• Latest
  • Trending

Central Banks revises Sri Lanka’s growth to 3% from 4%

July 12, 2019
Inflation

UK inflation tops 10%, highest since 1982

August 17, 2022
T20 World Cup in 2026

India and Sri Lanka will jointly host the T20 World Cup in 2026

August 17, 2022
Gotabaya Rajapaksa

Gotabaya Rajapaksa will return to Sri Lanka next week

August 17, 2022
Footage posted by the fire brigade on Twitter showed large plumes of smoke coming from under the railway arch, which it said was "completely alight". (Photo: Twitter/@LondonFire)

Large blaze in central London railway arch under control – fire service

August 17, 2022
Exchange Rate

Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

August 17, 2022
File photo of Jacqueline Fernandez | PTI

Jacqueline Fernandez to be named accused in ₹200 crore extortion case: Report

August 17, 2022
Multiple bomb and arson attacks rock southern Thailand

Multiple bomb, arson attacks rock Thailand’s south

August 17, 2022
Covid-19 representational image. Fusion Medical Animation @fusion_medical_animation / Unsplash

Covid-19 deaths and cases update in Sri Lanka

August 17, 2022
Elon Musk

Elon Musk says he is buying Manchester United

August 17, 2022
Gotabaya Rajapaksa

Govt says Gotabaya Rajapaksa not using state funds on expenses abroad

August 17, 2022
Britain launches trade system for developing countries including Sri Lanka

Britain launches trade system for developing countries including Sri Lanka

August 17, 2022
Electricity

Power cut schedule today in Sri Lanka: 17th August

August 17, 2022
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact
Wednesday, August 17, 2022
No Result
View All Result
NewsIn.Asia
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    T20 World Cup in 2026

    India and Sri Lanka will jointly host the T20 World Cup in 2026

    Gotabaya Rajapaksa

    Gotabaya Rajapaksa will return to Sri Lanka next week

    Exchange Rate

    Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

    File photo of Jacqueline Fernandez | PTI

    Jacqueline Fernandez to be named accused in ₹200 crore extortion case: Report

    Covid-19 representational image. Fusion Medical Animation @fusion_medical_animation / Unsplash

    Covid-19 deaths and cases update in Sri Lanka

    Gotabaya Rajapaksa

    Govt says Gotabaya Rajapaksa not using state funds on expenses abroad

    Britain launches trade system for developing countries including Sri Lanka

    Britain launches trade system for developing countries including Sri Lanka

    Electricity

    Power cut schedule today in Sri Lanka: 17th August

    Wickremesinghe reiterates Sri Lanka’s commitment to the One-China policy

    Lanka round-up: No extension of Emergency after August 18: President

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    Inflation

    UK inflation tops 10%, highest since 1982

    Footage posted by the fire brigade on Twitter showed large plumes of smoke coming from under the railway arch, which it said was "completely alight". (Photo: Twitter/@LondonFire)

    Large blaze in central London railway arch under control – fire service

    Multiple bomb and arson attacks rock southern Thailand

    Multiple bomb, arson attacks rock Thailand’s south

    Elon Musk

    Elon Musk says he is buying Manchester United

    Britain launches trade system for developing countries including Sri Lanka

    Britain launches trade system for developing countries including Sri Lanka

    A view shows a bionic hand developed by COVVI, at Quayside Business Park in Leeds, Britain. (Photo: Reuters)

    Bionic hand can be updated with new gestures, anytime, anywhere

    Kenya's Deputy President and presidential candidate William Ruto of Kenya Kwanza (Kenya first) political party coalition delivers a speech the rally on the final day of campaigning at the Nyayo National Stadium in Nairobi on August 6, 2022.

    William Ruto defeats Raila Odinga to win Kenyan presidency

    Digital. Image credits - Scott Graham @homajob / Unsplash

    In remote work and tech companies, job titles have gotten longer – and fancier

    Donald Trump

    FBI searched Trump’s home to look for nuclear documents and other items, sources say

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Marvel has unleashed the first look teaser of Black Panther 2.

    Black Panther Wakanda Forever: Marvel pays emotional tribute to Chadwick Boseman

    Stranger Things

    Netflix confirms ‘Stranger Things’ spinoff and play

    Kamal Haasan's Vikram is on a rampage.

    Kamal Haasan’s Vikram is the highest-grossing film in Singapore, UK and UAE

    Harry Potter and the Philosopher's Stone

    ‘Harry Potter and the Philosopher’s Stone’ celebrates 25 magical years

    Salman Khan

    Plot to kill Bollywood actor Salman Khan revealed

    Shah Rukh Khan's Jawaan, to be directed by Atlee, to scheduled for June 2023 release. (Photo: Twitter)

    Shah Rukh Khan announces new film ‘Jawaan’

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Digital. Image credits - Scott Graham @homajob / Unsplash

    In remote work and tech companies, job titles have gotten longer – and fancier

    Walk. Image credits - Arek Adeoye @areksan / Unsplash

    Why even 2 minutes of walking after a meal will improve your health

    Cheeseburger. Image credits - Alamy / BBC

    McDonald’s puts up price of cheeseburger for first time in 14 years

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    Sushmita Sen. Image credits - Getty Images

    Sushmita Sen: Why ‘gold digger’ jibe caused outrage

    Honey. Image credits - Mariana Ibanez / Unsplash

    7 unique health benefits of honey

    alcohol

    Alcohol is never healthy for people under 40, study finds

    world’s happiest countries in 2022

    List of world’s happiest countries in 2022

    Emirates

    Emirates statement on operations at London Heathrow

    The main aim of the team is to enable them to collect microplastics in deeper water and provide information to analyse marine pollution in real time. (File Pic)

    Chinese scientists develop robot fish that gobble up microplastics

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    A view shows a bionic hand developed by COVVI, at Quayside Business Park in Leeds, Britain. (Photo: Reuters)

    Bionic hand can be updated with new gestures, anytime, anywhere

    FILE PHOTO: The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017. REUTERS/Mike Blake/File Photo

    Disney overtakes Netflix in race for subscribers

    Samsung unveiled its new Galaxy Z Flip 4 and Z Fold 4 phones on Aug 10, 2022. (Photo: Samsung)

    5 things to know about Samsung’s new Galaxy Z Flip 4 and Galaxy Z Fold 4 foldable smartphones

    Image: WhatsApp

    WhatsApp’s new update makes it easier to avoid your friends

    Snapchat. Image credits - May Gauthier @maygauthier / Unsplash

    Snap launches tools for parents to monitor teens’ contacts

    FILE PHOTO: A 3D printed Google logo is seen in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

    Thousands of users around the world report Google outage

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    T20 World Cup in 2026

    India and Sri Lanka will jointly host the T20 World Cup in 2026

    Gotabaya Rajapaksa

    Gotabaya Rajapaksa will return to Sri Lanka next week

    Exchange Rate

    Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

    File photo of Jacqueline Fernandez | PTI

    Jacqueline Fernandez to be named accused in ₹200 crore extortion case: Report

    Covid-19 representational image. Fusion Medical Animation @fusion_medical_animation / Unsplash

    Covid-19 deaths and cases update in Sri Lanka

    Gotabaya Rajapaksa

    Govt says Gotabaya Rajapaksa not using state funds on expenses abroad

    Britain launches trade system for developing countries including Sri Lanka

    Britain launches trade system for developing countries including Sri Lanka

    Electricity

    Power cut schedule today in Sri Lanka: 17th August

    Wickremesinghe reiterates Sri Lanka’s commitment to the One-China policy

    Lanka round-up: No extension of Emergency after August 18: President

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    Inflation

    UK inflation tops 10%, highest since 1982

    Footage posted by the fire brigade on Twitter showed large plumes of smoke coming from under the railway arch, which it said was "completely alight". (Photo: Twitter/@LondonFire)

