Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» lOFC definitely will hit 6/-
by Teller Today at 12:33 pm

» Why AAIC Should trade above RS.50/-
by Teller Today at 12:33 pm

» BFN BFN BFN ගොන් කම අත ඇරල ටික කාලයක් අල්ලන් හිටියනම් ඔක්කොමලා ගොඩ BFN BFN BUY AND HOLD -
by sanjulanka Today at 12:26 pm

» NEXT RUN People's leasing and Finance WAIT AND WATCH ENJOY RIDE..
by ddrperera Today at 12:05 pm

» RCL.N0000 - Trading at a discounted prcice.
by ddrperera Today at 11:51 am

» SFIN.N will be the next bull run
by samansilva Today at 11:15 am

by Yahapalanaya Today at 10:37 am

» Next super star SINGER FINANCE..
by samansilva Today at 9:49 am

» LOFC -XR big transaction
by Promoney Yesterday at 10:03 am

» LLUB Pattern reversed. Good buy @60, target +20%
by KOLAA Yesterday at 8:32 am

» Momentum will begin after 5400
by prabath Yesterday at 8:12 am

» WATA future looks good
by Teller Yesterday at 3:36 am

» Look APLA its trending to 98LKR
by Teller Yesterday at 3:34 am

» RICH is not bad @ 9/-
by Teller Yesterday at 3:33 am

» Sri Lanka Dialog Axiata net profits up 21-pct in June quarter
by bhanu Mon Jul 15, 2019 1:17 pm

» AEL lovers good news..Rusi again back on the track to AEL....
by Winner123 Sun Jul 14, 2019 9:32 pm

» Look PAP Amazing company
by Teller Sun Jul 14, 2019 1:03 am

» NEXT GEM.. HNB Non voting (HNB X)..
by samansilva Sat Jul 13, 2019 11:20 pm

» LIOC upward curve
by samansilva Sat Jul 13, 2019 11:17 pm

» TKYO.X0000 will it move furthur?
by samansilva Sat Jul 13, 2019 11:07 pm

» Market will test 4700
by karuna2 Sat Jul 13, 2019 10:46 am

by samansilva Sat Jul 13, 2019 10:15 am

» No Confidance motion against the Government was defeted by 119 and 92 against. 13 Absent
by Capton KIng Cool Fri Jul 12, 2019 9:28 am

» Contact us for your bank instruments such as SBLC/BG/LC/MTN 100% Protected
by summitplc Thu Jul 11, 2019 10:04 pm

» Contact us for your bank instruments such as SBLC/BG/LC/MTN 100% Protected
by summitplc Thu Jul 11, 2019 10:00 pm

by Nuwan Samarawickrama Thu Jul 11, 2019 9:58 pm

» Today JVP's No confidance motation in the Parliment is Very cruicial .WHY?
by Yahapalanaya Thu Jul 11, 2019 9:33 pm

» Sri Lanka’s Royal Ceramics group expands contract manufacture in India
by shameen Thu Jul 11, 2019 11:53 am

» CIND , 10% guaranteed return
by Teller Thu Jul 11, 2019 2:45 am

» BUY AEL Few crossings on the way..
by rukshan1234 Wed Jul 10, 2019 11:51 pm

» Unisyst Engineering Known as(Alufab) have annouced a right issue
by Capton KIng Cool Tue Jul 09, 2019 3:43 pm

» what is the future of KHL (JOHN KEELES HOTELS)
by shameen Tue Jul 09, 2019 1:48 pm

» 10 Deadly Trading Mistakes!
by ipo Tue Jul 09, 2019 10:15 am

» AIA Insurance Payment Method @ 2500/= per share
by Capton KIng Cool Tue Jul 09, 2019 9:16 am

by ipo Mon Jul 08, 2019 11:17 pm

by ipo Mon Jul 08, 2019 11:12 pm

» Regarst to 8 FINANCE Copmany's to be closed But no body knows excatly but avoid SFL,and MFL
by samaritan Mon Jul 08, 2019 8:01 pm

by nuwanmja Mon Jul 08, 2019 2:02 pm

» Sri Lanka Shares Surge As Gov't Flags Projects & Rupee Steady
by samaritan Mon Jul 08, 2019 1:33 pm

