FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post

Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» LAUGFS GAS PLC (LGL.N0000)
by Wickyz Today at 2:06 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by EPS Today at 1:16 pm

» Sri Lanka’s 213 billion rupee money printing to repay foreign debt: Treasury Secretary explains
by CITIZEN Today at 11:25 am

» Oman shows interest in SLAF HQ land and Chalmer’s Granary
by dayandacool Today at 11:03 am

» HVA FOODS PLC (HVA.N0000)
by prabath Today at 10:05 am

» EXPOLANKA HOLDINGS PLC Interim Financial Statements quarter ended 30th June 2021
by mah2903 Today at 2:59 am

» ලාභ ගන්න කොටස් වලින් මේක සම්පූර්ණයෙන්ම කියවන්න
by ColomboCSE Today at 12:37 am

» Shares to Buy
by Cma Today at 12:02 am

» Successful investment strategies require an understanding of the forces of stock market nature, and disciplined rules of portfolio management.
by Asoka Samarakone Sat Jul 31, 2021 9:12 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Niwa Sat Jul 31, 2021 8:53 pm

» Directors' Dealings today
by SAGA Sat Jul 31, 2021 6:02 pm

» Top Foreign Trading today
by SAGA Sat Jul 31, 2021 5:59 pm

» CHEVRON LUBRICANTS LANKA PLC (LLUB.N0000)
by Antonym Sat Jul 31, 2021 5:37 pm

» Boga unusual Collection....
by Wickyz Fri Jul 30, 2021 1:14 pm

» MILLENNIUM HOUSING DEVELOPERS PLC (MHDL.N0000)
by jehan008 Fri Jul 30, 2021 1:11 pm

» Sri Lanka FOB prices for black tea highest in the world
by samaritan Fri Jul 30, 2021 12:18 pm

» DPL Take over
by Vishwanarth Fri Jul 30, 2021 12:12 pm

» INDUSTRIAL ASPHALTS (CEYLON) PLC (ASPH.N0000)
by dayandacool Fri Jul 30, 2021 10:09 am

» CITIZENS DEVELOPMENT BUSINESS FINANCE PLC(CDB.N0000)
by engineer Fri Jul 30, 2021 7:06 am

» RENUKA CAPITAL PLC . KZOO.N
by Pbv Fri Jul 30, 2021 12:22 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Fitch comes hard on lankan economy

Fitch comes hard on lankan economy

Go down  Message [Page 1 of 1]

1Fitch comes hard on lankan economy Empty Fitch comes hard on lankan economy Wed Jun 24, 2015 10:10 am

Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
Sri Lanka's deterioration in policy consistency and credibility leading to a widening of macroeconomic imbalances and a loss of investor confidence were major negative sensitivities, said Fitch, the global rating agency.


"Sri Lanka's foreign-reserve coverage of its current external payments remains narrow, and is vulnerable to shifts in investor sentiment. That is especially true because foreign holdings of Sri Lankan government securities are high and as domestic political uncertainty currently prevails", Fitch Ratings said in a review of Asia Pacific countries, in the latest report released late Monday.
Fitch report also highlighted that the weakness of countries public finances and it said that general government revenues continue to decline, and in Fitch's view, this trend is likely to continue. The interim budget announced in January 2015 did little to address the underlying weaknesses in the fiscal profile as most of the revenue measures announced was one-off in nature.


Growth Offsets Political Debility: Sri Lanka's 'BB -'/Stable rating reflects high and less volatile real GDP growth compared with peers, and a favourable level of basic human development against persistent political uncertainty, weak public finances and a frail external liquidity position.


Key Developments Persistent Political Uncertainty: Sri Lanka witnessed a smooth transition of power during the January 2015 Presidential elections. However, parliamentary elections are due next, the timing of which still remains uncertain. Parliamentary elections have been postponed further despite being initially planned for June 2015. Public finances remain weak: general government revenues continue to decline, and in Fitch's view, this trend is likely to continue. The interim budget announced in January 2015 did little to address the underlying weaknesses in the fiscal profile as most of the revenue measures announced was one-off in nature.


External liquidity position weak: Sri Lanka's foreign-reserve coverage of its current external payments remains narrow, and is vulnerable to shifts in investor sentiment.
That is especially true because foreign holdings of Sri Lankan government securities are high and as domestic political uncertainty currently prevails. Lower oil prices, a steady inflow of remittances and tourism receipts are expected to support the current account. But wage increases announced in the interim budget and the policy rate cut in April could translate into higher imports and is a risk to the current account that bears monitoring.


Positive Sensitivities
A significant improvement in external finances underpinned by a sustained cut in the current
• Account balance and higher foreign direct investment, and improvement in foreign reserves credible medium-term fiscal consolidation strategy that leads to a reversal of the negative.
• Trend in government revenue and GDP
negative sensitivities a further increase in external vulnerability because of sharp decline in foreign reserves.
• Deterioration in policy coherence and credibility leading to a widening of macroeconomic imbalances and a loss of investor confidence.


Courtesy: Ceylon financial Today 24 June 2015

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum