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Tuesday January 17, 2023 11:02 am
Tuesday January 17, 2023 11:02 am
ECONOMYNEXT – Sri Lanka is expecting good results from negotiations with bilateral creditors, which can lead to the approval of a deal with the International Monetary Fund, State Minister for Finance Shehan Semanasinge said.
“We need assurances from creditors for the International Monetary Fund executive board to approve of the program,” Minister Semasinghe told parliament.
“The President, the Finance Ministry, the central bank and line ministries have done a lot of work. The good results of that work is coming. We have done a lot of work on financial assurances.
“The discussions are becoming successful. After the final agreement is reached President will make a statement on that.
“What I can say is that we have reached a stage where we can get the expected agreement with the support of all. The good results will come.”
Minister Semasinghe
The approval of an IMF program Sri Lanka will be able to improve investor confidence and start the recovery process, he said.
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Tuesday January 17, 2023 6:33 pm
Tuesday January 17, 2023 6:33 pm
ECONOMYNEXT – Sri Lanka shares gained over 1 percent on Tuesday on positive sentiments that creditors India and China likely to support debt restructuring plans.
“Commencing the week, ASPI reverted to the green zone while recording the highest intraday gain in 1 ½-month boosted by the speculation on India likely to support Sri Lanka’s debt restructuring plan which provide the confidence of finalizing the IMF program in the 1Q2023,” First Capital Market research said in a daily note.
“In response to that, investor interest was witnessed in Banking counters while retailers pounced on battered stocks (mainly EXPO and LIOC) after a steep fall during the past few days.”
The main All Share Price Index (ASPI) closed at 1.38 percent or 113.72 points higher at 8,376.30.
The index has already lost 1.9 percent within the first two weeks of trade.
The most liquid index S&P SL20 closed 3.14 percent or 79.43 points higher at 2,607.51.
First quarter of 2023 is expected to be negative with the taxations going in to effect from January 1st and there are talks of a hike in electricity tariffs, which has gained Cabinet approval and is waiting for recommendations by the Public Utilities Commission of Sri Lanka.
Whereas the second quarter was expected to be more positive with the anticipation of IMF getting through and with the interest rates expected to ease as the taxes starts to generate funds.
Sri Lanka is expecting a further contraction in the economy after a negative growth in 2022, Cabinet Spokesperson Bandula Gunawardena said at the Weekly Cabinet Press Briefing.
The market witnessed a turnover of 1.2 billion rupees, lower than this month’s 1.9 billion rupees average daily turnover.
It is also comparatively much lower than 2022’s daily average turnover of 2.9 billion rupees.
The market saw a net foreign outflow of 41 million rupees. The net foreign inflow for the first two weeks of January is 200 million rupees. The total foreign inflow of 2022 was 31 billion rupees.
Expolanka pushed the index up to close at 11.9 percent higher at 192.5 rupees.
Browns Investment gained 6.4 percent to close at 6.7 rupees and Lanka IOC closed 8.5 percent higher at 192.5 rupees a share. (Colombo/Jan17/2023)
Tuesday January 17, 2023 6:13 pm
Tuesday January 17, 2023 6:13 pm
ECONOMYNEXT – Sri Lanka treasury bonds remained steady and t-bills closed higher on Tuesday, dealers said while guidance peg quoted by the Central bank unchanged.
A bond maturing on 01.05.2024 closed at 32.00/30 percent down, steady from 32.00/40 percent at Friday’s close.
The bond maturing on 15.01.2025 closed at 31.00/25 percent on Tuesday, steady from 31.00/15 percent on Friday.
A bond maturing on 15.05.2026 closed at 30.90/00 percent on Tuesday, steady from 30.80/31.20 percent at previous close.
A bond maturing on 15.09.2027 closed at 29.50/30.00 percent, steady from 29.75/30.00 percent on Friday.
Three-months T-bill closed at 29.30/30.30 percent, down from 30.25/30 percent on Friday.
The Central Bank’s guidance peg for interbank US dollar transactions remained unchanged at 362.24 rupees against the US dollar.
Commercial banks offered dollars for telegraphic transfers at 360.06 rupees on Friday, data showed. (Colombo/Jan 17/2022)
Tuesday January 17, 2023 4:16 pm
Tuesday January 17, 2023 4:16 pm
ECONOMYNEXT – As talks between Sri Lanka President Ranil Wickremesinghe and the opposition Tamil National Alliance (TNA) on a final solution to the island nation’s decades-long ethnic issue hang in the balance, the cabinet of ministers has greenlit a high-level proposal to initiate a truth and reconciliation mechanism.
A government statement said on Tuesday January 17 that the cabinet has approved a consolidated resolution made jointly by the president, prime minister and five cabinet ministers to take measures needed “to take necessary actions to implement the concept of truth and reconciliation mechanism (sp)”.
The proposal was made by President Wickremesinghe, Prime Minister Dinesh Gunawardena, Minister of Fisheries Douglas Devananda, Minister of Education Susil Premajayantha, Minister of Justice Wijeyadasa Rajapakshe, Minister of Urban Development Prasanna Ranatunga and Minister of Foreign Affairs Ali Sabry.
“Requirement of an independent local mechanism to search for the truth as a meaningful way to bring forward the peace achieved after ending the conflicts sustained for 30 years and to secure it is apparent. Sri Lanka has established several independent investigation commissions for seeking reconciliation after the conflicts. Accomplishment all the recommendations of those commissions is vital,” the government statement said.
The announcement came in the wake of a statement by President Wickremesinghe on Sunday January 15 that a full implementation of the 13th amendment to the constitution was on the cards.
However, the TNA, a key player in the ongoing talks, has expressed scepticism.
TNA legislator M A Sumanthiran told EconomyNext on Monday that successive governments have made the same promise for 35 years, to no avail.
“Nobody takes it with any seriousness because it has been constantly promised. It’s a question of implementing it. The president with his executive powers can do it,” he said.
Related:
Sri Lanka president pledges full implementation of 13th amendment; TNA sceptical
The 13th amendment to Sri Lanka’s constitution emerged from the controversial Indo-Lanka Accord of 1987 as a purported solution to the worsening ethnic conflict, four years after war broke out. Provincial councils came in the wake of this amendment, though land and police powers have yet to be devolved to the provinces as originally envisioned. Both Sinhalese and Tamil nationalists have historically opposed the amendment, the former claiming it devolved too much, the latter complaining it didn’t devolve enough.
President Wickremesinghe in November 2022 expressed his intention to find a final solution to the ethnic issue by February 04 this year when Sri Lanka celebrates the 75th anniversary of its independence from the British.
This deadline is now appearing increasingly unrealistic, with talks between the government and the TNA being less than successful. (Colombo/Jan17/2023)
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