COLOMBO May 4 The Sri Lankan rupee traded
steady on Thursday as importer dollar demand was offset by
exporter sales amid expectations of inflows from a sovereign
bond issuance and syndicated loans, dealers said.
Sri Lanka expects to raise up to $1.5 billion via a
sovereign bond issuance and another $1 billion from two separate
The Sri Lankan government has given initial yield
guidance of 6.625 percent area for a 10-year U.S. dollar bond
offering. Citigroup, Citic CLSA, Deutsche Bank, HSBC, ICBC
International, JP Morgan and Standard Chartered are the joint
The move comes a day after the International Monetary Fund
late on Wednesday said its executive board was likely to
consider in June Sri Lanka's request for the completion of a
second loan review, a requirement for disbursing a third tranche
Rupee forwards were active, with two-week forwards
steady at 153.30/25 per dollar.
"Every body is waiting for the sovereign bond and the SLDB
(Sri Lanka Development Bond). It is the moral booster and the
reserve booster," a currency dealer said, asking not to be
Dealers expect the rupee to stabilise on higher dollar
liquidity after the anticipated inflows.
A government move to double the borrowing limit of
development bonds to $3 billion in 2017 is also expected to
Finance Minister Ravi Karunanayake had last week blamed
"technical difficulties" for a two-month delay in receiving an
around $160 million loan tranche from the International Monetary
Fund and said the disbursement was expected after June 14.
Foreign investors also net bought government securities
worth 908.9 million rupees ($5.98 million) in the week ended
April 26, extending the net inflow to 7.2 billion rupees in four
consecutive weeks. But they have net sold 57 billion rupees
worth of government bonds so far this year.
Sri Lankan shares were up 0.55 percent at 6,599.80 as
of 0719 GMT. Turnover stood at 422.7 million rupees ($2.78
($1 = 152.1000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas