The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Thread for News on CSE and SL Economy
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyToday at 2:20 pm by nuwanmja

» Gota's Era
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyToday at 11:54 am by yellow knife

» Dividend Announcements
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyToday at 11:25 am by Rana

» LIOC.N0000 (Lanka IOC PLC)
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyToday at 9:48 am by LSE

» බැඳුම්කර වංචාවේ වෝහාරික විගණන වාර්තාව පාර්ලිමේන්තුවට
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyFri Jan 24, 2020 7:05 am by nihal123

» අසාදුගත ව්‍යාපාරිකයින්ට රජයෙන් දුන් සහනය මෙන්න
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyFri Jan 24, 2020 6:37 am by nihal123

» SAMP.N0000 (Sampath Bank PLC)
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Jan 23, 2020 5:55 pm by NIRMALSG

» සුරැකුම්පත් කොමිසමට නව සභාපතිවරයෙක්
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 22, 2020 10:20 am by lanka

» In the Meantime, Within Our Shores !
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Jan 21, 2020 10:17 am by කිත්සිරි ද සිල්වා

» කොටස් තැරැව්කරුවෝ අගමැති මහින්ද හමුවෙති
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyMon Jan 20, 2020 9:29 pm by nihal123

» Obituary Notice.
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Jan 14, 2020 4:14 pm by ipo

» LOLC Holdings
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyMon Jan 13, 2020 6:04 pm by smallville

» SEYB.N0000 (Seylan Bank PLC)
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptySun Jan 12, 2020 10:06 pm by subash

» Happy Birthday
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptySun Jan 12, 2020 9:16 pm by lanka

» ශ්‍රී ලංකා කොටස් වෙළෙඳපොළ ඉතිහාසයේ දෙවැනි විශාලතම කොටස් ගනුදෙනුව අද
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Jan 09, 2020 9:59 pm by nihal123

» Hayleys MGT
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Jan 09, 2020 5:40 pm by subash

» Browns Investments update
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Jan 09, 2020 10:42 am by The Invisible

» Tokyo Cement
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 08, 2020 10:48 pm by The Invisible

» Lanka Tiles
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 08, 2020 10:44 pm by The Invisible

» RCL - Royal Ceramics
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 08, 2020 10:39 pm by The Invisible

» AEL Access Engineering
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 08, 2020 10:30 pm by The Invisible

» Sri Lanka central bank to develop a cost-based rate to price loans
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 08, 2020 10:21 pm by The Invisible

» Dialog Finance
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 08, 2020 10:19 pm by The Invisible

» Tourism Sector
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Jan 07, 2020 2:05 pm by nihal123

» Expolanka
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Jan 07, 2020 1:18 am by Afourer

» Cartoon Today
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyMon Jan 06, 2020 2:41 pm by කිත්සිරි ද සිල්වා

» කොළඹ කොටස් හුවමාරුවෙහි නවතම ජංගම දුරකථන යෙදුම
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptySat Jan 04, 2020 7:36 pm by spw19721

» ඉරානයට කළ ප්‍රහාරයෙන් පසු යුරෝපයේ කොටස් වෙළඳපොළ රැසක් පහළ වැටෙයි
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptySat Jan 04, 2020 1:30 pm by nihal123

» VAT අදාළ නැති කට්ටිය මෙන්න. 50,000 ක ලැයිස්තුවක්
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyFri Jan 03, 2020 11:55 am by nihal123

» How to get Access to: 104 Technical trading experiments by HUNTER
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Jan 02, 2020 9:20 am by Admin

» ලංකාවේ ලොකුම සමාගම මෙන්න. දුම්කොළ සමාගම අභිබවමින් ජෝන් කීල්ස් යළිත් පෙරමුණට
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 01, 2020 7:48 pm by Rana

» Sri Lanka’s LOLC Prepares to Sell Its Biggest Overseas Unit
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 01, 2020 4:43 pm by nuwanmja

» Sri Lanka’s Cargills, Sampath, DFCC Bank says met lending rate ceilings
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 01, 2020 4:26 pm by NIRMALSG

» Sri Lanka bank bad loans spike to 4.9-pct, non-banks 9.7-pct in Sept
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Jan 01, 2020 9:29 am by The Invisible

» People’s Bank, Sampath, and DFCC face penalties
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Dec 31, 2019 6:33 pm by nihal123

» NDB.N0000 (National Development Bank PLC)
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Dec 31, 2019 1:55 am by Trend

» COMB.N0000 (Commercial Bank of Ceylon PLC)
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Dec 26, 2019 9:23 pm by spw19721

