Sri Lanka rupee slips on importer, bank dollar demand; stocks down

Reuters: ** Sri Lanka’s rupee closed slightly weaker on Monday, snapping two straight sessions of gains, due to dollar demand from banks and importers. 

** Stocks fell 0.5 percent to their lowest close in eight weeks. 

** The rupee ended at 181.75/90 per dollar on Monday, compared with 181.50/65 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 appreciated 0.6 percent so far this year, Refinitiv data showed. 

** 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 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. 

** Sri Lanka 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 said around $5 billion borrowing in the pipeline could help debt repayments.

** The rupee has declined 4.8 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 have made it harder for Sri Lanka to borrow as it faces record high repayments. 

** The Colombo Stock Index ended 0.49 percent weaker at 5,958.47 on Monday. The benchmark index lost 5 percent in 2018. 

** Turnover was 793.3 million rupees ($4.37 million), less than last year’s daily average of 834 million rupees. 

** Foreign investors sold a net 46.9 million rupees worth of shares on Monday. They have been net sellers of 15.8 billion rupees worth of stocks 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. 

** Foreign investors pulled a net 22.8 billion rupees out of stocks last year, while they net sold 159.8 billion rupees from government securities from January through Dec. 26, bourse and central bank showed data. 

($1 = 181.5500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez)