Reuters: European banks may need more than 100 billion euros ($ 135 billion) to withstand the sovereign debt crisis, said Ireland ahead of a key meeting of Europena leaders. The falling value of banks’ holdings of government debt from Greece and other euro zone periphery states has already prompted the implosion of Belgian lender Dexia, ...

BERLIN (Reuters): The leaders of Germany and France promised on Sunday to unveil a new comprehensive package for solving the euro zone’s debt crisis by the end of the month, but offered no details and papered over differences on how to shore up European banks. German Chancellor Angela Merkel and French President Nicolas Sarkozy said ...

Reuters: When Paul Friedman met the rag-tag youth camped out near Wall Street to protest inequality in the American economy, he felt he was witnessing the start of a protest movement not seen in America since the 1960s. And Friedman should know. The 64-year-old was a student organizer during the anti-Vietnam War movement, protesting from ...

Revises from 8.5 pct yr/yr; still a record high growth $1 b inflow into stocks, debt expected before end-Dec Sri Lanka deals with Asia investors, not from Europe, US COLOMBO(Reuters): Sri Lanka’s Central Bank on Thursday lowered its full-year growth target to 8.3 percent from its earlier estimate of 8.5 percent due to contraction in ...

MP charges that Government is focusing only on physical infrastructure and adopting a top-down development approach instead of a more inclusive and participatory humane political futureUnited National Party Parliamentarian Eran Wickramaratne asserts that the Government is depleting the resources of the municipality on an election extravaganza. In a candid interview with the Daily FT, the ...

Reuters: Anyone hoping that recent falls in commodity prices would provide a boost to powerhouse Asian economies and help lift the developed world out of recessionary danger will be disappointed. The region’s focus remains firmly on inflation. Commodities from crude to corn have slid in the last quarter, with many showing the most dramatic losses ...

Leif Lybecker Eskesen, Chief Economist for HSBC India and ASEAN will visit Sri Lanka this week. During his visit, he will address the Bank’s corporate customers on ‘Asia’s Inflation – Growth Tango: who’s dominating the dance?’ at a special Power Breakfast, scheduled to be held on 7 October 2011, at the Cinnamon Grand Hotel. Leif ...

More inflows into service, capital, financial accounts, says CB Rupee was under pressure due to heavy imports in Aug., Sept. Currency dealers wary on rupee stability By Shihar Aneez Reuters: Pressure on Sri Lanka’s rupee currency will recede in coming months due to increasing inflows into the country’s service, capital and financial accounts, the Central ...

HONG KONG (AFP): Asian markets were mixed in choppy trade Thursday ahead of a key vote by Germany’s parliament on whether to approve an expansion of the eurozone’s rescue fund. A new European Union-International Monetary Fund audit of Greece’s progress under its 110 billion euro

LONDON (Reuters) – World stocks rose for a third straight session on Tuesday, with European shares up 2 percent, as investors took comfort from reports that officials were working to add to measures to calm the euro zone debt crisis. After losing more than 7 percent last week, the MSCI all-country world stock index was ...

BRUSSELS(AFP): Caught in the shadow of a potential Greek default that has seen investors switch into risk-aversion mode, European banks are back in the hunt for funds to shore up their books. In a major U-turn, senior EU officials conceded this past week that Europe’s banks need to raise more capital to weather the storm ...

Last week’s My View talked about six popular fallacies of currency or exchange rate appreciation which both the authorities and the public have tended to harbour in themselves. Of them, the following three were discussed in detail: Fallacy One: The government can fix the external value of a currency at any level it wishes. Fallacy ...

In its march towards development, Sri Lanka is still seeking the assistance of bilateral and multilateral organisations as well as greater input from foreign investors, Governor of the World Bank Group and International Monetary Fund for Sri Lanka, Senior Minister for International Monetary

Says business environment needs to improve, seventh review to be concluded in December By Deepal V. Perera in Washington DC The International Monetary Fund (IMF) yesterday stated that in the face of the global downturn, the performance of the Sri Lankan economy has been impressive. “The Sri

Gives comprehensive address highlighting issues of developing countries Shoots down discriminatory practices by developed countries Outlines post-war development, reiterates stance against terrorism Backs Palestine, Cuba and Africa By Nisthar Cassim in New York In his much-anticipated address to the UN, President Mahinda Rajapaksa yesterday took a comprehensive local, regional and world view, with...

