An Echelon Media Company
Friday August 19th, 2022

Sri Lanka has to hike rates, tourism recovery will not help end forex crisis: Bellwether

At the current policy rates and sterilization of interventions, forex problems will not get better

January 18, 2022 16 min read

Sri Lanka should prepare to float, and promote parallel dollarization: Bellwether

The proposal to import cars with dollar earnings and pay taxes in dollars is absolutely correct

December 21, 2021 16 min read

Why the Sri Lanka rupee is depreciating creating currency crises: Bellwether

A Bellwether FAQ on the dangerous lack of note-issue banking know-how

November 9, 2021 27 min read

How Sri Lanka's IMF-backed 'Young Plan' fired a foreign debt death spiral: Bellwether

In all years with inflationary policy, debt after foreign reserves went up

September 16, 2021 18 min read
What Sri Lanka's IMF program should look like

Steep rate hikes are needed to save the rupee

Sri Lanka has to work fast to contain multiple defaults as Tanzi bites: Bellwether

A flexible exchange rate fails because it is not rule bound

Sri Lanka's economic consequences of the peace; monetary instability and trade lockdown: Bellwether

While Sri Lanka defeated the Tamil Tigers in 2009 and the Coronavirus in 2020 – the battle is not yet over – it is r...

July 23, 2020 6 min read

Sri Lanka growth stalls, per capita GDP drops US$200 in 2019 after monetary instability

Sri Lanka's per person gross domestic product had dropped 227 dollars to 3,852 dollars in 2019 after a the latest curren...

May 10, 2020 10 min read

Sri Lanka battered by unceasing 'regime uncertainty: Bellwether

When the government changes ground rules and conditions or the operating regime suddenly, like in Sri Lanka, it is very ...

February 26, 2020 11 min read

Sri Lanka needs monetary discipline to avoid further downgrades: Bellwether

Sri Lanka will face credit downgrades and possible sovereign default of dollar debt unless the highly unstable discretio...

November 27, 2019 6 min read

President throws monkey wrench at Sri Lanka central bank reforms: Bellwether

Sri Lanka had stability until July 2019 with cash withdrawn by the central bank to keep a soft-peg with the US dollar un...

August 27, 2019 21 min read

Nick Leeson-style losses at Sri Lanka's CPC raise big questions: Bellwether

Finance Minister Mangala Samaraweera started a price formula in 2018 May just as fuel price started to spike, but the Ce...

July 30, 2019 10 min read

Sri Lanka's path to debt and destruction paved by currency collapse, REER targeting: Bellwether

The collapse of Sri Lanka's soft-pegged rupee, partly due to policy errors of the Central Bank and partly due to the fal...

July 2, 2019 14 min read

Islamic State pan-nationalism slams into ethno-religious hate in Sri Lanka: Bellwether

In Sri Lanka, indoctrination and hate targeting communities not considered to be the 'core-nation' as defined in ethno-r...

June 20, 2019 25 min read

Sri Lanka should phase out term repo deals and allow rates to fall: Bellwether

Sri Lanka's should phase out term repurchase deals now that bank credit has slowed, allowing the central bank to be a ne...

May 29, 2019 7 min read

Hayek's warning: lost generation economics kill Sri Lanka's social market economy attempt: Bellwethe...

Sri Lanka's Central Bank which has printed tens of billions of rupees in 2018 to boost economic activity artificially ju...

May 9, 2019 15 min read
Morning Briefing Gain clarity on the biggest stories of the day with our daily newsletter, Morning Briefing
Latest Last
US Dollar 368.7200 368.7038
UK Pound 441.2085 445.9100
Euro 373.6891 377.2130
Aus Dollar 257.1230 257.8056
Yen 2.7200 2.7465
Source: Central Bank/Indicative
Latest Last
Indian Rupee 4.5261 4.5461
Korea Won 0.2720 0.2742
Oman Rial 937.6502 937.5808
Saudi Riyal 98.2393 96.1467
UAE Dirham 98.2821 98.2748
Source: Central Bank/Indicative
pts %
S&P SL20 2,963.95 0.05%
CSE All Share 8,975.75 0.73%
Turnover Rs million 3,154,358,876.30 2,721,321,235
Source: CSE
Latest Last
3-m bill 26.11 26.24
6-m bill 27.06 26.52
12-m bill 27.87 27.36
5-yr bond 24.19 23.86
8-yr bond 24.68 24.21
Source: Central Bank/Indicative
today yesterday
Overnight Money 15.50 15.50
Gilt Repo 15.50 15.50
I-m SLIBOR - -
Source: Central Bank/Indicative

Sri Lanka goes from boom-bust to bust-bust with soft-peg: Bellwether

Sri Lanka is going from boom-bust to bust-bust in this credit cycle despite the injection of excess demand into the econ...

March 25, 2019 12 min read

Productive workers in Sri Lanka trapped between neo-serfdom and Samurai graduates: Bellwether

Sri Lanka's toiling workers in the private sector who stand on their own feet are an unfortunate lot, caught between a n...

February 17, 2019 10 min read

Sri Lanka has to reform soft-peg to avoid monetary instability, default: Bellwether

In 2018 instability generated by an inconsistent monetary policy framework not only killed a nascent economic recovery t...

February 15, 2019 15 min read

What went wrong; Sri Lanka's illiberal economics and unsound money : Bellwether

Sri Lanka's United National Party has well and truly lost its reputation for economic management during three and a half...

January 28, 2019 12 min read

Sri Lanka is not Greece, it is a Latin America style soft-peg: Bellwether

There are pronouncements that Sri Lanka is like Greece from both sides of the political divide, but that is not correct.

December 26, 2018 15 min read

Sri Lanka and Ecuador; a cautionary tale of the Rupee and Sucre: Bellwether

Sri Lanka'S rupee has fallen with amid two liquidity spikes in 2018 just as the economy started to recover, underlining ...

November 16, 2018 17 min read

Sri Lanka risks instability, stagflation by being in unstable soft-peg group: Bellwether

Sri Lanka's permanent currency depreciation worsened by periods of greater weakness is putting the country in the danger...

October 15, 2018 16 min read

Cardinal Goma, Upali thero and Sri Lanka's fascist nationalism: Bellwether

Ethno-religious fascist forces are again in the ascendancy in Sri Lanka helped by an economic downturn triggered by mone...

August 31, 2018 13 min read

What Sri Lanka can do to improve the credibility of its dollar soft-peg: Bellwether

Sri Lanka's Central Bank is forced to collect forex reserves to be able to pay off government debt when necessary and me...

August 6, 2018 11 min read

Sri Lanka is recovering, Central Bank threat looms: Bellwether

Sri Lanka is on a recovery path, and this is the time when commercial bank credit picks up, the Central Bank cuts rates ...

June 20, 2018 12 min read