Sri Lanka new regime in shock parliamentary defeat over borrowing powers

භාණ්ඩාගාර බිල්පත් හරහා ලබා ගත හැකි ණය සීමාව රුපියල් මිලියන 400 කින් ඉහළ දැමීම සඳහා අද පාර්ලිමේන්තුවට ඉදිරිපත් වූ පනත් කෙටුම්පත පරාජයට පත්ව තිබේ.

විවාදය අවසානයේ පැවති ඡන්ද විමසීමේදී ඊට පක්ෂව ඡන්ද 31ක් හිමි වූ අතර විපක්ෂව ප්‍රකාශ වූ ඡන්ද සංඛ්‍යාව 51කි.

http://newsfirst.lk/sinhala/2015/04/just-in-

COLOMBO (EconomyNext) – Sri Lanka's United National Party led minority administration suffered a shock defeat over a motion asking parliament nod to borrow more money through the sale of short term debt.

Finance Minister Ravi Karunanayake asked parliament to raise a limit on the sale of Treasury bills currently set at 850 billion rupees by another 400 billion rupees, as the limit was almost reached.

The motion to amend the Local Treasury Bills Ordinance to raise the ceiling on Treasury bills to 1,250 billion rupees was defeated with 31 voting for and 52 against.

If all ministers and deputy ministers of the bloated new administration voted for the motion, the regime would have been able to muster more than 52 votes.

In Sri Lanka the defeat of a finance bill leads to the resignation of an administration.

The motion to increase the ceiling on short term Treasury bill is related to finance but it does not ask for any additional spending or to increase the total borrowing limit.

The administration could still borrow money through Treasury bonds, which have maturity periods from 2 to 30 years to finance its expenses

I think this is good News.

then demand will go down and supply going up. then interest rates will fall further

any Ideas?

Thanks Sri.
things will be stirred up.

We can expect a sudden dissolution of Parliment probably after new year ?

Thanks sahi

Sriranga wrote:

In Sri Lanka the defeat of a finance bill leads to the resignation of an administration.

Good thing if happens.. I'm tired of this moda-chun RA-VI.

I think it will come up for voting again.

if its happen then short term borrowing will increased then it effect to interest rates also.
am I correct?

smallville wrote:

Sriranga wrote:

In Sri Lanka the defeat of a finance bill leads to the resignation of an administration.

Good thing if happens.. I'm tired of this moda-chun RA-VI.

Yes small that is true.

Can the present gov be in power after a monitory act is defeated in Parliament like this???

Sriranga wrote:COLOMBO (EconomyNext) – Sri Lanka's United National Party led minority administration suffered a shock defeat over a motion asking parliament nod to borrow more money through the sale of short term debt.

Hmmm.....This says it is a motion not an act, so I do not think there will be any impact on PM or Ravi

smallville wrote:

Sriranga wrote:

In Sri Lanka the defeat of a finance bill leads to the resignation of an administration.

Good thing if happens.. I'm tired of this moda-chun RA-VI.

Yes...

and we can get an idea about tomorrow and coming market. sentiment is at low level. no big players active and cash map is at 35% low level.

we should select businesses carefully in this dull phase. in my guess, it is better to avoid blue chips who suffered with super gain, telecom levy and this and that huge one time taxes for few quarters. Focus on mid cap with future potentials.

anyway, if you feel depress about the color of market, just remember RED is for love and GREEN is for growth.

sashimaal wrote:භාණ්ඩාගාර බිල්පත් හරහා ලබා ගත හැකි ණය සීමාව රුපියල් මිලියන 400 කින් ඉහළ දැමීම සඳහා අද පාර්ලිමේන්තුවට ඉදිරිපත් වූ පනත් කෙටුම්පත පරාජයට පත්ව තිබේ.

විවාදය අවසානයේ පැවති ඡන්ද විමසීමේදී ඊට පක්ෂව ඡන්ද 31ක් හිමි වූ අතර විපක්ෂව ප්‍රකාශ වූ ඡන්ද සංඛ්‍යාව 51කි.

http://newsfirst.lk/sinhala/2015/04/just-in-

There will be some great fun in the Bond market tomorrow.

This is a poor decision by UNP to go for a voting, when the president is not in the country. May be UNP has done this purposely to convince the President to go for a General Election as early as possible.

I am very disappointed of FM & the rest that these people are taking these kinds of policy decisions with out any fundamental backing. Therefor I can clearly say that these guys don't care about the financial impact to the markets & they only look at their narrow political agendas.

