Sri Lanka CB Governor says rates have room to fall, rupee undervalued: report

[sashimaalTop contributor]

COLOMBO (EconomyNext) - Sri Lanka's interest rates have room to fall, and the rupee may be slightly undervalued, a media report quoting Central Bank Governor Arjuna Mahendran said.

Because "inflation expectations are well anchored" there was room for interest rates to fall further, but the Central Bank was closely watching data, Bloomberg Newswires, reported.

With good rain, supply side factors were positive, and if oil prices come down further it can help ease rates, he said in an interview with Bloomberg.

The rupee was perhaps "slightly undervalued" because of a steep depreciation in 2012. The International Monetary Fund has also said in March that the rupee was fairly valued.

A fall in foreign reserves was temporary and the IMF has said in February that there was no problem in the balance of payments, Mahendran said.

[sereneTop contributor]

Thanks sash we might get more positive statements for the stock market in times to come.

[poor boyActive Member]

this man himself was also about to fall but ranil saved him by dissolving the parliament before the release of cope report

[guruji]

I dont think so mahinda n his donkeys shouting like that but its not true,weather u hav parliment or not we should have our legal system active if not ,what is this country,fools politicians asking nadu and they r the culprits too nadu and badu r with them,now is time for us to make strong govening structure

[stockback]

RPPA

about 27 February auction

I think government purposely increase rates to manipulated the market (6.20 - 7.30 1 Year Bill) using thirty years bond

after that government can collect more money when rates falling.

I think they did this trick. credit demand is high but rates falling or same level.

2011 Mahinda Government did other way. that's why end with 11-12% 1 Year Bill

Ranil government this trick. all other fools think that is cheat.

Mahndre's sunning-law "dambuluth gihin thalagoith maruwa"

Mahndre's sunning-law is not in this main role then no one complain like this way.

I need advised from RPPA about this matter. this is my view i need to check with you "am i correct?"

[LeonTop contributor]

If rates fall, Whoever wins the general elections there will be good times for sure.

[Future123Active Member]

this man himself was also about to fall but ranil saved him by dissolving the parliament before the release of cope report

Truly speaking MS saved Arjun Mahendran, Ravi K, Ranil and UNP by dissolving the parliament just before the release of COPE report. Ravi K instructed BOC to grant Perpetual treasuries Billions of rupees without any security. A big cut went for Ravi K and connected parties.

I can't understand why MS did not interfere in this large scale fraud.

[First Guy]

this man himself was also about to fall but ranil saved him by dissolving the parliament before the release of cope report

Truly speaking MS saved Arjun Mahendran, Ravi K, Ranil and UNP by dissolving the parliament just before the release of COPE report. Ravi K instructed BOC to grant Perpetual treasuries Billions of rupees at an interest rate of just 8.5% without any security. Just look at the profit. (12.5% - 8.5%) 4% without any investments for billion of rupees. A big cut went for Ravi K and connected parties.

I can't understand why MS did not interfere in this large scale fraud.

Can you post the source? Maybe I missed the original news item.

[Future123Active Member]

Can you post the source? Maybe I missed the original news item.[/quote]
Sorry. Couldn't find the BOC lending rates and I'll take it out from the post but read in some paper.

https://www.colombotelegraph.com/index.php/reason-for-dissolution-arjuna-mahendran-found-guilty-in-cope-inquiry/

“It appears that the Governor of the Central Bank, Arjuna Mahendran would have temporary breathing as a result of the dissolution of Parliament. All news pertaining to COPE inquiry says that it has found him guilty over the Treasury Bonds Scam.” a source close to Prime Minister Ranil Wickremesinghe told Colombo Telegraph.

Ranil“However, all those who I meet, big or small, say that they are all unhappy about how Prime Minster Ranil Wickremesinghe has manipulated the whole incident. What a pathetic story about the good governance for which we all fought risking our lives!” she further said.

Colombo Telegraph also learnt that the COPE report has implicated Ministers Kabir Hashim, Ravi Karunanayake, Prime Minister Ranil Wickremesinghe and his friend Malik Samarawickrama.

[First Guy]

Can you post the source? Maybe I missed the original news item.
Sorry. Couldn't find the BOC lending rates and I'll take it out from the post but read in some paper.

https://www.colombotelegraph.com/index.php/reason-for-dissolution-arjuna-mahendran-found-guilty-in-cope-inquiry/

“It appears that the Governor of the Central Bank, Arjuna Mahendran would have temporary breathing as a result of the dissolution of Parliament. All news pertaining to COPE inquiry says that it has found him guilty over the Treasury Bonds Scam.” a source close to Prime Minister Ranil Wickremesinghe told Colombo Telegraph.

Ranil“However, all those who I meet, big or small, say that they are all unhappy about how Prime Minster Ranil Wickremesinghe has manipulated the whole incident. What a pathetic story about the good governance for which we all fought risking our lives!” she further said.

Colombo Telegraph also learnt that the COPE report has implicated Ministers Kabir Hashim, Ravi Karunanayake, Prime Minister Ranil Wickremesinghe and his friend Malik Samarawickrama.

I'm looking for the news where Ravi instructed BOC to lend at 8.5%. What was the amount? Btw the yield was 11.73% and not 12.5%. Please do post it if you find it. Anyhow let's stick to the topic. Bond issue was discussed to death