A foreign investor ready to deposit 1 billion dollars to defend the rupee
Tuesday, 12 January 2016 - 12:50
Finance minister Ravi Karunanayaka told Reuters that an unidentified investor has promised to park 1 billion in dollar deposits in Sri Lanka to help the nation defend its currency.
Finance Minister Ravi Karunanayake declined to reveal the identity of the investor. But he said the investor was Belgian and was working with a Sri Lankan partner.
The minister said The investor has promised to transfer the money in two equal tranches from banks in Brussels and Luxembourg,.
The deposits, which pay an interest rate of 2 percent, are part of the ministry's plans to raise 3 billion to 4 billion dollars to shore up reserves and defend the rupee, which has hovered around record lows since the central bank floated it on September 4th.
According to central bank data, foreign reserves, which stood at 7.3 billion dollars on December 31st, are under pressure, as 5 billion dollars is expected to be repaid on foreign loans in 2016.