Sri Lanka to raise $2.5b through borrowings
Posted on February 8th, 2017
Courtesy The Gulf Today
COLOMBO: Sri Lanka is in the process of borrowing up to $2.5 billion via syndicated loan and sovereign bonds this year, Central Bank (CB) Governor Indrajit Coomaraswamy said on Wednesday.
The cabinet has approved to raise up to $1 billion through syndicated loan and we are waiting for cabinet approval to go for up to $1.5 billion sovereign bond,” Coomaraswamy told reporters in Colombo.
Meanwhile, the Sri Lankan rupee traded weaker on Wednesday due to dollar demand from banks to facilitate continuous exit of foreign investors from government securities amid importer demand for the greenback, dealers said.
The central bank revised on Tuesday the spot rupee (LKR) reference rate to a record low of 150.75 from 150.50 amid downward pressure, dealers said.
Rupee forwards SLKR were active, with two-week forwards trading at 151.30/35 per dollar, compared with Tuesday’s close of 151.22/32.
There is demand for dollar from local banks for general imports and from foreign banks to facilitate foreign bond exits,” said a currency dealer asking not to be named. Officials at the central bank were not available for comment.
The central bank kept its key rates steady on Tuesday for a sixth straight month, but flagged possible corrective measures” in the months ahead in a sign further tightening might be on the cards to temper inflation pressures and safeguard a fragile rupee.
Reuters
February 9th, 2017 at 12:47 am
You would think that a government unable to pay it’s debts would STOP borrowing!
Not the Yamapalanaya. Borrow more to pay the installment payments on the existing debt!
All this, while spending on luxuries like SUVs for those useless crooks running the Yamapalanaya!