The Investor Sentiment - Equity and investments forum for Sri Lankans

Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting
Search
Display results as :
Advanced Search
Latest topics
CCS.N0000 ( Ceylon Cold Stores)Wed Mar 20, 2024 11:31 amHawk Eye
When Will It Be Safe To Invest In The Stock Market Again?Wed Apr 19, 2023 6:41 amකිත්සිරි ද සිල්වා
Dividend AnnouncementsWed Apr 12, 2023 5:41 pmකිත්සිරි ද සිල්වා
MAINTENANCE NOTICE / නඩත්තු දැනුම්දීමThu Apr 06, 2023 3:18 pmකිත්සිරි ද සිල්වා
SEYB.N0000 (Seylan Bank PLC)Thu Mar 30, 2023 9:25 amyellow knife
The Korean Way !Wed Mar 29, 2023 7:09 amකිත්සිරි ද සිල්වා
In the Meantime Within Our Shores! Mon Mar 27, 2023 5:51 pmකිත්සිරි ද සිල්වා
What is Known as Dementia?Fri Mar 24, 2023 10:09 amකිත්සිරි ද සිල්වා
SRI LANKA TELECOM PLC (SLTL.N0000)Mon Mar 20, 2023 5:18 pmකිත්සිරි ද සිල්වා
THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)Mon Mar 20, 2023 5:10 pmකිත්සිරි ද සිල්වා
Equinox ( වසන්ත විෂුවය ) !Mon Mar 20, 2023 4:28 pmකිත්සිරි ද සිල්වා
COMB.N0000 (Commercial Bank of Ceylon PLC)Sun Mar 19, 2023 4:11 pmකිත්සිරි ද සිල්වා
REXP.N0000 (Richard Pieris Exports PLC)Sun Mar 19, 2023 4:02 pmකිත්සිරි ද සිල්වා
RICH.N0000 (Richard Pieris and Company PLC)Sun Mar 19, 2023 3:53 pmකිත්සිරි ද සිල්වා
Do You Have Computer Vision Syndrome?Sat Mar 18, 2023 7:36 amකිත්සිරි ද සිල්වා
LAXAPANA BATTERIES PLC (LITE.N0000)Thu Mar 16, 2023 11:23 amකිත්සිරි ද සිල්වා
What a Bank Run ?Wed Mar 15, 2023 5:33 pmකිත්සිරි ද සිල්වා
104 Technical trading experiments by HUNTERWed Mar 15, 2023 4:27 pmkatesmith1304
GLAS.N0000 (Piramal Glass Ceylon PLC)Wed Mar 15, 2023 7:45 amකිත්සිරි ද සිල්වා
Cboe Volatility Index Tue Mar 14, 2023 5:32 pmකිත්සිරි ද සිල්වා
AHPL.N0000Sun Mar 12, 2023 4:46 pmකිත්සිරි ද සිල්වා
TJL.N0000 (Tee Jey Lanka PLC.)Sun Mar 12, 2023 4:43 pmකිත්සිරි ද සිල්වා
CTBL.N0000 ( CEYLON TEA BROKERS PLC)Sun Mar 12, 2023 4:41 pmකිත්සිරි ද සිල්වා
COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))Fri Mar 10, 2023 4:43 pmyellow knife
Bitcoin and Cryptocurrency Fri Mar 10, 2023 1:47 pmකිත්සිරි ද සිල්වා
CSD.N0000 (Seylan Developments PLC)Fri Mar 10, 2023 10:38 amyellow knife
PLC.N0000 (People's Leasing and Finance PLC) Thu Mar 09, 2023 8:02 amකිත්සිරි ද සිල්වා
Bakery Products ?Wed Mar 08, 2023 5:30 pmකිත්සිරි ද සිල්වා
NTB.N0000 (Nations Trust Bank PLC)Sun Mar 05, 2023 7:24 amකිත්සිරි ද සිල්වා
Going South Sat Mar 04, 2023 10:47 amකිත්සිරි ද සිල්වා
When Seagulls Follow the TrawlerThu Mar 02, 2023 10:22 amකිත්සිරි ද සිල්වා
Re-activatingSat Feb 25, 2023 5:12 pmකිත්සිරි ද සිල්වා
SAMP.N0000 (Sampath Bank PLC)Wed Nov 30, 2022 8:24 amකිත්සිරි ද සිල්වා
APLA.N0000 (ACL Plastics PLC)Fri Nov 18, 2022 7:49 amකිත්සිරි ද සිල්වා
AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.Wed Nov 16, 2022 9:28 pmකිත්සිරි ද සිල්වා
Banks, Finance & Insurance Sector ChartTue Nov 15, 2022 5:26 pmකිත්සිරි ද සිල්වා
VPEL.N0000 (Vallibel Power Erathna PLC)Sun Nov 13, 2022 12:15 pmකිත්සිරි ද සිල්වා
DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.Mon Nov 07, 2022 6:36 pmකිත්සිරි ද සිල්වා
WATA - WatawalaSat Nov 05, 2022 8:44 amකිත්සිරි ද සිල්වා
KFP.N0000(Keels Food Products PLC)Sat Nov 05, 2022 8:42 amකිත්සිරි ද සිල්වා
Capital Trust Broker in difficulty?Fri Oct 21, 2022 5:25 pmකිත්සිරි ද සිල්වා
IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?Thu Oct 20, 2022 10:13 amකිත්සිරි ද සිල්වා
What Industry Would You Choose to Focus?Tue Oct 11, 2022 6:39 pmකිත්සිරි ද සිල්වා
Should I Stick Around, or Should I Follow Others' Lead?Tue Oct 11, 2022 9:07 amකිත්සිරි ද සිල්වා
DV-2024 Program: Online RegistrationThu Oct 06, 2022 11:26 amකිත්සිරි ද සිල්වා
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

Go down
sashimaal
sashimaal
Top contributor
Top contributor
Posts : 5785
Join date : 2014-02-28

Sri Lanka to move on market pricing fuel Empty Sri Lanka to move on market pricing fuel

Sat Aug 12, 2017 2:24 pm
ECONOMYNEXT - Sri Lanka is in favour of formula pricing fuel to reflect international prices, a minister said, which is long required move to reduce the risk of balance of payments and currency collapse, when prices move up.

"The finance minister Mangala Samaraweera will be introducing pricing formulae to reflect international prices and give the benefit to consumers," State Minister for Finance Eran Wickramaratne said.

A pricing formula on one side lowers fuel and gas prices to consumers bringing boosting their disposable incomes when international prices fall.

But the big benefit of market pricing is that when international prices go up, retail prices are raised, temporarily curbing consumption and reducing non-oil imports.

Unlike food, energy is consumed more by the higher income groups, with the richest sections of society consuming the most.

In Sri Lanka state energy utilities including electricity subsidises customers by borrowing from state banks.

The spike in borrowings requires a rise of interest rates, which will bring in more savings, curb credit to other sectors to keep the economy in balance and the exchange rate stable.

When there is a drought, the Ceylon Electricity Board imports more oil, but the cost is financed by bank credit.

But in Sri Lanka the central bank does not counter such so called 'supply shocks' with higher interest rates, but prints money in keep rates down, boosting credit, non-oil imports and ultimately generating a balance of payments crisis.

The country has a so-called soft-peg, where the central bank prints money and tries to defend the currency at the same time which is practically impossible.

In the 2011 crisis, the central bank cut rates in early 2011 as a drought took hold, eventually printing over 250 billion rupees to create the BOP crisis.

State energy utilities borrowed over 200 billion rupees from state banks for the consumption subsidies which could have gone for employment generating investment.

The Public Utilities Commission of Sri Lanka, which was set up partly to avoid BOP crises and currency collapses following the 1999/2000 economic crisis failed to raise power prices in 2011, as it could be overridden by the power ministry.

In 2015 money was printed to accommodate a runaway budget with salary hikes and subsidies as well as a pick-up in private credit, despite falling oil prices.

The rupee fell from 131 to 154 and inflation in the current crisis surged, hurting the poorest sections of society most and cutting their real salaries and making them permanently poor.

Sri Lanka was expected to re-introduce fuel price formula by end 2016 under a deal with the International Monetary Fund to save the country from balance of payments trouble, but the deadline was missed.

