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



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™ » Rupee and Debt burden

Rupee and Debt burden

Go down  Message [Page 1 of 1]

1Rupee and Debt burden  Empty Rupee and Debt burden Mon Sep 10, 2018 12:31 pm

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Rupee and Debt burden now at a critical stage
September 9, 2018, 9:42 pm 

Rupee and Debt burden  1909625320rupee
By Ajith Nivard Cabraal,
Former Governor, Central Bank of Sri Lanka


Governor of the Central Bank Dr. Indrajith Coomaraswamy has, recently, stated that the Central Bank is to soon raise USD 250 million through the issuance of Panda Bonds. Such funds would be in addition to the Syndicated Loan of USD 1,000 million that it has already raised recently through the China Development Bank.

Sri Lanka’s public debt was at a value of LKR 7,391 billion as at end 2014. Of it, the loans from China amounted to approximately LKR 585 billion (USD 4.5 billion), or 8% of the total. At the same time, the Debt to GDP was at a manageable 71%, (down from 91% in 2005) and the interest cost in 2014 was LKR 443 billion or 4.2% of GDP.

Sri Lanka’s debt related relevant data, as at the end of 2014, would confirm that there was no truth whatsoever in the suggestion that Sri Lanka was in any ‘Debt Trap’ at that time:

* Debt to GDP ratio: 71% (down from 91% in 2005)

* Total Debt - LKR 7,391 billion; of which, External Debt - LKR 3,113 billion: Domestic Debt – LKR 4,278 billion

* External Debt to GDP: 30.0% (down from 39.0% in 2005)

* Domestic Debt to GDP: 41.3% (down from 51.6% in 2005)

* Average time to Maturity of Domestic Public Debt: 5 years and 8 months (up sharply from 2 years 5 months years in 2005)

* Total Chinese Debt, mainly Project-related: USD 4.5 billion

* Percentage of Chinese Debt out of Total Debt: 8%

* Total International Sovereign Bonds outstanding: USD 5.5 billion

* Percentage of ISBs, mainly held by US and Western Investors out of Total Debt: 10%

However, by end July 2018, Sri Lanka’s Public Debt had zoomed to around LKR 11,971 billion (Please see Computation 1); a staggering increase of 59% in just three and half years, while the interest cost for 2018 is estimated at LKR 820 billion, or nearly double that of the 2014 interest cost. The Debt to GDP ratio as at 31st July 2018 has also reached an alarming level of 87.0%. (Please see Computation 2).

Further, according to the publicly available information, the government’s total external debt had also since increased by a massive 33%: from USD 23.7 billion at end 2014 to at least USD 35.4 billion by July 2018, of which, International Sovereign Bonds which are mainly held by US and Western investors, now account for about USD 11.6 billion.

Rupee and Debt burden  Rupee1 This debt escalation has taken place in an economy that has recorded a serious declining GDP growth rate; from a healthy average of 6.4% from 2010 to 2014 to a dismal 3.1% in 2017. The GDP growth rate for the first half of 2018 has also not shown any signs of recovery, and key sectors such as construction have experienced significant negative growth. Accordingly, the Central Bank of Sri Lanka has reduced its 2018 GDP growth projections to under 4% though most analysts now expect it to be considerably less than 3%.

In the meantime, the country’s external trade deficit has ballooned substantially from USD 8,287 million in 2014 to USD million 9,619 in 2017. The Central Bank’s press release on 27th August 2018 reported that the trade deficit for the first half of 2018 had widened to USD 5,709 million as against USD 4,751 million in the first half of 2017, reflecting the continued worsening of the trade deficit owing to sluggish growth in exports and double digit increase in imports. On that basis, the trade deficit is likely to reach a massive USD 11,000 million this year. Workers’ remittances too, which has been a major source of financing the current account deficit of the balance of payments has recorded only a sluggish increase of 0.9 percent.

In financing the current account deficit in 2018, the government is reported to have so far raised a sizeable USD 3,838 million, of which USD 2,500 million has been from International Sovereign Bonds, USD 1,000 million has been from a China Development Bank Syndicated Loan, and further Forex loans of USD 338 million. But, sadly there has been no noticeable foreign direct investment this year, other than the final tranche of the one-off sales proceeds relating to the alienation of the Hambantota Port to China. Incidentally, the debt incurred by Sri Lanka for the construction of the Hambantota Port was USD 1,322 million (or about LKR 158 billion), and such Debt was only about 2.1% of the Total Debt of Sri Lanka as at the end of 2014. Hence, by no stretch of imagination could it also be claimed that the Sri Lankan government was in a "Debt Trap" due to the Hambantota Port loan.
Cont...http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=190962

2Rupee and Debt burden  Empty Re: Rupee and Debt burden Mon Sep 10, 2018 12:44 pm

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
So what you have to say about this Governor of the Central Bank Dr. Indrajith Coomaraswamy???????? pale pale pale pale

3Rupee and Debt burden  Empty Re: Rupee and Debt burden Mon Sep 10, 2018 1:09 pm

ranferdi

ranferdi
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
At the time of Rajapaksha departure there was lot of hidden debts which was not taken into accounts. Now they are in accounts. That is one of the reasons for debt increase. It is unfair that inclusion of hidden debts to official debt to be counted as this governments debts.

Below links will help you to evaluate exact problem.

https://www.forbes.com/sites/wadeshepard/2016/09/30/sri-lankas-debt-crisis-is-so-bad-the-government-doesnt-even-know-how-much-money-it-owes/#3cd5e0b74608

http://groundviews.org/2018/08/21/hidden-costs-the-impact-of-foreign-aid-on-sri-lankan-citizens/

http://::::THIS EMAIL DOESNT WORK.. PLEASE CONTACT ME ON FB ACCO

Sponsored content


Back to top  Message [Page 1 of 1]

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