The document provides an economic capsule covering various topics in banking/finance, the economy, and global updates. In banking, it notes that Commercial Bank of Ceylon was recognized as Sri Lanka's best bank for the 21st time and highest ranked bank in the BTTop 40 for the 14th consecutive year. On the economy, it discusses Sri Lanka's industrial production slipping, a slump in private sector credit, and China's Sinopec entering Sri Lanka's retail fuel market. Globally, it covers the US debt ceiling limit debate, China overtaking Japan as the top car exporter, and the IMF revising its forecast of no recession for Britain in 2023.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
2. CONTENTS
BANKING & FINANCE
CBC results 31 03 2023
ComBank adjudged the ‘Best Bank in Sri Lanka’ by Global Finance for 21st time
ComBank is highest ranked bank in BTTop 40 for 14th consecutive year
ECONOMY, BUSINESS & DEVELOPMENT
Key points of recent IMF visit
NCPI – April 2023
Foreign investments in government securities
Sri Lanka’s industrial production slips on softening global market conditions
Slump in credit to private sector
China’s Sinopec seals deal to enter Sri Lanka’s retail fuel market
Sri Lanka promises EU to present plan to lift import restrictions by June
News Snippets
GLOBAL UPDATE
US “Debt ceiling limit” Saga
China overtakes Japan as world's top car exporter
“Britain would not enter into a recession this year” - IMF
After Iran Deals, Indian Lender Spurs RupeeTrade With Russia
News Snippets
Research & Development Unit
5. Research & Development Unit
ComBank adjudged the ‘Best Bank in Sri Lanka’ by Global
Finance for 21st time
The Commercial Bank of Ceylon has been recognized as
Sri Lanka's Best Bank once again by the US-based Global
Finance magazine, at its 30th annual awards ceremony
for the World's Best Banks 2023, reaffirming the Bank's
reputation as the top performer in the country's financial
industry.
This is the 21st occasion that Commercial Bank has won this title. Global Finance considered factors
that ranged from the quantitative objective to the informed subjective.
Objective criteria included: growth in assets, profitability, geographic reach, strategic relationships,
new business development and innovation in products. Subjective criteria included the opinions of
equity analysts, credit rating analysts, banking consultants and others involved in the industry. Award
winners were selected by the editors of Global Finance after extensive consultations with corporate
financial executives, bankers and banking consultants, and analysts throughout the world.
6. Research & Development Unit
ComBank is highest ranked bank in BTTop 40 for 14th
consecutive year
The Commercial Bank of Ceylon led Sri Lanka’s
banking sector when it received the Business
Today Top 40 award.
Business Today said an analysis of the diverse portfolios of the ranked companies provides a broader
picture of the profits and the risks undertaken by these corporates as they worked with resilience,
passion, and dedication while gracefully embracing the challenges.
This represents the 14th consecutive year that Commercial
Bank became the highest-ranked bank and one of the five
best-performing companies in Sri Lanka overall, in the
Business Today ranking. The ranking, based on the 2021-
2022 results of companies, recognised the top corporate
performers that reported positive financial growth amidst
the turbulent situation of the country.
8. Research & Development Unit
Key points of recent IMF visit
“Following strong policy efforts, the macroeconomic
situation in Sri Lanka is showing tentative signs of
improvement, with inflation moderating, the
exchange rate stabilizing, and the Central Bank
rebuilding reserves buffers.
However, the overall macroeconomic and policy
environment remains challenging.
“Performance under the IMF program will be formally assessed in the context of the first review of the Extended
Fund Facility arrangement, which is expected to be undertaken in September 2023
Discussions were made on additional fiscal efforts that will be critical to ensure successful revenue mobilization.
IMF is observing the debt restructuring progress and achieving timely restructuring agreements with creditors in line
with the program targets by the time of the first review will be essential to restoring debt sustainability.
