Fuel revision a bold move in the right direction – Broker

TKS Securities yesterday described the fuel price revision by the Government as a bold move though it will have an impact on inflation.

“We consider the ret   action which has sent shockwaves amongst the masses,” the broking firm said an economic update.

“Given the current global and domestic economic scenario we believe the Sri Lanka Rupee would remain volatile for few weeks and settle at c. Rs.119/US$,” it added.

Whilst noting that increase in interest rates and the floating of the SL Rupee went against the policies and forecasts put forward by the Central Bank hence created a negative sentiment within the business and investing community.

Following these developments and their impact overall, TKS has revised downwards its 2012 GDP forecast to 6.6% from 7.9% earlier. See full report on Page 11