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
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

» INVITATION TO FORUM MODERATORS
by Agape Today at 8:52 am

» Why AAIC Should trade above RS.50/-
by wisdom79 Today at 8:05 am

» Hayleys revenue up 34% YoY to Rs 219 bn in FY 18/19
by wisdom79 Today at 7:56 am

» EAST Steady at 18
by mark Yesterday at 10:57 pm

» Reputation???
by Uaecoindubai Yesterday at 7:12 pm

» Daily Stock Market Update
by Insights Equity Yesterday at 6:47 pm

» INVEST ON AAIC, HASU, UAL.... YOU WILL NEVER WORRY......
by wisdom79 Yesterday at 5:56 pm

» Market will test 4700
by nuwanmja Yesterday at 4:16 pm

» Keep eye on Politics
by Maharaja Yesterday at 1:05 pm

» AIA INSURANCE DE-LISTING (CTCE)
by lokka1 Yesterday at 12:55 pm

» Sri Lanka’s Top 10 Imports
by Gajaya Yesterday at 11:16 am

» Top 10 Small Scale Business ideas & Opportunities in Sri Lanka 2019
by Gajaya Yesterday at 11:15 am

» when bank lending rates put down ?
by nuwanmja Yesterday at 11:01 am

» CSE from Dawn of Peace to Rebirth of Terrorism
by soileconomy Yesterday at 7:52 am

» Pakistan’s trade with Sri Lanka comes to a halt
by Teller Yesterday at 3:26 am

» Sri Lanka’s largest pension fund EPF return to Colombo Stocks
by wisdom79 Tue May 21, 2019 10:46 pm

» Sri Lanka's EPF enters stock market with blood in the streets
by God Father Tue May 21, 2019 8:21 pm

» Sri Lanka caught in the big power conflicts
by God Father Tue May 21, 2019 8:16 pm

» High Profile Selling at EAST
by Uaecoindubai Tue May 21, 2019 4:43 pm

» A Trader’s Guide to FIX Engine
by Brenda John Tue May 21, 2019 11:24 am

» Reasons for market to crash
by Uaecoindubai Tue May 21, 2019 10:08 am

» ගෙවුම් ශේෂය, වාහන බලපත් හා ඩොලරයේ මිල
by ChooBoy Mon May 20, 2019 5:59 pm

» Terrorism and its Impact on the Sri Lankan Economy
by ChooBoy Mon May 20, 2019 5:41 pm

» Sri Lanka Equity Market Place
by Sstar Mon May 20, 2019 4:36 pm

» Sri Lanka Equity Market Talk
by Sstar Mon May 20, 2019 12:23 pm

» Sri Lanka Equity Market Help
by Sstar Mon May 20, 2019 12:18 pm

» LOFC IN FOR A BIG RUN
by stockback Sun May 19, 2019 5:20 pm

» Look PAP Amazing company
by Uaecoindubai Sun May 19, 2019 5:13 pm

» Sri Lanka Equity Market Place
by Uaecoindubai Sun May 19, 2019 5:13 pm

» CSE NOW AND AFTER ELECTION
by Ahcha Sun May 19, 2019 4:40 pm

» Do not be greedy, rely on small profits Guide to the markets
by Asoka Samarakone Sun May 19, 2019 12:11 pm

» 6 % of EPF funds in stock market
by hammurabi Sat May 18, 2019 3:47 pm

» Weekly Stock Market Roundup
by Insights Equity Sat May 18, 2019 12:54 pm

» EPF Enter Stock Market
by visvajith Sat May 18, 2019 12:20 pm

» UNION BANK (UBC) to be takeover by Union bank of india
by Soilconomy Sat May 18, 2019 8:54 am

» SEC yet to publish its 2017 Annual Report
by ChooBoy Sat May 18, 2019 6:01 am

» 20th MAY IS IT A HOLIDAY FOR CSE?
by Winner123 Fri May 17, 2019 1:33 pm

» East total Hotel deal value US $ 58 Mn there will be another Dividend, Nahil's family is smart
by karuna2 Fri May 17, 2019 6:48 am

» What is going on with TFC.N0000
by Gihan04 Thu May 16, 2019 11:58 pm

» Sri Lanka's Commercial Bank's deposits surpass landmark Rs 1 Trillion in Q1 2019
by hammurabi Thu May 16, 2019 8:05 pm

» LIOC upward curve
by hammurabi Thu May 16, 2019 7:42 pm

» Maithree pala siresenas next winning chance
by Uaecoindubai Thu May 16, 2019 5:10 pm

» RENUKA CAPITAL PLC KZOO.N0000@2.80
by Uaecoindubai Thu May 16, 2019 5:05 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sri Lanka targets US$7.4bn forex reserves in 2017

Sri Lanka targets US$7.4bn forex reserves in 2017

Go down  Message [Page 1 of 1]

stockback


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
ECONOMYNEXT - Sri Lanka is planning to end 2017 with 7.4 billion US dollars of forex reserves or about 2.0 billion up from the 5.5 billion in January, Central Bank Governor Indrajit Coomaraswamy said.

Sri Lanka plans to raise up to 1.5 billion US dollars from a sovereign bond sale in 2017 and another billion dollars from a syndicated loan that is currently being negotiated, he said.

Sri Lanka may also get 250 to 300 million dollars from the sale of Mattala Airport. Other non-strategic asset sales and property may bring about a billion US dollars.

He said Sri Lanka hopes to repay some of the bunched up external debts in 2019 and beyond or extend their tenor, from money raised in 2017, Coomaraswamy said.

If a planned sale of Hambantota Harbour to China Merchants Ports goes ahead it could also bring in over a billion US dollars.

"In my view that is an important thing for the country, - leaving aside the development impact for the whole region - to get a billion dollars that comes straight into our reserves," Coomaraswamy said.

"Also because it is a built asset there will be no outflow in terms of capital goods etc."

Foreign direct investment is a key driver of imports and the trade deficit in Sri Lanka, as factories or other infrastructure is built with dollars coming through a non-merchandise section of the balance of payments.

If the money from port sale is used to bridge the budget deficit and used as part of government expenditure, it will similarly drive economic activity, imports and the trade deficit.

To build forex reserves permanently, the rupees generated when the dollars are taken into forex reserves have to be sterilized by a sell-down of Treasury bill holdings of the Central Bank. Alternatively other private credit has to be curtailed by a sell-down of central bank held bills.

Forex reserves can be built, regardless of whether there is a port sale or not if the Central Bank sells down its Treasury bill holdings and curtails domestic credit, analysts say. A large inflow will however allow forex reserves to be built without raising domestic interest rates.

Sri Lanka's forex reserves are lost in three ways. 

When money is printed (Treasury bills are bought by the Central Bank creating new money) and then the exchange rate is defended, or when the exchange rate is defended and money is printed to fill liquidity shortages (sterilized forex sales).

Reserves are also lost, when government foreign loans are settled with reserves (taking bills in return which can be sold down to rebuild reserves) and when International Monetary Fund loans are repaid.

Forex reserves are built in three ways. When dollars are bought and the ensuing rupees are sterilized by selling down the Treasury bills stock (a sterilized forex purchases), when interest is earned on forex reserves, or when IMF loans are received. (Colombo/Feb09/2017)

ice4083


Senior Equity Analytic
Senior Equity Analytic
Sri Lanka has a lot of ambitions, only thing is that the people in power don't know how to achieve any of this and end up just being election promises

Back to top  Message [Page 1 of 1]

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