Government should keep up the reform momentum and ensuring timely implementation of program commitments,
including to ensure CBSL independence, improve governance, and protect the vulnerable are key for Sri Lanka to
emerge from the crisis.” Source: https://www.imf.org/en/News/Articles/2023/05/22/pr23167-sri-lanka-imf-staff-concludes-visit-to-sri-lanka
9. Research & Development Unit
NCPI – April 2023
Source: DCS
Year on year April 2023 March 2023
NCPI Headline 33.6% 49.2%
NCPI *Core 31.8% 44.2%
NCPI Year on year April 2023 March 2023
Food inflation 27.1% 42.3%
Non food inflation 39.0% 54.9%
April national inflation is also the lowest in 14 months when the consumer prices
rose at 21.5% in March, last year.
*Core inflation excludes volatile food, energy and transport prices
10. Foreign investments in government securities
Research & Development Unit
Foreign holdings of T bills and T bonds rose to Rs
150.52bn during the week ended 18 May 2023.
Sri Lanka securing an IMF program and talks about
domestic and foreign debt restructuring have
contributed to increase foreign investor appetite towards
government securities.
However, this figure is far less than 2017 levels.
Foreigners held government securities worth Rs324.32bn
as at end December 2017.
Increased foreign inflows through the bond market is one reason behind the rupee’s
recent resurgence.
(As of 24 May, the USD/LKR middle rate published by CBSL was 304.61)
Source: CBSL
11. Research & Development Unit
Sri Lanka’s industrial production slips on softening global
market conditions
Sri Lanka’s industrial production
slipped in March from February as
most of the manufacturing
segments weakened on the back
of softening global demand and
also precarious local market
conditions.
P - Provisional
The Index of Industrial Production (IIP) is an abstract number, the
magnitude of which represents the status of production in the
industrial sector for a given period of time.
Its main purpose is to provide a measure of the short-term changes
in the volume of industrial production from the manufacturing sector
in the country.
The IIP provides Information to gauge industrial performance and to
forecast the future economic performance.
It can be used to identify the turning points in economic development at an early stage. The major advantage of the production index compared to other indicators is the
combination of fast availability and detailed breakdown of activities
Source: DCS
12. Research & Development Unit
Slump in credit to private sector
The months-long descent in credit to the private sector
turned more pronounced in March as such credit reported
a net de-growth of Rs.107.6bn, nearly doubling from the
Rs.57.6bn contraction in February 2023. (5.1% YoY decline
in March 2023)
The larger decline in net credit to the private sector
demonstrates that the economy was still in decline
although it might have turned a corner and found some
footing with the improvement in the foreign currency
conditions in the country and the deceleration in the
consumer prices.
Source: CBSL
13. Research & Development Unit
China’s Sinopec seals deal to enter Sri Lanka’s retail fuel
market
In a significant move to address Sri Lanka’s
fuel supply challenges, a contract agreement
was signed with Sinopec, a leading
international petroleum company. The
agreement, signed on 22 May, marks a
crucial step in ensuring a steady and
uninterrupted fuel supply for the nation.
Source: President’s Media Division
The license grants Sinopec to import, store and distribute fuel in Sri Lanka for a 20-year period while bringing in
competition to the country’s duopoly retail fuel market dominated by state-owned Ceylon Petroleum Corporation
(CPC) and Lanka Indian Oil Company (LIOC).
A key requirement for new retail suppliers entering the market is their ability to secure forex requirements, without
depending on the domestic banking sector. “It was mandated that these companies source their own funds for fuel
procurement through foreign sources, at least during the initial one-year period of operation” PMD report said.
14. Research & Development Unit
Sri Lanka promises EU to present plan to lift import
restrictions by June
Sri Lanka has promised the European Union
(EU), the country’s second largest trading
partner, to present a plan by June to lift the
import restrictions that came into place in 2020
as a measure to hold on to the fast-depleting
foreign exchange reserves.
This was conveyed during the 25th session of Sri Lanka - EU Joint Commission that was
held virtually on April 25, 2023.
Sri Lanka expressed its intention towards a gradual phasing out of the restrictions,
factoring in the current economic conditions.
15. News Snippets
Research & Development Unit
Confectionery industry cuts retail
prices as consumption drops
The local confectionery industry is
witnessing a consumption drop of over 25%,
due to the escalation of the prices of all
product ranges and to remedy the situation,
a decision has been taken by Lanka
Confectionery Manufacturers Association
(LCMA) to reduce the prices.
