Business and economics news
Ten top persons in default of Rs. 2.5 billion from BoC, reveals latest COPE report
The latest interim report of the Committee on Public Enterprises, better known as COPE, has revealed that Rs. 2.5 billion obtained from the state-owned Bank of Ceylon by around ten high profile clients remain as non performing loans.

The COPE interim report for the period between October 2014 and March 2015 naming several institutions and companies which have defaulted in paying their loans obtained from the Bank of Ceylon is a significant feature.

Among these named entities are a printing company, a well know apparels manufacturer as well as a maritime company.

According to the COPE report, the revenue of the Bank of Ceylon which had been 56.3 per cent in 2012 has shown a decline up to 15.7 per cent in 2013.

Meanwhile, it is stated that Rs. 491 million remain as dues from among the overdraft facilities provided by the Bank of Ceylon to 15 of its customers.

Sri Lanka’s government responds to bond issue that raised allegations against Central Bank Governor
The Policy Planning and Economic Affairs Ministry has issued a statement on the allegations that the recent 30 year Treasury Bonds issue by the Central Bank had been carried out while enabling a certain Primary Dealer to gain a capital profit.

It says:

Statement to the Media on Treasury Bond Issue in March 2015

At a meeting held on 26 February 2015 to ascertain the Government expenditure projections attended by the Minister of Finance, Minister of Highways, Investment Promotion and Higher Education, .
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Sri Lanka Central Bank’s policy interest rates unchanged amid great expectations

The Central Bank of Sri Lanka (CBSL) has decided to keep its policy interest rates which decide the interest rates of commercial banks unchanged for December as well, while taking into consideration the prevailing economic trend.

Accordingly, the CBSL policy interest rate for December 2014 will continue to be between 6.50 to 8.00 per cent.

The CBSL says that after November 2009 Sri Lanka’s inflation has reached the lowest point. While inflation decreased to 1.6 per cent last October, in November it has fallen further to 1.5 per cent.

The bank expects that inflation would continue to remain low due to the fall in fuel prices in the world market.

The borrowings from the banking system by the private sector last October has increased by 5.1 per cent, or Rs. 42 billion.

During the first nine months of this year the gross borrowings by the state sector has increased by Rs. 87.3 billion while the gross borrowings from state corporations falling by Rs. 1.2 billion has been a significant feature.

Currently, borrowings from private sector banks have increased since the interest rates are low.

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