UNP Leader Ranil Wickremesinghe yesterday proposed that the committee stage debate of the 2012 Budget be limited to main ministries while a committee is appointed to discuss the rest of the ministries. Wickremesinghe has proposed in the House that since there is a large number of ministries, debating the main ministries during committee stage would ...

By Dinali Goonewardene As stock markets the world over strongly slid downwards on fears of slowing economic growth, foreigners took their money out of the Colombo stock market yesterday, contributing to a seven-week low. Foreign sales were Rs. 70 million and net foreign outflows Rs. 21.8 million, albeit a relatively low component of total turnover. ...

ATHENS (AFP):  Greeks on Thursday reacted with anger and disbelief at a new wave of austerity cuts enacted to keep the country in the eurozone as a public transport strike caused road chaos in Athens. The embattled socialist government announced pension and tax break cuts and put 30,000 state employees on temporary lay-offs after pledging ...

By Deepal V. Perera in Washington DC The International Monetary Fund (IMF) releasing its Global Financial Stability Report assessing key risks facing the global financial system said that financial stability risks have increased substantially over the past few months. Weaker growth prospects

Reuters: Sri Lanka’s stock market fell for a third session to a more-than six-week low on Thursday, following Asian peers on a gloomy global economic outlook, a local liquidity shortage and forced selling to meet margin debt reductions. The island nation’s main share index closed 0.45 per cent or 30.50 points weaker at 6,762.38, its ...

IFC, a member of the World Bank Group, yesterday launched a new report that identifies seven inclusive business models that expand access to goods, services, and livelihoods for the world’s poorest people while generating strong financial returns. The report underscores IFC’s commitment to creating opportunity at the base of the economic pyramid. IFC clients from ...

IMF urges more exchange rate flexibility CB defends interventions as necessary More discussions expected in Washington this week Reuters: The International Monetary Fund (IMF) yesterday said there has been no timetable set for a review of Sri Lanka’s progress under a $2.6 billion loan

SAINT JOHN (Reuters): Canadian economic growth will resume this year and the European debt crisis is “fixable” with existing resources, Bank of Canada Governor Mark Carney said. In an apparent bid to counter growing fears of another recession in Canada, Carney also said he does not expect a U.S. recession, although the risk of one ...

SYDNEY (AFP): Australian Treasurer Wayne Swan on Wednesday urged European nations to “get their act together” as the International Monetary Fund released dire new predictions for the global economy. Named the world’s best finance minister by Euromoney magazine overnight due

The world economy has entered a “dangerous new phase,” according to the Chief Economist of the International Monetary Fund Olivier Blanchard. “The recovery has weakened considerably. Strong policies are needed to improve the outlook and reduce the risks.” “Markets

Reuters: Sri Lanka’s private sector credit growth will decline to 27 per cent year-on-year compared to a 16-year high of 34.4 per cent in June this year, due to a higher base and a slowing global economy, the Central Bank said on Tuesday. Credit growth had eased to 34 per cent year-on-year in July from ...

Says emerging markets will grow by 6.4% but developed countries stalling at 1.6%Pic and text by Deepal V. Perera reporting from Washington The International Monetary Fund (IMF) in its latest report outlining the performances of global economies said yesterday that a dangerous new phase was emerging

HONG KONG (AFP): Asian stock markets extended their losses on Tuesday after the eurozone debt crisis deepened when ratings agency Standard & Poor’s downgraded Italy’s sovereign debt. The move further depressed the already weak euro, which sent Tokyo shares tumbling, with exporters taking the brunt of the selling. It also compounded concerns that Athens is ...

THE Monetary Board, with the concurrence of the Finance Minister has promoted three Assistant Governors, the Central Bank announced yesterday. They are Dr. P. Nandalal Weerasinghe and B.D.W.A. Silva with effect from 27 September and C. Premeratne with effect from 1 January 2012 to the posts of Deputy Governor. Details of their careers are given ...

Reuters: Sri Lanka’s Central Bank on Monday started repo auctions after a lapse of two years, a move that currency dealers see as aimed at easing pressure on the exchange rate and the Central Bank’s dollar sales. The Central Bank in the past has used the tool under its open market operation to drain money ...