Banking sector asset quality has deteriorated during the first half of this year due to the slowdown in economic activity. Sector profitability also has taken a hit from substantial impairment charges on gold loans as a result of tumbling gold prices, an earnings report showed.
The Sri Lankan economy grew 7 percent in the second quarter (2Q) accelerating from the 6 percent growth reported in the first quarter of 2013, Central Bank Governor Ajith Nivard Cabraal said in an interview with Bloomberg in Hong Kong.
Acknowledging openly that there is a liquidity issue with Sri Lanka’s bloated finance sector, the Central Bank on Saturday said it would provide liquidity to any troubled finance company with immediate effect.
At the tea auctions held on September 3, 2013, an invoice of New J.S.P. BOPF achieved an all-time record price of Rs.760 per kg for the low grown category.
A visiting Israeli business delegation has expressed interest in harnessing Sri Lanka’s free trade agreements (FTAs) to carry out trade with the countries in the Asian region, a statement issued by the Board of Investment (BoI) said.
The most popular Chinese aid comes with the condition of Chinese labour being used in those projects and the interest rates of those loans are also on the high side comparable to some other multilateral donors, according to an eminent economist.
Treasury bill yields remained flat at yesterday’s auction held to reissue Rs.9,000 million maturing bills, the Public Debt Department of the Central Bank said.
Governments must seek to improve access to the Internet and resist stifling its usage through regulations in order to derive maximum economic benefit, according to Google Asia Pacific Director Ann Lavin.
Sri Lankan businessmen travelling to countries in the South Asian Association for Regional Cooperation (SAARC) region will soon be able to travel without visa and the SAARC Secretariat has already taken measures to identify them as a separate category under its visa exemption scheme, according to a top official from the SAARC Secretariat.
“Sri Lanka Shines in Beijing,” a Rs. 150 million mega promotional campaign by Sri Lanka Tourism’s promotional arm, Sri Lanka Tourism Promotion Bureau (SLTPB) was concluded in Beijing, China, yesterday with the support of the Chinese government and the Sri Lankan Embassy in Beijing.
Sri Lanka needs to develop its gem and jewellery industry with the country’s tourism sector in mind, and the government is devising plans to expand the two industries simultaneously, a senior minister told a forum yesterday.
The Governor of the Central Bank yesterday said that Sri Lanka was no longer a country which seeks foreign aid but would only need trade with the international community.
Sri Lanka's state-run National Savings Bank (NSB) plans to raise a minimum $500 million through the sale of a likely five-year bond with a target yield around 7 percent, sources close to the deal told Reuters on Monday
The second international sea port in Sri Lanka, Magam Ruhunupura Mahinda Rajapaksa Port (MRMRP) in Hambantota has received 100 vessels since it opened for berthing in November 2010, Sri Lanka Ports Authority (SLPA) said.
All members of the South Asian Free Trade Area (SAFTA) representing approximately 1.6 billion people aim to push for the reduction of their sensitive lists substantially, and for the first time the entire bloc is openly calling for stronger private sector involvement in moving forward.
Sri Lanka’s June trade deficit expanded 25 percent Year-onYear (YoY) to US $ 829.1 million amid a sharp increase in import expenditure, though trade gap for the first six months narrowed 7.1 percent YoY to US $ 4.55 billion.
Sri Lanka’s Treasury yields edged down at yesterday’s Treasury bill auction with bids for 3-month bills were rejected, a press statement issued by the Public Debt Department of the Central Bank showed.
Fitch Ratings in a report yesterday said Sri Lanka’s strong economic growth is attracting foreign capital but foreign direct investment inflows remain modest compared with rated peers, leading to rising external indebtedness.
While observing the economic imbalances building up in Sri Lanka with the pickup in growth in private sector credit, a global rating agency, Standard & Poor’s Rating Services (S&P) identified the country’s banking sector as having a very high risk in the South and South East Asian region, slightly better than only Vietnam and Cambodia.
Central Bank said the country has received US $ 537 million worth Foreign Direct Investments (FDIs) in the first half of 2013.
Loose regulatory guidelines with regard to gold-backed loans have been identified a key contributor to a ‘runaway growth’ in pawning loans, exposing the Sri Lankan banking industry to higher loan defaults, international credit agency Standard & Poor’s (S&P) said in a special report.
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