Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
- sashimaalTop contributor
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Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
“There are realistic situations in the world we have got to face today, but that does not mean that we will artificially devalue the rupee,” Karunanayake said. “It was only to show that we are not blind to external forces.”
The Central Bank gave the rupee freedom to float on Friday, with reduced intervention, and by not indicating a daily reference rate. As a result the rupee depreciated to 137.50/138.00 on Friday from 134.75 on Thursday.
“We will be moving forward from today proactively, ensuring what we mentioned earlier. Reducing interest rates and ensure strengthening the rupee and moving forward.”
“Every rupee devaluation has a 40 billion rupee impact to the economy. The only way that you can survive is if you reduce the interest rate,” he said.
“There is more than 10 -12 billion dollars out there. We are trying to get that money back to the country,” he said.
“We will ensure we make the country a nice destination for investments and through that we will ensure the benefit will go down to the people of this country.”
“We will take the challenge from now on.”
- LeonTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
- Ethical TraderTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
Being a small country heavily dependant on trading we are exposed to all what happens in the world at large.
USA is likely to increase their interest rates by the end of this year. China devalued Yuan attracting heavy criticism from USA + EU. India too devalued their rupe some time ago. These ngative factors will have a sure dent in our balance of payment account in time to come if no complimentary monitory measures are taken..
Sri Lanka needs to take hard dercisions to counter this in the short-term. Freeying the rupee from artificiasl controles is one good measure.
I appreciate the finance ministers statement but can he withstand the preassure from the leftist parties when inflation begins to hit double digit as a result of this action.
If the Govt., finds effective ways to target current subsidies at only the needy, then, there want be a problem. Wll hope for the best.
- Future123Active Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
Now he is saying he will not allow artificial devaluation of the rupee when it's at Rs. 138 to a US$.
He will say the same thing when Rupee depreciates to Rs. 145 to a US$. NATO in action
HNB selling rate as at 04 Sept 2015 is Rs. 139.60 to a US$. We are going to have serious problems of inflation in time to come if it's not controlled and if foreign investors don't invest in Sri Lanka. Ravi K should first understand to treat businesses and investors well with good economic policies rather than scaring them away from Sri Lanka. Hope he would do a better job this time.
http://www.hnb.net/data/tools/exchange_rates.php
- stockback
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
what do you think short term market behaviors
I think ASI will touch 6800 with this decision. any idea........
- nihal123Top contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
biz_man Top News September 10th, 2015 0
ශ්රී ලංකා මහ බැංකුවේ මැදිහත් වීමකින් තොරව ඇමරිකානු ඩොලරයට සාපේක්ෂව රුපියලේ අගය නිදහසේ තීරණය වීමට අවස්ථාව ලබාදීමෙන් පසුව රුපියල වාර්තාගත ලෙස අවප්රමාණය වීම පිළිබඳව මුදල් අමාත්ය රවී කරුණානායක මහතා යළිත් වරක් මාධ්ය වෙත කරුණු දක්වා තිබේ.
අමාත්යවරයා මෙවරද සඳහන් කර තිබෙන්නේ වැඩි කලක් නොගොස් රුපියල නැවතත් පිළිගත හැකි මට්ටමක් දක්වා පැමිණෙනු ඇති බවයි.
අවශ්ය අවස්ථා වලදී රුපියලේ අගය තීරණය වීමේදී මැදිහත් වන බව මහ බැංකුව පවසා ඇත.
ඇමරිකානු ඩොලරයක මිල අන්තර් බැංකු මුදල් වෙළඳ පොළ තුළ මේ වනවිට රුපියල් 139 කට ආසන්න මිලක් ගෙන තිබේ.
මෙය, ආනයන භාණ්ඩවල මිල ගණන් ඉහළ යාමටත් අපනයන ආදායම් වැඩිවීමටත් හේතුවී ඇත.
- kassTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
- smallvilleTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
Future123 wrote:
He will say the same thing when Rupee depreciates to Rs. 145 to a US$. NATO in action
Good to dream mate.. Our exports will thrive while imports die..
Shame on RAVI knw? Trying to make another MR strategy here..
- HAL9000Top contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
- guruji
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
- pathfinderTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
Agree with you,but we should have something to export to balance the massive imports.ATM SL doesn't have much to export except Sri Lankan ladies to middle east.HAL9000 wrote:Rupee at 140 per dollar seems an exciting news for many export companies as well as tourism industry. If any one thinking of export driven economy this is the way to go except for some stone age minds.
