News

Reserves fall to lowest since 2009, rupee strengthening to be short-lived: report

Published

5 years ago

2021/04/21

by Sanath Nanayakkare

Sri Lanka’s Foreign reserves had dropped to USD 4.1bn in March 2021, the lowest since August 2009, on the back of over US$ 4bn outstanding debt payment during April-December 2021 period, a report issued by First Capital Research yesterday said.

According to the report, rupee appreciation is likely to be short-lived considering Sri Lanka’s depleting foreign reserve position, high foreign currency debt repayment requirement and limited funding sources available in the market are expected to further increase depreciation pressure on the currency during 2Q and 3Q.

“We maintain our exchange rate target for 1H2021 at Rs. 196-202 with 2021 year-end target at Rs. 205-215 as mentioned in our ‘Investment Strategy 2021 – January 2021,” the report recalls.

“Sri Lankan rupee appreciated 5% against the US dollar over the last 2 market days reversing the continuous accelerated depreciation witnessed in January-April 2021. On 12th April, Sri Lankan rupee recorded a historical low of Rs. 201:1 US$. Ministry of Finance (MoF) reported on the same day that the government of Sri Lanka entered into a loan agreement with the China Development Bank (CDB) for US$ 500mn and MoF expected the funds to be disbursed during the same week. Following the announcement, the market registered a steep appreciation with mid-rate recording at Rs. 190.9 on April 19,” it says.

The total foreign debt repayment (capital and interest) for 2021 is US$ 6 bn, according to the report.

Meanwhile FC Research believes that the temporary appreciation in USD-LKR, may adversely impact earnings of export companies such as Hayleys, Haycarb, Dipped Products, MGT Knitting Mills, Teejay Lanka, Expolanka Holdings etc. in the short term.

“However, considering the potential future currency pressure, we expect an overall depreciation of approximately 12% for the rupee providing a significant gain for companies with foreign currency revenue”, FC research predicts.

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News

SAARC journalists meet in New Delhi

Published

10 hours ago

2026/02/6

Priyan

President of SJF Sri Lanka Chapter Rahul Samantha Hettiarachchi hands over a memento to Dr Alok Kumar Mishra Joint Secretary of the Association of Indian Universities

Members of the South Asian Journalists Forum have gathered at the University of New Delhi for a two day conference themed ‘Peace and Co-operation’.

Journalists from Bangladesh, Nepal, Sri Lanka and India are attending the conference hosted by the University of Delhi in collaboration with the India Chapter of SJF, and will deliberate on how the media can act as a catalyst for regional stability and mutual coexsistence.

A tree plantation campaign was also held at the Ghandi Bhawan premises of the University to mark the event and symbolize growing regional ties.

The Sri Lanka delegation is led by President of SJF’s Sri Lanka Chapter Rahul Samantha Hettiarachchi.

News

Governor of Gujarat met with Sri Lanka PM to discuss exposition of Devnimori Relics

Published

11 hours ago

2026/02/6

Priyan

The Governor of the of Gujarat, Acharya Devvrat, along with the Deputy Chief Minister of Gujarat, Harsh Sanghvi, met with Prime Minister Dr. Harini Amarasuriya on Thursdy [February 05] at the Parliamentary Complex to discuss the arrangements related to the exposition of the Devnimori Sacred Relics of Lord Buddha, which have been brought to Sri Lanka under the patronage of Indian Prime Minister Narendra Modi and the Government of India.

These sacred relics of Lord Buddha were discovered during archaeological excavations conducted in the 1960s at the historic Devnimori site in Gujarat, the home state of Indian Prime Minister Narendra Modi. Until now, these relics had never been taken outside India. As a result of discussions held between President Anura Kumara Dissanayake and Indian Prime Minister Narendra Modi during his recent visit to Sri Lanka, the people of Sri Lanka have been granted this rare opportunity to venerate these sacred relics.

The exposition of the relics is being held for a period of seven days, from February 05 to February 11, at the Gangaramaya Temple in Hunupitiya, Colombo. Discussions were held between both parties regarding the arrangements related to this event.

The discussion was attended by Samar Nanda, Joint Secretary of the Indian Ministry of Culture; Dr. Satyanjal Pandey, Acting High Commissioner of India in Sri Lanka; Abhijit Halder, Director General of the International Buddhist Confederation; along with several others.

[Prime Minister’s Media Division]

News

INS GHARIAL makes port call in Colombo

Published

18 hours ago

2026/02/6

Priyan

The Indian Naval Ship (INS) GHARIAL made a port call in Colombo for operational turnarounds on 04 Feb 26. The Sri Lanka Navy welcomed the visiting ship in compliance with naval traditions.

Commanded by Commander Gaurav Tewari, INS GHARIAL is a vessel with a length of 124.8 meters.

During this visit, ten (10) Bailey Bridges, brought by ship, through the coordination of the High Commission of India in Sri Lanka, will be handed over to the Disaster Management Center. These bridges will provide temporary transportation links while bridges damaged across the island by adverse weather conditions are repaired.

The crew’s itinerary features scheduled goodwill activities with the Sri Lanka Navy, alongside visits to several tourist attractions across the island.