United States Virginia change
Sri Lanka Breaking News
Sri Lanka parliament
vivalankaSri Lanka newsSri Lanka businessSri Lanka sportsSri Lanka technologySri Lanka travelSri Lanka videosSri Lanka eventssinhala newstamil newsSri Lanka business directory
vivalanka advertising
Stay Connected
Popular Searches
T20 World Cup
Sponsored Links
Sri Lanka Explorer

Relax Policy Rates

Jun 12, 2010 3:08:17 PM - thesundayleader.lk

With pressure on the rupee to appreciate due to U.S. dollar inflows, Central Bank of Sri Lanka (C.B.S.L.) last week allowed the dollar to depreciate by 10 Sri Lanka cents, with dollar: rupee two way quotes commanding prices of Rs. 113/50/60, as opposed to Rs. 113/60/70 previously in spot trading.

With C.B.S.L. keeping its policy rates (overnight borrowing and lending rates) unchanged at last month’s Monetary Board meeting (7.5% and 9.75% respectively), that has had a knock-on effect in keeping yields stagnant despite excess liquidity in the market, sources said.

The 91, 182 and 364 day maturing Treasury Bills at last week’s auction saw the 364 day yield remaining unchanged at 9.26%, while that of the 91 and 182 day maturities fell by a marginal one basis point each to 8.07% and 8.89% respectively.

They further said that with inflation contained at 3.6%, there was no risk in C.B.S.L. relaxing their monetary policy stance. This month’s Monetary Policy meeting where C.B.S.L. is expected to announce its monetary policy stance is due on Wednesday.