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Archive for the ‘Sri Lankan Rupee’ Category

Colombo Stock Market Back In Strength.

In Colombo Stock Exchange, magerata, Sri Lanka tea, Sri Lankan Rupee on October 21, 2010 at 2:41 am

After a few days of ups and downs, the Colombo stock market came back with strength yeaterday. It gained over 1%, and made me one of the best student investers! If these swings continues as they are, instead of applying for jobs, I might be able to walk into a few board of directors meetings, directly. On top of increasing the investments in the stocks and certain shares, the rallies of last few days allowed me to make some money as well, which I will be reinvesting, soon, back in to the market, perhaps in the Tea sector. I am very much interested in the tea sector and I am learning the theoretical Sri Lankan Tea Market these days, from a few very good teachers.

The market rallied at the end of the day after what seemed like a walk in molasses during the morning,  sending ASPI and MPI up by 1.22% and 1.73%. The turnover toped the Rs. 3 billion mark.

Even with the current situation, the Colombo stock exchange Index is still the Asia’s best performer in 2010 with a 98 percent gain. This is solely due to the island’s economy rebuilding with vigor, after the end of a civil war in May 2009. The market index shed 6.2 percent since hitting an all-time high of 7,207.75 on 4th October 2010. According to Thomson Reuters, the Colombo Stock Exchange’s 14-day relative strength index is at 57.7, between the neutral limits of 30 and 70.

John Keells Holdings was the highest contributor (Rs. 582 million with 1.8 million shares traded) to the market turnover with four crossings (850,000 shares at Rs. 307 each and 100,000 shares at Rs. 310 each). The price increased by Rs. 1 (0.32%) and closed at Rs. 310. Foreign holding in JKH decreased by 1.1 million shares.On the money market side, the rupee closed at 111.85/87 a dollar from Monday’s 111.85/88, as state banks sold dollars at 111.85 rupees each.

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CENTRAL BANK OF SRI LANKA, TREASURY BOND auctions held on September 13, 2010

In CENTRAL BANK OF SRI LANKA, development, Economy, magerata, Sri Lankan Rupee on September 14, 2010 at 4:35 am

Treasury Bonds of Rs.1,250 mn of 06.50 percent 2015A, Rs.2,250 mn of 07.25 percent 2016A, Rs.1,000 mn of 07.50 percent 2018A and Rs.500 mn of 06.20 percent 2020A were offered on auction basis on 13.09.2010 with the settlement date on 15.09.2010. The response was phenomenal similar to previous auctions. With offers far exceeding the amount, Rs, 5000 Million accepted.

Please see the following file (PDF) for details of the sale

The next issue of bonds is slated for 15th of september 2010; Treasury Bills of Rs. 3,000 million of 182 days, and Rs. 7,000 million of 364 days are being offered on auction basis on 15 September 2010 with the settlement date on 17 September 2010

Sri Lanka To Issue an International Sovereign Bond amounting to US$ 1,000 million.

In CENTRAL BANK OF SRI LANKA, development, Economy, magerata, Sri Lankan Rupee on August 5, 2010 at 11:29 pm

Sri Lanka International Sovereign Bond Issue of US$ 1,000 million in 2010

The Central Bank of Sri Lanka (CBSL), on behalf of the Government, plans to issue an International Sovereign Bond amounting to US Dollar 1,000 million around September 2010. For this purpose, the CBSL has invited leading international banks/investment houses to submit their proposals to act as Lead Manager(s)/Bookrunner(s).

This International Sovereign Bond issue would be within the annual borrowing limit approved by the Parliament for 2010. The proceeds from this Sovereign Bond issue would be utilized for infrastructure development activities carried out by the government and to restructure the existing government debt portfolio by retiring high cost domestic debt and short term foreign currency denominated debt.

I have converted the original DOCument to PDF format for people do not want to download or not capable of reading Microsoft DOC format.

