An Echelon Media Company
Monday April 15th, 2024
Bellwether

Sri Lanka should not give standing facilities as lender of first resort: Bellwether

Sri Lanka should impose counterparty limits to liquidity tools and charge a premium

March 25, 2024 12 min read

Sri Lanka central bank salary hikes show lack of accountability for its actions

central bank essentially earns money to pay salaries essentially from seigniorage

February 26, 2024 9 min read

Sri Lanka should protest the 7-pct annual inflation target, not a 3-pct VAT hike

A positive inflation target denies private sector productivity gains to the poor

February 19, 2024 10 min read

Sri Lanka is recovering, but threats from central bank, US policy

At the moment the central bank is providing monetary stability seen in the exchange rate and inflation

January 22, 2024 14 min read
Sri Lanka VAT increase is better than killing economic freedoms with income tax

Tax slabs should keep pace with inflation, dependent allowances should be considered

Sri Lanka's rupee depreciation and economic crises; the deficit lie

Deficits do not rise much in the year that a currency crisis is triggered, but in the stabilization year

Bellwether
October 23, 2023 12 min read

Sri Lanka's new central bank act with John Law clause reverts to classical Mercantilism

Targeting GDP with easy money dates back to Scottish Mercantilist John Law and fully flexible policy to James Steuart.

Bellwether
October 17, 2023 13 min read

Sri Lanka should be cautious in expanding socialist leaning taxes

High direct tax rates, capital consumption taxes, are not a substitute for monetary stability

Bellwether
October 9, 2023 13 min read

Sri Lanka should be careful in over-relying on GFN at the expense of stability: Bellwether

Countries where inflationists cannot engage in macro-economic policy with money printing have low debt

Bellwether
September 11, 2023 7 min read

Sri Lanka interest rates are dictated by the IMF reserve target, not inflation

It is a shame that country with a 20-pct savings rate cannot maintain reserves and has to depreciate the currency

Bellwether
August 14, 2023 15 min read
1

Sri Lanka legislators should deny high inflation goal independence to the central bank

If parliament rubber stamps a 4-6-pct inflation target, a second default is more certain

Bellwether
July 31, 2023 12 min read

Sri Lanka central bank will be unaccountable as long it can punish victims

The new central bank goal and objective are a personification of the impossible trinity of monetary policy objectives

Bellwether
July 12, 2023 10 min read

Sri Lanka can cut rates now, keeping them down as credit picks up will hit rupee: Bellwether

Reserves can be collected by impoverishing the poor, or by taking in their savings

Bellwether
July 5, 2023 7 min read
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Why is Sri Lanka's rupee appreciating?

Sri Lanka rupee appreciation explained

Bellwether
June 2, 2023 15 min read
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Sri Lanka's collapse in new sovereign default wave is not really China's fault: Bellwether

Mass sovereign default episode in the 1980s also followed a decade of bad money from the Fed

Bellwether
May 2, 2023 15 min read
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Latest Last
US Dollar 305.1018 305.3339
UK Pound 386.9523 387.2371
Euro 330.8712 332.1141
Aus Dollar 201.0018 201.4980
Yen 2.0266 2.0278
Source: Central Bank/Indicative
Latest Last
Indian Rupee 3.6453 3.5932
Korea Won 0.2342 0.2292
Oman Rial 780.3569 769.4973
Saudi Riyal 80.1114 78.9849
UAE Dirham 81.7952 80.6569
Source: Central Bank/Indicative
pts %
S&P SL20 2,573.80 1.00%
CSE All Share 9,073.41 0.65%
Turnover Rs million 1,591,766,524.95 1,029,335,694.32
Source: CSE
Latest Last
3-m bill 21.72 21.79
6-m bill 19.55 20.31
12-m bill 17.72 19.28
5-yr bond 21.00 22.53
8-yr bond 19.42 20.55
Source: Central Bank/Indicative
today yesterday
Overnight Money 13.93 14.00
Gilt Repo 13.50 14.00
I-m SLIBOR - -
Source: Central Bank/Indicative

Sri Lanka budget support IMF loans show worrying policy confusion : Bellwether

Converted budget support loans and conflicting PCs can lead to new external instability, discredit and derail reforms

Bellwether
April 18, 2023 13 min read
1

Sri Lanka tables controversial draft monetary law with multiple anchors

The new law appears to have brought back policy conflicts dropped in a previous amendment

Bellwether
March 9, 2023 12 min read

Sri Lanka set to continue 73 years of monetary instability with pseudo inflation targeting law

The inclusion of extensive macro-prudential laws is an admission that money is bad

Bellwether
March 1, 2023 12 min read

Sri Lanka ports, airports made essential services

A strike planned on March 01

February 28, 2023 1 min read

IMF should approve Sri Lanka deal, devise bi-lateral debt-restructuring clause

IMF should stop the promotion of impossible trinity regimes with spurious claims to monetary policy independence

Bellwether
February 28, 2023 12 min read

How Sri Lanka rejected Singapore monetary advice and politicians, people paid the price

Call from Goh, Shenoy to provide sound money discarded in favour of depreciation, flexible regimes

Bellwether
February 9, 2023 14 min read
2

Sri Lanka central bank caught between peg and hard place

Care should be taken to make sure that excess liquidity does not re-emerge from fictitious capital

Bellwether
January 19, 2023 8 min read

Sri Lanka's central bank crisis and John Exter's about face on hard pegs: Bellwether

In 1968 with Bretton Woods soft-peg hanging on a thread, advantages of currency board had become clear

December 15, 2022 7 min read
1

Sri Lanka's tragedy and the lost wisdom of D S Senanayake on money printing

That BOP deficits and reserve losses are caused by money printing is now hidden and victims are blamed

Bellwether
October 24, 2022 9 min read
1

Sri Lanka rates elevated amid failed float and DDR fears

Fear of a DDR/IFR event drive rates even higher

Bellwether
September 19, 2022 13 min read
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