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.

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


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» UNHCR එකේ ලොකූ ටෝක දැම්මට සමහර ඔස්තාර් ලා කියන ආර්තික සම්භාදක අරවා මේවා මුකුත් එන්නේ නැ
by Vishwanarth Yesterday at 10:00 pm

» If you are one of those people who can sleep at night while someone else is in control of your destiny, then my advice would be to only invest in stocks
by Asoka Samarakone Yesterday at 9:58 pm

» DFCC will be receiving Rs.594,538,285.50
by SANJAYANM Yesterday at 9:56 pm

» NATIONS TRUST BANK PLC (NTB.N0000)
by chathura123 Yesterday at 8:52 pm

» Price prediction on GRAN and TAFL
by Bakkabwoi Yesterday at 6:22 pm

» GLAS will be winner with Super Gain.
by Nandun Yesterday at 5:20 pm

» SEMB SEMB
by stockchaser Yesterday at 2:57 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Vishwanarth Yesterday at 2:54 pm

» Bullish sentiment returns with market regulator's assurance
by Vishwanarth Yesterday at 2:52 pm

» BROWNS INVESTMENTS PLC (BIL.N0000)
by Vishwanarth Yesterday at 1:49 pm

» SOFTLOGIC HOLDINGS PLC (SHL.N0000)
by suku502 Yesterday at 1:32 pm

» DIPD/HAYC/HAYL
by Wickyz Yesterday at 1:19 pm

» Chart 25.02.2021
by stockback Yesterday at 12:41 pm

» is it a good time to sell expo shares
by Kipling Yesterday at 8:39 am

» Current 2021 Februray Unit Trust/Unit Fund Per Annum percentages
by agentnrox Yesterday at 8:13 am

» Leading brokers causing market downturn
by Mithooshan Yesterday at 7:40 am

» Must watch this video - unnecessary panic
by Jana Yesterday at 1:03 am

» LOLC HOLDINGS PLC (LOLC.N0000)
by learningthemarket Yesterday at 12:03 am

» Daily Foreign Transactions
by Mr. X Wed Feb 24, 2021 11:28 pm

» Fall seven times, stand up eight.What happened, has happened. Free your mind from it. Stock market for beginners
by Asoka Samarakone Wed Feb 24, 2021 9:21 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » the big jump stock

the big jump stock

Go down  Message [Page 1 of 1]

1the big jump stock Empty the big jump stock Thu Feb 08, 2018 12:16 pm

Ryan Hudson


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
VONE - i expect a big jump from some where to some where

2the big jump stock Empty Re: the big jump stock Thu Feb 08, 2018 1:33 pm

kovida

kovida
Manager - Equity Analytics
Manager - Equity Analytics
Yahapalanaya economic vision has commenced bearing fruit. CSE surge is inevitable.

ri Lanka 'B+' rating confirmed by Fitch

Feb 07, 2018 10:26 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Fitch Ratings has confirmed Sri Lnaka's 'B+' rating with a stable outlook, saying an International Monetary Fund backed program has improved budgets and monetary policy.

However Sri Lanka's interest costs were about 38 percent of revenue, compared to about 9.4 percent in similar rated countries.

The full statement is reproduced below:

Fitch Affirms Sri Lanka at 'B+'; Outlook Stable 

Fitch Ratings-Hong Kong-06 February 2018: Fitch Ratings has affirmed Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+' with a Stable Outlook. 
A full list of rating actions is at the end of this rating action commentary. 

KEY RATING DRIVERS 

The affirmation of Sri Lanka's sovereign ratings reflects the following factors: 
Sri Lanka's revised policy framework supports macroeconomic stability. 

In Fitch's view, policies aimed at fiscal consolidation and maintenance of a disciplined monetary stance under the framework of the three-year IMF-supported programme have improved Sri Lanka's policy coherence and credibility. Although GDP growth of an estimated 3.9% in 2017 fell short of forecasts due to weather-related supply disruptions, we expect growth to recover and stabilise at around 5% in 2018 and 2019. 

The shift towards greater exchange-rate flexibility since 2H15 has strengthened the external position, and the planned shift towards flexible inflation targeting should further enhance monetary policy credibility. Credit growth has declined to a more sustainable level of around 15% in 2017 from a high of 20% in 2016. 

Fiscal performance has improved following the approval and implementation of tax reforms. Fitch expects Sri Lanka's ratio of general government revenue to GDP to improve to 15.5% in 2018 and 16.2% by 2019, from a low of 11.6% in 2014, reflecting the passage of revenue-enhancing measures under the IMF programme. These include an increase in the VAT rate to 15% in 2016 from 11%, and implementation of a new Inland Revenue Act from 1 April 2018 that aims to simplify tax laws, reduce exemptions and improve the efficiency of the tax system. 

We think the increase in general government revenues will support a further narrowing of the budget deficit to 4.8% of GDP in 2018 and 4% in 2019 from an estimated 5.2% in 2017. While these revenue reforms should be positive for a more credible fiscal framework over time, ineffective implementation and/or weaker-than-expected GDP growth remain downside risks to our fiscal projections. 

