Govt. allocates highest amount in history for debt repayment in 2019

The government has allocated little over Rs.2,057 billion for debt servicing in 2019—the highest amount allocated from a budget in the history of Sri Lanka.

CB plans sovereign bond issue this year

Sri Lanka may go for an International Sovereign Bond (ISB) issue before the end of this year on top of the plans to raise US $ 500 million through Panda and Samurai bonds.

US bond yield curve: Should we worry if it inverts?

In global economic growth, divergence across economies is widening. The US keeps posting robust expansion, with a whopping 4.2 percent of annualized quarter-on-quarter growth in 2Q 2018, the fastest since 3Q 2014. While Japan’s expansion picked up further in 2Q, the European Union’s was lacklustre, losing some of the steam gained from 2017. 

Demand growth and urbanisation fuel Sri Lanka’s retail sector

The rising demand and an accelerating population shift to major urban centres are driving activity in Sri Lanka’s retail sector, with a series of large-scale developments to launch in the coming months; however, the recent pressures on domestic spending power could curb the sales in the shorter term.

EPF to only invest in shares approved by Monetary Board

As the Employees’ Provident Fund (EPF) prepares for its re-entry into the country’s stock market, they would most likely to be “conservative” in their investment approach and invest only in shares of a list that is currently being prepared.

Rupee hits all-time low; stocks recover

(Colombo) REUTERS: The Sri Lankan rupee hit a fresh low yesterday due to dollar demand from importers and foreign banks amid outflows from 

LOLC group entities to delist shares; list debt securities to remain in bourse

Three LOLC group companies have decided to pull out their shares from the Colombo Stock Exchange (CSE) as they failed to meet the minimum public holding requirement.

EPF to only invest in “list of shares” approved by Monetary Board

As the Employees’ Provident Fund (EPF) prepares for its re-entry into the country’s stock market, they would most likely to be “conservative” in its investment approach and invest only in shares of a “list” that is currently being prepared.

Emerging market rout prompts Sampath Bank to suspend bond issue

Sampath Bank PLC yesterday said it decided to suspend its planned dollar bond issue quoted in the Singapore Exchange as the unfriendly international capital market conditions have prompted the issuer to rethink about the timing of the issue.  

EU says “time is ripe” for SL to implement logistic sector reforms

Sri Lanka’s snail-paced efforts towards reforms in the maritime and logistics space was frowned upon by the Europe Union (EU) yesterday, pointing out that “the time is ripe to accelerate structural and regulatory reform” in the island nation. As the country continues to harp o

Central Bank says hopeful of 4% growth this year

Sri Lanka’s Central Bank is hopeful that the island nation’s US $87 billion economy would grow at least 4 percent this year, despite both International Monetary Fund (IMF) and Asian Development Bank (ADB) revising down their growth forecasts to 3.8 percent recently. Sri Lanka’s eco

Bank credit accelerates in August despite tight market conditions

The growth in bank credit accelerated in August despite the tight credit and money conditions and rising non-performing loans in the  banking sector. 

Dollar rally hurting Sri Lanka and other emerging markets

The Sri Lankan Rupee in the last eight weeks has taken a beating like many other Asian currencies as a result of the dollar rally.  The government rightly pointed out that many of the other currencies had taken a bigger beating. This week the rupee hit a fresh low of 169.05 on Wednesday on importer dollar demand, intervention by the Central Bank limited the fall.

Joint marketing strategy needed to boost tourism, exports: Navin

Plantation Industries Minister Navin Dissanayake has called for a joint marketing strategy to promote Sri Lanka or the Ceylon brand to market the country’s exports and tourism products, pointing out that the individual marketing campaigns are less effective to compete with the top  global brands. 

Dr. Radhika Coomaraswamy appointed to JKH board

John Keells Holdings PLC (JKH) yesterday announced the appointment of Dr. Radhika Coomaraswamy to its board as an Independent Non-Executive Director with effect from October  1, 2018.

Plantation sector wage negotiations still in deadlock

The regional plantation companies (RPC) and plantation trade unions are in deadlock over the terms for a fresh collective agreement on wages, as the trade unions haven’t agreed to the offer made by the RPCs.

Indo-Pacific big enough for both China and India

In a move that heralds greater bilateral cooperation, Chinese Defence Minister Lieutenant General Wei Fenghe paid his first visit to India in  August 2018. 

Rupee extends recovery ahead of rate decision; stocks down

(Colombo) REUTERS: The Sri Lankan rupee closed firmer yesterday, further recovering from a record low touched last week as banks sold dollars ahead of the Central Bank’s monetary policy meeting while shares fell for a third straight session to hit a four-and-a-half-year low amid foreign outflows.

Rupee under pressure – How not to crack

The Sri Lankan currency (LKR) has weakened against the US dollar in 2018 (9.4 percent as at September 26, 2018) with close to 4 percent of the depreciation being recorded in the last two weeks. Currencies like the Indian rupee, Indonesian rupiah and the Philippines peso have also seen steep depreciation so far in 2018. The weakness is in the backdrop of adverse global and local factors.

HNB gets US $ 20mn ADB loan to fund microfinance sector

Hatton National Bank PLC (HNB) yesterday announced the signing of a new partnership agreement with the Asian Development Bank (ADB) in order to expand lending and provide guarantees of up to US $ 20 million to support the development of Sri Lanka’s burgeoning microfinance sector.

Why stock market is irrational?

The stock market is a place where investors with different knowledge and experience levels gather and take their investment decisions for their best interests. 

Brent oil hits highest since 2014 before US sanctions on Iran bite

(London) REUTERS: Brent crude oil hovered close to its highest since November 2014 yesterday, supported by supply concerns before the US sanctions against Iran come into force next month.

MTD Walkers gets investor consent to delay debenture redemption

MTD Walkers PLC last Friday said it had obtained consent from the majority debenture holders to delay the redemption of their debentures by a year, with a promise to offer an additional 2 percent interest.

Fuel-led prices push September inflation up; but overall prices moderate from August

Fuel prices-led transport and other non-food items continued to nudge the prices in Colombo higher in September, but increased supplies in vegetables and coconut kept overall prices under check moderating the month’s inflation. 

CB seen raising rates to support rupee despite sluggish growth

(Colombo) REUTERS: Sri Lanka’s Central Bank is expected to raise its key interest rates tomorrow, a Reuters poll showed, to prop up the rupee amid foreign outflows from government bonds and after the U.S. Federal Reserve raised rates earlier this week. 

Govt. tightens grip on consumption imports to ease pressure on rupee

The government last Saturday imposed a series of temporary measures to cut consumption imports drastically with a view of fending off the pressure on rupee, which has depreciated over 10 percent so far this year against the US dollar.   

Planters blame government’s ad-hoc policy making for low RPC productivity

Regional Plantation Companies (RPCs) last week blamed the government’s ad-hoc policy decision for low productivity of their plantations, which is adding to the financial woes of the already reeling 

‘League of Multinational Corporates’ launched

A consortium of leading multinational corporations in Sri Lanka last week officially launched League of Multinational Corporates (LMNC), a business association that will promote the island nation’s economic potential and initiate a dialogue with the government on the issues and opportunities in the investment landscape.  

Ryanair faces fresh strike in Europe

BRUSSELS (AFP) - Ryanair cancelled scores of European flights yesterday as unions staged what they warned could be the biggest strike in the airline’s history. The Dublin-based carrier has played down fears of widespread disruption but confirmed it would cancel nearly 250 flights. Walk-outs 

Sued by Starbucks, Indian coffee chain changes name

NEW DELHI (AFP) -  An Indian coffee shop chain rhyming with Starbucks and with a similar logo has agreed to change its name after being sued by the US giant, the Indian firm said yesterday.