Notable
If the monetary framework is flawed, a Treasury which is dependent on CB reserves can default with a budget surplus
The parliament has erred, and erred terribly, in giving 'independence' to a central bank that demands 5-pct inflation
Qatar and Dubai protected their money from macro-economists in 1966
The current account surplus allowed a part of the capex to be financed with taxes for the first time since 1987
The high nominal interest rate which is a function of monetary instability and destruction of domestic capital
In one case matters 15 years old were raised. He ultimately simplified his affairs, and retreated from active business
More closely the single policy rate is targeted the, the bigger the crisis Sri Lanka will have
Sri Lanka is facing external and domestic monetary headwinds in 2026
Unless nipped in the bud, currency depreciation will lead to political instability
The priviledge of 'Government Acceptance' should be ended to stop the next default
Hunky dory depreciation is due to a flaw in the exchange rate policy
Spreading cost-push Mercantilism may help macro-economists escape accountability but it will not help the masses
US has complex problems ranging from fiscal to monetary, and any disruption to America tends to have ripple effects
The buffer is not foreign reserves as the IMF and macroeconomists imagine, it is the interest rate
Sri Lanka has to de-risk the economy from inflationism to maintain stability
Sri Lanka flexible exchange rate gives profits to banks, losses to a nation
| Latest | Last | |
|---|---|---|
| US Dollar | 328.5966 | 328.3421 |
| UK Pound | 443.6711 | 443.5573 |
| Euro | 381.3692 | 381.2380 |
| Yen | 2.1270 | 2.1030 |
| Aus Dollar | 235.1437 | 236.4720 |
| Latest | Last | |
|---|---|---|
| Indian Rupee | 3.4427 | 3.4747 |
| Korean Won | 0.2438 | 0.2442 |
| Oman Rial | 853.4755 | 852.8366 |
| Saudi Riyal | 87.5068 | 87.4390 |
| UAE Dirham | 89.4627 | 89.3934 |
| pts | % | |
|---|---|---|
| S&P SL20 | 6,002.46 | -0.02% |
| CSE All Share | 21,382.74 | +0.12% |
| Turnover Rs | 1129.82 million | 2133.62 million |
| Latest | Last | |
|---|---|---|
| 3-m bill | 7.61 | 7.84 |
| 6-m bill | 7.91 | 8.26 |
| 12-m bill | 8.23 | 8.3 |
| 3-yr bond | 9.24 | 9.25 |
| 5-yr bond | 9.82 | 9.56 |
| 8-yr bond | 10.50 | 10.48 |
| today | yesterday | |
|---|---|---|
| Overnight Money | 7.70 | 7.69 |
| Gilt Repo | 7.74 | 7.72 |
| I-m SLIBOR | - | - |
True undated securities may be too ambitions but a start could be made with 5 to 10 year securities
Sri Lanka does not actually have a single policy rate like the Bank of England now
By the 1950s academics in US and UK had rejected economics of Hume, Ricardo and Smith, becoming branches without a tree
There are several red flags and one green one
There are quick fixes and numerous longer term reforms that can fundamentally change the country
The 4Q events were a dress rehearsal of what would happen later when private credit picks up
There no political policy rate, single or otherwise during periods of stability and growth when good money was provided
Food prices go up due to a combination of government controls and also money printing
Trade cannot cause monetary troubles. Monetary troubles are caused by flawed 'monetary policy'.
Sri Lanka can cut or remove policy floor but should not print money for a mid corridor or single rate
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