Unfortunately the so called opposition though they have voted against, don't have any understanding why they have taken that decision as most of them are not capable enough to understand the gravity of it.Because this 400Bn worth of Bills will not be issued at once & 400Bn is not only for salary payments & what ever said & done if there are settlements to be made it has to be done. So these all decisions are political decisions.

what do you(RPPA) think about T-Bil Rates tomorrow ?

I think it will be fall. bcz officially demand is 21Billions maximum in near future.

please explain bit more. with T-Bill rates

Ranil's strength is only 31 votes. that is the reality.

poor boy wrote:Ranil's strength is only 31 votes. that is the reality.

Ethakota Wipakshe 52 dekada

That means ESL and CFVF might move tomorrow if rates are suposed to drop? someone or some people knew this will happen that's why esl and CFVF major play. interesting day tomorrow.

RPPA wrote:

sashimaal wrote:භාණ්ඩාගාර බිල්පත් හරහා ලබා ගත හැකි ණය සීමාව රුපියල් මිලියන 400 කින් ඉහළ දැමීම සඳහා අද පාර්ලිමේන්තුවට ඉදිරිපත් වූ පනත් කෙටුම්පත පරාජයට පත්ව තිබේ.

විවාදය අවසානයේ පැවති ඡන්ද විමසීමේදී ඊට පක්ෂව ඡන්ද 31ක් හිමි වූ අතර විපක්ෂව ප්‍රකාශ වූ ඡන්ද සංඛ්‍යාව 51කි.

http://newsfirst.lk/sinhala/2015/04/just-in-

There will be some great fun in the Bond market tomorrow.

This is a poor decision by UNP to go for a voting, when the president is not in the country. May be UNP has done this purposely to convince the President to go for a General Election as early as possible.

I am very disappointed of FM & the rest that these people are taking these kinds of policy decisions with out any fundamental backing. Therefor I can clearly say that these guys don't care about the financial impact to the markets & they only look at their narrow political agendas.

Unfortunately the so called opposition though they have voted against, don't have any understanding why they have taken that decision as most of them are not capable enough to understand the gravity of it.Because this 400Bn worth of Bills will not be issued at once & 400Bn is not only for salary payments & what ever said & done if there are settlements to be made it has to be done. So these all decisions are political decisions.

Earlier @ party leaders meeting there was an agreement not to seek a vote for this bill. A basically safe passage was there.

Now 51 patriotic must declare that they do not take any salary or privileges to reduce our borrowing in future.

WasteofTime wrote:Now 51 patriotic must declare that they do not take any salary or privileges to reduce our borrowing in future.

No mate it is not about taking salary. This yahapalana group came to power to reduce borrowings. They were so vociferous of former regime's borrowings.
But now they go for a 400b at once. There has being a ceiling of 850b for a year.
So it is up to financial experts like Ravi K., Harsha de silva to show us the way forward for a debt free country.

stockback wrote:what do you(RPPA) think about T-Bil Rates tomorrow ?

I think it will be fall. bcz officially demand is 21Billions maximum in near future.

please explain bit more. with T-Bill rates

Surely the secondary market rates will appreciate.I'll post an update during the day.

When someone desperately need money the lenders will demand.

But the Bill Auction is tricky for me as Government can ask EPF, ETF & Other Government banks to quote low. Therefore the auction can be managed. But I doubt how much of money available with those institutions after subscribing for series of Bill & Bond auctions.

Leon - is it 850 for a year? I don't think so. It's the total.

I read somewhere that it currently stands at 829bil which means only a little bit left to reach the threshold. According to my understanding, not much can be issued so the rates will fall. correct me if I'm wrong.

I'm also confused by the reporting of many news papers and sites - It suggested as if there is going to be a 400 bil issue at once, which is very large.

RPPA wrote:

stockback wrote:what do you(RPPA) think about T-Bil Rates tomorrow ?

I think it will be fall. bcz officially demand is 21Billions maximum in near future.

please explain bit more. with T-Bill rates

Surely the secondary market rates will appreciate.I'll post an update during the day.

When someone desperately need money the lenders will demand.

But the Bill Auction is tricky for me as Government can ask EPF, ETF & Other Government banks to quote low. Therefore the auction can be managed. But I doubt how much of money available with those institutions after subscribing for series of Bill & Bond auctions.

But there is no actual lending to the govt happening in the secondary market, correct?