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Pre-Policy Analysis – 01st Aug 2017

  • FC Research expect that the growth in private credit to descend towards around 18% to 20% from the current level of over 20%. In April and May private sector credit slow down steeply than expected level.
  • We believe inflation will be under control over the next 2 months while there could be some upward pressure towards September and beyond with the floods in May 2017 affecting the supply in the current growing season and VAT increase not applying to same period in the last year. As a result there could be possible supply side shortages towards September and beyond.
  • Foreign Reserves are now at comfortable levels.
  • FC Research believes that considering the current economic conditions with slower than expected private sector credit level and the considerable improvement in the Economic Health the current monetary policy is appropriate and no change is required

Read the full report here: Pre-Policy Analysis



The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka proving services to invest in Sri Lanka through fixed income securities such as investments in government securities– treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory.

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.