Subsidies? Well yes, but make them smart subsidiesNigeria: Subsidising the neighbours Nigeria’s Central Bank Governor, Sanusi Lamidi Sanusi, had a problem. In a recent live interview with the Aljazeera TV, he said that his country had to raise the retail prices of all petroleum products to match the rising international prices, despite the violent and ...

TOKYO (Reuters): Asian shares crept higher on Friday as solid U.S. data improved sentiment, but gains may be limited by concerns that rising oil prices could deal a further blow to the fragile euro zone economy and moves to take profits after recent rallies. MSCI’s broadest index of Asia Pacific shares outside Japan was up ...

Avoiding a crisis The Pathfinder Foundation (PF) commends the Treasury and Central Bank for the policy measures introduced recently. This has prevented an external payments crisis. Without remedial action, the country would not have been able to meet its debt obligations and/or finance essential imports within a short period of time. The increases in the ...

NEW DELHI (Reuters): With one of the world’s most expensive yachts and a cricket and Formula One team, billionaire Vijay Mallya is known as India’s Richard Branson or simply, the “King of Good Times”. Owner of the world’s second-largest liquor maker, it is his chairmanship of debt-ridden Kingfisher Airlines that is currently making headlines, not ...

Government politicians yesterday at a Presidential forum got a special update and explanation on the current crisis following the devaluation and fuel hike as well as upcoming UNHCR sessions. The forum held before the weekly Cabinet meeting was attended by MPs, heads of local government bodies and Ministers. Ministers Susil Premjayantha, Champika Ranawaka, Rajitha Seneviratne ...

The Colombo stock market is increasingly showing signs of rebirth as its value has risen by Rs. 153 billion in a week after slumping sharply on 2011 Valentine’s Day. Bullish sentiments saw the Bourse up over 2% yesterday with market capitalisation improving by Rs. 41 billion to Rs. 1.987 trillion bringing the total to Rs. ...

Contrary to exaggerated claims the EPF investments in to the stock market last week had amounted to only less than 10% of market activity and unlike some past contentious buys, this time around it had focused on blue chips. The total turnover of the Colombo bourse last week was Rs. 8.6 billion and local purchases ...

EPF and stock market I was sad to see in the FT that EPF has begun to purchase stocks in the market again. Is it to give the market a boost or is it to fatten someone’s pocket again, as some people claim? It was not very long ago that the fund made so much ...

NEW DELHI, Feb 20 (Reuters) – India’s aviation regulator has summoned top executives of Kingfisher Airlines to explain large number of flight cancellations since Saturday, even as the aviation minister ruled out providing any aid to the loss-making carrier. On Saturday, 32 out of the 240 flights that Kingfisher operates each day were cancelled and ...

Reuters: Cash-strapped Kingfisher Airlines said it has been forced to reduce operations due to "unexpected events" but promised to resume normal services within the next four days. The company, controlled by liquor baron Vijay Mallya, has cancelled 32 flights out of the 240 it operates each day, hit by problems including bird strikes which forced ...

Sharp reduction in vegetables prices thanks to higher output could help soften an otherwise sharp spike in inflation following the unprecedented fuel hike and devaluation of the rupee, according to analysts. In recent weeks, prices of vegetables have dropped by as much as 50% or more and this development will make the additional cost following ...

Reuters: Asian shares rebounded on Friday on signs that euro zone officials will soon approve a long-awaited bailout for Greece, and after jobs and factory data pointed to a healthier U.S. economy. Financial bookmakers expected European stocks to track Asian shares higher, with financial spreadbetters calling the main indexes in London .FTSE, Paris .FCHI and ...

Reuters: Iran, facing sanctions that could cripple its oil exports, has told world powers it wants to resume long-stalled talks with “new initiatives”, and France said it might be open to addressing suspicions about its nuclear programme. Tehran made the offer in a letter to the EU’s foreign policy chief obtained by Reuters on Thursday, ...

The third edition of Jaffna International Trade Fair 2012 was held recently at Durayappah Stadium, Jaffna. This event showcased a wide range of products and services from various industries and brought together the business community in the Northern territory. The Nations Express Centre offered visitors an opportunity to experience a range of financial products such ...

Sri Lanka’s cricketing fortunes seem to be changing of late. The team’s better performance has raised hopes among many fans, while the Sports Ministry’s decision to finally pay the cricketers through a Rs. 600 million loan from the Bank of Ceylon will raise moral still higher. The financial fallout that resulted from the co-hosting of ...

ASI gains by 5% as Bourse’s value swells by Rs. 96 b Brokers positive after fresh meeting with SEC EPF, private institutional and high networth investors active on attractive valuations The Colombo stock market yesterday produced a major rebound gaining by 5% thanks what some described as “spirited support” whilst others emphasised it was largely due ...

Reuters: Britain’s top-notch credit rating may survive the threat of a downgrade because economists still believe in London’s resolve to erase a huge budget deficit and the central bank’s ability to print money. Rating agency Moody’s imposed a negative outlook on Britain’s triple-A rating late on Monday — the first such warning on London’s debt ...

(Bloomberg): Sri Lanka doesn’t need to further tighten monetary policy for now even though an increase in fuel and transportation costs and a weakening currency may stoke inflation, the head of the central bank said. The central bank’s rate increase earlier this month will have a “demand-driven impact” and help moderate inflation, its Governor Ajith ...

Sri Lanka’s benchmark stock index, the world’s worst performer this year, may extend its slump as the central bank raises interest rates to curb inflation, according to HSBC Holdings Plc’s private banking unit. HSBC Private Bank, which oversees about $499 billion, will wait for stock valuations to fall to “single digit” multiples before it considers ...

TKS Securities yesterday described the fuel price revision by the Government as a bold move though it will have an impact on inflation. “We consider the ret   action which has sent shockwaves amongst the masses,” the broking firm said an economic update. “Given the current global and domestic economic scenario we believe the Sri Lanka ...

Stock market plunges further; Rs. 69 b in value wiped off One year loss of value is a staggering Rs. 766 b EPF and foreign buying saves Bourse after near 5% crash Rupee dips to all-time low of Rs. 120; likely to settle down though triggering panic in import trade Crisis could be an understatement ...

The Government said it will allocate Rs. 1.9 billion per month to provide fuel subsidy to necessary services following the increase in fuel prices. The Ministry of Finance and Planning has announced that the fuel relief will be granted from Tuesday to the Sri Lanka Transport Board, the Railways, private buses, three wheelers, school transport ...

The loss of value at the Colombo Bourse during the past four market days has ballooned to Rs. 142 billion, whilst the year-to-date negative return was inching towards 15% as misery worsened for investors on account of adverse external developments. The stock market yesterday within the first hour of opening ran the risk of a ...

By Chamitha Kuruppu The Government has decided to grant a fuel subsidy to private bus owners, school vans and three wheeler operators. A kerosene coupon will be issued to the low income families. Treasury Secretary Dr. P.B. Jayasundera told the Daily FT that cost of the relief scheme estimated to be around Rs. 4-5 billion ...

Fuel hike fires up fresh crisis Unprecedented rise to rocket cost of living; Opposition says hike anti-poor; subsidy scheme impractical Import bill in 2011 first 11 months at $ 4.1 b far above 2010 full year figure of $ 3 b Experts urge country to go back to automatic monthly price revision Hike likely to ...

UNP MP, its spokesman for the economy and Consultant Economist Dr. Harsha de Silva yesterday gave thumbs up to Central Bank Governor Nivard Cabraal for the latter’s dual move of hiking interest rates and depreciating the currency, though insisted risks and challenges remain. “The Central Bank Chief must be commended for finally realising that there ...

Iran’s parliament said on Tuesday it was ready to impose a ban on oil exports to some European states, the country’s English-language Press TV reported.   “In retaliation to the Zionist (Israel)-backed measure of the European countries to ban Iran oil, we are ready to impose a ban on oil exports to some European countries,” ...

A recent Energy Governance Case Study published by the Lee Kuan Yew School of Public Policy National University of Singapore has highlighted the vast potential of renewable energy initiatives succeeding in Sri Lanka, going so far as to say that if proper mechanisms for its development is in place then Sri Lanka could be identified ...

Are the Indian Army’s golf courses illegal?                 Sri Lanka’s fourth golf course opened by Air Force   India’s national auditor, the Comptroller and Auditor General (CAG), has reported to Parliament that the country’s Army has turned large tracts of State military property into illegal privately-run ...

Following the establishment of branches in Jaffna, Nelliady and Vavuniya earlier, Commercial Leasing and Finance has taken the initiative to open its recent branch in Kilinochchi. The move was with the objective of further strengthening the economic growth of the Northern Province. One of the fastest growing registered finance companies in the country, Commercial Leasing ...