The document provides an overview of recent economic and business news items from around the world. It includes summaries of reports from the IMF on Sri Lanka's GDP growth and economic risks. Other sections discuss an ADB loan for road projects in Sri Lanka, the US Federal Reserve's decision to continue monetary stimulus, the US government shutdown, and GDP growth rates in major economies. Brief snippets of business news from Sri Lanka are also presented.
The document discusses Pakistan's currency devaluation and relationship with the IMF. It summarizes that Pakistan frequently borrows from the IMF, which requires meeting economic targets. Recent IMF meetings expressed concerns that Pakistan's currency is overvalued, and debt from China's CPEC projects could strain Pakistan's ability to repay IMF loans. The IMF is calling for currency devaluation and economic reforms, though devaluation often increases inflation and debt in Pakistan without boosting exports.
Factsheet for Birla Sun Life Mutual Fund- WishfinAnvi Sharma
The scheme aims to maximize long term capital appreciation by investing primarily in equity & equity related securities of companies engaged in banking & financial services. The scheme would invest in banks as well as NBFC's, insurance companies, rating agencies, broking companies, etc.
Industrial production and economic growth in Mongolia continued to slow in the first quarter of 2015, with mining and electricity production experiencing weaker growth compared to previous periods. Exports also declined significantly in February and March due to falling commodity prices, worsening the current account balance. Deteriorating asset quality and tighter credit conditions in the banking sector added pressure to the economy.
Whither “7 Percent Club” of Economies - A Review of FY2012 and Outlook for FY...The Growth Institute
- The document analyzes Bangladesh's GDP growth in FY2012 of 6.3% and provides an outlook for FY2013. It reviews key economic indicators in FY2012 such as inflation, private investment, exports, imports and remittances.
- It then summarizes the key aspects of Bangladesh's budget for FY2013, including planned expenditure, revenue targets, deficit, and borrowing. Growth forecasts of 6.5-6.7% are provided for FY2013 contingent on factors like the EU crisis and remittance growth.
- The document concludes by examining how aspects of the FY2013 budget could impact Bangladesh's capital markets, such as tax changes aimed at boosting market participation and corporate
Annual Equity Outlook 2022 | ICICI Prudential Mutual Fundiciciprumf
- The document recaps the key events and market movements of 2021, noting several major turning points that played out as anticipated, including the normalization of stimulus measures, the shift from deflation to reflation, and changing market cycles.
- Going into 2022, the environment is described as akin to shifting sands, with dynamism at its peak. An active management approach is recommended to navigate changing macros and valuations.
- Global liquidity is moderating as central banks withdraw stimulus, which has been a major driver of market changes. Inflation is rising in both emerging and developed economies.
The document discusses Pakistan's currency devaluation and relationship with the IMF. It summarizes that Pakistan frequently borrows from the IMF, which requires meeting economic targets. Recent IMF meetings expressed concerns that Pakistan's currency is overvalued, and debt from China's CPEC projects could strain Pakistan's ability to repay IMF loans. The IMF is calling for currency devaluation and economic reforms, though devaluation often increases inflation and debt in Pakistan without boosting exports.
Factsheet for Birla Sun Life Mutual Fund- WishfinAnvi Sharma
The scheme aims to maximize long term capital appreciation by investing primarily in equity & equity related securities of companies engaged in banking & financial services. The scheme would invest in banks as well as NBFC's, insurance companies, rating agencies, broking companies, etc.
Industrial production and economic growth in Mongolia continued to slow in the first quarter of 2015, with mining and electricity production experiencing weaker growth compared to previous periods. Exports also declined significantly in February and March due to falling commodity prices, worsening the current account balance. Deteriorating asset quality and tighter credit conditions in the banking sector added pressure to the economy.
Whither “7 Percent Club” of Economies - A Review of FY2012 and Outlook for FY...The Growth Institute
- The document analyzes Bangladesh's GDP growth in FY2012 of 6.3% and provides an outlook for FY2013. It reviews key economic indicators in FY2012 such as inflation, private investment, exports, imports and remittances.
- It then summarizes the key aspects of Bangladesh's budget for FY2013, including planned expenditure, revenue targets, deficit, and borrowing. Growth forecasts of 6.5-6.7% are provided for FY2013 contingent on factors like the EU crisis and remittance growth.
- The document concludes by examining how aspects of the FY2013 budget could impact Bangladesh's capital markets, such as tax changes aimed at boosting market participation and corporate
Annual Equity Outlook 2022 | ICICI Prudential Mutual Fundiciciprumf
- The document recaps the key events and market movements of 2021, noting several major turning points that played out as anticipated, including the normalization of stimulus measures, the shift from deflation to reflation, and changing market cycles.
- Going into 2022, the environment is described as akin to shifting sands, with dynamism at its peak. An active management approach is recommended to navigate changing macros and valuations.
- Global liquidity is moderating as central banks withdraw stimulus, which has been a major driver of market changes. Inflation is rising in both emerging and developed economies.
- Markets have shown a flattish trend for the past few weeks due to mixed global news and lack of interesting domestic news. Quarterly earnings will be a key focus.
- The US Fed minutes showed many members supported a rate hike while others wanted rates kept steady. Globally, some nations want softer rates while developed nations prefer harder rates.
- In India, quarterly earnings just began and will be important, with IT companies continuing to disappoint so far. Regional cement players may report better numbers than large caps with nationwide reach. Private banks are expected to report strong results.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
1) The Canadian economic growth forecast for 2011 has been modestly increased to 2.6% due to an improved U.S. economic outlook and expectations that the Bank of Canada interest rate will remain low for longer.
2) Near-term consumer spending growth is expected to be bolstered by sustained low interest rates, though high household indebtedness means spending growth will moderate to a more sustainable pace once rates begin to rise again.
3) Residential investment is expected to be a soft spot for the Canadian economy as housing demand remains soft and inventory remains elevated, dampening construction activity over 2011.
The document provides an analysis of recent events affecting global markets. It discusses two major events: 1) US presidential elections resulting in a victory for Donald Trump and 2) India's demonetization of Rs. 500 and Rs. 1000 currency notes. It summarizes the short-term negative impacts these events will have on certain sectors in India as well as longer-term positive impacts expected, especially in banking, infrastructure, and rate-sensitive sectors. Market indices are expected to remain cautious in the near-term but the analysis maintains a long-term bullish outlook for Indian markets.
The document summarizes Botswana's economic conditions in the second quarter of 2010. GDP grew 7.5% in the first quarter, the first positive growth since late 2008, led by a 10.1% increase in mining output. Non-mining private sector growth was lower at 5.5%. Business confidence improved but remains below pre-crisis levels, and businesses expect slower growth than official forecasts. While conditions are improving, Botswana still faces fiscal challenges from adverse medium-term trends exacerbated by the global crisis.
The document provides an equity market outlook and analysis for the period of Diwali to Diwali (October 2016 to October 2017). It notes that large caps underperformed with returns of 5-6% last year while midcaps saw stronger returns of 19-20%. For the current year, it expects lower double digit returns for large caps and 15-20% returns for mid and small caps. It recommends focusing on sectors with good private demand like financials, automobiles, and consumer durables. Large caps are seen as providing stability but lower returns compared to midcaps where returns of 15% are expected over the next year for those with a higher risk appetite and 2-3 year investment horizon.
- Last week, global equity markets declined sharply due to one bad trading day that rattled investors who had become complacent about continuously rising prices. However, market corrections of 6-8% are normal and investors should focus on investing in good quality stocks during declines rather than withdrawing.
- Concerns remain about instability in Europe's banking system, uncertainty around US interest rates after the election, and potential for Chinese currency devaluation. Wholesale inflation slowed in India while the government may increase public spending to spur growth.
- Key stock indices declined over the past week with the Sensex falling 1.46% while most sectors also ended lower with metals and power dropping the most.
The document provides an outlook on global debt markets in November 2016. It notes that global bond yields are rising rapidly as central banks move away from easy monetary policies. The US 10-year Treasury yield rose to a 5-month high near 1.87% on expectations of a December rate hike by the US Federal Reserve. German and UK bond yields also increased. Global bond markets experienced a significant selloff due to expectations of higher US rates and uncertainty around the ECB's bond purchase program.
- The document provides an economic and market summary for the week of November 14-18, 2016. It discusses developments in global markets, the Indian economy and stock market, and provides commentary on sectors and asset classes.
- Key points include the expectation of US Federal rate hikes in December, the impact of India's demonetization on various industries, and an outlook that Indian stock markets will see further declines in the short-term but provide buying opportunities. Debt markets are also seen as favorable due to expected interest rate cuts.
The document provides an overview and outlook across various asset classes and sectors in India and globally. Some key points:
- Domestic equity markets have seen modest gains of around 8.5% year-to-date despite recent volatility due to political tensions. Bond yields have fallen in India on expectations of further rate cuts.
- Global central banks like the Fed and ECB appear less accommodative but the US economy remains resilient. Growth has slowed in Japan and parts of Europe.
- Automobiles, banks, FMCG and infrastructure sectors are expected to perform well in India, while cement may see a recovery. Select domestic sectors and stocks still appear attractive relative to other emerging markets.
The IMF has cut its growth forecasts for the Mongolian economy in 2013 and beyond due to continued weakness in the global economy, particularly in China. GDP growth in Mongolia is now expected to be 11.8% in 2013, down from a previous forecast of 14%, and growth rates are expected to slow further to 5.8% in 2015 and 3.6% in 2016. Of concern is the rebalancing underway in China towards domestic consumption, which could reduce demand for Mongolia's commodity exports. The World Economic Outlook database shows Mongolia's export growth forecasts have been significantly revised downward.
This document discusses 10 major challenges confronting the Reserve Bank of India and opportunities for commercial banks to address some of these challenges. The challenges include propelling domestic growth, controlling persistent inflation, mitigating external sector vulnerabilities, and improving various aspects of the financial system. It outlines how inflation impacts household savings and investment. It also discusses opportunities for banks in sectors like MSME, agriculture, housing, and infrastructure to help boost growth. Banks can play a role in curbing food inflation through financing supply chains and providing short-term credit to vendors. Addressing these challenges will require balancing monetary policy objectives of growth and inflation.
This document discusses public-private partnerships (PPPs) in Kazakhstan. It provides background on Kazakhstan's experience with PPP projects in infrastructure, particularly in railways. It outlines proposed amendments to Kazakhstan's Law on Concessions to facilitate private sector participation and competition in PPPs. The amendments include co-funding projects, guarantees for loans and infrastructure bonds, and protections against double tariffs for users. It recommends establishing a PPP unit to standardize the PPP process and provide guidance. The document analyzes Kazakhstan's investment climate and economic indicators, finding foreign investment has been strong, particularly in oil and gas, and economic growth has been high in recent years.
This document provides an analysis of Zimbabwe's recent economic slowdown. It discusses factors such as low government expenditure, a shrinking consumer spending capacity due to job losses and high debt, stagnant investment growth, and a widening trade deficit. While the economy has faced challenges, the document also points to positive long-term factors such as a young and educated population, developing infrastructure, and urbanization that could support future growth in Zimbabwe. Recommendations are made to address current economic issues.
Macro Pakistani | Paklaunch | Growth Basics and Economic Policy Making in Pak...Faiz Ahmed
Pakistan is classified as a lower middle income country with lower real growth than its peers. It follows 10 year consumption based growth cycles, with periods of low growth as the economy slows down. Investment and savings levels are not high enough, relying too much on foreign inflows. Productivity has remained largely unchanged across sectors, and most new jobs will be low-wage and low-skilled. To improve growth, policy focus should be on increasing investment, human development, and addressing constraints like limited access to financing for the private sector.
The document summarizes recent news and developments in global markets and the Indian economy from October 31 - November 4, 2016. It discusses the impact of the FBI announcement regarding Hillary Clinton's emails on US and global markets. It also covers the upcoming US presidential election and its potential effects. Domestically, it discusses recent inflation data, bank earnings, and the progress of GST implementation in India. Globally, it mentions recent economic data and central bank decisions in the US, UK, Eurozone, and China.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Ahli bank weekly capital markets newsletter 5th 9th of may 2019ahli bank
- The Amman Stock Exchange index rose 1.15% during the week, while trading value fell 39.72%. The Jordan Ahli Bank share price remained unchanged.
- The US and China expressed optimism but also warnings about ongoing trade negotiations. A Federal Reserve official expressed interest in targeting interest rates to add stimulus during economic downturns.
- The IMF approved a $166 million disbursement to Jordan after its second review, bringing total funding to $309 million. Dubai's economy expanded with rising new work and output but profit margins were squeezed.
- Bahrain plans to issue international bonds in the second half of 2019 after delaying earlier in the year. ECB President Draghi defended the
The document provides an economic capsule covering Sri Lanka's financial sector news, economy and business news, and economic and financial sector snippets from February 2010. It includes that Commercial Bank moved to number 2 in a business ranking; highlights of the strong banking sector performance in 2009; views of an HSBC economist on Sri Lanka's growth potential; plans for sovereign bond issuances and development funds; and inflation and trade data. Fiscal management will be key to sustaining growth given public investment levels.
The document provides an economic update for Sri Lanka with the following key points:
- Commercial Bank was ranked the third most valuable brand in Sri Lanka and the highest ranked private sector brand, with a brand value of Rs 22.32 billion.
- Commercial Bank partnered with the European Investment Bank to provide financing under a SME Green Energy Credit Line for projects including SMEs, energy efficiency and renewable energy.
- The financial sector consolidation process in Sri Lanka is on track, with nine audit firms selected to evaluate banks and NBFIs and all institutions submitting merger and acquisition proposals by the March 31st deadline.
- Fitch affirmed Sri Lanka's long-term foreign currency issuer default rating at '
The document discusses recent economic and financial news in Sri Lanka. It notes that the Central Bank reduced the Statutory Reserve Requirement by 2 percentage points to 6% to boost lending. It also discusses Moody's changing Sri Lanka's outlook to stable from positive due to concerns over the external payments position and pace of fiscal consolidation. Several other topics covered include a drop in GDP growth, Japan becoming Sri Lanka's largest lender, and a forecast of GDP growth being negatively impacted by fuel price increases.