    Large blaze in central London railway arch under control – fire service

    Multiple bomb and arson attacks rock southern Thailand

    Multiple bomb, arson attacks rock Thailand’s south

    Elon Musk

    Elon Musk says he is buying Manchester United

    Britain launches trade system for developing countries including Sri Lanka

    Britain launches trade system for developing countries including Sri Lanka

    A view shows a bionic hand developed by COVVI, at Quayside Business Park in Leeds, Britain. (Photo: Reuters)

    Bionic hand can be updated with new gestures, anytime, anywhere

    Kenya's Deputy President and presidential candidate William Ruto of Kenya Kwanza (Kenya first) political party coalition delivers a speech the rally on the final day of campaigning at the Nyayo National Stadium in Nairobi on August 6, 2022.

    William Ruto defeats Raila Odinga to win Kenyan presidency

    Digital. Image credits - Scott Graham @homajob / Unsplash

    In remote work and tech companies, job titles have gotten longer – and fancier

    Donald Trump

    FBI searched Trump’s home to look for nuclear documents and other items, sources say

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Raksha Bandhan to Laal Singh Chaddha: ‘Struggling’ Bollywood’s online hate problem

    Marvel has unleashed the first look teaser of Black Panther 2.

    Black Panther Wakanda Forever: Marvel pays emotional tribute to Chadwick Boseman

    Stranger Things

    Netflix confirms ‘Stranger Things’ spinoff and play

    Kamal Haasan's Vikram is on a rampage.

    Kamal Haasan’s Vikram is the highest-grossing film in Singapore, UK and UAE

    Harry Potter and the Philosopher's Stone

    ‘Harry Potter and the Philosopher’s Stone’ celebrates 25 magical years

    Salman Khan

    Plot to kill Bollywood actor Salman Khan revealed

    Shah Rukh Khan's Jawaan, to be directed by Atlee, to scheduled for June 2023 release. (Photo: Twitter)

    Shah Rukh Khan announces new film ‘Jawaan’

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Chchutir diner Gaan by Bangladeshi singer Nondita

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

    Song “Bechain Nazar Betaab Jigar”. Talat Mahmood. Film “Yasmin” 1955

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Digital. Image credits - Scott Graham @homajob / Unsplash

    In remote work and tech companies, job titles have gotten longer – and fancier

    Walk. Image credits - Arek Adeoye @areksan / Unsplash

    Why even 2 minutes of walking after a meal will improve your health

    Cheeseburger. Image credits - Alamy / BBC

    McDonald’s puts up price of cheeseburger for first time in 14 years

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    WHO declares rapidly spreading monkeypox outbreak a global health emergency

    Sushmita Sen. Image credits - Getty Images

    Sushmita Sen: Why ‘gold digger’ jibe caused outrage

    Honey. Image credits - Mariana Ibanez / Unsplash

    7 unique health benefits of honey

    alcohol

    Alcohol is never healthy for people under 40, study finds

    world’s happiest countries in 2022

    List of world’s happiest countries in 2022

    Emirates

    Emirates statement on operations at London Heathrow

    The main aim of the team is to enable them to collect microplastics in deeper water and provide information to analyse marine pollution in real time. (File Pic)

    Chinese scientists develop robot fish that gobble up microplastics

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    A view shows a bionic hand developed by COVVI, at Quayside Business Park in Leeds, Britain. (Photo: Reuters)

    Bionic hand can be updated with new gestures, anytime, anywhere

    FILE PHOTO: The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017. REUTERS/Mike Blake/File Photo

    Disney overtakes Netflix in race for subscribers

    Samsung unveiled its new Galaxy Z Flip 4 and Z Fold 4 phones on Aug 10, 2022. (Photo: Samsung)

    5 things to know about Samsung’s new Galaxy Z Flip 4 and Galaxy Z Fold 4 foldable smartphones

    Image: WhatsApp

    WhatsApp’s new update makes it easier to avoid your friends

    Snapchat. Image credits - May Gauthier @maygauthier / Unsplash

    Snap launches tools for parents to monitor teens’ contacts

    FILE PHOTO: A 3D printed Google logo is seen in this illustration taken April 12, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

