Inflation down to 0.9 per cent in August 2009
The rate of inflation, as measured by the point-to-point change in the Colombo Consumers’ Price Index (CCPI) (2002=100), computed by the Department of Census and Statistics, decreased to 0.9 per cent in August, 2009 from 1.1 per cent in July, 2009. The annual average inflation rate also continued on its declining path which had commenced in November, 2008 and recorded a single digit level of 8.5 per cent, compared to 10.4 per cent in July 2009. It is noteworthy that this is the lowest annual average inflation rate recorded since 2006.
The CCPI decreased marginally by 0.3 per cent over the previous month, with the Index moving downward to 208.1 from 208.7 in July, 2009.
The contribution to the monthly decrease in the Index arose mainly from the Food and Non alcoholic beverages sub category. All the other sub categories recorded monthly increases, especially Education, Transport, Clothing and footwear, and Housing, water, electricity, gas and other fuels.
The Core inflation, on a point-to-point basis, increased to 6.4 per cent in August, as compared to 6.0 per cent in July, 2009, while the annual average core inflation declined further to 13.2 per cent in August, 2009 from 14.2 per cent in the previous month.
International Sovereign Bond Issue of US$ 500 million in 2009
The Central Bank of Sri Lanka, on behalf of the Government, plans to issue an International Sovereign Bond amounting to US Dollar 500 million in international markets in October 2009. In connection with the above, the Central Bank of Sri Lanka (CBSL) has invited selected leading international banks/Investment houses to submit their proposals to act as Lead Manager(s)/Bookrunner(s).
In response, seven such banks/Investment houses have submitted proposals on the issue of the sovereign bond. The proposals are being evaluated by a steering committee/technical evaluation committee, comprising senior officials of the CBSL and the Ministry of Finance, to appoint Lead Manager(s)/Bookrunner(s) by mid September 2009.
Sri Lanka tightens rules on forex dealers
Sept 02, 2009 (LBO) – Sri Lanka has tightened rules on foreign exchange dealing issuing a direction that specifies qualifications and experience of dealing room personnel, Central Bank Governor Nivard Cabraal said.
The new rules comes soon after Nations Trust Bank, a licensed commercial bank, reported 800 million in forex losses following trades which the bank said was in breach of its own rules.
“We want to bring some order into the system,” Governor Cabraal said. “Some standards are expected from everyone and we want to make it less subjective.”
The new direction from the regulator specifying qualifications and experience of dealers will be effective from September 01.
Banks will be given six months to comply with the rules. Existing staff will be given three years to get the necessary qualifications, Cabraal said.