Media reports, Sri Lanka is planning to enter to a Repurchase Agreement (REPO) of USD 1 Bn with the New York Federal Reserve by pledging Sri Lanka USD assets to buildup the reserves and further stabilized the currency. The tax revenue has fallen 26% in the first four months, while foreign investment outflow from the capital market has been continuing. Sri Lanka reserves fell in May to USD 6.5Bn which has increased the pressure the government to find alternative options for Debt repayment due this year, especially USD 1Bn International Sovereign Bond maturing in October.
Sri Lanka LKR is holding the ground for last one and half months while Gov planing USD 1Bn Repo with USA
Exchange RateJul 7, 2020