Dinesh

Power Grab

by Dinesh
This is based given the timing and implicit manifesto of the Presidential bid orchestrated by Mangala Samaraweera. As perceived by many in internal party member dialogues this has been characterized as a bid for the Prime Minister’s Post by Mangala. His supporters frame it as the last chance to beat Gotabhaya Rajapaksa’s bid. This is ... Read More

The Capital Market Cure

by Dinesh
The Monetary Board in conjunction with the Central Bank is busy creating a policy to create systems whereby there is better transmission of monetary policy. The situation has become quite dire as the Central Bank seems to have lost control over interest rates. This is most evident in the Central Bank imposing regulation limiting the ... Read More

The Politicisation of Inflation

by Dinesh
Sri Lanka’s is currently in the process of amending its monetary policy. We are moving towards an inflation targeting central bank. The proposed new law is at the stage where the dinosaurs in parliament oppose it on grounds of tradition[1]. Quoting from the referenced link; The requirement that a particular policy be adapted by the ... Read More

Where is Regulatory Energy Focused?

by Dinesh
The Central Bank has been taking out all its regulatory energy[1] on the Non-Bank Financial Institutions. The current 25 percent cap on ownership targets only the NBFI sector. The earlier guise to this regulatory movement was the need to be compliant with BASEL 3. However, the not so subtle true purpose of the regulation is ... Read More

Political Volatility and Creating a Narrative

by Dinesh
The recent Easter Sunday bombings, the subsequent politically backed mob violence[1], and the release of a divisive figure all increase political volatility. This volatility if carefully managed can be used to create a change of power. Let it be noted that the divisive figure was jailed for criminal intimidation[2].               Sirisena is borrowing tactics from ... Read More

Our Debt to China Extended

by Dinesh
“The available statistics appear to show that, whether the phenomena are connected or not, the rise of prices has nearly been proportional to the increase of currency”[1] J M Keynes on India “Apart from the fluctuations of the seasons the Indian level of prices is most influenced at the present time by the extent to ... Read More

The CSE can if the SEC won’t

by Dinesh
Recently at a Capital Markets Conference hosted by UTO EduConsult, I had the privilege of listening to one Thilan Wijesinghe. Thilan who was quite on edge went on for about an hour speaking on how the current sentiment within the capital market is warranted. Then he joined a panel discussion wherein he restrained himself considerably. ... Read More

Our Debt to China

by Dinesh
“The available statistics appear to show that, whether the phenomena are connected or not, the rise of prices has nearly been proportional to the increase of currency”[1] J M Keynes on Indian Inflation “Apart from the fluctuations of the seasons the Indian level of prices is most influenced at the present time by the extent ... Read More

Integrity in Credit Rating

by Dinesh
At the end of the book titled ‘The Interpretation of Financial Statements’[1] by Benjamin Graham, in a chapter titled ‘Conclusion’ he writes the following; “There are other factors outside of the company that are perhaps equally important in their influence of the value of its securities. The outlook for the industry, general business and security ... Read More

CSE: The Cussed Stock Exchange

by Dinesh
The largest and most noticeable failure on a day to day basis on the stock exchange is the lack of trade in corporate debt. This is inexcusable as the infrastructure to trade corporate debt via online retail channels already exists. There is market demand.