The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» අනං මනං! #/+?.<>
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyToday at 6:10 pm by ruwan326

» Easter Sunday Attack and Sri Lanka
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyToday at 3:40 pm by ruwan326

» My Port Folio Bleeding But Its just the Begining Of..
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyYesterday at 7:40 pm by serene

» Thread for News on CSE and SL Economy
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyYesterday at 1:49 pm by ruwan326

» සදහම් අටුවාව
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyYesterday at 6:52 am by ruwan326

» HNB.N0000 ( Hatton National Bank PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri May 17, 2019 9:54 pm by dhanurrox

» Re: Financial reports Q1-2019
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri May 17, 2019 7:53 pm by dhanurrox

» Sri Lanka mulls 25-pct ownership limit in finance companies
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri May 17, 2019 3:40 pm by Backstage

» Searing Heat in China Is Causing Havoc for Rubber Makers
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri May 17, 2019 2:43 pm by Backstage

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyThu May 16, 2019 8:00 pm by hammurabi

» Dividend Announcement
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed May 15, 2019 6:42 pm by Rana

» Israeli spyware breached WhatsApp security
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed May 15, 2019 7:47 am by කිත්සිරි ද සිල්වා

» Is Burka prohibted ?
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed May 15, 2019 7:30 am by කිත්සිරි ද සිල්වා

» Thread for General News Local/Foreign
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue May 14, 2019 11:49 am by CK

» Fed Rate hike , Rs Devaluation PART 2 : Should CSE be like this? Whose FAULT is it?
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri May 10, 2019 7:15 pm by Backstage

» NEST.N0000
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyThu May 09, 2019 7:54 pm by ruwan326

» What to Analyse
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyThu May 09, 2019 5:53 pm by Ethical Trader

» Sweden-based Tundra Fund says Colombo bourse at lowest levels since 2009
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed May 08, 2019 5:43 pm by serene

» Telenor and Dialog Axiata's parent in talks to merge Asian businesses
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyMon May 06, 2019 1:50 pm by Backstage

» සුබ පාස්කූ මංගල්ලයක් වේවා !
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptySun May 05, 2019 6:51 pm by Backstage

» In the Meantime, Within Our Shores !
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyThu May 02, 2019 11:27 am by Ethical Trader

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed May 01, 2019 3:49 am by Ethical Trader

» Thread for News on Local and Foreign Politics
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 26, 2019 8:18 am by කිත්සිරි ද සිල්වා

» how to access internet ?
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 26, 2019 7:55 am by කිත්සිරි ද සිල්වා

» SERV - The Kingsbury
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyThu Apr 25, 2019 9:26 am by ruwan326

» Lessons from movies
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue Apr 23, 2019 8:26 am by කිත්සිරි ද සිල්වා

» DFCC.N0000 ( DFCC BANK PLC )
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyMon Apr 22, 2019 12:38 pm by ruwan326

» Happy Birthday
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptySun Apr 21, 2019 8:13 pm by Rana

» Little Known Facts !
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptySun Apr 21, 2019 9:27 am by කිත්සිරි ද සිල්වා

» හීන්බන්ඩාගේ රැකියාව ඇසූ පසු පොලිස් නෝනලාට තරු පෙනුනා
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptySat Apr 20, 2019 10:07 am by ruwan326

» HASU.N0000 (HNB ASSURANCE PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyThu Apr 18, 2019 6:05 pm by Ethical Trader

» EAST WEST PROPERTIES PLC (EAST.N0000)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyThu Apr 18, 2019 6:02 pm by Ethical Trader

» අසිරිමත් සුබ නව වසරකට ආසිරි !
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed Apr 17, 2019 6:33 pm by hammurabi

» SEYLAN DEVELOPMENTS PLC (CSD.N0000)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 12, 2019 8:55 am by yellow knife

» East West properties
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 12, 2019 5:27 am by dhanurrox

» HHL.N0000 ( Hemas Holdings PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue Apr 09, 2019 8:04 pm by NIRMALSG

» කිරි පිටි ගැන ඔබ මෙතෙක් නොදත් දේ
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyMon Apr 08, 2019 5:31 am by Ethical Trader

» CONN.N0000
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptySun Apr 07, 2019 3:15 pm by NIRMALSG

» LION.N0000 (Lion Brewery Ceylon PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptySun Apr 07, 2019 8:52 am by ruwan326

»  5000 Post Milestone - Congratulations
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 05, 2019 9:07 pm by Ethical Trader

» NTB.N0000 (NATIONS TRUST BANK PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 05, 2019 1:37 pm by Ethical Trader

» Micro Finance
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 05, 2019 12:14 pm by yellow knife

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyFri Apr 05, 2019 7:40 am by serene

» PLC.N0000 ( People's Leasing and Fiance PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed Apr 03, 2019 6:04 pm by NIRMALSG

» VPEL.N0000 (VALLIBEL POWER ERATHNA PLC )
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyWed Apr 03, 2019 3:40 pm by catseye

» SAMP.N0000 (SAMPATH BANK PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue Apr 02, 2019 12:38 pm by malanp

» Sinhala Cinema
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue Apr 02, 2019 12:31 pm by yellow knife

» SEYB.N0000 ( SEYLAN BANK PLC )
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue Apr 02, 2019 11:23 am by Backstage

» LIOC.N0000 (Lanka IOC PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue Apr 02, 2019 11:15 am by LSE

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist EmptyTue Apr 02, 2019 11:11 am by Backstage

May 2019
SunMonTueWedThuFriSat
   1234
567891011
12131415161718
19202122232425
262728293031 

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist

Go down

Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist Empty Sri Lanka needs prudent fiscal policy to retain confidence, refinance debt: Economist

Post by The Invisible on Wed Oct 17, 2018 9:51 am

ECONOMYNEXT - Sri Lanka needs prudent fiscal management to retain confidence of debtors amid a peak in upcoming repayments which needs refinancing and elections which may undermine policy, an economist has said.

"Retaining foreign investor confidence is going to be the most important thing, and one critical area is that we must have a fiscally responsible regime in place," Dushni Weerakoon, the Executive Director Institute of Policy Studies, a Colombo-based think tank said.

But Sri Lanka is facing convergence of political economic events in 2019 which is increasing the risk of policy slippage, she said. Global interest rates were also rising.

"It’s a little unfortunate that all of this are converging next year," Weerakoon said at the launch of the IPS's flagship publication, the State of the Economy 2018.

"There’s the more near to medium term risk of fiscal discipline that comes mostly through the political channel related to elections, but clearly we need to ensure that there is a fiscal sustainable regime in place."

"There is likely to be a pressure that will build up for policy backsliding."

Successive regimes in Sri Lanka have had a habit of spending government finances to win votes.

At the moment Sri Lanka is in a stabilization program with the International Monetary Fund, which is currently in limbo with the last review yet to be completed over the failure to meet forex reserve targets.

Budget deficits have been brought down and taxes raised. State spending was raised in a budget in 2015, which contributed to undermining the fiscal framework.

Despite better fiscal policy, analysts say policy errors by the central bank involving contradictory policy have led to monetary instability.

Analysts who closely track the central bank has said that a sudden halt in mopping up inflows in the first quarter of 2018 (failed term repo auctions) as the economic recovered a little, led to a weakening of a de facto soft-peg with the US dollar (Sri Lanka injects Rs123bn to sterilize dollar outflows). A liquidity spike in August was similarly unsterilized.

Trade controls have been put in place as part of efforts to stabilize the currency peg.

Weerakoon said that the curbs on high value imports put in place to halt further currency depreciation will reduce taxes for the government.

It is not clear why the administration place trade controls to correct monetary instability. Under the IMF deal Sri Lanka has pledged not to resort to trade controls to fix balance of payments troubles, which are a result of monetary instability.

Weerakoon said that so far, the government has had better management of public finance.

She said monetary policy and foreign exchange management has been prudent within the constraints placed on the country.

Weerakoon said that political room will be small to push through required structural reforms next year, and will keep growth at around 4 percent.

"Fiscal policy is in a bit of a straightjacket but Sri Lanka also has to focus on growth, because it is important to increase GDP growth to lower our debt leverage ratio," she said.

“Debt accumulation is accelerating rather than decelerating."

Rise of international interest rates are also reducing favourable borrowing terms, she said.

But there were several positive developments.

She said exports and foreign direct investments have turned around in 2018 which was a positive development and tourist earnings are growing, but they will not increase massively in a short period.

The increasing oil prices and currency induced inflation will on the other hand require the central bank to be watchful and conduct monetary policy appropriately going forward, she said. (Colombo/Oct16/2018)
The Invisible
The Invisible

Posts : 883
Join date : 2016-11-28
Age : 39

Back to top Go down

Back to top


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