Fitch Ratings announced that Sri Lanka’s ongoing economic recovery, combined with moderating inflation and lower interest rates, is set to drive the growth of finance and leasing companies (FLCs) in the financial year ending March 2025 (FY25). The positive outlook is also supported by the potential relaxation of vehicle import restrictions, which have been in
Consumer spending via credit cards has shown signs of growth, with the total outstanding credit card debt in licensed commercial banks rising by nearly one billion rupees in August, reflecting a broader surge in private sector credit during the same month. According to the latest data for August 2024, outstanding credit card debt increased by
Sri Lanka’s rupee weakened on Wednesday, closing at 296.40/80 against the US dollar, compared to 294.75/295.00 from the previous day. Meanwhile, bond yields saw a downward trend across various maturities. A bond maturing on 15th December 2026 closed at 10.35/55 percent, down from 10.70/85 percent. Similarly, the bond maturing on 15th December 2027 closed at
Sri Lanka’s central bank announced that it would maintain policy interest rates between 8.25% and 9.25%, citing the likelihood of deflation in the near term due to easing supply conditions and adjustments to administratively controlled prices. “The Board observed that inflation is likely to remain well below the 5% target over the next few quarters,
Sri Lanka’s rupee strengthened on Monday, closing at 304.25/75 against the US dollar, recovering from its previous close of 305.25/306.00 on Friday, according to market dealers. Bond yields also saw a positive rally. A bond maturing on May 1, 2027, ended at 12.70/90 percent, a drop from the previous 12.90/13.10 percent. Similarly, a bond maturing
Sri Lanka is expecting a mission from the International Monetary Fund (IMF) in two weeks, President Ranil Wickremesinghe announced at a campaign rally in Homagama on Wednesday. “In two weeks when the IMF team comes, we must either confirm that we will implement the agreement and receive the next installment, or inform them of any
The US Federal Reserve has cut its interest rate by 50 basis points, bringing the target overnight rate to 4.75%-5.00%. Fed Chair Jerome Powell stated that inflation and employment are now more balanced. “Inflation is much closer to our target, and we are increasingly confident that it is moving sustainably toward 2 percent,” Powell said
First Capital (FC) anticipates that bank lending rates will remain within the 9-11% range for the rest of 2024 and rise slightly to 10-12% by mid-2025. This projection comes amidst slow economic conditions, weak demand for credit, and a lag in the reduction of new loan rates. The Average Weighted Prime Lending Rate (AWPLR) dropped
Crude oil prices have seen an uptick at the start of this week, following a previous week of losses, as escalating violence in the Middle East stokes concerns over supply. Additionally, signals from the US Federal Reserve hinting at possible interest rate cuts next month have influenced market movements. Brent crude was trading above $79
Sri Lanka experienced a significant increase in loan demand across the retail, corporate, and small and medium enterprise (SME) sectors during the second quarter of 2024, according to a recent survey by the Central Bank of Sri Lanka. This uptick is attributed to lower interest rates and stable exchange rates, reflecting improved economic confidence and