Day: July 9, 2006

Why is Basel 2 important to Sri Lankan companies? Sri Lanka has set 1 January 2008 as the target date to implement "Basel 2". The key reason for adaptation seems to be the "credit ratings". Like all companies around the globe, Sri Lankan companies do need to borrow for growth (and other reasons) and would like to avoid paying high premium interest rates. Sri Lanka does not seems to have a decent credit scoring system and instead credit officers seem to rely on assessments made with their minds. The state of the mind of the individual at the time of…