Gold price hits record after 'Sri Lanka purchase'

LONDON, November 6, 2009 (AFP) - The price of gold hit a record high above 1,100 dollars an ounce in trading here on Friday following a report that Sri Lanka had joined India in purchasing the precious metal in favour of the US currency.
"The Central Bank of Sri Lanka has announced that it is buying gold to diversify its reserves," industry body the World Gold Council (WGC) said in a statement issued before gold struck a record high of 1,101.42 dollars.

It later pulled back to stand at 1,092.65 dollars an ounce in late London trading.

Gold had struck a series of highs already this week after the IMF said it had carried out a massive sale of the precious metal to India.

"Over the past year central banks, which have been net sellers of gold are now a new and increasingly important source of demand," WGC chief executive Aram Shishmanian said in the council's statement.

"This latest announcement demonstrates that many central banks are reassessing their reserve asset management policies."

Gold had reached a record high of 1,087.80 dollars on Tuesday as the IMF said it had sold 200 tonnes of gold to India's central bank over a two-week period last month for 6.7 billion dollars to bolster its finances.

Gold and other commodity prices have surged in recent months amid a move away from the dollar, which has been slumping. The move accelerated last month on a report that Gulf states may stop using the greenback for oil trading.

The metal is also winning support from fears over a possible spike in inflation, as gold is widely regarded by investors as a safe store of value.

The sale to India was nearly half the 403.3 tonnes of gold that the IMF has targeted for sale over the coming years.

The Washington-based IMF, which currently holds 3,217 tonnes of gold, is the third-largest official holder of the precious metal after the United States and Germany.

India is the world's biggest consumer of gold, importing between 700 and 800 tonnes of the metal every year or 20 percent of global demand.

A senior IMF official said that the IMF was "lucky" in selling the 200 tonnes to India for roughly 1,045 dollars an ounce, compared with 850 dollars an ounce in April 2008.

Gold's price, which has risen more than 20 percent this year, has a bright future thanks to improving demand caused by the financial crisis, industry experts said this week.

"Although it's difficult to predict in the short term, the overall picture is very healthy," Mark Lynam, an executive for AngloGold Ashanti -- the world's third largest gold producer -- told the London Bullion Market Association annual conference in Edinburgh.

Plush London department store Harrods last month surprised the retail industry by starting to sell gold bars, with prices fluctuating according to the current market price.

(Information source :http://www.lankabusinessonline.com)

World Bank grants US$ 24 million to improve health care in Sri Lanka

June 24, Colombo: The lending arm of the World Bank on Tuesday approved a US$24 million credit to provide further support to improve the health care in Sri Lanka, especially to meet the health needs of the Internally Displaced Persons in the North and East.

Issuing a press release today the World Bank said with the end of the war the country is facing challenges in its efforts to resettle and reconstruct the region. Providing basic health services to the 285,000 displaced and to the conflict-affected people in the Northern and Eastern Provinces is an immediate challenge, it said.

According to the World Bank Country Director for Sri Lanka, Ms. Naoko Ishii half the amount, US$12 million will be allocated to meet the health needs of the conflict-affected population in the Northern and Eastern Provinces.

"This reflects the Bank's commitment to addressing consequences of the conflict whenever we can," Ms. Ishii said.

“An upcoming health needs assessment for the north and east will determine the specific activities the project will finance, but it could include mobile clinics at IDP camps, rehabilitation of disabled, treatment of traumatized persons, and other immediate priorities,” she added.

According to the World Bank, the project will continue to support decentralization of health service delivery, including strengthening of district and provincial capacity for planning and implementation of health programs. It will also support efforts to improve service delivery and renovate health facilities, provide training for health workers, and provision of medical supplies and equipment.

The US$24 million credit, which is an addition to the International Development Association (IDA) grant of US$60 million approved in 2004 to Health Sector Development Project (HSDP), has 20 years to maturity with a 10-year grace period.

End of 30 years curse in Sri Lanka

His Excellency Mahinda Rajapaksa , President of Sri Lanka and Commander in Chief of the Armed Forces has been officially informed about the successful task accomplishment by the country's top defence officials this evening (May 18).

Secretary Defence Gotabaya Rajapaksa, Chief of Defence Staff, Air Chief Marshal Donald Perera, Army Chief, Lieutenant General Sarath Fonseka, Navy Chief, Vice Admiral Wasantha Karannagoda, Air Force Chief, Air Marshal Roshan Goonathilake, Inspector General of Police Jayantha Wickramarathne and Director General of Civil Defence Force Sarath Weerasekara officially reported to the president that the task entrusted on them to liberate the nation from clutches of terrorism has been successfully accomplished and the nation is free from terror. The reporting was made at a charm ceremony held at Temple Trees.

Information Source : http://defence.lk

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