    Thousands of users around the world report Google outage

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
NewsIn.Asia
No Result
View All Result
Home Business

Central Banks revises Sri Lanka’s growth to 3% from 4%

Editor by Editor
July 12, 2019
in Business, Sri Lanka, Top Story
Reading Time: 4 mins read
2 0
A A
Share on WhatsApp

Colombo, July 12 (Daily FT) – The Central Bank yesterday said it has revised growth down to 3% from 4% earlier in the year, but kept policy rates unchanged on moderate inflation, international rate cuts, and expectations of lending rates declining in the coming weeks, to boost economic expansion.

Central Bank Governor Dr. Indrajit Coomaraswamy on Thursday remained optimistic about Sri Lanka’s growth prospects in 2019, but acknowledged positive sentiment and confidence was still muted among investors as well as the private sector.

He opined it was realistic to roll back growth projections after the Easter Sunday attacks, but was confident the reduction would not be severe, partly due to robust exports and expenditure by the Government ahead of elections. Private sector credit growth also decelerated to 9.2% by end May, from 15.9% as at end 2018. Following a higher than projected credit expansion in 2018, in absolute terms, private sector credit contracted by Rs. 2.6 billion in May resulting in a cumulative decline of Rs. 19.6 billion during the first five months of 2019.

ADVERTISEMENT

“As you know, growth was projected to be 4% at the beginning of the year, and after the Easter bombings we have revised it down to about 3%. I’ve seen some projections that have been much gloomier, but I think that is overdone. The 1Q growth was 3.7%, certainly 2Q growth will be disappointing, but 4Q there are very favourable base effects, as in 2018 the 4Q growth was only 1.8%. We are beginning to see faster recovery than anticipated in the tourism sector and elsewhere. I think 3% is realistic.”

He also told reporters that macroeconomic fundamentals remained in “good shape” due to moderate inflation, stronger reserves, and international rates taking a dovish turn. Inflation is expected to be in the 4%-6% margin for 2019. But he also said the Monetary Board decided against loosening rates further, partly because it was concerned about fiscal slippage and also because it wanted to see the earlier policy rate reduction filter through markets.

“The reason why the Monetary Board decided not to reduce policy rates is to wait and see the full effect of everything that has been done so far. Policy rates were reduced on 31 May and we haven’t really seen the Statutory Reserve Ratio (SRR) reduction and the Rs. 100 billion of Government payments, the effects of the deposit cap that we now hope to see spilling over into lending rates. In the coming weeks we anticipate lending rates coming down quite significantly. The Government is also spending about Rs. 300 million in each electorate under the Gamperaliya program, so there is a lot of money being flushed into the system. We would like to wait and see exactly what the overall impact of this money will be before making another call on policy rates.”

Responding to questions, the Governor expressed hope that the Central Bank would not have to resort to imposing a lending rate cap if market rates remain stubbornly high. Since the rate change the Prime Lending Rate has reduced by about 120 basis points, the Governor said, but the average weighted lending rate has remained unmoved.

“To be fair by banks, the deposit cap was placed at the end of April and it would take a bit of time for them to re-price their deposits, and costs will not come down till then. We would anticipate a reduction of up to 200 basis points in lending rates, especially the average weighted lending rates, and will monitor it closely. We don’t want to impose a lending cap because those sort of measures are highly distortionary, but if we are forced to do it, we will. However, we anticipate banks will be cooperative and the impression we get is they also see lending rates come down.”

Following the receipt of the proceeds of the International Sovereign Bonds (ISBs), gross official reserves reached $8.9 billion by end June 2019, which provide an import cover of 5.1 months. The contraction in the trade deficit and the receipt of the proceeds from the ISBs, along with the continuation of the Extended Fund Facility Program with the International Monetary Fund (IMF-EFF), have eased the pressure on the exchange rate, resulting in the Sri Lankan rupee recording a cumulative appreciation of 4.1% against the US dollar thus far in 2019. This appreciation of the rupee has partially corrected its sharp depreciation observed in late 2018, the Central Bank said in its customary Monetary Policy update.

The year-on-year growth of credit extended to the private sector by commercial banks continued to decelerate during the first five months of 2019, while recording an absolute cumulative decline during the period. Following this trend in the growth of credit, the year-on-year growth of broad money (M2b) also decelerated thus far in 2019. Credit to the private sector is expected to gradually pick up in the latter part of 2019, with the expected decline in market lending rates.

A sizable downward adjustment in market lending rates is expected in the near term. Market deposit rates have declined in response to the measures already taken to ease monetary policy and monetary conditions. In particular, the reduction of policy interest rates in May 2019, coupled with sizable liquidity injections through the reduction in the Statutory Reserve Ratio (SRR) and the imposition of maximum interest rates on deposit products in April 2019, have resulted in a notable drop in the Average Weighted Call Money Rate (AWCMR), yields on government securities, new deposit rates as well as the Average Weighted Prime Lending Rate (AWPR), the report added.

However, the transmission of recent easing of monetary conditions to market lending rates, including AWPR, is not yet complete. It is expected that the ongoing downward adjustment in market lending rates would expedite in the immediate future, thus supporting the revival of demand for credit by the private sector and the recovery in economic activity.

Related Posts

T20 World Cup in 2026
Around The World

India and Sri Lanka will jointly host the T20 World Cup in 2026

August 17, 2022
Gotabaya Rajapaksa
Around South Asia

Gotabaya Rajapaksa will return to Sri Lanka next week

August 17, 2022
Exchange Rate
Around South Asia

Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

August 17, 2022
Covid-19 representational image. Fusion Medical Animation @fusion_medical_animation / Unsplash
Around South Asia

Covid-19 deaths and cases update in Sri Lanka

August 17, 2022
Elon Musk
Around The World

Elon Musk says he is buying Manchester United

August 17, 2022
Gotabaya Rajapaksa
Around South Asia

Govt says Gotabaya Rajapaksa not using state funds on expenses abroad

August 17, 2022
  • Electricity

    Power cut schedule today in Sri Lanka: 17th August

    49409 shares
    Share 19777 Tweet 12347
  • Registration open for National Fuel Pass

    6548 shares
    Share 2656 Tweet 1622
  • Foreign Exchange Rates from Central Bank of Sri Lanka; USD, GBP, EUR, SGD, CAD

    1405 shares
    Share 569 Tweet 349
  • WATCH : Yohani’s first live performance in India

    785 shares
    Share 327 Tweet 191
  • Power interruption schedule released: Check your area power cut time

    734 shares
    Share 312 Tweet 176
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact

© 2022 All rights reserved.

No Result
View All Result
  • Home
  • Around South Asia
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
  • Around The World
  • Breaking News
  • Business
    • Exchange
  • Climate Change
  • Governance
    • Crime
    • Diplomacy
    • Defense
    • Human Rights
    • Politics
    • Strategic Affairs
  • Lifestyle
    • Books
    • Entertainment
      • Arts
      • Cinema
      • Gaming
      • Music
      • Movie
      • Series
      • TV
    • Health
    • Fashion
    • Food
    • Travel
  • Culture
    • Ethnicity
    • Gender
  • Development news
  • Economy
  • Education
  • Environment
  • Coronavirus
  • History
  • National
  • Offbeat
    • Media
    • Music and arts across South Asia
  • Recommended
    • Headlines
    • Highlights
    • Top Picture
    • Top Story
  • Religion
  • Science
  • Sports
    • Football
    • Cricket
      • LPL
      • IPL
    • Tennis
    • Formula 1
    • NBA
  • Tech
    • Instagram
  • United Nations
  • Weather
  • World
    • Japan
    • Russia
    • United States
  • Videos

© 2022 All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

mersin eskort -

Meritroyalbet

-
Jojobet
- Süperbetin - eskisehir escort -

https://www.vudols.com/

- Sağlık Personeli - istanbul avukat