By Cheranka Mendis Despite the Central Bank’s forecast reading 7.2% growth for 2012, RAM Ratings Lanka CEO Adrian Perera is confident that the country can touch the 7.5%-7.6% mark by the end of the year. Perera told the Daily FT that the new projection is a realistic number from the 8% noted at the beginning ...

TOKYO (Reuters): Asian shares rose on Wednesday as upbeat U.S. economic data plus signs of improving capital positions at big American banks stoked appetites for risk, while reduced expectations for more  monetary easing by the Federal Reserve underpinned the dollar.  The dollar eased from a seven-week high against a basket of major currencies of 80.320 ...

CONCERN over the controversial Channel 4 documentary has reached a fever pitch. In fact it is so high that it is causing some politicians to talk deliriously and call for local consumers to boycott US products such as Pepsi and Coca Cola or return to the days of snail mail by forgoing Gmail. Even though ...

The Consumer Day Forum is organised by the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) and the Institute of Policy Studies of Sri Lanka (IPS) as a part of the Public Private Awareness effort on issues pertaining to business, economy and the society. In 1962, John F. Kennedy, Former President of ...

Preamble State ownership of public utilities dates back to the colonial period. The early post-independent years saw the State establish public enterprises that were involved in the production and distribution of key goods and services. The share of State ownership in the economy expanded steadily and gathered momentum in the 1970s when Government policy, in ...

Broking firm DNH Financial Ltd. is stressing that with interest rates on the rise, stock selectivity becomes even more vital for investors. It said Treasuries yields have risen across maturities with the three month, six month and 12 month yields rising by 31 bps, 24 bps and 15 bps respectively to 10.11%, 10.18% and 10.45% ...

SRI LANKA’S fabled post-war window of opportunity seems to be closing, with the Central Bank following the International Monetary Fund (IMF) in reducing growth rates for 2012. But does that mean only gloom awaits Sri Lanka or can we ride out the tide and reach the golden shores? The Central Bank had originally forecast this ...

It is pleasant to lead a peaceful life with no encumbrances and without debts. In the modern world, debt has become a part of life like breath. In Sri Lankan society, it has not been the case and the practice before. It has been a burden and a commitment for somebody to live in a ...

PARIS (Reuters): Franco-Dutch airline Air France-KLM last week warned that a soaring fuel bill would hit profits this year after it swung to a loss in 2011 and scrapped its dividend. With fuel costs expected to increase by 1.1 billion euros ($1.44 billion) in 2012, Air France-KLM said operating profit in the first half of ...

Peninsula, DOHA:  The Sri Lankan rupee which has been fast tumbling against the dollar is expected to recover soon, and might actually begin appreciating, says Sri Lanka’s Central Bank Governor Ajith Nivard Cabraal. The official said that the rupee now ruling at 120 a dollar will start looking up over the next “six to eight” ...

Reuters: The Congress party’s drubbing in assembly elections proved beyond doubt that its populist politics failed to resonate with voters, and yet investors and consumers alike are bracing for more of the same from the besieged ruling party.  Hemmed in by maverick allies and the fallout from a slew of corruption scandals, the Congress party-led ...

Access Engineering Ltd. yesterday announced that its Rs. 500 million IPO was oversubscribed within a few hours of opening. As the IPO was oversubscribed, the subscription list closed on 6 March 2012, the official day of opening of the IPO, according to the regulations laid down by the Colombo Stock Exchange. The company issued 20 ...

High Commissioner of India in Sri Lanka Ashok K. Kantha recently launched Sri Lanka’s first-ever Corporate Fuel Card and XtraPremium Euro 3 at. Felix Perera, Lanka IOC’s flagship retail outlet in Colombo 7. This new Corporate Fuel Card has been launched by Lanka IOC in a tie-up with Dialog and will be issued to corporate ...

CIMB Group Holdings Berhad (CIMB Group) and John Keells Stock Brokers (Pvt) Ltd. (JKSB) yesterday announced a strategic collaboration to promote and facilitate trading on the Colombo Stock Exchange (CSE) and provide co-branded research for CIMB’s clientele. JKSB, a founder member of the CSE and a subsidiary of John Keells Holdings PLC, the largest listed ...

Reuters: The International Monetary Fund (IMF) on Monday forecast Sri Lanka’s economic growth would cool to less than 7.5% due to its tighter monetary policy and currency depreciation measures, aimed at cutting the trade and current account deficits. The global lender has withheld the last $800 million left in a $2.6 billion loan program since ...

Scanning through the papers recently after the Central Bank of Sri Lanka published its 2011 external sector performance report, I was reminded of a pithy observation made by William W. Watt: “Do not put your faith in what statistics say until you have carefully considered what they do not say.” Some of the data were ...

Passenger traffic continues by 5.7% to rise in January; cargo remains in doldrums with 8% dipThe International Air Transport Association (IATA) last week announced global traffic results for January showing a 5.7% rise in passenger demand but an 8.0% decline in air freight compared to the same month in 2011. The occurrence of Chinese New ...

Tyranny of the international capital markets Dr. Indrajit Coomaraswamy, ex-Central Banker and International Civil Servant, did not mince words when he addressed the country’s exporters last week. The veteran economist, having made an assessment of the risks associated with Sri Lanka’s external sector crisis, warned that the country will have to grapple with “the tyranny ...

Cisco on Thursday announced the launch of the first Cisco Student Industry Training Program [CITP] in Sri Lanka. The six-month program, scheduled to commence in March, is aimed at providing Cisco Networking Academy students a unique opportunity in industry attachment to fuel ICT adoption and drive economic growth. This significant industry- academia collaboration will witness ...

Diversified blue chip Hayleys remains optimistic of future prospects despite what its Chairman Mohan Pandithage described as “adjustments-required” temporary challenges. With regard to new policy developments relating to exchange rate and fuel prices, the Hayleys Chief admitted they do cause some temporary adjustment costs, but in the long-term they will help improve macroeconomic stab...

The Treasury has defended the Government’s recent decision to increase fuel prices ranging from 30% to 50%, linking it to spikes in global prices, rising losses for CPC and the need to safeguard subsidies to the people. In a statement posted on the Treasury’s website, the Finance Ministry has responded to various allegations as well ...

Ford this week announced the winning project under their Environmental Conservation and Grants program in Sri Lanka. The ‘Fire Prevention in Knuckles Forest Reserve’ project was selected as the winner after heavy jury examination and will receive up to $ 10,000 from Ford Motor Company to implement their proposal. Ford Motor Company’s Conservation and Environmental ...

Despite a select few reporting highest-ever profits, the combined figure of 210 companies which have released their financials so far reveals a concerning trend. The cumulative earnings for the quarter ended on 31 December 2011 was Rs. 40.6 billion, up by only 0.56% year-on-year according to broking sources who have tracked corporate results. The 210 ...

The Central Bank last night said the revision of Sri Lanka Foreign Currency Rating Outlook from ‘Positive’ to ‘Stable’ and lowering of the country’s long-term local currency rating from BB- to B+ by Standard & Poor’s was unwarranted. In a statement, the Central Bank said the Sri Lankan economy is estimated to have grown by ...

By Cheranka Mendis Asian economies must face the rising issues of energy by getting their act together and moving forward even though the countries in the region seem to be facing discrimination from the West in the area of using nuclear power as an alternative source to non-replaceable oil sources. Independent Power Producers Association of ...

Managed to divert from crisis to stability through policy changes By Cheranka Mendis Sri Lanka, teetering on the brink of a crisis, just managed to save itself through the recent policy measures taken by the Government such as the exchange rate changes, said the Commonwealth Secretariat Economic Affairs Division’s former Director Dr. Indrajit Coomaraswamy yesterday. ...

Sri Lanka’s vehicle population is set to double within the next decade, creating the need for larger roads, but financial uncertainty and a growing loan burden are posing challenges. A study released by the Transport Ministry this week showed that the current vehicle population in Sri Lanka is 130 vehicles per 1,000 people and this ...

Clouded prospects in developed markets cast a shadow over outlook for trade and economyBy Jonathan Story Two key forces that have driven Asia’s transformation for decades can be counted on to continue apace in the coming year: economic development and China’s rise. Nonetheless, individual Asian countries will struggle to balance domestic and international responsibilities in ...

Reuters: Sri Lanka’s rupee ended weaker on Wednesday on importer dollar demand, as traders shrugged off Central Bank intervention signals and rating agencies warned the sovereign rating may be at risk due to a potential balance-of-payments problem. The rupee closed at 121.80/122.00 to the dollar, against Tuesday’s close of 121.40/60, on importer dollar demand in ...

The demand for vehicles in Sri Lanka remains buoyant according to a report prepared by the Ceylon Chamber of Commerce (CCC) analysing import statistics for 2011. The expenditure on import of vehicles and parts recorded a growth of 87% in 2011. The value of imports increased from Rs. 117 billion to Rs. 219 billion by ...