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23/10/2012

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06/09/2012

23/08/2012

Treasury Bill Auction Results (Auction date 22/08/2012)
3M.6M.12M

Amount offered : 3000mn 5000mn 5000mn

Bids Recieved : 5959mn 11387mn 6426mn

Amount Accepted : 2774mn 2617mn 1346mn

Weighted Avg : 11.36% 13.02% 13.27%

20/08/2012

Treasury Bill Auction Results (Auction date 15/08/2012)
3M.6M.12M

Amount offered : 4000mn 7000mn 7000mn

Bids Recieved : 8913mn 19540mn 9978mn

Amount Accepted : 4026mn 12470mn 1686mn

Weighted Avg : 11.36% 12.95% 13.23%

18/07/2012

Sri Lanka sells billion dollar bond to yield 5.875-pct

July 18, 2012 (LBO) - Sri Lanka has sold a 10-year bond to yield 5.875 percent sharply lower than the 6.25 percent paid last year for a bond of similar size and tenor, though risk premiums had widened.
According to data on Bloomberg newswires the fixed rate bond has a settlement date of July 25 and will pay interest semi-annually. The 10-year US Treasuries now yield about 1.53 percent indicating Sri Lanka had a premium of about 434 basis points amid global credit uncertainties.

Last year's bond though sold at a higher coupon, had a narrower premium of about 332 basis points above US Treasuries.

Sri Lanka's last bond with 9-years to mature with a coupon of 6.25 percent is quoted around 5.80/90 percent in the secondary market, indicating that the lead managers had managed to get similar pricing for the 10-year bond.

The average risk premium on developing country debt was now 354 basis points according to an index compiled by JPMorgan Chase index quoted by Bloomberg newswires, down from 441 basis points on June 01.

According to Bloomberg data, Vietnam bonds maturing on 2021 with a coupon of 6.75 percent are yielding 5.32 percent.
Vietnam is now recovering from a prolonged period of balance of payments trouble, but its overall policy framework is aggressively liberal.

Vietnam - which like Sri Lanka - has a so-called soft-pegged central bank ran into trouble because of 'stimulus' spending, which pushed credit growth above 30 percent. Soft-pegged central banks, which sterilize foreign exchange sales by printing money can drive credit to unsustainable levels, push external trade and current accounts wide open and send currency pegs careening downwards.

The State Bank of Vietnam raised policy rates above 14 percent last yar, imposed credit ceilings especially for property, to protect its dollar peg after d**g depreciated rapidly and inflation hit 20 percent before credit growth was arrested and state spending curbed.

Vietnam has also announced fast-track privatization or equitization (listing) of over 200 state enterprises.

Unlike in Sri Lanka where inflation is still rising, in Vietnam credit growth has slowed to just 0.76 percent percent in the year to June, inflation is falling and the state bank is now cutting rates and promoting fresh lending.

13/07/2012

Sri Lanka stocks steady, rupee weaker

July 12, 2012 (LBO) - Sri Lanka's stocks closed marginally higher Thursday while the rupee closed weaker from opening, brokers and dealers said.

The Colombo All Share Price Index closed up 0.08 percent at 4,872.06 points and the S&P SL20 index of large cap stocks closed 0.17 percent higher at 2,780.34. Turnover was 336 million rupees.
The closed around 133.80/90 to the US dollar in the spot market after opening around 133.60/90 dealers said.

Aitken Spence closed at 113.60 up 3.20 rupees, Aviva Insurance fell 3.90 to close at 149.00 rupees, Capital Development and Investment Company Plc closed up 29.90 tat 234.90 rupees, Cargills (Ceylon) closed at 142.10 up 10 cents.

Carsons Cumberbatch closed at 463.10 down 90 cents, Central Finance closed at 127.20 down 1.80 rupees, Commercial Bank of Ceylon closed at 98.50 down 50 cents and Dialog Axiata closed flat at 6.00 rupees and John Keells Holdings closed at 180.50 down 2.00 rupees.

11/07/2012

Sri Lanka holds policy rates, credit slowing, IMF targets met: Central Bank

July 11, 2012 (LBO) - Sri Lanka is holding its key interest rates at which money is injected into the economy at 9.75 percent amid rising inflation, though credit and money supply growth is starting to slow, the Central Bank said.

The monetary authority said Sri Lanka had met end-June targets under an International Monetary Fund program.
The only serious target (performance criterion) for the last tranche of 450 million US dollars under a 2.5 billion US dollar bailout was an end month level for foreign reserves.

Sri Lanka had reserves of 5,815 million US dollar by end May, the Central Bank said.

Sri Lanka's inflation rose 9.3 percent in June 2012 from a year earlier, with rupee depreciating sharply from 110 to 133 levels in the period, pressured from high credit growth and sterilized foreign exchange sales.

Loans grew steeply last year as credit to government rose 44.7 percent up to May and credit to state enterprises rose 107.7 percent mainly due to loans taken to manipulate tariffs by energy utilities.

The Central Bank also printed more than 200 billion rupees to inject rupee reserves in to the banking system, driving credit, the trade deficit and current account deficit of the balance of payments to unsustainable levels.

In February energy prices were raised, the exchange partially floated to reduce the need to sterilized interventions, more credit, more domestic demand and further foreign reserve losses.

09/07/2012

Money Status

06 Jul, 201211:58:11

Sri Lanka excess liquidity up, rates lower

July 06, 2012 (LBO) - Excess liquidity in Sri Lanka's interbank markets have topped 20 billion rupee over the past three days easing tighter monetary conditions that prevailed a week earlier, official data show.
On Friday overnight gilt backed repos were quoted around 9.35/50 percent below the policy rate of 9.75 percent and un-backed call money was at 10.40/50 percent, dealers said.
The weighted average repo rate has fallen from 9.68 percent on June 22 to 9.41 percent, which is over 30 basis points below the policy rate of 9.75 percent.

The weighted average call rate has eased from a peak of 10.64 percent on June 22 to 10.40 percent Thursday.

Excess liquidity rose to 26 billion rupees on Wednesday and remained at 21.8 billion rupees on Thursday.

Excess liquidity was withdrawn through a repo cash auction at 9.31 percent Thursday slightly higher than 9.26 percent a day earlier, but also 44 basis points below the policy reverse repo rate.

Analysts have urged the Central Bank to kill excess liquidity coming from foreign exchange purchases (to sterilized the purchase) by outright sales of its Treasury bill stock to prevent them being loaned out and creating fresh import demand.

If 13.4 billion rupees of excess liquidity is killed, analysts say about 100 million dollars of what people call 'foreign exchange savings' can be achieved in the days and weeks ahead, allowing the monetary authority to strengthen the exchange rate.


If not the Central Bank will have to sell the collected dollars to prevent the exchange from being depreciated by the excess liquidity that begins to flow out.
In forex markets the rupee was quoted around 133.70/80 rupees against the spot US dollar in late morning trade after opening slightly wider at 133.70/90 levels dealers said.

In bond markets, 2-year bonds maturing on 01.04.2014 quoted wide around 13.35/50 percent levels, dealers said.

Three maturing on 15.07.2015 were quoted around 13.85.93 levels. Trading was thin dealers said.

05/07/2012

Government of Sri Lanka has opened an investment opportunity in Treasury Bills/ Bonds to Sri Lankan Diaspora and migrant workforce. Foreign citizens, dual citizens, Sri Lankans who are employed abroad or set up off shore businesses, as well as professionals inSri Lankaor overseas are also entitled t...

04/07/2012

Treasury Bill Auction Results (Auction date 04/07/2012)
3M.6M.12M

Amount offered : 3000mn 6000mn 6000mn

Bids Recieved : 5443mn 18885mn 9410mn

Amount Accepted : 3051mn 10350mn 1095mn

Weighted Avg : 11.20% 12.77% 12.99%

27/06/2012

Treasuries snapped a loss from yesterday before a U.S. report that economists said will show orders for durable goods failed to make up for the worst four months since the recession.