The Sunday Leader » Feature Business http://www.thesundayleader.lk Unbowed and Unafraid Sun, 19 May 2013 17:58:45 +0000 en-US hourly 1 http://wordpress.org/?v=3.4.2 Business Cocktails http://www.thesundayleader.lk/2012/11/04/business-cocktails/ http://www.thesundayleader.lk/2012/11/04/business-cocktails/#comments Sat, 03 Nov 2012 23:35:00 +0000 sanjeewam http://www.thesundayleader.lk/?p=79344

 

On the occasion of introducing Sir Robert Swan, the only person in the world
who has conquered both the Artic and the Antarctic to reporters In Sri Lanka by Coca Cola Sri Lanka (Coke SL) On Wednesday – Photos by Thusitha Kumara

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]]> http://www.thesundayleader.lk/2012/11/04/business-cocktails/feed/ 0 Govt.’s Borrowing Costs Up http://www.thesundayleader.lk/2012/11/03/govt-s-borrowing-costs-up/ http://www.thesundayleader.lk/2012/11/03/govt-s-borrowing-costs-up/#comments Sat, 03 Nov 2012 16:58:02 +0000 sanjeewam http://www.thesundayleader.lk/?p=79168 In “tandem” with the increase in market interest rates, Treasury (T) Bills’ weighted average yields (WAYs) also expanded at Wednesday’s weekly auction.
T Bill yields of 91 day tenure increased by two basis points (bps) to 10.68% over its previous WAY. In the week ended October 26, Central Bank of Sri Lanka (CBSL) rejected bids received for this tenure in the previous week ostensibly because the market was asking for higher yields than that which CBSL was prepared to pay.
“Because of the liquidity crunch, some banks are offering consumers deposit rates as high as 15% for three months’ tenures’,” a market source told this newspaper. So if T Bills are to be attractive to the market, their yields too need to be increased, he said.
But the 18% credit ceiling for the year imposed by CBSL being a dampener for a rate rise as most banks apparently have had met this ceiling? Not so my bank, the source who works for one of the larger banks said.
Nevertheless some of the smaller banks have issues with CBSL’s credit ceiling, by having had already met the target, or reaching closer to that target (see also the business editorial of 7.10.12.).
The issuance or reissuance of T Bills is one way Government of Sri Lanka borrows domestically to meet its expenditure commitments.
Meanwhile T Bills of 182 and 364 day tenures at this auction saw their WAYs increase by seven and eight bps to 11.97% and 12.56% respectively.

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