» Tommorow's winning encounters
by Cma Sun Jul 07, 2019 10:57 pm

» Buy GHLL.N0000 Galadhari Hotels
by Teller Sat Jul 06, 2019 3:47 am

» BALA can come down to 9/-
by Teller Sat Jul 06, 2019 3:38 am

» 10 Golden rules os investing in stock market
by Capton KIng Cool Fri Jul 05, 2019 3:56 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Foreign reserves improve to US $ 6 bn by end 2016

Foreign reserves improve to US $ 6 bn by end 2016

Go down  Message [Page 1 of 1]


Manager - Equity Analytics
Manager - Equity Analytics
[size=32]Foreign reserves improve to US $ 6 bn by end 2016[/size]

Sri Lanka has been able to end 2016 with gross official reserves just above US $ 6 billion after reserves hit their lowest levels in 5 years in June, the latest Central Bank data showed. 
The gross official reserves have improved to US $ 6.06 billion by December 30, 2016 from US $ 5.64 billion by the end of November, supported by a couple of swap arrangements entered into with domestic banks, grants from Japan and a concession loan from the World Bank, the Central Bank Governor told the media last week.  
Also, the limited intervention by the Central Bank by way of dollar sales to defend the rupee may have also helped to prop up the dwindling reserves. 
Meanwhile, the foreign holdings in Sri Lanka’s government securities have reversed its course during the first week of the New Year as the rupee value of treasury bill and bond holdings by foreigners had increased to Rs.260, 581 million by January 4 from Rs. 260, 137 million a week ago. 
However, the reserves were still down by US $ 1.3 billion since January when the total stock was US $ 7.3 billion at the beginning of the year (2016). 
Sri Lanka gross official reserves sank to US $ 5.3 billion in June 2015, lowest in five years, due to accelerated outflows from the government securities market, higher imports and continued dollar selling to keep the rupee from falling. 
However, subsequent to the appointment of Dr. Indrajit Coomaraswamy as the Governor, the Central Bank limited its intervention in currency market and steadily sold down its treasury bill stock, building up its foreign exchange reserves. 
Since January 2016, the Central Bank was seen injecting liquidity through excessive money printing by purchasing treasuries to keep the interest rates artificially low, creating loanable money for the banks over and above their deposits. 
This fueled imports and created inflation, which later had to be dealt with by selling the dollars to keep the rupee from falling. 
Dr. Coomaraswamy does not see it is sensible to defend the rupee squandering foreign reserves, as it anyway leads to depreciation of the currency. 
“It doesn’t seem sensible to spend large amounts of reserves defending the currency if you are going to depreciate,” he told the reporters after unveiling the Central Bank’s mid-term monetary and financial sector policies, last week. 
Sri Lanka spent almost US $ 1.0 billion in reserves in 2016 to defend the rupee but the currency weakened by 3.8 percent. 
In 2015, when the country was plunged into a balance of payment crisis for the second time since the end of the separatist conflict. Sri Lanka spent US $ 2.1 billion in reserves but busted the currency by 9.0 percent—from Rs.134 to Rs.145 a dollar. 
During Sri Lanka’s first BoP crisis in 2011-2012 since the end of the conflict, the Central Bank sold US $ 4.1 billion in reserves but the rupee ended up depreciating by 14 percent. 
Since the economic liberalization in 1978, Sri Lanka has had a perennial problem of higher fiscal deficits, higher nominal interest rates, higher inflation and an overvalued exchange rate, which made Sri Lankan exports less competitive in comparison to its trade partners.

- See more at:

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum