The Nation GAIN

Friday, October 8, 2010

Lanka’s official reserves exceed US dollars 7 bn

The gross official reserves of the country surpassed the US dollars 7 billion level on 4^th October 2010, a press communication by the Central Bank said.

This level of reserves is equivalent to over 6.8 months of imports and is the highest ever reserves level of

Sri Lanka

Thursday, October 7, 2010

People’s Bank gets new CEO/Gen. Manager

People’s Bank today announced that former CEO/General Manager Mr. P. V. Pathirana has retired from his position and Mr. H. S. Dharmasiri has been appointed as the new CEO/GM of the bank according to the board's decision.

Mr. H. S. Dharmasiri, a student of Hokandara Vidyaraja College and Vidylankara Pirivena – Pannipitiya, joined People’s Bank as a Management Trainee, after having obtained both a first class B. A. Hons degree in Economics as well as a B. Phil degree with a first class from the University of Colombo. He has served the Bank in various capacities varying from the Branch Manager, to Asst. Regional Manager and Chief Manager etc. before serving as one of the Senior Deputy General Managers of the bank prior to this promotion.

During his tenure he has acquired many professional qualifications including an AIB and also a diploma in Bank Management from the Institute of Bankers of Sri Lanka (IBSL). At present he is a Fellow of the Institute of Bankers (FIB) of Sri Lanka.

As a practical banker with experience in operational activities, credit, recoveries and even human resources, Mr. Dharmasiri has been serving in the governing board of the IBSL for many years now and is also a Director of Lanka Clear Co. Ltd.

Things happening reverse?

Zimbabwean man drugged, raped by gang of women

A Zimbabwean man has accused a gang of three women of kidnapping, drugging and raping him in the fifth sexual attack targeting male victims in under a year, a police spokesman said on Wednesday.

The 26-year-old man told police he was offered a lift in the southern city of Bulawayo but passed out in the vehicle after he was grabbed from behind and his face covered with a cloth.

He said he fell unconscious again after being given a substance that tasted like alcohol.

"After he woke up he was naked and the ladies took turns to rape him and abused him," police spokesman Wayne Bvudzijena told AFP.

The man told police he passed out after the assault but was later dumped by the women.

"The ladies also took his money, 300 US dollars, and cell phone," said Bvudzijena.

"The intentions by the three women are not clear but we suspect it could for ritual purposes," he said.

The incident Friday was the fifth such attack reported in several parts of the country, carried out by groups of women of varying size.

"It could be one or more gangs involved which is doing this. In all cases the victims are caught unaware and they are given drugs which makes them dizzy," said Bvudzijena.

"A docket for aggravated assault has since been opened in these cases."

The first attack happened last November when three women kidnapped an 18-year-old man, the state-run Herald newspaper reported.

In February, a group of four women forced a 25-year-old to have sex with them at gun-point.

Last month, a 44-year-old man, who was ordered to wear a condom, was targeted by two women while a man stood guard.

A 30-year-old man was also drugged by three women, two of whom had guns, and sexually assaulted.

Under Zimbabwean law, the charge of rape only applies to women victims. (AFP)

Fitch upgrades Sri Lanka rating, sees GDP at 7 % in 2010-2012

Fitch Ratings said on Wednesday it has affirmed Sri Lanka’s Long‐Term Issuer Default Ratings (IDRs) at ‘B+’ and has revised the Outlooks on both ratings to Positive from Stable, saying it see GDP growth reaching 7.2% in 2010-2012.

This, it said in a statement, is largely to reflect the economic benefits of post‐war transformation and IMF support. Both Outlooks were changed to Stable from Negative in October 2009 on account of the end of the 26‐year civil war and the approval of a $2.6 billion IMF Stand‐By Arrangement (SBA).

“In particular, the authorities have made headway in integrating the war‐torn Northern and Eastern Provinces into the rest of the economy, which will boost Sri Lanka’s productive capacity. Fitch is forecasting real GDP growth to average 7.2% in 2010‐2012 compared with an average of 5.1% in the previous 20 years,” it said.

Fitch said IMF support has lifted investor confidence that Sri Lanka’s macroeconomic policy framework will be tightened up. This has led to a pick‐up in private capital inflows into the country and, in turn, a rise in foreign exchange reserves. Fitch said it sees more evidence that the Central Bank has shifted the focus of monetary policy to fighting inflation from supporting growth.

“The authorities also appear ready to tackle the sovereign’s biggest ratings constraint, weak public finances. The country’s poor record of fiscal discipline is highlighted by both the budget deficit of 9.9% of GDP in 2009 and public debt of 86.2% of GDP, both well above the medians for the ‘B’ rating peer group. The end of the war provides the authorities flexibility to cut defence spending, which has typically accounted for over 15% of government expenditure. Equally vital, the formation of the Presidential Commission on Taxation last year signals that the authorities intend to reform tax policy. The government revenue/GDP ratio stood at 15% of GDP in 2009, which is well below the ‘B’ median,” it said.

Fitch said the Presidential Commission on Taxation is set to release its final recommendations before November 2010 and points out that though this is too late to help address the 2010 budget deficit target of 8.0% of GDP, new tax measures will be crucial in determining whether the authorities can ultimately meet their budget deficit targets of 6.8% of GDP for 2011 and 5.2% for 2012.

Sri Lanka to buy out Shell gas for US$63mn

The Government of Sri Lanka is to purchase the balance 51 percent stake of Shell Gas Lanka from Royal Dutch Shell plc (RDS) for 63 million US dollars, the government's information office said.

The balance 49 percent of the firm is also owned by Sri Lanka's government.

Following the move, RDS or commonly known as Shell - a global oil and gas company headquartered in The Hague, Netherlands will be exiting all of its Asian oil operations.

Shell had originally acquired the firm as part of a privatization drive.

Wednesday, October 6, 2010

Sri Lanka imports more vehicles

Car imports to Sri Lanka have risen sharply in the last 3 months, with some 500 vehicles being cleared daily through customs.
Since 2008 there have been very high import duties on new and used cars, most of which come in from Japan.

In October 2009, only 370 vehicles were customs cleared, representing a sharp drop compared with October 2008, when new tariffs were imposed.

The tariffs were brought down in June this year, drastically changing the dynamic for car buyers.

Sri Lanka's government agreed to lower tariffs and instead expanded the country's tax base after International Monetary Fund intervention.

Sri Lanka’s Exports to Rise 12 Percent This Year, Official Says

Oct. 6 (Bloomberg) -- Sri Lanka’s exports are likely to rise as much as 12 percent in 2010, a central bank official said, allaying concerns growth is slowing after the island in July reported the smallest increase in shipments this year.Overseas sales rose for a sixth month in July, boosted by higher tea and rubber prices. Still, shipments grew only 0.6 percent that month from a year earlier, versus 23 percent in June, as sales of textiles and garments dropped 11 percent, data from the Central Bank of Sri Lanka show.