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The government securities market saw outflows of Rs5.
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3bn, while the stock market saw outflows of Rs2.
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3bn for the week. Stock market outflows were exacerbated by a Rs1.
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4bn foreign sale of Singer Sri Lanka (SINS).
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Year to date outflows from both markets are approaching the Rs100bn (US$570mn) mark. These outflows have been a serious factor in that 10% depreciation in the LKR to date.
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The Sri Lanka rupee sits at an all time low of Rs171 to the dollar.
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On a positive note, this week the CBSL was able to secure a US$1bn loan from China. The loan, obtained on attractive terms according to the CBSL, will certainly bolster Sri Lanka's foreign reserves.
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Chinese and IMF support for Sri Lanka's balance of payments may steady Sri Lanka's shaky foreign reserve position and currency.
