Lankapage Logo CP 22 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka Central Bank reports progress of securing foreign exchange inflows
Tue, Oct 26, 2021, 08:57 pm SL Time, ColomboPage News Desk, Sri Lanka.

Oct 26, Colombo: The Central Bank of Sri Lanka (CBSL) today provided the information to investors and the general public on the progress made by the CBSL and the Government in securing foreign exchange inflows as announced in the Six-Month Road Map for Ensuring Macroeconomic and Financial System Stability.

The CBSL in a statement said the Bank and the Government have commenced a series of direct engagements with other Governments, Central Banks, financial institutions and investors.

Several memoranda of Understanding (MOUs) have been entered into in relation to development projects in line with the initiative towards monetization of underutilized and/or non-strategic assets.

Expected proceeds in relation to the two transactions involving Chalmers granaries and the property behind One Galle Face alone amount to around US dollars 200 million, and an advance payment is expected shortly. Details of the investment will be announced in coming weeks.

In addition, the US dollars 650 million investment in the West Container terminal by the Indian Adani Group, John Keells Holdings as the Sri Lankan counterparty, and the Sri Lanka Ports Authority has been recently finalized.

Another key foreign investment that would transform the energy sector in Sri Lanka with the addition of LNG to the energy mix is the US dollars 250 million inflow in relation to a partial divestment of the West Coast Power Plant to the US New Fortress Energy, and the first tranche of the investment is expected in November/December 2021.

Negotiations are also underway to expedite the finalisation of foreign currency swap arrangements with neighbouring Central Banks. Specifically, discussions are being held with the Reserve Bank of India, People’s Bank of China, and several Middle Eastern Central Banks.

In the meantime, the Government is processing a US dollars 1.5 billion long term loan offer from a foreign Government affiliated agency. In response to the requests for proposals (RFPs) for syndicated loan arrangements by the Government, several proposals have also been received, which are being processed at present.

Among other sectors that have shown notable progress in recent times are:

a) Exports, which surpassed USD 1 billion of monthly earnings during June-September 2021, along with the notable improvement in the repatriation and conversion of export proceeds during the month of October 2021

b) Rapid increase in labor migration, particularly to the Middle East

c) Continuation of the recovery process in tourism with a notable month-on-month increase in arrivals, and

d) Ongoing negotiations on petroleum linked credit lines from the Middle East and other regional economies. These include an Indian credit line of US dollars 500 million, and a long term loan facility of around US dollars 3.6 billion that is under negotiation.

In the domestic market, yields on Government securities have been allowed to adjust upwards, thereby easing pressure on the Central Bank to finance the Government’s funding requirement.

Behavior of investors at the weekly auctions indicates that market equilibrium has been achieved to a great extent, and greater stability in interest rates is likely to be observed in the period ahead.

Domestic investment in the real sector has picked up, as evidenced by the behavior of the stock market as well as credit flows to the private sector. The All Share Price Index (ASPI) has surpassed the 10,000 mark for the first time in history.

The increase in credit to the private sector by licensed commercial banks amounted to Rs. 625 billion during the eight months ending August 2021.

These developments also indicate that economic growth close to 5 per cent in 2021 is very likely.

 

ColomboPage - Recent 10 Stories ::
Internet use in Sri Lanka has grown due to pandemic, but slower than peers, survey shows
-- [5 minutes ago]
Petition filed seeking an inquiry into gas cylinder explosion accidents
-- [21 minutes ago]
Coronavirus update: 757 new COVID-19 cases identified Wednesday, total rises to 569,928
-- [39 minutes ago]
Sri Lankan leaders express condolences over the sudden demise of Indian military chief
-- [1 hour and 18 minutes ago]
Chinese ship carrying organic fertilizer leaving Sri Lanka, court told
-- [1 hour and 45 minutes ago]
Chinese firm files lawsuit against Sri Lanka over the rejected $49.7m fertilizer deal
-- [2 hours ago]
Sri Lanka President committed to work with BIMSTEC members to ensure regional cooperation efforts
-- [2 hours ago]
Sri Lanka reports 28 Covid-19 deaths on Wednesday, toll rises to 14,533
-- [2 hours ago]
South Korea grants Sri Lanka US$ 4 million to strengthen forensic drug analysis capabilities
-- [3 hours ago]
Navy seizes over 23 kg of Kerala cannabis in Point Pedro

Copyright © 2000, 2020 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.