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Sri Lanka imposes 100 pct margin on letter on credit to discourage vehicle imports

Sri Lanka has imposed a 100 percent margin on letters of credit (LC) for motor vehicles with immediate effect to discourage unnecessary imports, Finance Minister Ravi Karunanayake said on Friday, in a move to prevent dollar outflows and further weakening of the rupee...

Sri Lanka’s slowing remittance growth a cause for concern – Analysts

The comparatively slower growth in Sri Lanka’s consistently largest foreign exchange earner, worker remittances in 2015 till to-date is a major concern given the fact that other predominant revenue streams, such as exports, tourism and Foreign Direct Investments (FDI) have also...

Sri Lanka rupee falls 3 pct to record low after c.bank floats – dealers

Sri Lanka's rupee currency fell more than 3 percent to a record low of 139.00 per dollar on Friday after the central bank effectively floated the currency by ceasing to quote its own reference rate. The rupee rebounded in late trade to end the day down 2 percent at 137.25/75....

Interview: Sri Lanka BOP pressured by consumer spending, external woes

Post-war stimulus packages by Sri Lanka’s government have pushed up consumption demand which is now having an adverse impact on the trade deficit and balance of payments. This is one reason for the negative BOP position so far this year, Shiran Fernando at Frontier Research...

Sri Lanka holds rates steady even as credit growth slows

Sri Lanka's central bank on Friday kept policy rates steady at multi-year lows for a seventh straight month, as expected, despite private sector credit growth slowing further. Annual credit growth to the private sector was 2 percent in June, its lowest since April 2010, down...

Sri Lanka cbank switches to public bond auctions after scandal

Sri Lanka's central bank has formally announced that it will issue all treasury bonds by public auction, and no longer by direct placement, responding days before a parliamentary election to criticism of a controversial offering in February. In a statement, the central bank...

Sri Lanka holds rates at record lows, inflation seen easing

Sri Lanka's central bank kept key policy rates steady at record lows on Friday, ahead of parliamentary elections in August and as inflation is expected to ease in the next few months. With economic activity picking up on recovering bank lending and investment, the central bank...

Heavy borrowing of over $ 1 b by Govt. props rates

The Government borrowed more than $1 billion in four days, mostly through local Government securities, Central Bank data showed on Thursday, with economists blaming poor revenues and higher expenditures for the move. The Public Debt Department of the Central Bank borrowed Rs....

Sri Lanka to settle $500 mln bond maturing on Thursday – officials

Sri Lanka will draw on its foreign currency reserves to settle a five-year $500 million sovereign bond maturing on Thursday, central bank officials said, a move analysts say would put pressure on interest rates and the rupee. The officials said the authorities had opted...