Reuters: ** Sri Lanka’s rupee closed slightly weaker on Wednesday due to dollar demand from importers and state banks, while investors remained cautious over debt repayment by the government.
** Stocks edged higher from an eight-week closing low hit in the previous session.
** The rupee closed at 182.15/25 per dollar, compared with 182.00/20 in the previous session, market sources said. On Jan. 3, the rupee fell to an all-time low of 183.00 against the dollar.
** The currency has depreciated 0.3 percent so far this year, Refinitiv data showed.
** Worries over heavy debt repayment after a 51-day political crisis have dented investor sentiment as the county is struggling to repay its foreign loans, with a record $5.9 billion due this year including $2.6 billion in the first three months.
** The central bank chief last week said around $5 billion borrowing in the pipeline could help debt repayments.
** The International Monetary Fund last week said it would resume discussions for further disbursal of part of a $1.5 billion loan amid investor worries of heavy debt repayments.
** The International Monetary Fund last week said it would resume discussions for further disbursal of part of a $1.5 billion loan amid investor worries of heavy debt repayments.
** It fell 19 percent in 2018, making it one of the worst-performing currencies in Asia, according to Refinitiv data, due to heavy foreign outflows.
** The rupee has declined 4.9 percent since a political crisis started in October. That crisis had dented investor sentiment and delayed Sri Lanka’s borrowing plans.
** A series of credit rating downgrades after the political crisis have made it harder for Sri Lanka to borrow as it faces record high repayments.
** The Colombo Stock Index ended 0.1 percent firmer at 5,951.56 on Wednesday. The benchmark index lost 5 percent in 2018.
** Turnover was 202.5 million rupees ($1.11 million), well below last year’s daily average of 834 million rupees.
** Foreign investors were net buyers for a second straight session on Wednesday, buying a net 20.9 million rupees worth of shares. But they have been net sellers of 2.4 billion rupees worth of stocks so far this year and 15.7 billion rupees since a political crisis began on Oct. 26.
** The bond market saw outflows of 86.7 billion rupees between Oct. 25 and Jan. 16, the latest central bank data showed.
($1 = 182.0000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)