Galadari Hotel to proceed with proposed refurbishment
after 4-year hiatus
Galadari Hotels (Lanka) PLC has decided to proceed with the
proposed refurbishment of the 450-room hotel after a 4-year
hiatus, of which details are yet to be finalised.
EU backing for Sri Lanka on climate change adaptation
The European Union (EU) has expressed its willingness to extend
support to Sri Lanka as it adapts to the impacts of climate change.
The EU has said it is committed to working with Sri Lanka to help
the country build a more resilient and sustainable future.
Net foreign assets (NFA) of banking system
Net foreign assets of banking sector, which
turned negative amid the economic crisis
has returned to positive territory as banks
have improved their foreign currency
liquidity. NFAs which moved to positive
territory in February to around Rs 61bn has
further improved to Rs 80.3bn in March
2023.
Manufacturing activities dropped in April
Following the seasonal pattern, Sri Lanka’s manufacturing PMI
decreased to 34.7 in April 2023, indicating a month-on-month
contraction in manufacturing activities. Services sector PMI remained
slightly below the neutral threshold, recording an index value of 49.6
in April 2023
17. US “Debt ceiling limit” Saga
Research & Development Unit
“Debt ceiling limit” in simple terms is a lid
on government spending/borrowing. For
USA, this lid on US government borrowing
affects only the ability to pay existing bills,
not to approve more spending.
• The US is getting close to the current federal debt limit of nearly USD 31.4tn, at which point it could lose the
ability to meet all payment obligations
• US treasury secretary Janet Yellen says that point could arrive by June 1 2023.
• Since January her department has been using extraordinary measures to keep paying debts.
• US debt ceiling was created in 1917 to make it easier to fund the World war 1. With World War II looming in
1939, US congress created its first aggregate debt limit.
• Since 1953 the debt ceiling limit has been raised 12 times.
• Leaders of both major political parties (Democratic and Republican) acknowledge that the debt limit must be
raised, because the gap between government spending and revenue is so large.
18. US Debt ceiling limit Saga (Cont.)
Research & Development Unit
• But Republicans, who took control of the *House of Representatives on Jan. 3 and blame high inflation on spending
during President Biden’s first two years in office, want to pair a debt limit hike with spending cuts.
• On April 26, House Republicans passed a bill that would raise the debt ceiling by USD 1.5tn in exchange for
USD 4.8tn in budget deficit cuts over 10 years.
• Speaker Kevin McCarthy has called that bill — which on its own stands little chance of passing the **majority-
Democratic Senate — an opening offer that he is willing to use to strike a deal with Biden, who has said that raising the
debt ceiling is non-negotiable and shouldn’t be conditioned on any other action.
• President Biden and McCarthy, has so far failed to reach a deal to, but has vowed to keep talking. Both men described
their hours-long meeting at the White House on Monday (22 May) as “productive” and suggested an agreement was
within reach
• If US fails to raise their debt limit and suspends mandatory government payments, it will lead to credit rating
downgrades on US treasury securities and loss of business confidence.
*US Congress (legislative system) has two chambers
– House is the lower chamber
** – Senate is the higher chamber
Any law or bill will be passed if they receive majority vote of both House and the Senate.
Presently Republicans have the majority of the House and Democrats have the majority of Senate. Hence implementation of laws, bills has become harder due to their
differences.
Sources: Bloomberg, US Senate
19. China overtakes Japan as world's top car exporter
Research & Development Unit
China says it has become the world's biggest exporter
of cars after overtaking Japan in the first three months
of the year.
Officials figures released in the last week show China
exported 1.07mn vehicles in the period, up 58%
compared to the first quarter of 2022.
At the same time Japan's vehicle exports stood at 954,185, after edging up 6% from a year earlier.
China's exports were boosted by demand for electric cars and sales to Russia. Last year, China overtook
Germany to become the world's second largest car exporter.
According to China's General Administration of Customs, China exported 3.2mn vehicles in 2022,
compared to Germany's 2.6mn vehicle exports.
The shift away from fossil fuels has helped fuel the rise of China's motor industry.
Source: BBC
20. “Britain would not enter into a recession this year” - IMF
Research & Development Unit
Source: CNBC
The IMF said that Britain would not enter into a
recession this year, revising earlier predictions that its
economy would shrink by 0.3% in 2023.