Sri Lanka's interest payments as a share of revenues remain exceptionally high at an estimated 38% at end-2017, far above the medians of 9.4% for 'B' and 9.6% for 'BB' rated sovereigns. The expected pick-up in general government revenues should lead to lower ratios over time, but we expect this ratio to remain above the 'B' and 'BB' medians for the foreseeable future. Further, despite the expected improvement in gross general government debt (GGGD) dynamics, GGGD will likely remain above the 'B' median over 2018-2019. 

GGGD is forecast to decline to 77.2% of GDP in 2018 and 75.8% in 2019, from an estimated 79.5% at end-2017 under our baseline assumptions, mainly on account of sustained primary surpluses and stable GDP growth rates. However, even after the forecast reduction, government debt would still remain above the 'B' and 'BB' medians at end-2019. Further, nearly half of Sri Lanka's government debt is denominated in foreign currency, which increases the risk to debt dynamics in the event of a further depreciation of the Sri Lankan rupee. 

Sri Lanka's external balance sheet remains a weakness for the rating, with high net external debt, weak sovereign net foreign assets and a low international liquidity ratio compared with rating peers. Foreign-exchange reserves rose to around USD8 billion at end-2017, representing 3.3 months of current external payments (CXP), from USD6.0 billion (2.7 months) at end-2016, but reserves remain below the rating category median of 3.9 months. The improvement in reserves reflects the allowance of greater exchange-rate flexibility, as well as a combination of  FX purchases from the market, inflows from the Hambantota Port lease and new external borrowings. 

Sri Lanka's external debt service outlook remains challenging over 2019-2022. The sovereign's external debt service payments over this period are around USD15 billion against current reserve levels of about USD7.7 billion. The authorities expect to pass a liability management bill in 2018, which would allow them to smooth debt payments by potentially extending maturities over this period. However, the scale of external refinancing over the next few years creates a potential vulnerability for the sovereign, particularly against a backdrop of expected monetary tightening in developed markets. However, Sri Lanka's track record of accessing international capital markets remains a mitigating factor. 

Fitch's outlook for the banking sector is negative, based on our assessment of a difficult operating environment. This is reflected in an increase in NPLs following a period of rapid credit growth and some capitalisation pressures. 

Structural factors, such as governance standards, GDP per capita and levels of human development, are high compared with the 'B' and 'BB' medians and continue to provide support to the rating. In the United Nation's Human Development Index, Sri Lanka ranks in the 61st percentile compared with the 'B' median of the 36th percentile. On the World Bank's composite governance indicator score, Sri Lanka ranks at a favourable 48th percentile against the 'B' median of the 31st percentile. 

SOVEREIGN RATING MODEL and QUALITATIVE OVERLAY 

Fitch's proprietary sovereign rating model (SRM) assigns Sri Lanka a score equivalent to a rating of 'BB-' on the Long-Term Foreign-Currency IDR scale. 

Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final Long- Term Foreign-Currency IDR by applying its qualitative overlay (QO), relative to rated peers, as follows: 
- External Finances: -1 notch to reflect high refinancing needs and high non-resident holdings of government debt as a percentage of FX reserves which leave external finances vulnerable to any adverse shift in investor sentiment. 

Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a Long-Term Foreign-Currency IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within our criteria that are not fully quantifiable and/or not fully reflected in the SRM. 

RATING SENSITIVITIES 

The Stable Outlook reflects Fitch's assessment that upside and downside risks to the rating are balanced. 

The main factors that, individually or collectively, might lead to positive rating action are: 
- A further improvement in external finances supported by higher non-debt creating inflows or a reduction in external sovereign refinancing risks from improved liability management. 
- Continued improvement in public finances underpinned by a credible medium-term fiscal strategy, including a further broadening of the government revenue base. 

- Continued implementation of economic policies that support underlying macrostability 
The main factors that could lead to negative rating action, individually or collectively, are: 
- Deterioration in policy coherence and credibility, leading to a loss of investor confidence, or a derailment of the IMF supported programme that leads to external funding stress. 
- Reversal of fiscal improvements that leads to a failure to stabilise government debt ratios. 

KEY ASSUMPTIONS 

- Global economic out-turns are consistent with Fitch's latest Global Economic Outlook. 
The full list of rating actions is as follows: 
Long-Term Foreign-Currency IDR affirmed at 'B+'; Outlook Stable 
Long-Term Local-Currency IDR affirmed at 'B+'; Outlook Stable 
Short-Term Foreign-Currency IDR affirmed at 'B' 
Short-Term Local-Currency IDR affirmed at 'B' 
Country Ceiling affirmed at 'B+' 

Issue ratings on long-term foreign-currency senior unsecured bonds affirmed at 'B+' 
Issue ratings on long-term local-currency senior unsecured bonds affirmed at 'B+' 
Issue ratings on short-term local-currency senior unsecured debt affirmed at '
 

Back to top  Message [Page 1 of 1]

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