Inflation ( CCPI)35.3% (April 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.60%
12M T-Bill Rate22.97%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $862Mn (March 2023)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

Sri Lanka to safeguard foreigners from FX risk up to 2 years

Exchange RateSep 23, 2020
Sri Lanka to safeguard foreigners from FX risk up to 2 years
This story is available exclusively to subscribers. Become an member and start reading now.
Sri Lanka’s cabinet of ministers had approved swaps of up to two years to cover foreign exchange risks of investors in rupee bonds. During the last five years, foreigners were pulling out money from the capital market, especially on LKR bonds. Long positions on many Asian currencies have sharply raised. Reuter report says "Long bets on the Chinese yuan, South Korea’s won, Singapore’s dollar, and the Malaysian ringgit were all raised to their highest since early 2018." But several EM currencies (Argentina, Russia, Brazel, South Africa) are having tough time.


Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.