- Markets have shown a flattish trend for the past few weeks due to mixed global news and lack of interesting domestic news. Quarterly earnings will be a key focus.
- The US Fed minutes showed many members supported a rate hike while others wanted rates kept steady. Globally, some nations want softer rates while developed nations prefer harder rates.
- In India, quarterly earnings just began and will be important, with IT companies continuing to disappoint so far. Regional cement players may report better numbers than large caps with nationwide reach. Private banks are expected to report strong results.
Cover Story China Running out of Breath
Outlook Crude Oil
Stats India Trade Deficit FY-2014
Emerging Country Russia
In Focus Land Acquisition Bill- A Snapshot
1) The Canadian economic growth forecast for 2011 has been modestly increased to 2.6% due to an improved U.S. economic outlook and expectations that the Bank of Canada interest rate will remain low for longer.
2) Near-term consumer spending growth is expected to be bolstered by sustained low interest rates, though high household indebtedness means spending growth will moderate to a more sustainable pace once rates begin to rise again.
3) Residential investment is expected to be a soft spot for the Canadian economy as housing demand remains soft and inventory remains elevated, dampening construction activity over 2011.
The document provides an analysis of recent events affecting global markets. It discusses two major events: 1) US presidential elections resulting in a victory for Donald Trump and 2) India's demonetization of Rs. 500 and Rs. 1000 currency notes. It summarizes the short-term negative impacts these events will have on certain sectors in India as well as longer-term positive impacts expected, especially in banking, infrastructure, and rate-sensitive sectors. Market indices are expected to remain cautious in the near-term but the analysis maintains a long-term bullish outlook for Indian markets.
The document summarizes Botswana's economic conditions in the second quarter of 2010. GDP grew 7.5% in the first quarter, the first positive growth since late 2008, led by a 10.1% increase in mining output. Non-mining private sector growth was lower at 5.5%. Business confidence improved but remains below pre-crisis levels, and businesses expect slower growth than official forecasts. While conditions are improving, Botswana still faces fiscal challenges from adverse medium-term trends exacerbated by the global crisis.
The document provides an equity market outlook and analysis for the period of Diwali to Diwali (October 2016 to October 2017). It notes that large caps underperformed with returns of 5-6% last year while midcaps saw stronger returns of 19-20%. For the current year, it expects lower double digit returns for large caps and 15-20% returns for mid and small caps. It recommends focusing on sectors with good private demand like financials, automobiles, and consumer durables. Large caps are seen as providing stability but lower returns compared to midcaps where returns of 15% are expected over the next year for those with a higher risk appetite and 2-3 year investment horizon.
- Last week, global equity markets declined sharply due to one bad trading day that rattled investors who had become complacent about continuously rising prices. However, market corrections of 6-8% are normal and investors should focus on investing in good quality stocks during declines rather than withdrawing.
- Concerns remain about instability in Europe's banking system, uncertainty around US interest rates after the election, and potential for Chinese currency devaluation. Wholesale inflation slowed in India while the government may increase public spending to spur growth.
- Key stock indices declined over the past week with the Sensex falling 1.46% while most sectors also ended lower with metals and power dropping the most.
The document provides an outlook on global debt markets in November 2016. It notes that global bond yields are rising rapidly as central banks move away from easy monetary policies. The US 10-year Treasury yield rose to a 5-month high near 1.87% on expectations of a December rate hike by the US Federal Reserve. German and UK bond yields also increased. Global bond markets experienced a significant selloff due to expectations of higher US rates and uncertainty around the ECB's bond purchase program.
- The document provides an economic and market summary for the week of November 14-18, 2016. It discusses developments in global markets, the Indian economy and stock market, and provides commentary on sectors and asset classes.
- Key points include the expectation of US Federal rate hikes in December, the impact of India's demonetization on various industries, and an outlook that Indian stock markets will see further declines in the short-term but provide buying opportunities. Debt markets are also seen as favorable due to expected interest rate cuts.
The document provides an overview and outlook across various asset classes and sectors in India and globally. Some key points:
- Domestic equity markets have seen modest gains of around 8.5% year-to-date despite recent volatility due to political tensions. Bond yields have fallen in India on expectations of further rate cuts.
- Global central banks like the Fed and ECB appear less accommodative but the US economy remains resilient. Growth has slowed in Japan and parts of Europe.
- Automobiles, banks, FMCG and infrastructure sectors are expected to perform well in India, while cement may see a recovery. Select domestic sectors and stocks still appear attractive relative to other emerging markets.
The IMF has cut its growth forecasts for the Mongolian economy in 2013 and beyond due to continued weakness in the global economy, particularly in China. GDP growth in Mongolia is now expected to be 11.8% in 2013, down from a previous forecast of 14%, and growth rates are expected to slow further to 5.8% in 2015 and 3.6% in 2016. Of concern is the rebalancing underway in China towards domestic consumption, which could reduce demand for Mongolia's commodity exports. The World Economic Outlook database shows Mongolia's export growth forecasts have been significantly revised downward.
This document discusses 10 major challenges confronting the Reserve Bank of India and opportunities for commercial banks to address some of these challenges. The challenges include propelling domestic growth, controlling persistent inflation, mitigating external sector vulnerabilities, and improving various aspects of the financial system. It outlines how inflation impacts household savings and investment. It also discusses opportunities for banks in sectors like MSME, agriculture, housing, and infrastructure to help boost growth. Banks can play a role in curbing food inflation through financing supply chains and providing short-term credit to vendors. Addressing these challenges will require balancing monetary policy objectives of growth and inflation.
This document discusses public-private partnerships (PPPs) in Kazakhstan. It provides background on Kazakhstan's experience with PPP projects in infrastructure, particularly in railways. It outlines proposed amendments to Kazakhstan's Law on Concessions to facilitate private sector participation and competition in PPPs. The amendments include co-funding projects, guarantees for loans and infrastructure bonds, and protections against double tariffs for users. It recommends establishing a PPP unit to standardize the PPP process and provide guidance. The document analyzes Kazakhstan's investment climate and economic indicators, finding foreign investment has been strong, particularly in oil and gas, and economic growth has been high in recent years.
This document provides an analysis of Zimbabwe's recent economic slowdown. It discusses factors such as low government expenditure, a shrinking consumer spending capacity due to job losses and high debt, stagnant investment growth, and a widening trade deficit. While the economy has faced challenges, the document also points to positive long-term factors such as a young and educated population, developing infrastructure, and urbanization that could support future growth in Zimbabwe. Recommendations are made to address current economic issues.
Macro Pakistani | Paklaunch | Growth Basics and Economic Policy Making in Pak...Faiz Ahmed
Pakistan is classified as a lower middle income country with lower real growth than its peers. It follows 10 year consumption based growth cycles, with periods of low growth as the economy slows down. Investment and savings levels are not high enough, relying too much on foreign inflows. Productivity has remained largely unchanged across sectors, and most new jobs will be low-wage and low-skilled. To improve growth, policy focus should be on increasing investment, human development, and addressing constraints like limited access to financing for the private sector.
The document summarizes recent news and developments in global markets and the Indian economy from October 31 - November 4, 2016. It discusses the impact of the FBI announcement regarding Hillary Clinton's emails on US and global markets. It also covers the upcoming US presidential election and its potential effects. Domestically, it discusses recent inflation data, bank earnings, and the progress of GST implementation in India. Globally, it mentions recent economic data and central bank decisions in the US, UK, Eurozone, and China.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Ahli bank weekly capital markets newsletter 5th 9th of may 2019ahli bank
- The Amman Stock Exchange index rose 1.15% during the week, while trading value fell 39.72%. The Jordan Ahli Bank share price remained unchanged.
- The US and China expressed optimism but also warnings about ongoing trade negotiations. A Federal Reserve official expressed interest in targeting interest rates to add stimulus during economic downturns.
- The IMF approved a $166 million disbursement to Jordan after its second review, bringing total funding to $309 million. Dubai's economy expanded with rising new work and output but profit margins were squeezed.
- Bahrain plans to issue international bonds in the second half of 2019 after delaying earlier in the year. ECB President Draghi defended the
The document provides an economic capsule covering Sri Lanka's financial sector news, economy and business news, and economic and financial sector snippets from February 2010. It includes that Commercial Bank moved to number 2 in a business ranking; highlights of the strong banking sector performance in 2009; views of an HSBC economist on Sri Lanka's growth potential; plans for sovereign bond issuances and development funds; and inflation and trade data. Fiscal management will be key to sustaining growth given public investment levels.
The document provides an economic update for Sri Lanka with the following key points:
- Commercial Bank was ranked the third most valuable brand in Sri Lanka and the highest ranked private sector brand, with a brand value of Rs 22.32 billion.
- Commercial Bank partnered with the European Investment Bank to provide financing under a SME Green Energy Credit Line for projects including SMEs, energy efficiency and renewable energy.
- The financial sector consolidation process in Sri Lanka is on track, with nine audit firms selected to evaluate banks and NBFIs and all institutions submitting merger and acquisition proposals by the March 31st deadline.
- Fitch affirmed Sri Lanka's long-term foreign currency issuer default rating at '
The document discusses recent economic and financial news in Sri Lanka. It notes that the Central Bank reduced the Statutory Reserve Requirement by 2 percentage points to 6% to boost lending. It also discusses Moody's changing Sri Lanka's outlook to stable from positive due to concerns over the external payments position and pace of fiscal consolidation. Several other topics covered include a drop in GDP growth, Japan becoming Sri Lanka's largest lender, and a forecast of GDP growth being negatively impacted by fuel price increases.
The IMF warns Sri Lanka against easing monetary policy due to inflation risks from electricity tariff hikes. While inflation eased in April, the IMF expects it to rise again as the full impact of higher power prices feeds through the economy. The IMF says monetary policy should remain on hold for now rather than being changed prematurely. A respected economist also argues that lowering interest rates alone will not bring sustainable growth without addressing structural economic issues.
The document provides a summary of economic and business news from Sri Lanka and around the world in December 2015. Some of the key points included in the summary are:
- Sri Lanka maintained a high ranking in the UN's Human Development Index in 2015. The economy grew 4.8% in the third quarter led by improvements in agriculture and industry. Inflation slowed to 2.8% in December.
- The Central Bank of Sri Lanka increased interest rates to restrain inflation and maintain monetary stability. Sri Lanka also signed $1.6 billion in foreign direct investment deals in 2015.
- Internationally, the US Federal Reserve raised interest rates for the first time in nearly a decade. The Economist forecast
The document summarizes recent economic and business news from Sri Lanka. It discusses the World Bank and Asian Development Bank lowering Sri Lanka's growth forecasts for 2015 and 2016 due to slowing construction and political transition. It also covers the Central Bank of Sri Lanka cutting policy rates for the first time in 16 months to boost growth, and small car imports from India and China surging amid increased credit availability in Sri Lanka.
The document discusses Sri Lanka's strong economic outlook, with GDP growth projected to average over 8% through 2014. It highlights improvements in infrastructure, education, and political stability that make Sri Lanka an attractive investment destination in South Asia. The Managing Director of the World Bank said Sri Lanka has the potential to become the "Wonder of Asia" through continued inclusive economic growth and development.
This document provides an economic capsule with summaries of recent news in Sri Lanka's financial and economic sectors. Key points include Commercial Bank reporting a profit of Rs 3.23 billion for Q1 2013 despite challenges, credit growth slowing further, the central bank cutting policy rates by 50 basis points, Sri Lanka receiving $218 million in FDI in Q1 2013, and forecasts for Sri Lanka's GDP growth from the IMF. It also provides analysis of key issues facing Sri Lanka like reducing public debt and strengthening the revenue system.
The document provides an economic update covering various topics in banking/finance, the economy, and global economic news. Some key points:
- Commercial Bank was named 'Best Bank in Sri Lanka' for the 17th time by Global Finance magazine.
- The bank introduced a new e-passbook mobile app allowing customers to view account transactions.
- Sri Lanka's economy grew 4.8% in 2015, with finance and IT among the fastest growing sectors.
- Rating agencies expressed concerns about Sri Lanka's rising debt, maturities, and external vulnerabilities.
The document provides an overview of the key economic developments and performance indicators in Sri Lanka's economy in recent months. It notes that GDP grew 8.0% in the third quarter of 2010, driven by growth in agriculture, industry and services. Inflation decreased slightly to 6.9% in December 2010. Exports grew 27.6% in October 2010 while imports grew 8.4%, leading to an improvement in the trade deficit. Around 75 new firms are expected to be listed on the Colombo stock exchange in 2011, helping to increase the market capitalization by 45%. Tourism arrivals were up 63.1% in November 2010.
The document provides an economic summary for Sri Lanka and internationally:
- Domestically, tourist arrivals, earnings from tourism and remittances increased. Inflation decreased while credit expanded. The Central Bank governor urged the private sector to capitalize on growth opportunities.
- Internationally, the US Federal Reserve chair indicated interest rates may rise further. Trade deals with the US faced increased uncertainty. China's economic slowdown continued as industrial output and retail sales fell short of targets.
- Visa International opened an office in Sri Lanka to expand electronic payments. Government revenue in Sri Lanka rose substantially in 2016 compared to prior years.
The document provides an economic capsule covering topics in banking/finance, the economy/business, and international news. Some key points:
1) Commercial Bank was named Best Internet Bank in Sri Lanka for the third year and launched a mobile remittance channel between South Korea and Sri Lanka.
2) Sri Lanka's economy grew 3.2% in the first quarter of 2018. The US Federal Reserve raised interest rates which could impact emerging markets and trigger capital outflows from Sri Lanka.
3) Global foreign direct investment flows fell in 2017 and growth prospects for 2018 remain modest due to trade tensions and tax reforms. China and the EU warned that unilateral trade actions risk pushing the world into recession.
The document provides an overview of recent economic and business news in Sri Lanka.
1) Sri Lanka's economy grew 3.8% in the first quarter of 2017, with industry growing 6.3% and services growing 3.5% while agriculture shrank 3.2%.
