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
Coronavirus UpdatesWed Sep 16, 2020 9:01 amThe Invisible
Trading Journal Tue Sep 15, 2020 10:37 pmThe Invisible
AEL Access EngineeringTue Sep 15, 2020 7:24 pmsmallville
CFVF - First CapitalWed Sep 09, 2020 9:42 pmWonderer
DIPD.N0000 (Dipped Products PLC)Mon Sep 07, 2020 8:47 amBeta
Plantation Sector UpdatesMon Aug 24, 2020 10:00 amserene
අනං මනං! #/+?.<>Tue Aug 18, 2020 11:15 pmYin-Yang
Dividend AnnouncementsMon Aug 17, 2020 1:27 pmRana
Ceylon Tobacco CTCSun Aug 16, 2020 5:11 pmThe Invisible
Sunshine HoldingsFri Aug 14, 2020 9:39 pmThe Invisible
HAYC - HaycarbFri Aug 14, 2020 10:15 amBeta
Tokyo CementThu Aug 13, 2020 11:45 pmThe Invisible
LOLC HoldingsWed Aug 12, 2020 3:52 pmThe Invisible
SLTL.NWed Aug 12, 2020 11:06 amThe Invisible
Gota's EraTue Aug 04, 2020 8:49 amyellow knife
SEYB.N0000 (Seylan Bank PLC)Fri Jul 31, 2020 8:37 amNIRMALSG
JKH.N0000Thu Jul 30, 2020 10:48 amThe Invisible
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
The Invisible
The Invisible
Posts : 2634
Join date : 2016-11-28
Age : 41

Sri Lanka bans more imports after printing excess money amid Coronavirus crisis Empty Sri Lanka bans more imports after printing excess money amid Coronavirus crisis

on Sun Apr 19, 2020 9:52 pm
Message reputation : 100% (1 vote)
ECONOMYNEXT – Sri Lanka has banned more imports until July 2020 while allowing some items to be imported on three months credit, according to an order under the country’s export and import control law of 1969, which was used in the control economy period of 1970s.

Among the most problematic items that have been restricted include screws, nuts and bolts, asbestos washers, batteries, small motors, which can bring the country’s industrial machinery, vehicles and equipment to a standstill like in the 1970s, observers say.

Rice, fish, ornamental fish, grains, maize, black gram, vegetable oil, mall, pasta, communion wafers (used by churches), alcohol, vinegar, cement, paints, essential oil, asbestos washes, granite, marble, ceramic tiles, sanitary ware, have been banned.

Wrist watches, beauty products, wigs apparel, some building materials, wood items, footwear, festive or carnival items and brushes have been banned

A series of other items are allowed on three months credit.

Milk and cream in powder with sugar, yoghurt (HScode 4.02, 4.03), dhall, red lentils (07.13), wheat and meslin (10.01), palm oil, sunflower oil (15.11, 15.12), cane or been sugar (17.01), cement 25.23, coal (27.01), iron and steel, rolled iron (72.01-29), alloy wires (72.29) and sheet piling iron 73.01.

Railway tracks (73.02), tubes (73.04-06), fabricated metal items (73.08), tanks (73.09), screws, nuts, bolts, rivets, cotter pins, (73.18), sewing needles (73.19), springs and leaf springs (73.20), cookers (73.21), radiators (73.22), iron, sanitary wear (73.24), electric motors (85.01), solar cells and motors (85.01), electrical transformer items (85.04), electro magnets, (85.05), batteries and cells (85.06), lead acid batteries (85.07).

Sri Lanka’s central bank cut rates from January 30 and started printing money from the last week of February and sharply ratcheted liquidity injections in March, putting pressure on the rupee and breaking the credibility of the soft-peg.

At least 140 billion of the money however had been drawn down from the system with higher use of cash in the country. But money had been printed in excess of the drawdown.

On Friday overnight excess liquidity in the banking system shot up to 140 billion rupees from 84 billion rupees a day earlier with the Treasury bill stock of the central bank going up to 283 billion rupees from 263 billion.

Another 15 billion rupees were offered to be injected by the central bank despite the excess liquidity and 1.5 billion rupees were taken at 6.50 percent the middle of the policy corridor.

During the tenure of Governor Indrajit Coomaraswamy the country lost the protection of the policy corridor and external risks expanded, analysts have pointed out.

In addition another practice of not buying long term bonds, which given the power for the central bank to suppress the longer term yield curve and create more distortions, a rule operated by then-Governor A S Jayewardene was also casually abandoned.

In the 1970s most of the the Treasury bills were owned by the central bank. Governor Jayewardene started a secondary market in bills to get real saving and reduce money printing and stop the country going back to the 1970s forex shortage and import control era. (Colombo/Apr19/2020)
Back to top
Permissions in this forum:
You cannot reply to topics in this forum