Sri Lanka International Sovereign Bond Issue

Sri Lanka – Monetary Policy Review – July 2010

In CENTRAL BANK OF SRI LANKA, development, Economy, magerata, Sri Lankan Rupee on July 12, 2010 at 9:59 pm

The Central Bank of Sri Lanka has released the monetary policy review for the month of July 2010. Again in Microsoft word format. I have puvlished the report in it’s entirety and you can also down load a copy of the same report in PDF format. Please follow the link given after the article to down load or to view the PDF file.

Monetary Policy Review – July 2010

The Monetary Board, at its meeting held today, has decided to reduce the Repurchase rate and the Reverse Repurchase rate by 25 basis points each with immediate effect.  Accordingly, the Repurchase rate and the Reverse Repurchase rate of the Central Bank would be 7.25 per cent and 9.50 per cent, respectively.

The monetary policy stance of the Central Bank was gradually eased during 2009 in view of the decline in inflationary pressures and the slowdown in economic activity. Several favourable developments were observed in response to the monetary policy measures taken by the Central Bank.

Inflation, as measured by the year-on-year change in the Colombo Consumers’ Price Index (base=2002) (CCPI) has continued to decline, for the fourth consecutive month, reaching 4.8 per cent in June 2010, while annual average inflation reached 3.9 per cent in June. Strong growth in the domestic agriculture sector, as well as a decline in the price of key food items in the international market has had a favourable impact on the CCPI. Going forward, inflation is expected to remain subdued, at single digit levels, during the remainder of the year.

Growth in broad money continued to moderate during the first five months of the year. By end May 2010, the year-on-year growth in the broad money supply was 15.5 per cent compared to 18.6 per cent at end 2009. Credit flows to the private sector have been increasing since the latter part of 2009, and reached a year-on-year growth of 3.5 per cent by end May in contrast to a contraction of 5.7 per cent at end 2009. Credit to the private sector needs to continue to expand in the coming months as economic growth picks up. External trade also showed strong signs of recovery during the first four months of the year with exports increasing by 10.7 per cent and non-oil imports increasing by 29 per cent. The gross official reserves of the country including forex swaps were further enhanced by the receipt of two tranches of the IMF-SBA Facility to approximately US dollars 5.7 billion, as at 30 June 2010, which is equivalent to 6 months of imports. GDP growth in the first quarter of 2010 has been estimated at 7.1 per cent and the economy is expected to expand by around 7 per cent during the year. Taking into consideration these developments in the economy the Monetary Board has decided to revise the policy interest rates downward. In response to this, lending rates of commercial banks are expected to adjust further downward, stimulating economic activity.

The Central Bank has also decided to revise the monetary programme for 2010, and accordingly, the targets for reserve money and broad money, which were published in the “Road Map: Monetary and Financial Sector Policies for 2010 and beyond”, on account of the subsequent developments in the economy. The key factors underlying this revision are an expected increase in the growth in nominal GDP and the inclusion of information on the fiscal sector from Budget 2010, which was presented to Parliament in June 2010. Broad money is expected to grow at a rate commensurate with the revised nominal GDP growth of 14.5 per cent. The budget for 2010 envisages that the deficit would be contained at 8 per cent in 2010, with further reductions expected in 2011 and beyond. Several developments within the monetary aggregates, which were observed during the first half of the year, have also underscored the need for a revision. Expansion in reserve money was higher than expected, particularly during the first quarter of 2010, partly due to increased demand for currency with the end to the conflict. As a result, the money multiplier has also shown a contraction, requiring a higher amount of reserve money to maintain broad money within the targeted levels. Considering these developments, the targets for quarterly growth in reserve money for the third and fourth quarters of 2010 are revised as follows:

Revised Targets for 2010 (quarterly average)

Revised Targets – 2010
Q3 Q4 Annual Average
Rs. Billion 335.8 350.3 334.0
year-on-year growth (%) 21.6 19.7 21.2

The release of the next regular statement on monetary policy will be on 20 August 2010.

