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Sri Lanka keeps rates unchanged as expected
Tuesday, 7 August 2012 - 8:06 PM SL Time
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Sri Lanka kept its policy rates unchanged on Tuesday, as expected, aiming to lift economic growth amid a spike in inflation that the central bank attributed to adverse weather conditions disrupting domestic food supplies.
The central bank held the repurchase and reverse repurchase rates at 7.75 and 9.75 percent, respectively, for a fourth straight month, the highest levels in more than two years and in line with market expectations.
The government in March revised down its 2012 growth estimate for the country`s $59 billion economy to 7.2 percent from an earlier 8 percent, after a record 8.3 percent expansion last year.
The central bank has raised policy rates twice since February to the highest level in more than 2-1/2 years, ordered commercial banks to cap lending this year at 18 percent above their total 2011 loans, and allowed a more flexible exchange rate to avert a balance-of-payments crisis.
`The amount of credit that could still be disbursed in the second half of the year by licensed banks even with the credit ceiling in place, could comfortably support the revised economic growth path,` the central bank said in a statement. `In that context, the growth estimates still seem to be within reach, notwithstanding the gloomy global conditions.`
The central bank said growth in private sector lending by commercial banks had declined to 11.4 percent in the first half of this year compared with 18.1 percent in the second half of 2011.
NEAR DOUBLE-DIGIT INFLATION
Annual inflation hit a 42-month high of 9.8 percent in July from 9.3 percent a month earlier. The central bank ruled out any monetary policy response to the spike at the time, saying that it was due to supply constraints.
The central bank said although there could be some transitory inflationary pressures in the near term, improvements in domestic supply conditions and tight monetary measures were expected to contain inflation at single-digit levels for the remainder of the year.
Analysts have raised concerns over rising core inflation, which excludes volatile food and energy prices, after it hit a 10-month high of 6.0 percent in July from 5.8 percent a month earlier. High inflation is fed by an ailing rupee that has depreciated more than 16 percent since November and drought sweeping the food grain growing parts of the island nation.
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gajan99
Joined: Nov 2005
Posts: 5161
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 7 Aug 2012 16:12:52 GMT Report for Abuse
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Is there a special reason to install the wind plants in Puttalam?
yes Puttalam is one area in SL where you get consistent wind streams.
the other potential areas are the Ambewela and Mannar islands.
BTW, Solar.. where is the pilot plant is located?
we have a 1.2MW solar plant in Hambantota, just commissioned last year.
interesting thing is that the plant could not reach the full capacity more than 95% of the time, due to clouds etc. This is not something one can expect in areas like Hambantota.
However people who propose Solar and wind as the primary sources should take note of this. |
NeverAgain
Joined: May 2009
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 7 Aug 2012 16:26:45 GMT Report for Abuse
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Gajan,
Hope this time, the naysayers will not get MW mixed up with GWhours..
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gajan99
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7 Aug 2012 16:47:43 GMT Report for Abuse
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Never,
yes that was, one of the best of Canadian,fellow does not know what is MW but keep on commenting about power plants
hak hak hak
bldy jockers
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chennaiguuy
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 7 Aug 2012 17:31:55 GMT Report for Abuse
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What is ailing Debacle of Asia's Stock Market for months now...
:-))
Sri Lanka stocks down 0.61 pct
The All Share Price Index lost 30.28 points to close at 4,898.22 down 0.61 percent. The Milanka Index of more liquid stocks slipped 0.35 percent to close at 4,365.02 and the S&P 20 Index of large cap stocks fell 0.18 percent to close at 2760.95. |
NeverAgain
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7 Aug 2012 17:36:58 GMT Report for Abuse
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What is ailing Debacle of Asia's Stock Market for months now...
:-))
Because of the massive power systems failure in India!
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chennaiguuy
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7 Aug 2012 17:49:44 GMT Report for Abuse
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Because of the massive power systems failure in India!
IS it becasue of Power Failure that Indian Stock markets are rising up ???
Wat a 'Intelligent' argument from our dumb dumbo..!
:-))
Indian indexes rise over 1 pct as rate-sensitive stocks
gain
* BSE touches highest intraday since April 3 IT stocks also rally
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NeverAgain
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7 Aug 2012 17:55:59 GMT Report for Abuse
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IS it becasue of Power Failure that Indian Stock markets are rising up ???
Wat a 'Intelligent' argument from our dumb dumbo..!
Hey Goo guy,
How would the stock market work when your grid fails. Bogus numbers to fool the world.
Let us see who is dumb, idiot! |
chennaiguuy
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7 Aug 2012 18:00:19 GMT Report for Abuse
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How would the stock market work when your grid fails.
It seems Stinky Monkey does not know abt backup Generators & that Grid Failure is only temporary..!
Bogus numbers to fool the world.
Indians never called themselves as 'MIRACLE of ASIA' to fool the world..!
Let us see who is dumb, idiot!
It does not take much time to show your brains like that Indian Stock Market comment..
Does it ???
:-)) |
Damed
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7 Aug 2012 20:41:35 GMT Report for Abuse
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| Miracles will make this country move ahead....KP's LTTE money,Dumiya's Kudu can control the economy. |
Damed
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7 Aug 2012 20:42:20 GMT Report for Abuse
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Inflation double digit but Deshapremie happy !
KP NA the Bogus Sinhalaya who pray KP the Terrorist talking from his anus.
Edited By - Damed - 7 Aug 2012 20:45:11 GMT |
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