It now expects GDP to grow by 0.4%. The fund said that
resilient demand had bolstered Britain’s ailing
economy, but warned that the outlook for growth
“remains subdued” and that inflation is still “stubbornly
high”.
The U.K. economy grew by 0.1% in the first quarter 2023, following an unexpected contraction in March,
official figures showed
The construction sector expanded by 0.7%, while manufacturing performance went up by 0.5% in the
first quarter, with 0.1% growth logged in services and production.
21. After Iran Deals, Indian Lender Spurs RupeeTrade With
Russia
Research & Development Unit
Source: Bloomberg
A state-run bank India used to skirt sanctions is spurring trade with Russia by using
rupees as payment and expects to see more deals as Moscow gets increasingly locked
out of the global financial system.
UCO Bank, which handled India’s purchases of Iranian crude and managed billions of
dollars of frozen payments, is now a key bank facilitating trade with sanctions-hit
Russia in rupees.
UCO Bank, among the smallest of the state-owned banks by market capitalization, facilitates the
transactions through a special rupee account with Gazprombank, which acts as an agent to execute
withdrawals and deposits for Russian businesses. Gazprombank is one of the main channels used for
paying for oil and gas.
22. News Snippets
Research & Development Unit
IMF raises 2023 Asia-Pacific growth
forecast
The International Monetary Fund raised its growth
forecast for Asia-Pacific (4.6%), saying the region’s
growth will be primarily driven by China’s recovery
and “resilient” growth in India. This comes as the
rest of the world braces for slower growth from
tightened monetary policy and Russia’s invasion of
Ukraine.
Global Central Bank policy decisions
The Federal Reserve raised interest rates by a quarter point (0.25%) on 03
May, the tenth rate hike since the central bank started its battle against
inflation last March. The Federal Reserve’s interest-rate increases have
helped consumer-price growth to slow since its peak in June (Annual
inflation dropped to 4.9% in April 2023). Markets are betting that the Fed
will soon pause the run of rate rises, though the labour market is still
running hot. Employers created 253,000 jobs in April 2023, well above
estimates.
The Bank of England raised its benchmark interest rate for the twelfth
consecutive time on 11 May, lifting it by 0.25% to 4.5%, its highest level
since 2008. Annual inflation in Britain has remained stubbornly high, well
above inflation in America and the euro area. The bank said that further
rate rises were on the cards, if inflationary pressures persist
European Central Bank too increased its policy rates by a further 0.25%
on 04 May to 3.75%.
The Reserve Bank of Australia surprised markets when it raised its rate by
0.25%, to 3.85%. The bank had left the rate on hold in April, suggesting
that a rapid run of increases was over.
Natural gas prices in EU drop
The price of natural gas in Europe fell to its lowest
level since July 2021. Alternatives to Russian energy
and a mild winter that has left gas stocks in good
shape were factors in the benchmark Dutch ttf
contract (Dutch ttf is a virtual trading hub for gas in
the Netherlands and is the primary gas pricing hub
for the European gas market) falling to just over
Euro 35 (USD 38) a megawatt hour (mwh).
Last August the price peaked at more than
Euro 300 a mwh as Russia squeezed its supplies.
23. The views expressed in Economic Capsule are not necessarily those of the Management of Commercial Bank of Ceylon PLC
The information contained in this presentation has been drawn from sources that we believe to be reliable. However, while we have taken reasonable care to maintain
accuracy/completeness of the information, it should be noted that Commercial Bank of Ceylon PLC and/or its employees should not be held responsible, for providing the
information or for losses or damages, financial or otherwise, suffered in consequence of using such information for whatever purpose.
< Research & Development Unit >
Emerging from the economic crisis
“Sri Lanka has for a long-time dreamt of joining Global Value Chains (GVCs) with little
success. Now GVCs are coming to India and as a result right to Sri Lanka’s doorstep.
This offers Sri Lanka a second chance to make its long-standing dream a reality. By
focusing on supply chain integration and resilience, ETCA like agreements can help Sri
Lanka to put itself on the map of GVCs that is being redrawn”.
Subhashini Abeysinghe and Mathisha Arangala from Verite Research.