Sri Lanka Monetary Policy Review – July 2010

Sri Lanka External Sector Performance April 2010

In CENTRAL BANK OF SRI LANKA, Economy, magerata, Sri Lankan Rupee on July 8, 2010 at 7:04 am

Central Bank Of Sri Lanka has released another press release regarding the external sector performance of the country for the month of April in 2010. The document also carries the data for April 2009 for comparison.

Sri Lanka earnings from exports 2009-2010

In April 2010, we have a trade deficit : the total external sector performance balance is negative  in numbers at -($115.4 million) after adding the workers remittances($308.2 million) to the balance of imports($967.1 million) and exports($543.5 Million).  During the month of April in 2009, we had a balance of trade ($83.5 million), a trade surplus.
The numbers for the first quarter of 2010 also shows a trade deficit, it is again negative in numbers at -($-686.1 million) after adding the workers remittances($1198.8 million) to the balance of imports($4191.9 million) and exports ($2307.0 Million).  During the first quarter of 2009, it was a positive figure of  balance ($198.8 million).
The workers remittances are trending upwards and according to the CBSL : During the first quarter of 2010, workers’ remittances increased by 14.5 per cent over that of the corresponding quarter of 2009 to US dollars 1,199 million. The gross official reserves, with and without Asian Clearing Union (ACU) funds, increased to US dollars 5,440 million and US dollars 5,215 million, respectively, by end April 2010.
Sri Lanka’s Earnings from exports grew by 24.2 per cent in April 2010 to US dollars 543 million led by higher earnings from the industrial and agricultural sectors.There were significant increases in exports of machinery and equipment, comprising mainly of transport equipment such as boats and bicycles and electrical equipment such as transformers, static converters, inductors and insulated cables. Earnings from exports of rubber products, petroleum products and diamond and jewellery have also performed well.  Export earnings from textiles and garments have increased marginally to US dollars 227 million in April 2010 after seven consecutive months of year-on-year declines.
Lower exports of fresh and frozen fish from Sri Lanka, have resulted in lower earnings from food, beverages and tobacco exports. The earnings this sector have declined by 7.3%.
Agricultural exports, which was 24.4% of export earnings in April 2010, increased year-on-year, reflecting the sound performances by the tea, rubber, coconut and minor agricultural sectors. Thanks to higher oil prices, the average export price of natural rubber increased by 126.7 per cent, from US dollars 1.39 per kg in April 2009 to US dollars 3.16 per kg in April 2010. But Sri Lankan rubber industry could not reap much profit due to heavy rains during April 2010.

Sri Lanka expenditure on imports 2009-2010

All major categories of imports increased in April 2010, increasing the expenditure.  Expenditure on imports of intermediate goods increased, mainly led by higher petroleum and fertilizer imports.  Import price of crude oil averaged at $85.02 per barrel in April 2010 vs $54.45 per barrel in April 2009.  Expenditure on imports of consumer goods increased by 63.6 per cent, imports of sugar, milk products and other food items were responsible for higher expenditure. Import of milk products expenditure alone increased by 258.6 per cent in April 2010. Expenditure on investment goods also increased in April 2010, led by higher imports of transport equipment, particularly motor cycles, followed by machinery and equipment such as electrical equipment and printing machinery.
A link to the CBSL “DOC’ in PDF format available after the jump.

External Trade Performance April 2010, Sri Lanka

The local copy in PDF; Sri Lanka External Sector Perfomance April 2010

The CBSL Press release (The original in Microsoft DOC format)

Sri Lanka’s Colombo Consumers’ Price Index For Years 2008, 2009, 2010 Released.

In CENTRAL BANK OF SRI LANKA, development, Economy, magerata, Sri Lankan Rupee on July 1, 2010 at 12:32 am

Colombo Consumers’ Price Index June 2010

Finally after nagging over a period, Central Bank of Sri Lanka (CBSL), has released the current Colombo Consumers’ Price Index (CCPI) in PDF format. So now most of the people in the world will be able to read without having to search for Microsoft Word or a compatible reader. Hope they will stay on PDF, from here onwards.

The document lists Colombo Consumers’ Price Index (CCPI)2008, 2009 and 2010 and is much easier to compare how Sri Lankan economy is progressing. I know there are many who cry foul at various conducts of the government but wanting to bring down the country’s economy to appease their wishes is a bit moronic.
I love white water rafting. If you are capable and believe in yourself,  you can ride the river, be it a fast or slow, any which way you want and have control. Rough waters or the temperature of the water does not deter me. Progress should continue while we mold the country in to what we all wish for.
The country is surely progressing and there are many pot holes to be filled on the way to success as well as the regular roads that weave through the country. No one should or want to break or blow up a road because it has pot holes. Should be the same for the government as well.
Reform at any price, NO! Reform yes.
You can find the latest Colombo Consumers’ Price Index here (PDF).
The source of data : Department of Census and Statistics, Sri Lanka.

Sri Lanka Monetary Policy Review – June 2010

In CENTRAL BANK OF SRI LANKA, development, Economy, Sri Lankan Rupee on June 16, 2010 at 4:36 pm
Central Bank of Sri Lanka’s economic research department has released the following review on the country’s Monetary Policy.
Inflation, as measured by the year-on-year change in the Colombo Consumers’ Price Index (base=2002) declined for the third consecutive month, reaching 5.3 per cent in May 2010.  The annual average inflation increased marginally to 3.6 per cent in May 2010.  Inflationary pressures in the domestic economy remain subdued benefiting from dampened commodity prices in the international market and increased domestic agricultural output.
Growth in the money supply continues to moderate while accommodating an expansion in credit to the private sector. Credit extended to the private sector by the commercial banks, which contracted during much of 2009, has recorded a positive growth since March 2010. Expansion in credit obtained by the private sector indicates a gradual pick-up in economic activity, and this expansion is expected to gather momentum, particularly in view of the prevailing supportive monetary conditions.
Indicators of external sector performance point to encouraging developments.  Exports have recorded a healthy growth for the first quarter of 2010.  Imports have also increased in line with the recovery in economic activity.  The recent relaxation of selected import tariff would provide additional impetus to the economic recovery underway.  Workers’ remittances, which have recorded a growth of 14.1 per cent, year-on-year, for the first quarter of 2010, meanwhile, continue to cushion the current account.  Further, the Central Bank continues to be a net buyer in the domestic foreign exchange market.  Reflecting these trends, the foreign reserves of the country remain at comfortable levels.
Taking into consideration the above developments, the Monetary Board, at its meeting held on 15 June 2010, decided to maintain the policy interest rates of the Central Bank unchanged.
The release of the next regular statement on monetary policy will be on 13 July 2010.

The orginal “DOC”ument could be found here

“Economic and Social Statistics of Sri Lanka 2010 – Volume XXXII” Available For Purchase.

In CENTRAL BANK OF SRI LANKA, development, Economy, magerata, Sri Lankan Rupee on June 6, 2010 at 6:49 am
The Central Bank of Sri Lanka has just released its annual publication titled “Economic and Social Statistics of Sri Lanka 2010 – Volume XXXII”.  This publication contains data covering a wide range of economic and social aspects of Sri Lanka. There are around 200 data tables comprising information pertaining to areas of Climate, Population and Labour Force, National Accounts, Agriculture, Industry, Prices and Wages, External Trade and Finance, Money and Capital Markets, Government Finance, Banking and Financial Institutions, Transportation, Socio-Economic Services and a set of tables comprising of selected information on economic and social aspects of other countries. This compilation also includes information on living conditions in Sri Lanka from the Consumer Finances and Socio-Economic Survey 2003/04 conducted by the Central Bank of Sri Lanka as well as disaggregated information at the provincial level on key economic variables, including socio economic conditions, GDP in current terms, agriculture and livestock statistics, water consumption, foreign employment and plantation sector manpower and production.

Data available in this publication have been selected and presented carefully in various forms/ breakdowns and in time series/ cross sectional manner, to serve the diverse needs of users.
The vast amount of data included in this publication will be of use for analysing the trends in the economy, and will be of immense use for entrepreneurs, policy makers, researchers, teachers, students and the general public.
The price of a copy is Rs.250/-  and the publication can be purchased from Sales and Distribution Counter of the Central Bank at its Centre for Banking Studies, 58, Sri Jayewardenepura Mawatha, Rajagiriya, Provincial Offices of the Central Bank in Matara, Matale and Anuradhapura and leading bookshops.

Central Bank of Sri Lanka Economic and Social Statistics of Sri Lanka 2010 Publication

Despite Begging By Jeremy Page & Times Online, British Love Sri Lanka.

In magerata, Sri Lankan Rupee, Tourism, travels on June 3, 2010 at 8:43 am

British Love Sri Lanka

Number one place to visit in 2010 or for ever Photo credit Keith Bedford for The New York Times

Despite repeated begging by Jeremy Page and his tabloid timesonline, “do not visit Sri Lanka”, British people have honored Sri Lanka with most visitors from EU countries.  It must be the same allure that attracted Arthur C. Clark to Sri Lanka, when he decided to migrate to Magerata. Perhaps it was because Sri Lanka has been named the number one destination by The New York Times for 2010. What a contrast, between a tabloid and a News Paper. Thank you, New York Times For really helping out Sri Lankans.

“So the question facing British shoppers and holidaymakers is this: should they continue to support Sri Lanka’s garment and tourist industries? Sadly, the answer must be no.”

Well at least about 35,000 British citizens have given Jeremy the plug yourself up from bottom sign and visited Sri Lanka so far this year. So Jeremy, if you can can calculate as well as you babble, just assume all those only spent 100 quid per person, it is more than you will ever see in your life.

Thank you People of United Kingdom, Welcome to Sri Lanka’s Blue waters, sandy beaches, lush rain forests, national parks and even de-mined north, which is actually still going on.

Hey Jeremy even you too can visit Sri Lanka you have been dreaming about for a while (First you got to get permission though :). If you ever get to visit Sri Lanka soon, you can do the world a service by stepping on a land mine laid by your friends, many big government might go into a shock and stop manufacturing and selling land mines. Got balls?

Sri Lanka’s External Trade Performance: Feb 2010 and Jan – Feb 2010

In development, Economy, magerata, Sri Lankan Rupee on May 11, 2010 at 12:36 am

Central Bank Of Sri Lanka’s Economic Research Department has released the “Sri Lanka’s External Sector Performance February 2010 and January-February 2010”. (Click HERE for the original “doc“ument) They do continue to publish reports in Microsoft “DOC” format. It could be published as a PDF or just as I have published below, which might help to reach wider audience. Interest in Sri Lanka and it’s ‘s economy seem to be high. Value of Sri Lankan Rupee also need to rise in order to reach the perfect balance.

Basically the news is good as we continue to increase exports and imports. Economic activities are in small scales compared to most of the countries I am familiar with but it is a sizable chunk in Magerata economy. Even though the exports grew by 20% the trade deficit also grew to $344 Million (about Rs 39158 Million at todays rate,)

Press Release;

Sri Lanka’s External Trade Performance

Sri Lanka’s External Trade Performance

External Sector Performance – February 2010

Sri Lanka’s external sector performance showed signs of improvement along with the gradual recovery of the global economy. Earnings from exports grew by 20.0 per cent in February 2010 to US dollars 629 million led by higher earnings from agricultural and industrial exports. The expenditure on imports also increased by 60.6 per cent to US dollars 973 million, due to the increased demand for imports within all the sub sectors. Accordingly, the trade deficit expanded to US dollars 344 million in February 2010.

Sri Lankan exports imports Feb 2010

Sources: Central Bank of Sri Lanka Sri Lanka Customs

Earnings from agricultural exports, which accounted for 27.0 per cent of total exports, increased in February 2010, year-on-year, led by tea, rubber and minor agricultural exports. Tea and rubber, whose export volumes increased by 20.1 per cent and 44.1 per cent, respectively, continued to fetch higher prices in the international market. Tea prices increased by 25.7 per cent to US dollars 4.35 per kg mainly due to the finer quality of Ceylon tea exports and the supply shortages in the international market. Rubber prices increased to US dollars 2.86 per kg, reflecting a 95.4 per cent increase compared to February 2009, mainly due to the recovery in international demand. Supply shortages due to the adverse weather conditions that prevailed in the major rubber producing countries in Asia also helped increase the international rubber prices. Earnings from minor agricultural exports increased due to higher prices fetched by fruits, coffee, and cocoa products and increased volumes of vegetables, arecanuts, cashew and essential oils. Export earnings from certain spices, such as cinnamon and cloves, increased led by higher volumes and prices. The industrial exports, which were affected by the global economic crisis, rebounded in February 2010, led by the exports of processed food and beverages as well as rubber products. Although exports of textile and garments and ceramic products declined in February 2010, year-on-year, they reflect an improvement since January 2010.

All major categories of imports increased in February 2010. Expenditure on imports of consumer goods increased significantly, with notable increases in food imports such as rice, sugar and wheat. Expenditure on imports of non-food consumer durables also increased significantly in February 2010. Amongst intermediate goods, expenditure on petroleum imports increased substantially in February, year-on-year, as the average import price of crude oil rose by 71.4 per cent to US dollars 78.23 per barrel. Import expenditure on fertilizer increased in February 2010, compared with the same period in 2009, mainly due to the substantially higher import volumes. Imports of investment goods also increased in February 2010 led by higher expenditure on transport equipment, building materials and machinery and equipment, which augurs well for future economic activity.

During the first two months of 2010, foreign remittances increased by 13.0 per cent over the corresponding period of 2009 to US dollars 564 million. The gross official reserves, with and without Asian Clearing Union (ACU) funds, were at US dollars 5,408 million and US dollars 5,032 million, respectively, by end February 2010. Based on the previous 12 months average imports of US dollars 921 million per month, the gross official reserves, without ACU funds, were equivalent to 5.5 months of imports.

The performance of external trade during the period is further illustrated in the following table.

External Trade Performance: February 2010 and January – February 2010

Category February 2009 US$ mn February 2010 US$ mn Growth – February (per cent) Jan -Feb 2009 US$ mn Jan -Feb 2010 US$ mn Growth – Jan -Feb (per cent)

Exports

524.3 629.0 20.0 1,015.4 1,100.9 8.4
Agricultural 108.6 169.9 56.4 209.6 312.4 49.0
of which, tea 72.3 109.3 51.1 133.9 200.1 49.5
Industrial 407.7 452.8 11.1 792.7 772.8 -2.5
of which, textiles and garments Mineral 275.1 8.0 248.5 6.2 -9.7 -21.7 515.7 13.0 422.2 15.8 -18.1 21.2

Imports

606.3 973.4 60.6 1,288.9 2,134.3 65.6
Consumer Goods 143.7 255.5 77.8 297.8 489.0 64.2
of which, food and drink 96.7 185.9 92.2 194.7 346.7 78.0
of which, other consumer goods 47.1 69.7 48.1 103.1 142.4 38.1
Intermediate Goods 289.1 443.3 53.4 622.9 1,068.4 71.5
of which, petroleum 95.5 136.3 42.7 175.9 466.6 165.3
of which, textile and clothing 93.2 128.1 37.4 205.6 249.5 21.4
Investment Goods 167.5 261.7 56.3 350.8 480.8 37.0

of which, machinery and equipment

79.8 117.9 47.7 159.7 201.5 26.2

of which, transport equipment

20.4 39.3 92.8 47.1 92.1 95.5

of which, building material

49.7 73.6 48.2 99.1 134.3 35.6

Balance of Trade

-82.1 -344.5 319.8 -273.6 -1,033.4 277.8

Workers’ Remittances

241.4 274.6 13.8 499.4 564.4 13.0

Source: Central Bank of Sri Lanka Sri Lanka Customs