COLOMBO: The Sri Lankan rupee held steady on Wednesday as importer dollar demand was offset by exporter sales amid expectations of dollar inflows from a sovereign bond issuance and syndicated loans, dealers said. Sri Lanka expects to raise up to $1.5 billion via a sovereign bond issuance and another $1 billion from two separate syndicated loans.
Rupee forwards were active, with two-week forwards steady from Tuesday’s close at 153.30/35 per dollar at 0529 GMT. “There is bit of (importer) demand. There have been some selling by exporters and banks too,” a currency dealer said, asking not to be named. Dealers expect the rupee to stabilise on higher dollar liquidity after the anticipated inflows. A government move to double the borrowing limit of development bonds to $3 billion in 2017 is also expected to increase liquidity. Finance Minister Ravi Karunanayake on Thursday blamed “technical difficulties” for a two-month delay in receiving an around $160 million loan tranche from the International Monetary Fund and said the disbursement was expected after June 14. Sri Lanka has seen a rise in foreign inflows into equities and government securities since early this month, with foreign investors buying shares worth a net 13.7 billion rupees in 26 consecutive sessions through Friday.
