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Sri Lanka is counting on its migrant workers to remit extra funds for the festive season together with dollar inflows to ease its cash crunch this Christmas. The island nation’s trade deficit, ballooned US$ 564 mn to US$ 1,704 mn, for the ten months ended Oct., after high global oil prices added a further US$ 274 mn to its oil import bill.
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But the precarious balance of payment position will get some 'band aid' treatment this month from aid inflows and proceeds from Sri Lanka Telecom's international bond issue and Lanka IOC’s public offering, the Central Bank said Wednesday.
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Aid disbursements from Japan (US$ 100 mn), the Asian Development Bank (about US$ 40 mn), US$ 100 mn from SLT's debt issue and about US$ 100 mn in foreign portfolio investment pitching for LIOC’s IPO is expected to wet the Treasury’s parched coffers in December.
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The Central Bank is also counting on a better performance from exports of apparels, tea and rubber to negate its growing import bill during the last two months of