Central Bank says Sri Lanka economy is winning confidence

Thursday, 03 May 2018 - 11:05

Central Bank says political stability is essential for sustained growth and development in the country.
Issuing a statement, in response to concerns expressed regarding the performance of the Sri Lankan economy in recent days, the CBSL said foreign sentiment signals confidence in Sri Lanka’s economic performance and potential.
  • An International Sovereign Bond (ISB) amounting to $ 2.5bn (the largest ever) was successfully issued. It was 2.6 times over-subscribed. Large orders were placed by some of the world's largest and most reputed investment funds.
  • With the receipt of ISB proceeds, gross official reserves have increased to $ 9.9bn which is historically the highest level.
  • There has been a very favourable response to the RFP for a term loan of $ 1bn. The Government is considering upscaling this loan and to utilize the incremental proceeds to repay more expensive existing debt.
  • Despite outflows from emerging markets in the wake of normalization of US interest rates as well as synchronized growth in US, Europe and Japan for the first time since the Global Financial Crisis, there have been net cumulative inflows both to the stock market as well as the rupee-denominated Government Securities market.
  • There have been foreign portfolio investments in equity, through primary and secondary market investment in the Colombo Stock Exchange to the tune of $ 9. 6mn to-date in 2018. In 2017, inflows amounted to $ 278.5mn.
  • Net inflows into the Government Securities market amounted to $ 6.05mn so far this year. In 2017, net inflows amounted to $ 441mn.
  • FDI flows of $ 1.9bn in 2017 were an all-time record, albeit from a low base.