Under revised deal, fuel pricing has been set a deadline of March 2018 and electricity by 2018. (Colomb/Aug12/2017)
Ethical Trader
Ethical Trader
Top contributor
Top contributor
Posts : 5568
Join date : 2014-02-28

Sri Lanka to move on market pricing fuel Empty Re: Sri Lanka to move on market pricing fuel

Sat Aug 12, 2017 2:36 pm
Message reputation : 100% (1 vote)
Thanks Shashi.

Its a good move, because, certain industries consuming fuel were unable to compete in the international markets when retail price is fixed irrespective of world market fuel prices. As a result their bottom lines were badly affected. One such industry is glass, where they lament each year for not having a mechanism to reflect actual fuel prices.

Hope this time we could see a jaya Mangala Budget.
sashimaal
sashimaal
Top contributor
Top contributor
Posts : 5785
Join date : 2014-02-28

Sri Lanka to move on market pricing fuel Empty Re: Sri Lanka to move on market pricing fuel

Sat Aug 12, 2017 3:00 pm
Yes, whenever a Govt intervenes in the demand and supply process , there is a negative impact. Consumers loose.

Mangala has always done his job well - from Telecom Minister, Foreign and now Finance... Lot of people expect a good budget for the Country.
Anyway as always the Nationalists will have something negative to bark about  Twisted Evil


Ethical Trader wrote:Thanks Shashi.

Its a good move, because, certain industries consuming fuel were unable to compete in the international markets when retail price is fixed irrespective of world market fuel prices. As a result their bottom lines were badly affected. One such industry is glass, where they lament each year for not having a mechanism to reflect actual fuel prices.

Hope this time we could see a jaya Mangala Budget.
The Invisible
The Invisible
Posts : 3116
Join date : 2016-11-28
Age : 44

Sri Lanka to move on market pricing fuel Empty Re: Sri Lanka to move on market pricing fuel

Sun Aug 13, 2017 6:14 am
Its a talk for long time now. I can't believe on this until it is operational somehow.
CK
CK
Active Member
Active Member
Posts : 1393
Join date : 2015-11-01

Sri Lanka to move on market pricing fuel Empty Re: Sri Lanka to move on market pricing fuel

Sun Aug 13, 2017 6:22 am
He also doing media ministry VERY WELL as usuall. See ITN.. Laughing
smallville
smallville
Top contributor
Top contributor
Posts : 1872
Join date : 2014-02-23
Location : Trying to figure out..

Sri Lanka to move on market pricing fuel Empty Re: Sri Lanka to move on market pricing fuel

Sun Aug 13, 2017 7:38 am
So once this tabled, we also need to take our stances.. So what would be favourable counters for us to buy?
As ET said, if GLASS industry is gonna get benefits, GLAS shud be on our list right??

Similarly, what other counters consume energy for their day-to-day opS?

LIOC perhaps?

_________________
I take risks as a Trader and I select stocks based on Tech and daily Cash in/out. Therefore, my methods may not suit u.. so DYO analysis before making any decisions.
avatar
Ukboy
Top contributor
Top contributor
Posts : 360
Join date : 2014-02-28

Sri Lanka to move on market pricing fuel Empty Re: Sri Lanka to move on market pricing fuel

Wed Aug 16, 2017 2:28 am
I think government shouldn't introduce such formula now. A formula means less revenue for the government for sometimes.
They can't even repay loans plus feeding the mammoth government sector.
I just wonder how they can afford a formula..! (At least now).
They should introduce it when prices are heading north not south.
Backstage
Backstage
Top contributor
Top contributor
Posts : 3803
Join date : 2014-02-24

Sri Lanka to move on market pricing fuel Empty Re: Sri Lanka to move on market pricing fuel

Sat Aug 19, 2017 7:14 pm
Ukboy wrote:I think government shouldn't introduce such formula now. A formula means less revenue for the government for sometimes.
They can't even repay loans plus feeding the mammoth government sector.
I just wonder how they can afford a formula..! (At least now).
They should introduce it when prices are heading north not south.


UK after ages, welcome back.

They are talking of implementation in late 2018, we could have an election before that.
Back to top
Permissions in this forum:
You cannot reply to topics in this forum