All Stories in Economic

Interest-Rate Pressure for Corporates

Interest-Rate Pressure for Corporates

Fitch Ratings expects rising domestic interest rates to hurt Sri Lankan corporates over the next 12 months. Their borrowing costs have increased more than 200bp in the 12 months to March 2017 as the Central Bank of Sri Lanka increased policy rates by 125bp and …

Shares hit 5-1/2-week closing low

Shares hit 5-1/2-week closing low

Sri Lankan shares on Tuesday hit their lowest close in more than five weeks due to profit-booking in blue chips, although foreign investors actively bought into the island nation’s risky assets. Foreign investors were net buyers of 389.9 million rupees worth of shares, extending the …

Shares fall on profit-taking

Shares fall on profit-taking

Sri Lankan shares snapped two straight sessions of gains on Friday on profit-booking in telecom stocks such as Dialog Axiata Plc, while investors assessed the impact of deadly floods that hit rubber and tea plantations last week on exchange rate and inflation. Analysts said it …

A country trapped in debt

A country trapped in debt

Normally the roads leading to Asian ports are bustling. Trucks loaded with cargo. Small shops where lorry drivers and workers take a tea break. Hambantota port in southern Sri Lanka is starkly different. Despite being open for seven years, the access road looks barely touched. …

Poverty high in the North – Eastern Provinces

Poverty high in the North – Eastern Provinces

Sri Lanka’s central bank will study the growing indebtedness in Tamil-majority north and east, its Governor Indrajit Coomaraswamy said. “We are concerned about the rise in household debt,” the governor said, referring to a prevalent post-war challenge facing families that are rebuilding their lives. Following …

Shares end near one-year high

Shares end near one-year high

Sri Lankan shares ended marginally higher on Friday, near a one-year high, led by gains in blue chips such as Ceylon Tobacco Company Plc and conglomerate John Keells Holdings Plc. Stockbrokers said they expect the bullish trend to continue next week with the central bank …

Chinese Buyers Behind Surging Demand For Latest Bonds

Chinese Buyers Behind Surging Demand For Latest Bonds

A surge in demand for Sri Lanka’s latest dollar bond is putting a spotlight on the appetite for emerging-market securities, even amid the Federal Reserve’s tightening campaign. The small South Asian country garnered more than $11 billion of orders for the $1.5 billion of 10-year notes …

IMF reaches staff-level agreement

IMF reaches staff-level agreement

On May 3rd the IMF announced that it had reached a staff-level agreement with the government of Sri Lanka in the second review of the country’s existing extended fund facility (EFF). Analysis It seems likely that the conclusion of the staff-level discussions will clear the way for …

Rupee edges up

Rupee edges up

The Sri Lankan rupee ended slightly higher on Thursday as exporters sold the dollar and a statement from the International Monetary Fund (IMF) that it may review the country’s request to complete a second loan review boosted the sentiment. The move comes a day after …

Sri Lanka faces trade, human rights link

Sri Lanka faces trade, human rights link

The pain of Sri Lanka’s civil war, which ended in May 2009, continues to haunt residents in the eastern coastal town of Batticaloa and its surrounding villages. Punyamurthi Jeyatheepa, a 32-year-old social worker, is still searching for her husband, Pathmashri, who left their home on …