debt Archives - Ceylon Independent

10Oct

By Faraz ShauketalyNo Comments

Business, Main Story

Mangala adamant economy remains buoyant

Assures country is not near turmoil, says SL has reacted best to regional currency upheaval Confirms only $ 250 m used from reserves to manage currency crunch SL to pay Rs. 1.9 trillion for debt servicing this year, 83% for loans obtained by Rajapaksa administration Points out that tax revenue up 12.3% in first four months, optimistic of year-end economic growth of 4% Affirms 33,875 projects under Gamperaliya program proceeding, disburses Rs. 5.4 b under Enterprise Sri Lanka Says UNP will forge ahead toward next presidential election despite obstacles By Charumini de Silva Rebuking Opposition claims, the United National Party (UNP) yesterday said the economy was not facing a crisis but the Government was enacting sustainable policies as opposed to dangerously populist...

CBSL refutes Nomura’s analysis that SL economy risks currency crisis

11Sep

By Faraz ShauketalyNo Comments

LOCAL, Main Story

CBSL refutes Nomura’s analysis that SL economy risks currency crisis

Nomura Holdings Inc., releasing their latest analysis, lists Sri Lanka among the seven emerging economies at risk of an exchange-rate crisis, reported several foreign media. Nomura’s “Damocles” model –an early warning model – showed Sri Lanka, South Africa, Argentina, Pakistan, Egypt, Turkey and Ukraine as the next in line for an exchange rate crisis. The economists used eight indicators as they tried to predict the next emerging market currency crisis - import cover, short-term external debt/exports, exchange rate reserves/short-term external debt, broad money/exchange rate reserves and real short-term interest rate. Nomura’s analysis lists Sri Lanka as the country that is most vulnerable to an exchange rate crisis. The article that appeared on www.ft.com quotes Nomura analysts a...

Sri Lankan president’s anger over airline cashew nuts – report

11Sep

By Faraz ShauketalyNo Comments

LOCAL

Sri Lankan president’s anger over airline cashew nuts – report

Sri Lanka’s national airline has been rebuked by President Maithripala Sirisena over some cashew nuts which had been served to him, reports foreign media. President Maithripala Sirisena has complained that, during a recent trip with Sri Lankan Airlines, he was treated to some cashews which were not fit for human consumption. In fact, the irate leader added, they were not even suitable for dogs. The airline, which has at least $1bn of debt, has yet to comment on Mr Sirisena’s outburst. The airline has been dogged by allegations of corruption in recent years, and is currently under investigation by a special presidential commission of inquiry. However, exactly what was so offensive about the nuts is unclear. Speaking at a farmers’ event in southern Sri Lanka on Monday, Mr S...

Former Central bank Governor presents distorted viewpoint on Sri Lanka’s outstanding debt – General Treasury

2Jul

By Faraz ShauketalyNo Comments

LOCAL

Former Central bank Governor presents distorted viewpoint on Sri Lanka’s outstanding debt – General Treasury

Sri Lanka's General Treasury says former Central Bank Governor Ajith Nivard Cabraal in an article published recently under the caption "The Government's Growth Scam" has tried to present a different and distorted viewpoint on the Central Government's financial statement. In his article, Mr. Cabraal has claimed that there is some discrepancy in published statistics on Gross Domestic Product (GDP) and Government's Debt to GDP ratio. The General Treasury in a statement issued by the Finance Ministry has clarified the record on the outstanding Debt to GDP ratio of the Government. The full statement issued by Finance Ministry is given below. General Treasury puts the record straight on Central Government's Outstanding Debt The attention of the General Treasury has been drawn to an a...

