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Fitch revises outlook Banks

Fitch revises outlook Banks

Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of the following Sri Lanka-based banks: – National Savings Bank (NSB) at ‘B+’; Outlook Negative – Bank of Ceylon (BOC) at ‘B+’; Outlook Negative – DFCC Bank PLC (DFCC) at ‘B+’; Outlook Negative Fitch has …

Rating upgrade depends on meeting IMF conditions

Rating upgrade depends on meeting IMF conditions

Support from the IMF has helped to mitigate external liquidity risks and reduced the medium-term default risks in several frontier markets that entered into new programmes in 2016, Fitch Ratings says. However, potential improvements in sovereign credit profiles will depend on each country’s level of …

Defending rupee not ‘sensible’

Defending rupee not ‘sensible’

Sri Lanka’s central bank governor Indrajith Coomaraswamy on Tuesday said defending the rupee with foreign exchange reserves ‘doesn’t seem sensible’ as it has always been followed by a sharp depreciation in the currency. Coomaraswamy’s comments come days after the central bank, which earlier had defended …

Sri Lanka drifting

Sri Lanka drifting

Sri Lanka is in a period of dangerous policy drift with mediocre governance which is inherently unstable with the danger of falling back to a ‘big man illiberal’ politics is getting nearer, a top economist and policy analyst has said. It is two years since …

Sri Lanka’s commitment to fiscal consolidation faces downside implementation

Sri Lanka’s commitment to fiscal consolidation faces downside implementation

Moody’s Investors Service says that Sri Lanka’s (B1 negative) program with the International Monetary Fund (IMF) has helped stabilize the balance of payments and established an ambitious roadmap to fiscal consolidation and structural reform. However, sustained implementation of reforms will be challenging. The 2017 budget …

$1.34B World Bank loan

$1.34B World Bank loan

Sri Lanka has secured $1.34 billion in loans from the World Bank to boost the cash-strapped island’s economy over the next three years, the finance ministry said Saturday. The loans would be at concessionary rates and repayments spread out over 15 years, the ministry said …

The 2016 fiscal targets are within reach

The 2016 fiscal targets are within reach

The International Monetary Fund (IMF) said Sri Lanka’s performance under its Extended Fund Facility (EFF) “broadly satisfactory” and praised the Government for exceeding targets in revenue collection but warned increasing …

Construction loans a key driver of loan growth

Construction loans a key driver of loan growth

Moody’s Investors Service has maintained its stable outlook on Sri Lanka’s banking system, as moderate economic growth and reduced external volatility should keep operating conditions for the country’s banks stable. “Continued strong loan growth may put downward pressure on asset quality and liquidity conditions, but …

Weak economic freedoms hurting

Weak economic freedoms hurting

Sri Lanka’s sharp hikes in tax rates and weak economic freedoms are undermining the hotel investment environment, despite a firm government desire to allow the sector to grow and generate more revenue, frontier market investors said. A recent budget has hiked corporate income tax sharply …

Shares hit near 8-mth low

Shares hit near 8-mth low

Sri Lankan shares fell on Tuesday for the third straight session to end at a near eight-month low as foreign investors trimmed their exposure to the island nation’s risky assets amid concerns over budget tax proposals. The Colombo stock index ended 0.11 percent down at …