» Thought for the day...
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Dec 26, 2019 3:41 pm by Topcat

» ඩොක්ටර් ඒලියන්ත වයිට්
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Dec 26, 2019 9:15 am by කිත්සිරි ද සිල්වා

» Why (Happy) People Cheat?
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Dec 25, 2019 8:34 pm by pjrngroup

» Who killed Cock Robin?
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Dec 25, 2019 8:33 pm by pjrngroup

» 65 Ways to Make Money Online
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Dec 24, 2019 9:24 am by Topcat

» සුළු හා මධ්‍ය පරිමාණ ව්‍යාපාරිකයින් ලබාගත් ණය අයකර ගැනීම අත්හිටුවන්න
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Dec 24, 2019 8:50 am by Topcat

» ACL Cables
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptySat Dec 21, 2019 5:34 am by NIRMALSG

» Sri Lanka to up employer EPF contribution to 15-pct, start social security fund
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Dec 18, 2019 2:46 pm by The Invisible

» රාජ්‍ය සමාගම් කොටස් වෙළෙඳපොළට ගෙන ආ යුතුයි
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyFri Dec 13, 2019 12:37 pm by serene

» Sri Lanka can resume high growth path, cut more taxes: Mark Mobius
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyThu Dec 12, 2019 9:29 am by The Alchemist

» රතු වැටෙනකොට
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Dec 11, 2019 2:59 pm by කිත්සිරි ද සිල්වා

» Sri Lanka interest rates should go down, currency will not fall: Mark Mobius
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyWed Dec 11, 2019 11:18 am by The Invisible

» Equation of Happiness Solved
Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse EmptyTue Dec 10, 2019 5:23 pm by Backstage

January 2020
SunMonTueWedThuFriSat
   1234
567891011
12131415161718
19202122232425
262728293031 

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse

Go down

Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse Empty Sri Lanka bad loans grow to 4.8-pct in June after soft-peg collapse

Post by The Invisible on Sat Jul 20, 2019 3:58 pm

[You must be registered and logged in to see this link.]


ECONOMYNEXT - Bad loan in Sri Lanka banking system grew to 4.8 percent of gross loans by June 2019, up from 4.2 percent in March, though the credit system has gone through much worse levels of non-performing loans in the past Central Bank Governor Indrajit Coomarasamy said.

"Clearly it is something we have to be cautious about and monitor very carefully," Governor Coomaraswamy said.

"It is not at crisis levels, we have had higher levels in the past. What we have to do is get growth growing again. We are trying to push lending rates down and push liquidity in to the system."

Bad loans spiked after the central bank triggered a currency collapse by printing money just as growth picked up in 2019 which left the rupee at 182 to the US dollar by end 2018 from 153 at the beginning of the year.

Monetary instability kills consumption, which hits revenues of companies, whose loans then go bad.

At the beginning of 2018, bad loans were at 3.0 percent, as tighter accounting rules forced banks to disclose bad loans early.

After the 2008 soft-peg crisis and capital flight bad loans peaked at 8.8 percent. After spiking during the 2015/2016 soft-peg crisis, bad loans fell to a low of 2.5 percent by the end of 2017.

The 2018 soft-peg crisis came quickly on top of a 2015/2015 crisis, but the currency fall is deeper, and liquidity shortages were prolonged.

Amber Light

Gross non-performing loans had grown to 323 billion rupees by the end of the first quarter of 2019, from 200 billion rupees a year earlier, according to central bank data, under tighter accounting rules.

"I do not think we are at the point where red lights are flashing." Governor Coomaraswamy said.

"It is probably in the amber light stage."

Sri Lanka is also considering giving a moratorium for about 100 billion rupees of tourism loans. Banks will not have to provide for loans suspended after the moratorium was announced. However the sector is expected to recover next year.

At the moment banks are well capitalized, with ratios generally above required levels, Deputy Governor Nandalal Weerasinghe said.

"If NPLs are rising banks will have to provide. That will have an impact on capital. At the moment capital is above even after making provisions NPLs."

But loans at finance companies were at 7.8 percent by March 2019. In March 2018 bad loans were at 5.82 percent of gross loans.

However in the finance company sector, there are several legacy companies dating back to the 2008 soft-peg crisis which ended a bubble which grew for several years.

At the time the central bank was battling fiscal dominance, with the Treasury apparently vetoeing attempts to raise policy rates. (Colombo/July15/2019)
The Invisible
The Invisible

Posts : 1411
Join date : 2016-11-28
Age : 40

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum