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

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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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Committees with accountable district-level officials to be appointed to resolve Human-Elephant Conflict

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President Anura Kumara Disanayake instructed relevant officials to swiftly implement a formal mechanism to resolve the human-elephant conflict, which significantly impacts both the rural economy and people’s lives.

The President issued these directives during a discussion on resolving the human-elephant conflict, held this  (20) afternoon at the Presidential Secretariat.

During the discussion, particular attention was paid to the districts most affected by the human-elephant conflict, including Anuradhapura, Puttalam, Polonnaruwa, Ampara, Hambantota, Monaragala, Kurunegala, Badulla and Trincomalee. The respective District Secretaries presented the specific issues in their districts to the President.

Discussions also covered existing vacancies within the Department of Wildlife, vehicle requirements and the challenges faced in carrying out their duties.

The President emphasised the need to streamline the mechanism for resolving the human-elephant conflict and highlighted the importance of implementing this programme in close collaboration with the public.

Accordingly, the President instructed that committees comprising accountable officials from the relevant districts be appointed within the next month to carry out these activities.

The President also directed that retired officers be recruited on a contract basis to fill current vacancies in the Department of Wildlife. As an immediate measure, he instructed officials to assign Civil Security Department officers to the Department of Wildlife with specific training and to enact relevant legislation for this purpose.

Furthermore, the President instructed that the ongoing joint operations by the Police, other security forces and the Department of Wildlife to resolve the human-elephant conflict be made more systematic and efficient.

The event was attended by Professor Chandana Abeyrathne, Minister of Public Administration, Provincial Councils and Local Government; Ananda Wijepala, Minister of Public Security and Parliamentary Affairs; T.B. Sarath, Deputy Minister of Housing; Aruna Jayasekara, Deputy Minister of Defence; Dr. Nandika Sanath Kumanayake, Secretary to the President; Ranjan Marasinghe, Director General of Wildlife; Major General Lasantha Rodrigo, Army Commander; Priyantha Weerasuriya, Acting Inspector General of Police; as well as District Secretaries and other government officials.

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Students from Thambuttegama Central College visit President’s House

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A group of students from Thambuttegama Central College, Anuradhapura, visited the Presidential Secretariat and President’s House this (20) afternoon  during their annual educational tour.

The students had the opportunity to participate in the ‘Vision’ programme, an initiative for schoolchildren jointly organised by the Presidential Secretariat, the Ministry of Education, and the Department of Communication of the Parliament of Sri Lanka.

After touring the Old Parliament building within the Presidential Secretariat, the students were also briefed on parliamentary history.

The college’s teaching staff and students were also informed about the ‘Clean Sri Lanka’ programme, which operates under a concept by President Anura Kumara Disanayake, as well as the role of the executive and the rule of law.

During the visit, the Legal Advisor to the President J.M. Wijebandara symbolically demonstrated the value of environmental protection by presenting a valuable sapling to the school.

The event was attended by Senior Additional Secretary to the President K.N.M. Kumarasinghe, Deputy Director of the Tri-Forces Security Affairs Coordinating Unit Colonel Dhananjaya Senarath, Deputy Principal of Thambuttegama Central College M.G. Asanka Wijesuriya, along with teaching staff and other officials.

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Foreign Direct Investment records 90% Increase in First Quarter of 2025

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The Board of Investment (BOI) of Sri Lanka has successfully increased Foreign Direct Investment (FDI) by US$96 million in the first quarter of 2025, compared with the same period in 2024.

This was disclosed today (20) during a progress review meeting of the Board of Investment of Sri Lanka, chaired by President Anura Kumara Disanayake at the Presidential Secretariat.

BOI officials also noted that, relative to the first quarter of 2024, domestic investment rose by US$21 million, while export income increased by US$176 million during the first quarter of 2025. In total, Sri Lanka has attracted US$4,669 million in investment proposals thus far in 2025.

The meeting also focused on the issues and challenges associated with attracting investment to the country and discussed potential strategies to address them.
Addressing the gathering, President Anura Kumara Disanayake stated that the Board of Investment holds a pivotal role in enhancing the national economy and improving the living standards of the rural population.

He stressed that opportunities to attract investment in traditional sectors are becoming increasingly limited and therefore the nation must identify new areas for investment, an endeavour that falls under the BOI’s mandate.

The President further noted that Sri Lanka has attracted only around US$22 billion in investment since 1978. In comparison to other countries in the region, he stated, Sri Lanka must advance rapidly, referencing Vietnam’s achievement of securing US$23 billion in investment in 2022 alone.

He went on to state that the BOI should prioritise the expansion of investment in the services sector and proactively seek new investment opportunities, rather than focusing solely on recapturing missed ones.

The event was attended by senior officials of the Board of Investment, including  Duminda Hulangamuwa, Senior Advisor to the President on Economic Affairs;  Arjuna Herath, Chairman of the Board of Investment; and Ms Renuka Weerakone, Acting Director General of the Board of Investment.

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