An Echelon Media Company
Tuesday November 29th, 2022

Sri Lanka’s Laugfs Holdings appoints Piyadasa Kudabalage as chief executive

ECONOMYNEXT – Sri Lanka’s LAUGFS Holdings, which has interests in liquefied petroleum gas, lubricants, renewable energy, retailing, export manufacture said Piyadasa Kudabalage had been appointed Group Managing Director and Chief Executive.

Kudabalage was Managing Director/Chief Executive Officer of state-run Sri Lanka Insurance Corporation Ltd, Litro Gas Lanka Ltd, and Canwill Holdings (Pvt) Ltd which built the Hyatt building.

He had also been a director of Peoples Bank Colombo Dockyard PLC and had been Chairman of Merchant Bank of Sri Lanka from January 2012 to September 2014.

A University of Kelaniya graduate in Business Administration and Management, he is also a fellow member of the Institute of Chartered Accountants of Sri Lanka and Institute of Certified Management Accountants and the Institute of Chartered Professional Managers of Sri Lanka.

Laugfs chairman W K H Wegapitiya said Kudabalage would provide leadership to support domestic and international clients.

Deputy Chairman Thilak de Silva said Kudabalage will step-up the level of delivery of LAUGFS and drives its growth plans and the performance.

Wegapitiya be on the board as Executive Chairman and de Silva Executive Deputy Chairman.

Laugfs which has operations in Sri Lanka and also Bangladesh has posted revenues of 65 billion rupees in the year to March and has 4,000 employees and 60,000 customers. (Colombo/May27/2020)

Leave a Comment

Your email address will not be published.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

Leave a Comment

Leave a Comment

Cancel reply

Your email address will not be published.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

A new Sri Lanka monetary law may have prevented 2019 tax cuts?

ECONOMYNEXT – A new monetary law planned in 2019, if it had been enacted may have prevented the steep tax cuts made in that year which was followed by unprecedented money printing, ex-Central Bank Governor Indrajit Coomaraswamy said.

The bill for the central bank law was ready in 2019 but the then administration ran out of parliamentary time to enact it, he said.

Economists backing the new administration slashed taxes in December 2019 and placed price controls on Treasuries auctions bought new and maturing securities, claiming that there was a ‘persistent output gap’.

Coomaraswamy said he keeps wondering whether “someone sitting in the Treasury would have implemented those tax cuts” if the law had been enacted.

“We would never know,” he told an investor forum organized by CT CLSA Securities, a Colombo-based brokerage.

The new law however will sill allow open market operations under a highly discretionary ‘flexible’ inflation targeting regime.

A reserve collecting central bank which injects money to push down interest rates as domestic credit recovers triggers forex shortages.

The currency is then depreciated to cover the policy error through what is known as a ‘flexible exchange rate’ which is neither a clean float nor a hard peg.

From 2015 to 2019 two currency crises were triggered mainly through open market operations amid public opposition to direct purchases of Treasury bills, analysts have shown.

Sri Lanka’s central bank generally triggers currency crises in the second or third year of the credit cycle by purchasing maturing bills from existing holders (monetizing the gross financing requirement) as private loan demand pick up and not necessarily to monetize current year deficits, critics have pointed out.

Past deficits can be monetized as long as open market operations are permitted through outright purchases of bill in the hands of banks and other holders.

In Latin America central banks trigger currency crises mainly by their failure to roll-over sterilization securities. (Colombo/Nov29/2022)

Continue Reading

Sri Lanka cabinet clears CEB re-structure proposal: Minister

ECONOMYNEXT – Sri Lanka’s cabinet has cleared proposals by a committee to re-structure state-run Ceylon Electricity Board, Power and Energy Minister Kanchana Wijeskera said.

“Cabinet approval was granted today to the recommendations proposed by the committee on Restructuring CEB,” he said in a twitter.com message.

“The Electricity Reforms Bill will be drafted within a month to begin the unbundling process of CEB & work on a rapid timeline to get the approval of the Parliament needed.”

Sri Lanka’s Ceylon Electricity Board finances had been hit by failure to operate cost reflective tariffs and there are capacity shortfalls due to failure to implement planned generators in time. (Colombo/Nov28/2022)

Continue Reading

Sri Lanka new CB law to cabinet soon as IMF prior action

ECONOMYNEXT – Sri Lanka’s new central bank law will be submitted to the cabinet as a prior action of International Monetary Fund with clauses to improve governance and legalize ‘flexible’ inflation targeting, Central Bank Governor Nandalal Weerasinghe said.

Under the new law members of the monetary board will be appointed by the country’s Constitutional Council replacing the current system of the Finance Minister making appointments.

“It will be a bipartisan approach,” Governor Weerasinghe told an investor forum organized by CT CLSA Securities, Colombo-based brokerage.

“The central bank’s ability to finance the budget deficit will be taken out. Thirdly the flexible inflation targeting regime will be recognized in the law as the framework.”

The law will also make macro-prudential surveillance formally under the bank.

There will be two governing boards, one for the management of the agency and one to conduct monetary policy.

Continue Reading