Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum
සිංහල පරිවර්තනය
Poll

SLEF Market Sentiment Indicator

73% 73% [ 1136 ]
27% 27% [ 425 ]

Total Votes : 1561

Latest topics
» suger tax will hit CCS and NEST
by nimantha80 Today at 5:47 am

» How CSE reacted after Ranil rang the trading commencement bell to mark 30th anniversary
by Chinwi Today at 1:58 am

» THE KANDY HOTELS COMPANY PLC & ASIA ASSET FINANCE PLC (AAF.N0000)
by Teller Today at 1:56 am

» Reasons for negative comments by members on CSE
by Chinwi Today at 1:48 am

» Life Insurance Companies to be affected by new Tax Bill?
by Teller Today at 1:47 am

» TO SHARE HOLDERS OF CITK
by Teller Today at 1:43 am

» IS PABC ENTRAPPED IN TREASURY BONDS TRADES???
by Teller Today at 1:38 am

» FOREIGN BUYING TURNED INTO SELLING
by Teller Today at 1:33 am

» sell and exit from CSE
by Teller Today at 1:19 am

» LOLC will hit again
by Teller Today at 1:07 am

» COLOMBO SHIT EXCHANGE UNDER YAHAPALANAYA
by Teller Today at 1:00 am

» Banking sector financial soundness indicators stable: IMF
by Teller Yesterday at 5:57 pm

» Hi friends make huge money
by Teller Yesterday at 5:51 pm

» OH OH PUMP AND DUMP FINALLY THE CAT OUT OF THE BAG !
by Teller Yesterday at 5:48 pm

» Browns capital quite stable
by niru Yesterday at 5:46 pm

» Will JKH touch Rs. 180
by bakapandithaya Yesterday at 1:59 pm

» JKH will settle @ 160
by bakapandithaya Yesterday at 12:32 pm

» Yahapalanaya Hits on financials-Listed companies
by Teller Yesterday at 11:56 am

» ONLINE EASY EARNINGS.GIVE A USER NAME, PASSWORD AND REGISTER.
by Teller Yesterday at 11:54 am

» Do you think FLCH XD Date price will 3.60
by buddikasmart Yesterday at 7:22 am

» Sri Lanka, the First Asian country to become the Victim of China’s Debt Trap.
by anges Yesterday at 1:41 am

» FRESH CUT BG / SBLC, MTN FOR LEASE AT LOW RATES
by sekaran00 Mon Aug 21, 2017 11:49 pm

» BFN (ORIENT FINANCE PLC)
by DS Wijesinghe Mon Aug 21, 2017 9:58 pm

» Sri Lanka's EPF to get property stock for bus SOE arrears
by DS Wijesinghe Mon Aug 21, 2017 4:21 pm

» Is AINV.N going to its END
by Teller Mon Aug 21, 2017 1:44 pm

» Bil will hit Rs.5/= within next 6 Month
by sanjulanka Mon Aug 21, 2017 12:53 pm

» Ahoo Kalamazzoooo....
by Namal Mon Aug 21, 2017 11:11 am

» CTBL soon be a Gem
by ruwan326 Mon Aug 21, 2017 11:01 am

» Justice vs Injustice
by reyaz Mon Aug 21, 2017 9:51 am

» KZOO.N0000 Will Rise Up
by Elahara Sun Aug 20, 2017 6:23 pm

» LDEV gonna be a Gem soon
by Chinwi Sat Aug 19, 2017 2:33 pm

» Windows installer doesn't allow me to set up the desktop app of Acuity online trading system.
by Jayashantha Sat Aug 19, 2017 8:30 am

» Anyone ready for the super September ?
by Ran49 Sat Aug 19, 2017 7:16 am

» You still do not believe in the earnings on the Internet?
by ruwan326 Fri Aug 18, 2017 7:39 pm

» New Tax Reform Bill to impose a stock trading tax? - Reuters
by Ran49 Fri Aug 18, 2017 7:25 pm

» Vehicle Prices
by worthiness Fri Aug 18, 2017 3:05 pm

» RWSL Dividend Rs. 0.15 per share / Final Dividend
by MasterD Fri Aug 18, 2017 2:32 pm

» SIRA loss increased by 270℅
by gdid Fri Aug 18, 2017 1:34 pm

» How to send privet Massages here
by Teller Fri Aug 18, 2017 1:07 pm

» where is AINV financials
by Teller Fri Aug 18, 2017 11:56 am

» Apla huge profit drop,-76%
by Teller Fri Aug 18, 2017 11:52 am

» LOFC Chart 28.04.2017 (weekly chart)
by stockback Fri Aug 18, 2017 10:32 am

» BIL will give you quick 10% return
by sharemarket Fri Aug 18, 2017 9:49 am

» Motor bike tax reduction by 90℅
by Harry82 Fri Aug 18, 2017 9:19 am

» Market is falling continuously
by soileconomy Fri Aug 18, 2017 7:43 am

» Harry J-led Japanese consortium makes UL offer in writing
by DS Wijesinghe Thu Aug 17, 2017 7:22 pm

» DUTY OF CSE & SEC
by niru Thu Aug 17, 2017 3:07 pm

» Abans in mega Shopping Mall project : Fitch report
by Wimal Modawansa Thu Aug 17, 2017 12:03 pm

» Nest profit down by 33.4℅ YOY
by Teller Thu Aug 17, 2017 11:48 am

» I Quit CSE today and Enter NASDAQ/TDWL
by D.G.Dayaratne Thu Aug 17, 2017 11:24 am

» RENUKA CAPITAL PLC (KZOO)
by Namal Thu Aug 17, 2017 8:13 am

» PABC Bank..
by Chinth Wed Aug 16, 2017 9:56 pm

» CSEC and CFVF
by ruwan326 Wed Aug 16, 2017 7:07 pm

» ABOUT BFL.....
by Deen79 Wed Aug 16, 2017 3:15 pm

» CHOT 62% loss QOQ
by Teller Wed Aug 16, 2017 2:10 pm

» Sri Lanka: Stock Market - Blood Bath on First Day of Ranil's fourth Term lead UNP Government - over 500,000 Investors are awaiting Rs.500,000 per investor Margin Trading promise given in UNP Manifesto amounting to over Rs.250 Billion
by DS Wijesinghe Wed Aug 16, 2017 1:52 pm

» BINARY OPTION TRADING
by samaritan Wed Aug 16, 2017 1:49 pm

» FLCH-First to decalre Div?
by Agape Wed Aug 16, 2017 10:54 am

» Today ASPI 45 points down???? JKH 160/50
by nigma Wed Aug 16, 2017 8:21 am

» YORK RS. 1.00 DIVIDEND........?
by wisdom79 Wed Aug 16, 2017 7:24 am

» COCR IN TROUBLE?
by Chinwi Wed Aug 16, 2017 7:22 am

» Teller .Equity stars 12123....
by Teller Tue Aug 15, 2017 11:14 pm

» PABC TO BE FINED !
by Teller Tue Aug 15, 2017 11:09 pm

» plantation shares.....
by Captain Tue Aug 15, 2017 11:01 pm

» FLCH Browns Capital
by hanuma Tue Aug 15, 2017 10:31 pm

» COCR profit declined QoQ by 19℅
by Teller Tue Aug 15, 2017 6:13 pm

» Advertise on Sri Lankas' No.1 Stock Market Forum!!
by Teller Tue Aug 15, 2017 6:11 pm

» ABANS FINANCE UNDER INVESTIGATION BY CSE AND SEC?
by Wimal Modawansa Tue Aug 15, 2017 5:24 pm

» KHL 380℅ lost QOQ
by samaritan Tue Aug 15, 2017 5:12 pm

» Open an Account with https://expertoption.com/?refid=10784
by jayasurya1126 Tue Aug 15, 2017 3:46 pm

» COUNTRY HEADED TOWARDS A BOP CRISIS !
by skyfall Tue Aug 15, 2017 11:11 am

» Hemas Profitability drops, CEO Steven Enderby warns tough times ahead but confident of HHL future growth
by reyaz Tue Aug 15, 2017 10:10 am

» PROPERTY BUBBLE IS IMMINENT !
by reyaz Tue Aug 15, 2017 10:05 am

» ELPITIY Good Profit
by visvajith Tue Aug 15, 2017 9:37 am

» භාණ්ඩාගාර බිල්පත් පොළිය තවදුරටත් පහළට
by stockback Mon Aug 14, 2017 10:44 pm

» Plantation Shares...
by Captain Mon Aug 14, 2017 10:12 pm

» watch CTBL & ASIYA
by Teller Mon Aug 14, 2017 9:59 pm

» NOW TALK ABOUT YORK ARKADE PLC
by reyaz Mon Aug 14, 2017 9:59 am

» Ceylon Foreign Trade
by Investor1994 Mon Aug 14, 2017 7:47 am

» Sri Lanka Trade Deficit to widen with more urgent rice imports
by DS Wijesinghe Mon Aug 14, 2017 6:55 am

» More than 100 Annual and interim financial statements will be publish withing next 3 working days...
by Teller Mon Aug 14, 2017 12:54 am

» LIOC is active again
by Teller Mon Aug 14, 2017 12:52 am

» Sri Lanka Govt ready to squeeze credit to property'
by anges Sun Aug 13, 2017 10:12 pm

» DirectFN used by anyone now (Aug 2017)
by prabath Sun Aug 13, 2017 9:46 pm

» COUNTRY HEADING TOWARDS CHAOS....!!!!
by Teller Sun Aug 13, 2017 7:21 pm

» Whats up with ctld?
by Teller Sun Aug 13, 2017 6:51 pm

» Anna Umbalage ekek Yahapalanayata avilla
by Teller Sun Aug 13, 2017 6:18 pm

» ASI now 6500
by Teller Sat Aug 12, 2017 11:40 pm

» AINV.N Starts again ?
by Teller Sat Aug 12, 2017 11:32 pm

» Mattala Airport to be leased to Indian company ----GREAT.... Srilankan Airline is the only problem ...no one is willing to take
by Teller Sat Aug 12, 2017 11:29 pm