2) Sri Lanka's trade deficit increased in the first quarter as exports grew 1.3% while imports grew 14.9%, driven up by an 81.6% increase in fuel imports.
3) Commercial Bank was named the Best Bank in Sri Lanka for the seventh time by FinanceAsia, based on its financial performance and market position.
The document provides a summary of recent economic and business news from Sri Lanka and around the world. Some key points:
- The Sri Lankan economy grew 3.7% in the first quarter of 2019, with agricultural and industrial activity expanding and services growing more slowly.
- Moody's revised Sri Lanka's 2019 growth forecast down to 2.6% due to Easter Sunday attacks, and warned of large external debt repayments and political risks.
- Tourism arrivals declined in April after the attacks, which will weaken the economy and widen the current account deficit.
- The government is launching a PR campaign to boost tourism and revised the VAT on tourism services down to 7%.
The document provides an economic capsule with the following key points:
1) Sri Lanka's bank credit volumes fell to an 18-month low in July 2012 due to a sovereign bond sale and efforts by the Central Bank of Sri Lanka (CBSL) and government to rein in credit growth.
2) Credit expansion fell by half in the second quarter of 2012 according to the CBSL, reflecting the impact of policy measures to control imports and credit.
3) Sri Lanka's GDP growth is projected to be around 6.5% in 2012 due to the drought and weak global economy, with risks including the euro crisis and higher energy costs due to less hydropower. The economy is expected to pick up in
The document provides an economic capsule with the following key points:
- Commercial Bank was named the most valuable private bank brand in Sri Lanka and won an award for social media brand of the year for the second year running.
- Sri Lanka's inflation rate increased in April 2019 driven mainly by higher non-food prices. The central bank governor sees a strong case for relaxing monetary policy.
- The central bank raised USD 165.5 million through Sri Lanka development bonds and plans to raise up to USD 2 billion in international bonds before elections. The CSE and LSE also signed an agreement to facilitate dual listing of Sri Lanka dollar bonds.
- Internationally, the US imposed restrictions on Huawei,
The document summarizes economic news and analysis from Sri Lanka in March 2015. It includes the following key points:
- The Central Bank of Sri Lanka removed the special 5% interest rate on standing deposit facilities to encourage banks to lend more to the private sector.
- Government borrowing increased in the first few months of 2015 through treasury bill and bond auctions to fund expenditures. This adds to Sri Lanka's already high debt burden of 88.9% of GDP.
- The Asian Development Bank forecasts that Sri Lanka's economic growth will ease to 7% in 2015 due to political transition uncertainties, before strengthening to 7.3% in 2016 as investment rebounds. Inflation is expected to remain low in 2015
The document provides an economic capsule for February 2023 from the Research & Development Unit. It contains the following sections and highlights:
- Banking & Finance: The IFC will provide $400 million in financing to Sri Lankan banks to facilitate essential imports. ComBank was awarded for the largest number of climate finance transactions in South Asia. ComBank saw solid income growth but also increased provisioning.
- Economy, Business & Development: Statistics on Sri Lanka's foreign debt, inflation index rebasing, the tourism industry seeking credit lines, and wage reforms in plantations. FitsAir will launch flights to Chennai. Sri Lanka will sign an FTA with Thailand.
- Global Update: The World
Weekly News: The government cancels approvals of nine SEZ - SMCIndiaNotes.com
The government has cancelled approvals of nine special economic zones, including that of Hindalco Industries, Essar and Adani as no "satisfactory" progress was made to execute the projects.
The document provides an economic capsule covering various topics including banking & finance, the economy, business & development, and global updates. Some key points:
1) ComBank was named Best SME Bank in Sri Lanka and opened new branches including a 'DigiZone' experience center and a newly built Kegalle branch.
2) The IMF reached a staff-level agreement on Sri Lanka's second review and tourism arrivals have surpassed 500,000 in the first three months of the year.
3) The ADB approved a $100 million loan to support SMEs in Sri Lanka and the economy grew 4.5% in Q4 2023 but contracted 2.3% for the full
The document provides a summary of recent economic, business, and banking news from Sri Lanka. It notes that the Central Bank of Sri Lanka relaxed restrictions on standing lending facilities to accelerate downward adjustments in market interest rates. It also reports that transshipment volumes at the Colombo port grew over 25% in January. Additionally, Sri Lanka launched virtual Unified Payments Interface transactions for Indian tourists via LankaQR to enhance digital payment convenience.
The document provides a summary of various economic and business news from Sri Lanka and around the world in January 2024. Some of the key highlights include:
- The IMF concluded its visit to Sri Lanka and emphasized the need to continue economic reforms and reach agreements with creditors.
- Sri Lanka's tourist arrivals exceeded 121,000 in the first 18 days of January 2024, surpassing the total for January 2023.
- The Central Bank of Sri Lanka maintained policy interest rates at its latest monetary policy review and expects inflation to be short-lived.
- Commercial Bank of Sri Lanka unveiled an updated sustainable logo and enhanced features for its e-slip app.
The document provides an economic capsule summarizing key developments in banking and finance, the economy, business, and globally for December 2023. Specifically, it notes that Commercial Bank was ranked number one in Sri Lanka and raised Rs. 12 billion in debentures. It also discusses GDP growth in the third quarter of 2023, Sri Lanka receiving funds from the IMF, ADB, and World Bank, and other economic indicators. Globally, it outlines trends to watch in 2024 such as elections and economic climate.
The document provides an economic update on Sri Lanka with the following key points:
- ComBank reported strong loan book and deposit growth in Q3 2023, with its loan book growing 4.33% and deposits crossing Rs. 2 trillion.
- ComBank was ranked the strongest bank in Sri Lanka for 2023 by The Asian Banker.
- The CBSL cut its policy rates by 100 basis points to 9% and 10% for the SDFR and SLFR respectively to support inflation and economic growth.
- Sri Lanka's tax revenue grew 50.7% until September 2023 and the primary balance recorded a surplus of Rs. 124 billion, turning around from a large deficit last year
The document summarizes recent economic news from Sri Lanka and around the world. Some of the key points include:
- The IMF reached a staff-level agreement on the first review of Sri Lanka's EFF program, which will provide $330 million in financing. Additional revenue sources like a property tax are being considered.
- Sri Lanka reached an agreement in principle with China EXIM Bank on restructuring $4.2 billion of debt.
- A $1.565 billion agreement was signed to develop the second phase of the Colombo Port City project.
- Sri Lanka's newest mall, Havelock City, opened with over 130 retail outlets and entertainment zones.
The document provides an overview of economic and business news from Sri Lanka and around the world from August 2023. It reports that Sri Lanka's budget deficit has widened due to a rise in government spending and interest payments. China's Sinopec is set to begin fuel operations in Sri Lanka on September 20th. Sri Lanka is looking to negotiate free trade agreements with Malaysia and Vietnam. Globally, Russia's currency hit a 17-month low against the dollar and the US Federal Reserve will meet next month to discuss interest rates. In closing, Sri Lanka needs long-term economic reforms to achieve sustainable growth beyond monetary policy measures alone.
The document provides an economic update from Sri Lanka with the following key points:
- The Commercial Bank of Sri Lanka was recognized as the best bank in Sri Lanka for the 12th year and the strongest bank brand in the country.
- The Sri Lankan government unveiled plans to optimize domestic debt which include exchanging eligible debt for long-term bonds and pushing out debt repayments.
- Sri Lanka had met 33% of IMF program commitments as of end-June 2023 but failed to meet 8% while 14% were unknown. Negotiations are ongoing for both domestic and foreign debt restructuring.
- Other news included a rise in Sri Lanka's interest payments in 2022, relaxation of
The document provides an economic update for Sri Lanka in June 2023. It discusses several topics:
1) ComBank opened a new branch in Kantale and launched Sri Lanka's first teen digital bank account called 'Flash FAM'.
2) The World Bank is set to approve $700 million in funding for Sri Lanka next week, including $500 million for the budget and $200 million for social programs.
3) Sri Lanka's food security has improved according to a FAO/WFP report, though acute food insecurity remains high in some areas.
4) The euro zone entered a recession in the first quarter of 2023, though India's economy continues growing despite high interest rates
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.
The document provides an economic update for April 2023 from the Research & Development Unit of Commercial Bank of Ceylon. It includes the following highlights:
- ComBank launched new LankaPay credit and debit cards in collaboration with LankaPay, providing the first nationally accepted cards in Sri Lanka.
- ComBank was voted 'People's Private Bank of the Year' in a recent survey.
- Sri Lanka's official 2022 unemployment rate was 4.8% but this masked higher actual unemployment as the economy declined.
- The manufacturing and services PMIs both returned to growth in March 2023 after previous declines, driven by increases in orders and business activity.
The document provides an economic update for Sri Lanka in March 2023. Key points include:
- Sri Lanka received IMF approval for a $3 billion Extended Fund Facility over 48 months to support economic recovery. The loan comes with conditions around fiscal consolidation, debt restructuring, price stability, and structural reforms.
- Sri Lanka's economy contracted 7.8% in 2022 but is projected to return to growth starting in 4Q 2023, according to government forecasts.
- Local industries like apparel and construction continue to struggle with declining orders amid a drop in demand from major export markets. However, fuel prices are expected to fall sharply due to plunging global oil prices.
The document provides an economic update for January 2023 from Sri Lanka. It discusses several topics:
- ComBank introduced new card-to-card fund transfer services and opened an Indian rupee account to promote regional trade.
- Sri Lanka is working with India and China on debt restructuring and both countries have expressed support. The government also aims to operationalize an FTA with Singapore.
- Other economic news includes rising tourist arrivals and plans to amalgamate export promotion agencies. Sri Lanka will also export more aquatic products to China.
- Global updates note a dip in world food prices and plans for Bangladesh IMF support. Leadership changes occurred in New Zealand and Croatia adopted the euro. Tech companies cut
The document summarizes recent economic news from Sri Lanka. It reports that:
1) The Commercial Bank of Sri Lanka won several awards including "Bank of the Year" and "Strongest Bank in Sri Lanka". It also launched a new foreign currency investment plan.
2) Sri Lanka is attracting strong foreign investment and signed deals worth $1.9 billion despite challenges. The World Bank approved Sri Lanka's request to access low-interest financing.
3) Sri Lanka is seeking $850 million in bridge loans from countries like India and Japan until an IMF program is approved in January. It is also confident of securing China's approval for debt restructuring by the end of December.
The document provides a summary of recent economic and business news in Sri Lanka. Some of the key points included:
- Commercial Bank of Sri Lanka reported financial results for the period ending September 30th, 2022 and announced a Rs. 5 billion debenture issue.
- Inflation in Sri Lanka eased for the second consecutive month in 2022, with food inflation also declining.
- The Central Bank believes interest rates in Sri Lanka have reached peak levels now that inflation appears to have turned downward.
- Workers' remittances to Sri Lanka increased slightly in September, a positive sign for one of the country's key sources of foreign currency inflows.
- Sri Lanka expressed confidence that
The IMF has approved a new "Food Shock Window" to provide emergency financing to countries facing food insecurity or a sharp rise in food import costs due to global food crisis. UK inflation has risen to a 40-year high of 10.1% as the cost-of-living crisis intensifies. Liz Truss resigned as UK Prime Minister after only 44 days in office, with Rishi Sunak set to become the new PM. Vietnam is emerging as Asia's fastest growing economy in 2022 and 2023, with growth projected at 7.5% and 6.7% respectively.
The document provides an economic update from Sri Lanka and around the world in September 2022. In Sri Lanka, ComBank was ranked the top bank, inflation was forecast to be 44.8%, and over 39% of the population was consuming an inadequate diet. Globally, IMF bailouts hit a record high as many countries faced economic crises. Central banks around the world aggressively raised interest rates, risking a global recession, to tackle high inflation. The UK market faced turmoil after the new government's tax cut plans.
This document provides an economic update for August 2022 from the Research & Development Unit of Commercial Bank of Ceylon. It includes the following highlights:
- An IMF mission visited Sri Lanka to reach a staff-level agreement and Sri Lanka hopes to finalize an IMF program by December 2022.
- Sri Lanka halted imports of over 300 items and allowed electric bike imports. Apparel exports crossed $3 billion for January-July while foreign investment targets were 58% achieved.
- Total state-owned enterprise losses in the first four months of 2022 outweighed annual losses in 2021, driven by currency depreciation impacts.
- The IMF warned of weakening Asian growth and rising inflation pressures. Global
How To Talk To a Live Person at American Airlinesflyn goo
This page by FlynGoo can become your ultimate guide to connecting with a live person at American Airlines. Have you ever felt lost in the automated maze of customer service menus? FlynGoo is here to rescue you from endless phone trees and automated responses. With just a click or a call to a specific number, we ensure you get the human touch you deserve. No more frustration, no more waiting on hold - we simplify the process, making your travel experience smoother and more enjoyable.
How do I plan a Kilimanjaro Climb?
Planning to climb Mount Kilimanjaro is an exciting yet detailed process. Here’s a step-by-step guide to help you prepare for this incredible adventure.
Our excursions in tahiti offer stunning lagoon tours, vibrant marine life encounters, and cultural experiences. We ensure unforgettable adventures amidst breathtaking landscapes and serene waters. For more information, mail us at tracey@uniquetahiti.com.
The Power of a Glamping Go-To-Market Accelerator Plan.pptxRezStream
Unlock the secrets to success with our comprehensive 8-Step Glamping Accelerator Go-To-Market Plan! Watch our FREE webinar, where you'll receive expert guidance and invaluable insights on every aspect of launching and growing your glamping business.
Wayanad-The-Touristry-Heaven to the tour.pptxcosmo-soil
Wayanad, nestled in Kerala's Western Ghats, is a lush paradise renowned for its scenic landscapes, rich biodiversity, and cultural heritage. From trekking Chembra Peak to exploring ancient Edakkal Caves, Wayanad offers thrilling adventures and serene experiences. Its vibrant economy, driven by agriculture and tourism, highlights a harmonious blend of nature, tradition, and modernity.
Assessing the Influence of Transportation on the Tourism Industry in Nigeriagsochially
This research dissertation investigates the complex interplay between transportation and the tourism industry in Nigeria, aiming to unravel critical insights that contribute to the enhancement of the overall tourist experience. The study employs a multi-faceted approach, literature review establishes a robust theoretical framework, incorporating The Service Quality and Satisfaction Theory to guide the research questions and hypotheses.
The methodology involves the distribution of a structured questionnaire, ensuring a representative sample and facilitating a comprehensive analysis of the gathered data.
Key findings include the nuanced perceptions of transportation infrastructure adequacy, safety and security concerns, financial influences on travel decisions, and the cultural and ecological impacts of transportation choices. These findings culminate in a comprehensive set of recommendations for policymakers and practitioners in the Nigerian tourism industry. The findings contribute to the existing literature by providing actionable insights for policymakers, stakeholders, and researchers in the Nigerian tourism sector.
The recommendations encompass gender-sensitive planning, infrastructure enhancements, safety measures, and strategic interventions to address financial constraints, ensuring a holistic and sustainable development of the tourism industry in Nigeria.
Author: Imafidon Osademwingie Martins
Best Places to Stay in New Brunswick, Canada.Mahogany Manor
New Brunswick, a picturesque province in eastern Canada, offers a plethora of unique and charming places to stay for every kind of traveler. From the historic allure of Fredericton and the vibrant culture of Saint John to the natural beauty of Fundy National Park and the serene coastal towns like St. Andrews by-the-Sea, there's something for everyone. Whether you prefer luxury resorts, cozy inns, rustic lodges, or budget-friendly options, the best places to stay in New Brunswick ensure a memorable stay, allowing you to fully immerse yourself in the province's rich history, stunning landscapes, and warm hospitality.
https://www.mmanor.ca/blog/best-5-bed-and-breakfast-new-brunswick-canada
BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. BTW UK Visa Application Process, Uk Visa complete guide, Uk Visa fees, requirements and application process. Know all about uk visa and best way to apply for the uk visa. Get to know about the requirements that allows you for the faster visa appliaction. Get information in this PDF and simplyfy your visa process.
Un viaje a Buenos Aires y sus alrededoresJudy Hochberg
A travelogue of my recent trip to Argentina, most to Buenos Aires, but including excursion to Iguazú waterfalls, Tigre, and Colonia del Sacramento in Uruguay
2. ECONOMIC & BUSINESS NEWS
IMF on Sri Lanka
External Sector Performance – July 2013
USD 75 Mn ADB Loan for Better Road Connections to Southern Expressway
The Federal Reserve Surprises Everyone by Changing Nothing…
U.S. Government Shutdown
GDP Growth – Euro Zone, US, China & India
The World’s Biggest Firms
Singapore Best-Value City for Foreign Business
Snippets
Analysis & Forecast
Emerging Inflationary Pressures
Interest Rates
Exchange Rate
C O N T E N T S
4. < Research & Development Unit >
IMF on Sri Lanka
Cont…
IMF forecasts GDP growth of 6.5 % in 2013.
Given moderate credit growth, flat budget revenues, and relatively low growth
in non-oil imports, it is not yet clear whether the acceleration in economic
growth will continue into the second half of the year.
The balance of payments surplus should widen this year.
Non-performing loans have risen somewhat, but the financial system remains
relatively strong.
While the rupee has been relatively resilient so far, the balance of external
risks for Sri Lanka has shifted to the downside.
5. < Research & Development Unit >
IMF on Sri Lanka (Cont…)
Contingency plans—including a mix of fiscal and monetary policies to counter
potential market pressures—should be prepared in anticipation of possible
shifts in market conditions.
New external borrowing should be done with a close eye to sustainability, and
the need to ensure that investments generate the resources needed to service
these obligations.
In light of the risks facing Sri Lanka, the mission recommends that policy rates
remain on hold which will also give time to assess the impact of recent easing.
6. External Sector Performance – July 2013
Jan-July
2012
US$ mn
Jan- July
2013
US$ mn
Growth
(%)
Exports 5,674.2 5,518.8 -2.7
Imports 11,108.7 10,818.6 -2.6
Deficit in the Trade Account -5,434.5 -5,299.8 -2.5
Workers’ Remittances 3,417.4 3,763.5 10.1
Foreign Direct Investments 451 540 19.7
Earnings from Tourism 560.4 674.1 20.3
Inflows to Commercial Banks (a) 664.3
Inflows to the Government (b) 3,983.1 3,097.1 -22.2
Treasury Bills and Bonds 1,725.0 2,023.8 17.3
Long term loans 2,193.4 1,054.5 -51.9
(a) Inflows to commercial banks in 2012 amounted to USD 973 mn.
(b) Inflows to the Government include capital and current transfers to the government, inflows from the sale of Treasury
Bills and Treasury Bonds and long term loans of the Government.
Source: CBSL
< Research & Development Unit >
Cont…
7. External Sector Performance – July 2013 (cont…)
NSB Bond Issue: Meanwhile, the National Savings Bank (NSB) raised USD
750 mn by issuance of an international bond in foreign capital markets in
September 2013. With the receipt of USD 750 mn, the financial account of
the BOP strengthened further, and the gross official reserve position is
estimated to have surpassed USD 7.0 bn by 23 September 2013.
Earnings from Tourism: Cumulative earnings from tourism during the first
eight months of 2013 recorded a growth of 22.1 %, to USD 784 mn, from
USD 642 mn recorded during the corresponding period in 2012.
< Research & Development Unit >
Net Inflows to Govt: The Colombo Stock Exchange (CSE) received net inflows of USD
128.8 mn during the first seven months of 2013. As of 23 September 2013, net
cumulative foreign inflows to CSE amounted to USD 150 mn.
Reserves: Sri Lanka’s gross official reserves stood at USD 6.3 bn at end July 2013.
Cont…
8. External Sector Performance – July 2013 (cont…)
Exchange Rate Behavior by 23 September 2013;
LKR has appreciated against
LKR has depreciated against
US dollar
by 3.8 %
Pound Sterling
by 3.2 %
Euro
by 6.1 %
Chinese yuan
by 5.5 %
Japanese yen
by 11.1 %
Indian rupee
by 8.7 %
Australian
dollar by 5.8 %
Source: CBSL
< Research & Development Unit >
9. < Research & Development Unit >
USD 75 Mn ADB Loan for Better Road Connections to Southern
Expressway
The Asian Development Bank’s (ADB) Board of Directors has approved a USD 75 mn loan to
the Sri Lankan government for its Southern Road Connectivity Project .
Estimates suggest road capacity in Sri Lanka will need to be doubled every eight to 10 years to
meet rising demand.
ADB’s loan will improve 33.5 kilometers of national highways that
link to three interchanges on the Southern Expressway. The roads that
will be developed under the project are as follows:
2.5 km of the Moratuwa–Piliyandala road (B295),
2.1 km on the Ratmalana-Mirihana road (B389),
12.4 km on the Southern Expressway–Mathugama road (B157),
2.1 km on the Kirulapona–Homagama road (A004), and
14.4 km on the Kesbawa–Pokunuwita road (B084).
10. The Federal Reserve Surprises Everyone by Changing Nothing…
Investors responded by propelling U.S. stocks to record highs
and driving down bond yields. Yields on U.S. Treasury debt
had risen over the summer on expectations the Fed would
cut back its $85 bn a month in bond purchases that have
been the cornerstone of its efforts to spur the economy.
Furthermore, Fed Chairman Ben Bernanke refused to
commit to begin reducing the bond purchases this year, and
instead went out of his way to stress the program was "not on
a preset course." In June he had said the Fed expected to cut
back before year end.
< Research & Development Unit >
The U.S. Federal Reserve defied investor expectations by postponing the start of the wind
down of its massive monetary stimulus, saying it wanted to wait for more evidence of
solid economic growth.
Cont…
11. The Federal Reserve Surprises Everyone by Changing Nothing (cont…)
The Reaction
The reaction in markets was swift and sharp. The U.S. dollar fell to a seven-month low against major
currencies and the price of gold, a traditional inflation hedge, soared more than 4.0 %.
In fresh quarterly forecasts, the Fed cut its forecast for 2013 economic growth to a 2.0 % to 2.3 %
range from a June estimate of 2.3 % to 2.6 %. The downgrade for 2014 was even sharper.
"The (policy-setting) committee decided to await more evidence that progress will be sustained
before adjusting the pace of its purchases," the Fed added.
12. U.S. Government Shutdown
< Research & Development Unit >
Large sections of the U.S. government closed
down on 1 October after Congress was
unable to reach an agreement on funding for
the new fiscal year because of a standoff
over healthcare reforms.
Federal workers and government functions
have been divided between essential and
non-essential services, and the effects will be
felt in various ways - some acute, others
barely noticeable.
The economic damage will at first be modest.
Each week the government remains
shuttered will knock an estimated 0.1-0.2%
off the annualised fourth-quarter growth
rate
Until some agreement can be reached, all government functions deemed non-
essential are suspended.
To get a sense of where that line is drawn, consider NASA. The agency is closed
but the people supporting the astronauts currently on the International Space
Station are going to work.
Source: The Economist
14. TheWorld’sBiggestFirms
BACK in September 2009,of the world’s ten largest quoted firms by
market value, only three were American—Exxon Mobil, Microsoft
and Walmart. The list was dominated by state-controlled giants
such as PetroChina, China Mobile and ICBC, a Chinese bank.
Petrobras, an oil-and-gas firm run by the Brazilian government,
had just made it into the ninth slot.
Today nine of the ten most valuable companies are American. The
country has not been as dominant for a decade.
Source: The Economist
< Research & Development Unit >
15. Singapore Best-Value City for Foreign Business
< Research & Development Unit >
The Chart shows the total costs to set up a business in 10 major cities, comprising home and office
rentals, and related transaction costs, divided by per-capita gross domestic product of a city or
country, which is an indicator of business potential.
Singapore’s ratio of 16.1 was the lowest, while the 74.7 score for India’s business capital ranked it last
on the “value for money” scale.
Singapore, offers
businesses the best
property-rental value
compared with the
size of its economy,
while Mumbai ranks
last, according to
Savills Plc.
16. < Research & Development Unit >
SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS
China-Sri Lanka FTA
Sri Lanka and China will finalise a free-trade agreement ahead of the Commonwealth
Summit in Colombo in November, according to Investment Promotion Minister Lakshman
Yapa Abeywardena .
The minister gave no details of the pact with China, but said Sri Lanka's USD 3.7 bn
garment manufacturing industry would feature strongly. Trade is currently heavily skewed
in China's favour, with the powerhouse exporting USD 2.66 bn worth of goods to Sri Lanka
last year, and Sri Lanka's exports to China totaling USD 113 mn.
Sri Lanka Shangri La Hotel to Start Building in October
A USD 450 mn project by Hong Kong based Shangri La in Sri Lanka's capital Colombo
will begin construction by end October according to Investment Promotions
Minister Lakshman Abeywardene. The project is still in the planning stages with
promoters saying soil conditions required design changes.
Cont…
17. < Research & Development Unit >
SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS - SNIPPETS
Second New Kelani Bridge Project
A new six-lane bridge over the Kelani river adjacent to the Kelani
bridge (Japan Friendship Bridge) will be constructed at a cost of USD
321 mn around the Peliyagoda area and Baseline Road.
The objective of this project is to increase the transport efficiency
around the existing new Kelani Bridge and to establish a link between
Colombo Katunayaka Expressway (CKE) and the city transport
network. The project is expected to be completed within three years.
Mr. Dhammika Perera has submitted an application to the Board of Investment to set up
what will be his flagship business venture to date – the USD 350 mn Queensbury Integrated
Resort and Casino.
Located on a two-and-a-half acre property down D.R. Wijewardena Mawatha, Queensbury
will stand 40 floors tall and have 500 luxury rooms, multiple ballrooms, a mini-convention
centre and a shopping mall among others. Inputs from Mike Hong, the world-famous
designer of Las Vegas Ballagio, have gone into the planned Queensbury.
19. Emerging Inflationary Pressures
IMF has expressed its serious concern about the aggressive monetary policy easing
pursued by the authorities to spur growth amid looming inflationary pressures.
A too aggressive loosening in monetary policy
will be costly both in terms of its effects on
exchange rates and the rate of inflation.
The loosening monetary policy may lead to
repeating the credit cycle the country had to
undergo during the second half of 2011 and
early part of 2012, which led to a credit
bubble resulting in a rapid acceleration in
imports and a Balance of Payment crisis
ultimately costing as much as USD 2.0 bn in
reserves.
Sep:
7.8
Sep:
6.2
20. Interest Rates
If aiming for high growth is going to mean further
easing of monetary policy and a lowering of interest
rates, it will have to be considered in the backdrop of
external tapering of QE in the US and possibility of
foreign investors exiting the bond markets of emerging
countries. In such a situation, a lowering of interest
rates in Sri Lanka will aggravate the capital outflow
from its bond market.
Therefore it is our view that there are limits to lowering interest rates and we believe that the
current interest rate regime will more or less continue till the end of 2013.
Policy rates (Repo @ 7%, RRepo @ 9%) likely to remain unchanged until at least
1Q, 2014.
A stronger US economy is good for the world economy – but higher interest rates may
continue to exert pressure in Europe and weaker emerging countries.
21. Exchange Rate
The LKR has been falling since early July with foreign investors pulling out of treasury bonds as US
treasury yields rose on expectations that the Federal Reserve would soon begin to taper its bond
buying programme.
The LKR hit a record low of Rs. 135.20 per USD on Aug. 28, before recovering.
The currencies of many of Sri Lanka’s competitors have
depreciated and this will affect the competitiveness of
Sri Lanka’s exporters.
The LKR has depreciated by around 2.8% vis-à-vis the
USD so far this year after recording 10% depreciation in
2012. The Indian currency, which touched an all-time
low of 68.8450 on Aug. 28 vis-à-vis the USD, has plunged
almost 12 % this year on concern over India’s widening
current-account deficit and slowing growth.
However, on the positive side, the US is set for faster
growth in the long-term and it will have a positive
impact on Sri Lanka’s exports to the US.
22. 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