Categories: Headlines

Foreign reserves to soar to US$ 11 bn

CBSL TO CONTAIN RUPEE DEPRECIATION :

Pressure on the currency is unwarranted:

The Central Bank said it has taken measures to contain the depreciation of the Rupee.

The underlying fundamentals do not warrant the current pressure on the Sri Lanka rupee. Gross external reserves are presently at a healthy USD 9.1 bn, while the real effective exchange rate indices indicate that the currency is competitive, the Central Bank said yesterday.

The pressure on the currency is, therefore, unwarranted.

The USD 250 mn as the next tranche of the IMF EFF in early June; the USD 585 mn as the final payment on the long lease of the Hambantota Port during the second week of June 2018; and the USD 1 bn as the proceeds of a syndicated term loan due in mid-June 2018 are expected to boost the current robust level of reserves in the coming weeks.

Gross external reserves are, therefore, expected to amount to a record close to US$ 11 bn by mid-June 2018.

While being committed to flexible exchange rate management, the CBSL has the option of using a part of its unprecedentedly large external reserves to trigger a material appreciation of the rupee to prevent unwarranted depreciation of the currency, particularly as it is not justified by the underlying fundamentals, the CBSL said in a press release.

Lankanewspapers

Recent Posts

LNP – Beer truck overturns causing heavy traffic on Colombo-Ratnapura road

A container truck transporting beer bottles has met with an accident on the Colombo-Ratnapura main…

13 hours ago

LNP – Around 1,000 liquor bottles found in Deshabsndu’s residence: Minister

Some 795 foreign liquor bottles and 214 wine bottles were found at IGP Deshabandu Thennekoon's…

16 hours ago

LNP – NASA astronauts Butch Wilmore and Suni Williams return to Earth after 9 months stuck in space

Stuck in space no more, NASA astronauts Butch Wilmore and Suni Williams returned to Earth…

20 hours ago

LNP – Deshabandu Tennakoon surrenders to Matara court

Former Inspector General of Police (IGP) Deshabandu Tennakoon has surrendered to the Matara Magistrate's Court…

20 hours ago

LNP – Petition against levying withholding tax on Sri Lanka’s national team cricketers

Sri Lanka’s ODI captain Charith Asalanka and Test captain Dhananjaya de Silva have filed a…

23 hours ago

LNP – Sri Lanka eyes international alliances to boost tourism industry growth

As the world gradually recovers from the pandemic’s impact, Sri Lanka is positioning itself as…

23 hours ago