Action taken against Perpetual Treasuries: CB Governor

The Central Bank has taken unspecified action against Perpetual Treasuries, a primary dealer in government securities that was involved in controversial deals, Central Bank Governor Dr. Indrajit Coomaraswamy said.He said the Monetary Board had taken action a few weeks ago in connection with this issue and more information regarding this issue will be revealed soon.

“Sri Lanka could get US$ 8 billion investment from China and Chinese companies eyeing Hambantota Port and part of land in Hambantota for future projects,” Dr. Coomaraswamy said.

Addressing a press conference at the Central Bank premises yesterday, he added that the Central Bank is forecasting about 6.3 percent growth next year.

“We see growth accelerating in the second half of this year. Next week the third quarter number would be highlighted and we think that could be an upward revision of the second quarter and there would be an acceleration in the fourth quarter,” he said.

“There are a number of things which are in the pipeline and the most significant being the proposed introduction of an electronic trading platform and a bond clearing house,” Dr. Coomaraswamy said.

The Governor said the fiscal sector showed an improved performance during the first nine months of 2016 and the total revenue as a percent of estimated GDP increased to 9.6 percent during the first nine months of 2016.

“The total expenditure and net lending during the nine months of 2016 slightly increased to 13.7 percent of the estimated GDP. The overall budget deficit declined to 4.1 percent of estimated GDP during the first nine months of 2016 compared to 5.1 percent of GDP in the same period of 2015,” he said.

The Central Bank Governor said that the country received the second tranche of the Extended Fund Facility (EFF) programme. The first review of EFF has been successfully completed by the IMF and the second tranche to the value of SDR 119.894 mn (USD 162.6 mn) has been disbursed on November 18, 2016.