Quantcast
Tuesday , September 26 2017
Breaking News
Home / International Customs / Sri Lankan rupee steady as inward remittances offset importer dollar demand
Sri Lankan rupee steady as inward remittances offset importer dollar demand

Sri Lankan rupee steady as inward remittances offset importer dollar demand

COLOMBO: The Sri Lankan rupee was steady on Friday as inflows from inward remittances offset importer dollar demand, dealers said. The spot rupee was trading at 153.74/80 per dollar at 0539 GMT, compared with Thursday’s close of 153.75/80. “The state (banks) demand is there. But with the month end, there are inward remittances,” a currency dealer said, requesting anonymity. Last week, central bank Governor Indrajith Coomaraswamy said the rupee was still “over-valued” and that the monetary authority was buying dollars to avoid any appreciation.

The banking regulator is compelled to buy dollars from the market to meet a reserves target set by the International Monetary Fund (IMF) under a $1.5 billion, three-year loan programme. Analysts said a port deal approved by the cabinet on Tuesday helped boost sentiment. On Tuesday, Sri Lanka’s cabinet cleared a revised agreement to lease its Chinese-built southern port of Hambantota, after terms of the first pact sparked widespread public anger in the island nation. The investment is expected to be around $1 billion. Sri Lankan shares were 0.11 percent weaker at 6,661.79 as of 0544 GMT. Turnover was 227.3 million rupees ($1.48 million).