» Equity Forum
by Teller Sat Aug 12, 2017 11:17 pm

» If same thing happens in MR era?
by bakapandithaya Fri Aug 11, 2017 3:11 pm

» BOND GATE ........!!!!!!!!
by samaritan Fri Aug 11, 2017 10:38 am

» CENTRAL BANK BOND EXPLOSION ROCKS CSE
by samaritan Fri Aug 11, 2017 10:01 am

» Ravi to resign .....
by Chinwi Fri Aug 11, 2017 9:50 am

» MADU .......
by bakapandithaya Fri Aug 11, 2017 1:09 am

» What will Basil do now?
by bakapandithaya Thu Aug 10, 2017 11:46 pm

» MARKET DOWNSWING
by Ran49 Thu Aug 10, 2017 11:17 pm

» RAL with Max Profit.....
by Teller Thu Aug 10, 2017 11:07 pm

CB’s vehicle import directive to have ripple effect on economy

View previous topic View next topic Go down

CB’s vehicle import directive to have ripple effect on economy

Post by Melissa Pereira on Thu Sep 17, 2015 9:09 am

The Leasing Asso-ciation of Sri Lanka (LASL) cautioned that the directive enforced by the Central Bank to have maximum loan-to-value (LTV) at 70% on vehicle imports with effect from yesterday would have a ripple effect on the economy.


The Central Bank yesterday directed finance companies not to provide any vehicle loans amounting to more than 70% of (the loan to value ratio) of the price of a vehicle.
 LASL President Nishaman Karunapala told the Daily FT that the effect of the directive would flow into all segments of the economy.  



He further stated that the impact would be felt when the industry limits to finance the SME sector and their contribution to the economy declined.   



“This is definitely going to affect the entire industry, especially the SME sector which cannot afford to obtain a leasing or a loan facility to purchase vehicles. It will also curtail the leasing and vehicle lending book growth, long-term industry growth and the economy as well,” he added.



When asked if the LASL was informed of the directive prior to it being made public, he said that they were taken aback by the sudden decision. 
“The Central Bank would have done their studies in this regard, but we are still puzzled as to why they implemented it,” he noted. 



However, explaining that they had no option left other than to adhere to the regulator’s decision, Karunapala said that after meeting the association members on 17 September and reviewing the members’ comments they would certainly make a representation.
“We will definitely ask for some concessions. Non-bank finance companies are the key financiers of vehicles and this was the driving force behind many financial institutions,” he revealed.



Noting the positive aspect of the directive made by the Central Bank, the LASL President asserted that the NPL ratio would decline. 
“With customers compelled to pay an upfront payment of 30% when obtaining a facility, it will create some financial discipline in the leasing and finance industry. This way their commitment is greater and it also helps to safeguard the depositors’ money at the end of the day,” Karunapala added.



Vehicle Importers Association of Lanka (VIAL) President Indika Sampath said that they would support the policy direction the Government had taken to curb vehicle imports as it was the need of the hour from a macroeconomic perspective.
“Although there is a direct impact to our business from this directive, we feel that this is important for the country to have a balance in the economy. In that light we would adjust to the situation,” he added.



However, he pointed out that it was not fair to enforce the directive for vehicles that were already registered. 



Noting that there would be a significant drop in vehicles that were imported from Japan, Sampath said that there would also be a drastic drop in vehicle imports from India, especially in vehicle brands such as Maruti and in three-wheelers.



Senior economist Deshal de Mel asserted that the Central Bank’s directive to tighten credit growth was necessary to curb the unsustainable level of vehicle importation. 
“There has been significant growth in vehicle imports during the first six months of the year which was largely driven by credit. This has put pressure on the trade deficit, which expanded by 15%, despite a 42% drop in expenditure on fuel during the first half of the year (January to June) causing rupee depreciation pressure as well. Therefore, it was necessary to tighten credit growth to address imbalances developing in the external sector,” he explained.



According to the Central Bank’s External Sector Performance review in June, expenditure on imports increased by 13.5% y-o-y to $ 1,633 million. This growth was led by vehicle imports for personal usage categorised under consumer goods, which increased by 110.1% due to higher importation of motorcars and motorcycles, and vehicles imported for business purposes categorised under investment goods, which increased by 238.6% due to higher importation of auto trishaws and other motor vehicles. 
Courtesy: Daily Financial Times 16 September 2015

Melissa Pereira
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

Posts : 680
Equity Stars : 2884
Reputation : 1
Join date : 2015-05-11

Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum
Statistics
We have 20021 registered users
The newest registered user is CooperOr

Our users have posted a total of 326982 messages in 50228 subjects
Who is online?
In total there are 78 users online :: 4 Registered, 0 Hidden and 74 Guests

kovida, Namal, nigma, nimantha80

Most users ever online was 541 on Mon Sep 19, 2011 11:29 am
Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein.

www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.