The Sri Lankan rupee ended little changed near its record low on Tuesday as importer dollar demand was offset by inward remittances, dealers said. Inward remittances for the festival season would ease the pressure on the local currency, they added. The rupee closed at 143.20/25 per dollar compared with Monday's close of 143.20/35 and not far from its all-time low of 143.30 hit on Friday.
"There were inward remittances for the festival season. We expect the currency to trade steady with seasonal importer demand drying down and some expected exporter dollar conversions ahead of holidays," said a currency dealer, asking not to be named. Global political risk research firm Eurasia group last week said political infighting and populist policies are likely to slow down implementation of the budget's economic liberalisation measures. Sasha Riser-Kositsky of Eurasia in a research note said Sri Lanka's 2016 budget highlights the government's weak commitment to fiscal consolidation and will leave its external accounts position vulnerable.
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