- Future123Active Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
1) Oil and gas
2) Medicines
3) Milk powder
4) Gram, peas, potatoes, sugar, onions, dhal and other important food items
5) Vehicles
6) Dry fish and canned fish
Sri Lanka is not a country that have bigger exports. Our exports are simply nothing when compared to imports. The rupee devaluation would affect the living standards of many as the real income hasn't gone up but cost of living going up.
Personally I'm more benefited if the rupee depreciates further as I focus on export companies. But over a period of medium to long term this will not good for the country and people.
- BackstageTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
- Future123Active Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
This is my personal strategy only and not for others. This is due to the punitive taxes that Ravi K would implement on companies and from the lesson learned from the mini budget.
Please do your own research and don't depend on this.
- yellow knifeTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
pathfinder wrote:Agree with you,but we should have something to export to balance the massive imports.ATM SL doesn't have much to export except Sri Lankan ladies to middle east.HAL9000 wrote:Rupee at 140 per dollar seems an exciting news for many export companies as well as tourism industry. If any one thinking of export driven economy this is the way to go except for some stone age minds.
If you can remove many adjectives in professional presentations that will make your logic clear and will not arouse emotions among those who do not agree with your argument..
Stone age minds... just remove the adjectives and rewrite... If any one thinking of export driven economy this is the way to go except for some minds...So other minds will speak out as you are not trying to bulldoze them...
- GroundedKestrel
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
Harsha and Eran better bump their heads together with Nishantha and Lansa and figure this out... fast
- Future123Active Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
GroundedKestrel wrote:What men?! most of you buggers said that there will be this MEGA bull-run after the election. I purchased shares also. Looks like i would i have made much more money if i had just converted my rupees to USD before the election.
Harsha and Eran better bump their heads together with Nishantha and Lansa and figure this out... fast
I'm also waiting for bulls as many predicted. So far no positive news from the government for investors. Did they make us bulls?
- yellow knifeTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
ඉබ්බන්නේ පුච්චන්නේ අනිත් පිට
අපිට මොකද අපි අට සිල් උපාසක
Regarding forex I started following thread for the whole purpose of economic mis- management since 8th Jan 2015 and the whole purpose was to show that you can take advantage in forex...specially by keeping USD
http://forum.lankaninvestor.com/t4403-sri-lankan-rupee-and-forex?highlight=forex
- Market loverTop contributor
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
Future123 wrote:GroundedKestrel wrote:What men?! most of you buggers said that there will be this MEGA bull-run after the election. I purchased shares also. Looks like i would i have made much more money if i had just converted my rupees to USD before the election.
Harsha and Eran better bump their heads together with Nishantha and Lansa and figure this out... fast
I'm also waiting for bulls as many predicted. So far no positive news from the government for investors. Did they make us bulls?
- Future123Active Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
GroundedKestrel wrote:What men?! most of you buggers said that there will be this MEGA bull-run after the election. I purchased shares also. Looks like i would i have made much more money if i had just converted my rupees to USD before the election.
Harsha and Eran better bump their heads together with Nishantha and Lansa and figure this out... fast
Just coming from Commercial Bank. 1 US$ = Rs. 142.45
GK, you have missed it. We are having a mega bull run on Rupee. 150/= possible within weeks.
- pee ratioActive Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
GroundedKestrel wrote:What men?! most of you buggers said that there will be this MEGA bull-run after the election. I purchased shares also. Looks like i would i have made much more money if i had just converted my rupees to USD before the election.
Kess ralla on the ground - it is like this. it is like total misunderstanding like.
see RAN-NIL was talking about MEGAPOLIS
some other people thinking MEGAPOLICE (to stop murder / rape etc)
RA -VI thinking MEGA-POLI (to tighteening credit)
who is saying MEGA BULL RUN ?
only cows no ?
now comming time for you to take bull by the horns and stay grounded like.
- pee ratioActive Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
how about natural devaluation like happeening now. that is allowed.
- kassTop contributor
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- GroundedKestrel
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
- Future123Active Member
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Re: Sri Lanka’s new Finance Minister says won’t allow artificial devaluation, high interest rates
kass wrote:From tomorrow onward finance companies and banks are not allowed to provide full leases or 100% loans for vehicle purchasing. Maximum debt component has been 70% as CBSL detective issued today.
Where did you see this news? I thought all the finance companies don't provide 100% lease. If they do so, the risk is too high. For property mortgages banks usually ask for over 20% deposit.
This is a good thing for the country and for finance companies. The vehicle sales are at record levels and the government has to control the foreign outflow in someway and keep the exchange rate under control.
I think responsible finance companies may already insist customers for a deposit or downpayment. Can't believe getting 100% credit. Anyway, this reduces the chance of a credit buble, bad loans and rupee depreciation.
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