An investor to park USD1 bln in dollar deposits, says Finance Minister

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Jan 12, 2016 (LBO) – An investor has promised to park 1 billion dollars in dollar deposits in Sri Lanka to help the island nation defend its currency, according to a media report quoting the finance minister.

The investor was Belgian and was working with a Sri Lankan partner, Finance Minister Ravi Karunanayake told Reuters.

The investor has promised to transfer the money in two equal tranches from banks in Brussels and Luxembourg, he said.

“Instead of going for bonds and other borrowing, we are permitting it to take place,” Karunanayake said.

“This is better than negative returns in Europe.”

This is part of an effort to increase foreign reserves and defend the rupee, which has hovered around record lows since the central bank floated it on Sept. 4.