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The Investor Sentiment - Equity and investments forum for Sri Lankans

The Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSEThe Lankan Investor Forum - A more respectable and reasonable place for members to discuss matters regarding the CSE

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Latest topics

» CCS.N0000 ( Ceylon Cold Stores)
United Motors EmptyWed Mar 20, 2024 11:31 am by Hawk Eye

» Sri Lanka plans to allow tourists from August, no mandatory quarantine
United Motors EmptyWed Sep 13, 2023 12:16 pm by lauryfriese

» When Will It Be Safe To Invest In The Stock Market Again?
United Motors EmptyWed Apr 19, 2023 6:41 am by කිත්සිරි ද සිල්වා

» Dividend Announcements
United Motors EmptyWed Apr 12, 2023 5:41 pm by කිත්සිරි ද සිල්වා

» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
United Motors EmptyThu Apr 06, 2023 3:18 pm by කිත්සිරි ද සිල්වා

» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්‍රතික්ෂේප කළ ගණිතඥයා
United Motors EmptySun Apr 02, 2023 7:28 am by කිත්සිරි ද සිල්වා

» SEYB.N0000 (Seylan Bank PLC)
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United Motors EmptyThu Mar 30, 2023 9:25 am by HaeroMaero

» The Korean Way !
United Motors EmptyWed Mar 29, 2023 7:09 am by කිත්සිරි ද සිල්වා

» In the Meantime Within Our Shores!
United Motors EmptyMon Mar 27, 2023 5:51 pm by කිත්සිරි ද සිල්වා

» What is Known as Dementia?
United Motors EmptyFri Mar 24, 2023 10:09 am by කිත්සිරි ද සිල්වා

» SRI LANKA TELECOM PLC (SLTL.N0000)
United Motors EmptyMon Mar 20, 2023 5:18 pm by කිත්සිරි ද සිල්වා

» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
United Motors EmptyMon Mar 20, 2023 5:10 pm by කිත්සිරි ද සිල්වා

» Equinox ( වසන්ත විෂුවය ) !
United Motors EmptyMon Mar 20, 2023 4:28 pm by කිත්සිරි ද සිල්වා

» COMB.N0000 (Commercial Bank of Ceylon PLC)
United Motors EmptySun Mar 19, 2023 4:11 pm by කිත්සිරි ද සිල්වා

» REXP.N0000 (Richard Pieris Exports PLC)
United Motors EmptySun Mar 19, 2023 4:02 pm by කිත්සිරි ද සිල්වා

» RICH.N0000 (Richard Pieris and Company PLC)
United Motors EmptySun Mar 19, 2023 3:53 pm by කිත්සිරි ද සිල්වා

» Do You Have Computer Vision Syndrome?
United Motors EmptySat Mar 18, 2023 7:36 am by කිත්සිරි ද සිල්වා

» LAXAPANA BATTERIES PLC (LITE.N0000)
United Motors EmptyThu Mar 16, 2023 11:23 am by කිත්සිරි ද සිල්වා

» What a Bank Run ?
United Motors EmptyWed Mar 15, 2023 5:33 pm by කිත්සිරි ද සිල්වා

» 104 Technical trading experiments by HUNTER
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» GLAS.N0000 (Piramal Glass Ceylon PLC)
United Motors EmptyWed Mar 15, 2023 7:45 am by කිත්සිරි ද සිල්වා

» Cboe Volatility Index
United Motors EmptyTue Mar 14, 2023 5:32 pm by කිත්සිරි ද සිල්වා

» AHPL.N0000
United Motors EmptySun Mar 12, 2023 4:46 pm by කිත්සිරි ද සිල්වා

» TJL.N0000 (Tee Jey Lanka PLC.)
United Motors EmptySun Mar 12, 2023 4:43 pm by කිත්සිරි ද සිල්වා

» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
United Motors EmptySun Mar 12, 2023 4:41 pm by කිත්සිරි ද සිල්වා

» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
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» Bitcoin and Cryptocurrency
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» CSD.N0000 (Seylan Developments PLC)
United Motors EmptyFri Mar 10, 2023 10:38 am by yellow knife

» PLC.N0000 (People's Leasing and Finance PLC)
United Motors EmptyThu Mar 09, 2023 8:02 am by කිත්සිරි ද සිල්වා

» Bakery Products ?
United Motors EmptyWed Mar 08, 2023 5:30 pm by කිත්සිරි ද සිල්වා

» NTB.N0000 (Nations Trust Bank PLC)
United Motors EmptySun Mar 05, 2023 7:24 am by කිත්සිරි ද සිල්වා

» Going South
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» When Seagulls Follow the Trawler
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» Re-activating
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» අපි තමයි හොඳටම කරේ !
United Motors EmptyTue Feb 14, 2023 3:54 pm by ruwan326

» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
United Motors EmptyTue Jan 03, 2023 6:43 pm by ruwan326

» SAMP.N0000 (Sampath Bank PLC)
United Motors EmptyWed Nov 30, 2022 8:24 am by කිත්සිරි ද සිල්වා

» APLA.N0000 (ACL Plastics PLC)
United Motors EmptyFri Nov 18, 2022 7:49 am by කිත්සිරි ද සිල්වා

» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
United Motors EmptyWed Nov 16, 2022 9:28 pm by කිත්සිරි ද සිල්වා

» Banks, Finance & Insurance Sector Chart
United Motors EmptyTue Nov 15, 2022 5:26 pm by කිත්සිරි ද සිල්වා

» VPEL.N0000 (Vallibel Power Erathna PLC)
United Motors EmptySun Nov 13, 2022 12:15 pm by කිත්සිරි ද සිල්වා

» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
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» WATA - Watawala
United Motors EmptySat Nov 05, 2022 8:44 am by කිත්සිරි ද සිල්වා

» KFP.N0000(Keels Food Products PLC)
United Motors EmptySat Nov 05, 2022 8:42 am by කිත්සිරි ද සිල්වා

» Capital Trust Broker in difficulty?
United Motors EmptyFri Oct 21, 2022 5:25 pm by කිත්සිරි ද සිල්වා

» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
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» What Industry Would You Choose to Focus?
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» Should I Stick Around, or Should I Follow Others' Lead?
United Motors EmptyTue Oct 11, 2022 9:07 am by කිත්සිරි ද සිල්වා

» DV-2024 Program: Online Registration
United Motors EmptyThu Oct 06, 2022 11:26 am by කිත්සිරි ද සිල්වා

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    United Motors

    The Invisible
    The Invisible


    Posts : 3116
    Join date : 2016-11-28
    Age : 44

    United Motors Empty United Motors

    Post by The Invisible Wed Jun 03, 2020 5:26 pm

    Sri Lanka’s United Motors expect hit from import embargo as Covid-19 controls ease

    ECONOMYNEXT – United Motors Lanka Plc, agents for Mitsubishi in Sri Lanka said it expected a hit on its supply chain as a self-imposed import embargo was placed on the country after money printing just as the country was recovering from a Coronavirus crisis.

    “As the Covid-19 pandemic situation is still uncertain, it is difficult to quantity the future business impact on the company,” United Motors said in a stock exchange filing.

    “Further the Government’s decision to restrict imports of most categories of vehicles we market could have a medium term negative impact on our revenue from vehicle sales once the current stocks are exhausted.”

    Sri Lanka has been aggressively contact tracing Coronavirus infections and is behind only few countries in the world such as Vietnam, observers have said.

    There have been spikes in cases in the Navy due to an initial reluctance to test frontline workers and high risk groups but most the testing gaps have been closed.

    However the lack of a credible monetary policy framework has led to frequent balance of payments crises, high nominal interest rates, International Monetary Fund bailouts and trade and exchange controls.

    Amid the latest trade controls, United Motors said it will focus on after sales service and repairs, which could grow if import controls are extended.

    In the year to March 2020, revenues had already dropped to 9.85 billion rupees, from 12.7 billion rupees a year earlier.

    In 2018 the rupee also collapsed as fiscal policy improved, but the central bank printed money to target a call money rate, critics have said.

    The latest restrictions are among the worst trade controls slapped since a 1970s self-imposed economic embargo that reduced Sri Lanka to a subsistence level economy and drove up unemployment to 20 percent.

    The 1970s controls came in the wake of the collapse of the Bretton System of soft-(gold) pegs due to money printed by then Federal Reserve Governor Arthur Burns to target a ‘potential’ growth rate in the US amidst the Vietnam war.

    Sri Lanka’s central bank has resisted operating a credible external anchor (exchange rate) with a discretionary ‘flexible’ exchange rate and resisted basing monetary policy on a credible domestic anchor with a ‘flexible’ inflation targeting framework, critics have pointed out.

    In 2020, tax cuts in the form of ‘fiscal’ stimulus and rate cuts and unprecedented liquidity injections in the form of ‘monetary’ stimulus had earned the country another downgrade to ‘B-‘ as forex shortages raised fears about the ability to repay foreign borrowings.

    Vehicles, gold and oil imports are usually blamed for monetary instability and falling currencies in Sri Lanka and not money printing coming from trying to control multiple variables (exchange rate and interest rates) at the same time.

    “It’s the policies of the central bank in all cases,” explains Ross McLeod, Associate Professor at Australia National University’s, College of Asia and the Pacific.

    “The value of money is its purchasing power. That’s kind of the inverse of the inflation rate. If you have the value of the currency falling, it is equivalent of saying prices are rising.

    “So it’s never the fault of the people. It’s always attributable to the policies of the central bank.”

    Specifically, if the central bank tries to control more than one nominal variable simultaneously, it’s just going to fail, because it only has one instrument of policy.

    However the 2015 and 2020 episodes of monetary instability happened in the wake of plunging oil prices, weakening Mercantilist (trade linked) explanations for monetary instability. (Colombo/June02/2020)

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