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Wednesday February 1st, 2023

Sri Lanka allows multilateral agencies to buy 20-pct of a bank

ECONOMYNEXT – Sri Lanka’s central bank said it will allow multilateral agencies such as the International Finance Corporation, the Asian Development Bank or other approved bodies to buy up to 20 percent of a licensed commercial bank in Sri Lanka.

At the moment, a shareholder or a group of affiliated shareholder are allowed to own a maximum of 15 percent of a bank.

Several firms and banks have larger stakes purchased through special permission, which they have to exit.

The central bank’s Monetary Board said it allowed multilateral agencies to buy up to 20 percent in a commercial bank “having considered the benefits to the banking system through the investments by Multilateral Financial Organisations in the shareholding of licensed commercial banks…”.

The investor will have to reduce its stake to 15 percent after 10 years.

Sri Lanka’s banks are seeing higher levels of bad debts following a Coronavirus crisis and an earlier debt moratorium as well as a currency crisis in 2018.

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  1. Viji Vigna says:

    As the letter signed by Governor says Licensed SPECIALIZED BANKS

    But in the brief It has been conveyed as Commercial Banks

    To my knowledge there are significant Differences between commercial and specialized

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Your email address will not be published. Required fields are marked *

  1. Viji Vigna says:

    As the letter signed by Governor says Licensed SPECIALIZED BANKS

    But in the brief It has been conveyed as Commercial Banks

    To my knowledge there are significant Differences between commercial and specialized

Sri Lanka coconut prices ease at auction

ECONOMYNEXT- Sri Lanka’s coconut auction prices fell in the last auction in January 2023, with average prices going down by 4.1 percent at an auction on January 26, data showed.

The average price for 1,000 nuts fell to 80.811.89 from 84,116.85 a week earlier at the weekly auction conducted by Sri Lanka’s Coconut Development Authority.

The highest price was 87,300 rupees for 1,000 nuts down from the previous week’s 90,200 rupees, while the lowest was 72,500 down from 73,000 rupees.

The auction offered 469,564 coconuts and 300,983 nuts were sold. (Colombo/ Feb 01/2023)

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Sri Lanka shares edge up at close

ECONOMYNEXT- Sri Lanka’s shares edged up on Wednesday pushed as investors bought in to beaten down shares following the previous session’s drop, market analyst said.“

At this price level what we are seeing is a lot of confidence from the investors to collect when the prices drop. So, the market is not falling sharply,” a market analyst said.

Market had also seen buying in Expolanka shares on speculation that the parent company of SG Holdings was buying back into the shares.

All Share Price Index (ASPI) edged up by 0.96 percent or 84.96 points to 8,950.01.

The most liquid index S&P SL20 gained 1.27 percent or 35.02 points to 2,799.53.

Banking and Insurance counters had seen interest on the back of positive sentiments from the IMF.

The central bank has said it could cut interest rates in future when the the country sees fall in inflation, which has already started decelerating.

The market saw a turnover of 1.5 billion rupees today,lower than the month’s daily average of 1.8 billion rupees and nearly half of 2022 average turnover of 2.9 billion rupees.

The bourse saw a flow of net foreign inflow of 45 million rupees extending the net offshore buying to 1.9 billion so far this year.

Top gainers of the day were Commercial Bank, Expolanka, and Ceylinco Insurance. (Colombo/Feb01/2023)

 

 

 

 

 

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Sri Lanka bond yields down at close

ECONOMYNEXT – Sri Lanka’s bond yields were down at close following a bond auction on Wednesday, dealers said while a guidance peg for interbank transactions remained unchanged.

“The rates were steady at the auction,” a dealer said.

“This can be a signal to the market saying the rates will go down in the future.”

A bond maturing on 01.07.2025 closed at 32.40/60 percent, down from yesterday’s 32.60/85 percent.

A bond maturing on 01.05.2027 closed at 29.10/35 marginally down from yesterday’s 29.20/75 percent.

The Central Bank’s guidance peg for interbank US dollar transactions remained unchanged at 362.14 rupees against the US dollar.

Commercial banks offered dollars for telegraphic transfers at 371.38 rupees on Friday, data showed. (Colombo/Feb 01/2022)

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