Business Times

Natural gas find could spur foreign investment: Central Bank

While substantial foreign investments are expected during the remainder of the year, the recent discovery of natural gas deposits off the Mannar coast will further draw investor attention, the Central Bank (CB) said this week.

In a statement on monetary policy, the CB said substantial amounts of foreign inflows on account of direct investments, equity investments and other inflows to the private sector ‘are expected during the remainder of the year. This would be enhanced by the recent announcement of the discovery of natural gas deposits in the Mannar basin – although further research is required to assess its commercial viability’.

Increased remittances, higher earnings from tourism, as well as other inflows to the services account continue to cushion the impact of the trade deficit on the overall balance of the Balance of Payments, the regulator noted.

Inflation continued to moderate with the year-on-year change in the Colombo Consumers’ Price Index declining from 7 % in August to 6.4 % in September while annual average inflation increased marginally from 7.1 % in August to 7.2 % in September.

The CB said credit to the private sector has been increasing by around Rs.36 billion on average per month in 2011 reflecting continued expansion of economic activity. The increase in net credit to the government by the banking sector also contributed to the monetary expansion though the growth of money supply is expected to moderate in the period ahead given the decline in excess liquidity in the money market, the CB added.

It said the Monetary Board, at its meeting held on October 10 decided to maintain the policy interest rates of the Central Bank at their current levels with the Bank’s Repurchase rate at 7 % and the Reverse Repurchase rate at 8.5%.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Govt. plans land audit
Rajaratnam saga: Proves insider trading doesn’t pay
Hemas Power eyeing African hydro power projects, bio-mass
Indian, British travel agents concern over new visa rules
Call for national minimum wage
Yummy, yummy jelly
Comment - Deepavali: Next big plantation challenge
What you should know about expressways
Creative ways of battling corruption and evil
Dialog subscribers can download SatNav app onto mobile phones
Suntel says enjoys strong balance sheet
LOLC keeps strong finger on SL economy
Lanka's first luxury Motorhome
DSI leads in Lankan footwear market-Fitch
Natural gas find could spur foreign investment: Central Bank
Central Bank on risk management issues for banks
Bates re-launches in Asia
Pure Ceylon Cinnamon unveiled at major German trade fair
‘Roadside Stations’ urged in Sri Lankan tourism boom
EFC signs pacts with Jaffna and Hambantota chambers
Yuan (Chinese currency) deals from Commercial Bank
Sri Lanka’s economy rebounds sharply, says HSBC Economic Chief
Prudential Shipping says handles biggest cargo operation at Hambantota Port
New standards for lead in paints after rights case by NGO
Mother of all recessions: Branson
Duty cuts for raw materials in confectionery products
e-Channelling has dental tourism, 2 leisure portals lined up
People's Leasing awaiting S'pore, Hong Kong funds for IPO
Tips on ‘Decision-making’ at ST Business Club
What has gone wrong at the Colombo bourse?
681 SL cyber security incidents so far in 2011
Steve Jobs’ legacy at Apple
Fitch upholds Dialog's 'AAA(lka)' / Stable
Tribute to Lalith Kotalawela in new book on Ceylinco saga
Richard Peiris eyeing warehousing, store expansions
Nation Lanka resurrects subsidiary CICL
SEC conducts ‘Investment Day’ awareness on investment
Sri Lanka business delegation visits Moscow
ComBank to promote General Insurance with Chartis

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution