The RP rate (graph from Bloomberg) The Central Bank today slashed a benchmark interest rate, the reverse repo-rate, by 50 basis points. This is a six year low for this particular rate and came as an unexpected measure on the part of the Central Bank. The reverse repo rate, broadly speaking, is a rate for [...]
Mahindra Group Chairmn Anand Mahindra (left) with Sri Lanka President Mahinda Rajapaksa (photo: the Hindu Times) Indian Conglomerate Mahindra and Mahindra has announced plans to expand its operations in Sri Lanka. Mahindra has already established a firm base for itself on the island. It has been selling its range of tractors and utility vehicles for [...]
At a recently held event, the World Bank launched a specialized development report for Sri Lanka based its 2009 World Development Report: “Sri Lanka: Reshaping Economic Geography: Connecting People to Prosperity.” The report was made at the request of minister Sarath Amunugama and Mr. Ajith Cabraal of the central bank proposed three specific steps to [...]
As stocks tumble, the government is trying to improve its financial management. The question is whether it can adapt in time to stabilize an already shaky economy. The Colombo Stock Exchange (CSE) dropped 4% this morning (9 August) following a 1.41% drop on Friday and a 1.49% drop on Thursday. The government responded by ordering that no [...]
Sri Lanka’s public sector is not very popular, except perhaps among those who work for it. A onetime finance minister recently quipped that the bloated public sector was so rampant with corruption and inefficiency and corruption that they almost equal rogue financial firms in their notoriety. Sri Lanka has a public sector of around 6 [...]
Public sector trade unions have launched a campaign to demand for a Rs. 8,000 salary increment from the government after it failed to grant any salary hikes in the recently passed 2010 Budget. The JVP affiliated National Trade Union Center (NTUC) has commenced an island wide poster campaign demanding for a Rs. 8,000 salary increment [...]
The European Union has withdrawn its GSP+ tax concession on Sri Lankan apparel imports. This tax affects 30% of all apparel exports, according to the Central Bank. The apparel industry employs thousands of people and jobs may be in jeopardy without preferential access to this major market. The EU stated that it is withdrawing the [...]
With the release of I.M.F.’s third and fourth tranches, Sri Lanka’s economy has immediately begun to see a positive outlook. The review which was delayed due to unstable macro economic conditions finally took place after the new cabinet was appointed. IMF Executive Board Deputy Managing Director and Acting Chair Naoyuki Shinohara said that positive macro [...]
The GSP Plus Situation In the latest twist of the GSP plus ruckus the government just announced in no uncertain terms that it will not be complying with the new EU conditions for the reinstating of the GSP plus concessions. The concessions have been extended for six months and are set to expire in August [...]
Since industrialization humans have focused on getting more efficient and becoming more profitable. I shouldn’t say humans; it’s mostly the business class which has expounded such ideas for practical application. Economics cannot be taken away from the self interest of its proponents and when brought into the fray of politics, self interest largely depends on [...]
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