Sri Lanka’s Softlogic Holdings to raise Rs. 7 bn with equity sale

25Jan

By Faraz ShauketalyNo Comments

Business

Sri Lanka’s Softlogic Holdings to raise Rs. 7 bn with equity sale

The Board of Softlogic Holdings announced that the company has come to an agreement with Samena Ceylon Holdings Limited, a Mauritius-based company to raise private equity. The private placement of 182.73 million ordinary shares at Rs. 17 per share will Rs. 3.11 billion for Softlogic Holdings PLC to be utilized to settle short-term debt. Subsequently, Samena Capital will hold 19% of the Company. A further issue of 230.81 million shares by way of rights issue to the shareholders of the Company in the proportion of 24:100 at Rs. 17 per share will be made to raise Rs. 3.9 billion. The proceeds from the Rights issue will be used to partly settle the short-term debt and the long-term bank borrowings. The excess of the proceeds if any shall be used by the Company after settling the debt,...

SriLankan Airlines get a new lifeline to solve ‘crisis situation’

28Dec

By Faraz ShauketalyNo Comments

Business

SriLankan Airlines get a new lifeline to solve ‘crisis situation’

Sri Lanka’s national carrier SriLankan Airlines -once a profit making ambassador to the country, has fallen into a debt ridden institution in trouble. It was on the verge of being restructured and board directors coming forward to resign from their positions. However, the troubled Airline has now been given a brand new lifeline. How? – the Cabinet has approved a (US)$175 million loan from ‘Credit Suisse’. According to the Ministry of Public Enterprise Development, the loan will be used to ease the ‘crisis situation’ at the National Carrier. The subject Minister also confirmed the President’s decision to appoint a Presidential Commission to probe internal issues which lead to the financial crisis of Mihin Air and SriLankan Airlines. According to Minister Lakshman Yapa Abey...

Moody’s publishes FAQ on Sri Lanka’s fiscal reforms, exposure to liquidity and external vulnerability risks

18Dec

By Faraz ShauketalyNo Comments

Business

Moody’s publishes FAQ on Sri Lanka’s fiscal reforms, exposure to liquidity and external vulnerability risks

Moody's Investors Service says that Sri Lanka's (B1 negative) high general government debt levels, very low debt affordability, and fragile external payments position continue to present the sovereign with material credit challenges. In particular, persistently high government liquidity and external vulnerability risks will maintain pressure on the sovereign's credit profile, as large external payments come due in 2019-2022. Looking ahead, continued advancement of reforms that support fiscal consolidation and reduce external vulnerabilities under Sri Lanka's current IMF program will be critical to mitigating macroeconomic risks and strengthening the sovereign's credit profile. Moody's analysis is contained in its just-released report titled "Government of Sri Lanka: FAQ on fiscal ...

Government reinstated financial powers vested with the legislature – Premier

14Nov

By Faraz ShauketalyNo Comments

History

Government reinstated financial powers vested with the legislature – Premier

Sri Lanka Prime Minister Ranil Wickremesinghe says the current unity government was able to reinstate the financial powers with the legislature which in the past lost the financial control. He further said that if the financial administration of the country is left to be forgotten, the entire country would have to bear the consequences of such an oversight. The Prime Minister made these observations while participating in the award ceremony held yesterday in parliament to recognize the institutions that showed a high level of performance for the financial year 2015. Commending the chairman of the Committee on Public Accounts of the Parliament (COPA), the Premier thanked the Speaker for strengthening the financial power of the Parliament. "This is a historic moment, Parliament h...

How can you say that the economy is stable? Nalin Hewage questions the PM

6Nov

By Faraz ShauketalyNo Comments

Business

How can you say that the economy is stable? Nalin Hewage questions the PM

Prime Minister Ranil Wickremesinghe went on with his usual talk while speaking in Deniyaya, saying Sri Lanka’s income is increasing. The PM started off saying Sri Lanka’s income is not sufficient to repay the debt. He added that Sri Lanka has been in debt-over-income since 2013. “A country cannot commit suicide. How will we repay this debt? How will we strengthen exports? We need to repay these debts and for that we need to earn. If we are to earn we need to develop. That development needs to be swift. This development needs to capture the export market.” he added. Premier Wickremesinghe says that if loans are not taken to repay the existing debt, Sri Lanka’s economy will “destabilize”. “We can now repay our debt with the income. We can use the surplus for development activitie...