board of Investment, the state investment promotion agency has granted approval for 54 new projects in the first quarter of 2012, a 100 percent increase over the same period in last year, the Ministry of Economic Development reported. The income from the approved projects is estimated to be 96.3 billion rupees (about US$ 739 million) of which 49 billion rupees are from foreign investments and the rest is from domestic investments. (http://www.colombopage.com/archive_12/Jun05_1338913148CH.php)
On 5th June 2012
Sri Lanka fuel consumption doubled in three years
Sri Lanka's consumption of petroleum products has doubled in the three years since the end of a war an official said, as economic activity picked up requiring more energy to run the economy.Demand for petroleum products is going up despite higher prices, said R H S Samaratunga, secretary, Petroleum Industries Ministry.(http://www.lbo.lk/fullstory.php?nid=1839703137)
Sri Lanka calls for investments in import substitution
Sri Lanka's finance ministry has called businesses to invest more in import substitution businesses, saying hundreds of millions of dollars are being spent to bring such goods from foreign countries.(http://www.lbo.lk/fullstory.php?nid=495522160)
On 1st June 2012
Sri Lanka's inflation accelerates to 7.0-pct in May
Consumer prices in Sri Lanka's capital Colombo rose 7.0 percent in May 2012 from a year earlier, up from 6.1 percent in May with the inflation index rising 1.4 percent in the month, the state statistics office said.(http://www.lbo.lk/fullstory.php?nid=905603386)
On 31st May 2012
Sri Lanka's cbank says rupee outlook unchanged from 125Sri Lanka's central bank said on Thursday it still believed the battered rupee would stabilise at levels stronger than 125 to the dollar, despite comments from a senior bank official.Chief economist Swarna Gunaratna told Reuters on Wednesday that the central bank expected the currency to stabilise at current levels, which are now around 132.(http://in.reuters.com/article/2012/05/31/srilanka-rupee-idINL4E8GV31820120531)
Sri Lanka short term treasuries yields fall
Sri Lanka's 3-month Treasury bill yield fell 57 basis points to 11.01 percent, following the trend in secondary markets, while the 12-month yield edged up slightly at this week's auction, official data showed.The 6-month yield fell 3 basis points to 12.29 percent and the 12-month yield rose 10 basis points to 12.60 percent at Wednesday's auction, the state debt office which is a unit of the Central Bank said.(http://www.lbo.lk/fullstory.php?nid=811832949)
Sri Lanka exports drop 10.2-pct in March, import growth slows
Sri Lanka's exports dropped 10.2 percent to 835.7 million US dollars in March, a month that saw the steepest depreciation in years, while imports grew just 3.9 percent to 1,697 million US dollars, pointing to a slowing economy.The central bank said industrial exports dropped 10.9 percent to 624.2 million US dollars with apparel dropping 11.7 percent to 319.4 million US dollars.(http://www.lbo.lk/fullstory.php?nid=1303586733)
On 30th May 2012
Sri Lanka rupee weaker, rates steady
Sri Lanka's rupee was quoted weaker around 131.40/50 to the US dollar in the spot market Tuesday while bond yields were flat from a day earlier, dealers said. The rupee has weakened from around 129 rupees to current levels the US dollar over the past three weeks as rupee liquidity levels remained high particularly after a large unsterilized dollar purchase.(http://www.lbo.lk/fullstory.php?nid=1610845154)
On 29th May 2012
Market’s misery worsens
The stock market’s misery worsened yesterday with the benchmark All Share Index (ASI) dipping below the psychological 5,000 points level whilst year to date a staggering Rs. 371 billion in value has been wiped off.(http://www.ft.lk/2012/05/29/markets-misery-worsens/)
Sri Lanka kicks off flood control program in Colombo
Sri Lanka has begun a five-year 223 million dollar programme to stop flooding and improve storm water drainage in the capital Colombo, which has been worsened by rapid filling of wetlands in the city.Partly funded by the World Bank, officials plan to expand canals, water retention tanks and related infrastructure development by 2017.(http://www.lbo.lk/fullstory.php?nid=1072974941)
On 28th May 2012
Sri Lanka makes case for directed lending push
Sri Lanka's Treasury secretary P B Jayasundera said banks should lend more to agriculture and slammed lenders for financing too much trade and consumption activities.He said only about 3.0 percent of total credit is given to the tea sector, about 0.5 percent to fisheries. "Instead money goes to consumption loans, trade, motor vehicle finance," Jayasundera told reporters.(http://www.lbo.lk/fullstory.php?nid=1942842097)
Sri Lanka's tallest tower for US$250mn by India property group
Indocean Developers (Pvt) Ltd, a company backed by India's South City Projects (Kolkata) Ltd, will begin work in September on a 400-apartment tower that will have a project value of 250 million US dollars, officials said.(http://www.lbo.lk/fullstory.php?nid=65186924)
Sri Lanka throws open its $ 1 b packaging sector to SMEs
Sri Lanka has thrown open it $ 1 billion packaging sector for the vital SMEs. It also wants the packaging sector to enter exports sector targeting India and China. “Since the future of packaging, appear to head towards niche consumer markets, and our region’s major buyers India and China are demanding more and more packaging products and services, I believe our packaging industry can now open itself to the Asian region for its future growth thereby becoming a key contributor to our national exports goal of $ 20 billion by 2020.(http://www.ft.lk/2012/05/26/sri-lanka-throws-open-its-1-b-packaging-sector-to-smes/)
On 25th May 2012
Sri Lanka to grow 7.0-pct in 2011, drought may hit growth: Treasury Secy
Sri Lanka's economy will expand around 7.0 percent in 2012, but a drought can hit agricultural output which may undermine growth, Treasury Secretary P B Jayasundera said."We think the economy will grow around 7.0 percent," Treasury secretary P B Jayasundera said. "Nobody should under-estimate the prevailing drought conditions. That we have not calculated."(http://www.lbo.lk/fullstory.php?nid=1133772277)
On 24th May 2012
Sri Lanka ships, plucks less tea in April
Sri Lanka, one of the world’s biggest tea exporters, produced and shipped less of the brew for the four months to April this year, due to poor weather and unrest in key markets, official figures showed.(http://www.lbo.lk/fullstory.php?nid=176902262)
Sri Lanka Treasuries yields fall across maturities
Sri Lanka's Treasuries yields fell across maturities at Wednesday's auction with the 3-month yield slipping 41 basis points to reach 11.58 percent, around the levels seen in the secondary market over several days.(http://www.lbo.lk/fullstory.php?nid=2038764827)
Sri Lanka capital facelift gets US$213 from World Bank
A plan to give a facelift to Sri Lanka's capital Colombo by sprucing up key roadsides rehabilitating lakes and wetlands and reducing flooding will be backed by a 213 million US dollar World Bank loan, the finance ministry said.(http://www.lbo.lk/fullstory.php?nid=1926958461)
On 23rd May 2012
Rs. 37 b fresh boost from World Bank
- Concessionary financial assistance for two new major projects in education and urban development
In this context, it was decided to expedite development programs which have already been formulated pertaining to the above sectors with foreign assistance.(http://www.ft.lk/2012/05/23/rs-37-b-fresh-boost-from-world-bank/)
SEC unveils new, tougher rules post NSB-TFC fiasco
1. General rule changes:
- Prohibit employees and directors of all market intermediaries to trade (buy shares and sell within six months of buying) except in the case of IPO purchases. Investments (over six months) are allowed.
- Crossings transactions to have 20% upper limit unless exceptionally allowed by the CSE on a case by case basis. Clarification in this regard to be communicated to the CSE.
- Current 15% margin before trade execution to be strictly enforced including for NSB.
- To have a more robust enforcement mechanism with clearly defined punitive measures for violations of rules by stockbroker firms, CEOs, directors and investment advisors. Clarification in this regard to be communicated to the market shortly. (http://www.ft.lk/2012/05/23/sec-unveils-new-tougher-rules-post-nsb-tfc-fiasco/)
On 22nd May 2012
Sri Lanka state bank chair quits following stock deal
Pradeep Kariyawasam, the chairman of Sri Lanka's state-run National Savings Bank had resigned ahead of more fresh planned protests by the lender's trade unions, over a controversial stock deal, media reports said. (http://www.lbo.lk/fullstory.php?nid=45040201)
On 21st May 2012
Sri Lanka benefits from new $2bn SAARC currency swap
Sri Lanka is among the South Asian countries, who will benefit from a 2.0 billion dollar currency swap arrangement set up by India, a statement said.Funded entirely by India, the swap facility will enable the central banks of Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka to borrow funds in dollars, euros and Indian rupees, the Indian High Commission in Colombo said Monday.(http://www.lbo.lk/fullstory.php?nid=995289588)
Sri Lanka plans rice exports to South Africa
Sri Lanka is in talks with a South African commodity firm to export 20,000 tonnes of rice lying at Paddy Marketing Board, a state-run grain purchasing firm, officials said.Agriculture minister Mahinda Yapa Abeywardene said discussions have been initiated to sell 'red-rice' to South Africa at about 370 dollars a tonne (about 48 rupees a kilogram with the US dollar at 129 rupees). (http://www.lbo.lk/fullstory.php?nid=549105086)
Market Expects Rate Hike
Wednesday’s Treasury (T) Bill auction saw the shorter 91 day T Bill fall by 12 basis points (bps) to 11.99%, while the weighted average yields (WAYs) for the “longer” tenure 182 and 364 day T Bills climbed up by 10 and nine bps each to 12.40% and 12.58% respectively.
Demand in the market was for the shorter tenure with an expectation of a future policy rate hike, a market source told this newspaper. With price increases effected by the Government on essential goods and services during the past three months coupled with the rupee depreciation after its free float, that has caused inflationary pressure on the economy, tending for rates to rise to arrest such a situation.(http://www.thesundayleader.lk/2012/05/20/market-expects-rate-hike/)
Sri Lanka starts exporting maize
Sri Lanka's will export its first consignment of maize on May 22, filling a part of a 10,000 tonne order to Taiwan and Canada as domestic production picks up pace, officials said.Shahul Sadikeen, head of Wayamba Traders said he had received an order for 10,000 tonnes of maize and inquiries for more.(http://www.lbo.lk/fullstory.php?nid=804600874) On 18th May 2012
Divided tea industry brews export rebound in March
The industry may be currently involved in infighting, but tea exports have made a welcome rebound in March after suffering sharp declines in the previous two months of the New Year.
Overall exports grew by Rs. 1.1 billion or 7.4% to Rs. 16 billion in March aided by better performance by tea shipments in bulk and in packets though tea in bags continue to struggle.The rebound in March comes after tea exports in January dipped by 19% to $ 104 million and further by 11.6% to $ 105 million in February, over their performance in the respective months in 2011. The dips in the first two months of 2012 have also resulted in first quarter performance marginally negative over the corresponding period of last year.
(http://colombostockwatch.com/2012/05/divided-tea-industry-brews-export-rebound-in-march/)
Sri Lanka bond yields ease
Sri Lanka's bond yields edged lower as more money as earlier increases in rates drew more money into the market, and short term rates fell below this week's auction prices dealers said.On Thursday a 3-month Treasury bill which dropped on Wednesday's auction to 11.99 percent from 12.19 a week earlier traded as low as 11.50 percent and closed around 11.40/60 percent, dealers said.(http://www.lbo.lk/fullstory.php?nid=1853066023)
On 16th May 2012
Sri Lanka April tourist arrivals up nine percent
Sri Lanka's tourist arrivals rose 9.0 percent to 65,591 in April this year, which helped raise the number of holidaymakers for the first four months of 2012 to 330,116, official data showed Wednesday.(http://www.lbo.lk/fullstory.php?nid=1422553046)
Sri Lanka short term Treasuries yields drop
Sri Lanka's three month Treasuries yields dropped, though longer tenures moved up with record volumes of bills being sold by open auction, data released by the state office showed.The 3-month yield dropped 20 basis points to 11.99 basis points, the 6-month yield rose 10 basis points to 12.40 percent and the 12-month yield rose 09 basis points to 12.58 basis points. The debt office, which is a unit of the Central Bank said 20.8 billion rupees of bids were accepted from the market after 15 billion rupees were offered. The state sold 10.2 billion rupees of 3-month bills, 9.4 billion rupees of 6-month bills and 1.1 billion rupees of 12-month bills. (http://www.lbo.lk/fullstory.php?nid=1214580165)
Sri Lanka tea exporters say they do not want low quality imports
Sri Lanka's major tea exporters, who have made a proposal to liberalize tea imports to make the island a global centre for tea, say they do not want to import low quality teas for re-export. Sri Lanka's Tea Exporters Association has made a proposal to liberalize tea imports for re-exports a move that is opposed by Dilmah, a successful brand owned by Sri Lanka's MJF group, which says that Sri Lanka should preserve its single origin status. (http://www.lbo.lk/fullstory.php?nid=1214580165)
Sri Lanka gets Japanese help to map a transport plan for Colombo metropolis
Sri Lanka’s Transport Ministry on Wednesday secured a Japanese grant to draw-up a master transport plan for the Colombo metropolitan region.With financial assistance from the Japan International Cooperation Agency (JICA), the study will focus on identifying methods to ease traffic congestion and transport difficulties faced by people in the Colombo city and suburbs, JICA said in a release.The statement did not give the quantum of the grant. (http://www.lbo.lk/fullstory.php?nid=266746988)
Rubber futures falls to 4-month low: report
October rubber futures in Tokyo fell to a 4-month low of 265 yen a kilogram (3,317 dollars a tonne) before settling at 270.1 yen on the Tokyo Commodity Exchange, a media report said.Bloomberg newswires said rubber was still up 2.5 percent in 2012. September futures on the Futures Exchange fallen 0.7 percent to (3,906 dollars) a ton.
(http://www.lbo.lk/fullstory.php?nid=2145362110)
