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.

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Nish
Nish
6 years ago

what kind of foreign reserve strategy is this? If he is an true investor he will invest $1 billion take back $1.2 billion. Ofcourse that is if this is not diaspora money coming in through Belgium.

Nish
Nish
6 years ago

what kind of foreign reserve strategy is this? If he is an true investor he will invest $1 billion take back $1.2 billion. Ofcourse that is if this is not diaspora money coming in through Belgium.

Pathum Thilina
Pathum Thilina
6 years ago

So now Ravi try manage our economy by others black money…wow what a brain…

Pathum Thilina
Pathum Thilina
6 years ago

So now Ravi try manage our economy by others black money…wow what a brain…

Nirmalan Dhas
Nirmalan Dhas
6 years ago

Not at all a good idea. If you borrow you will be forced to do something to earn in order to service the borrowings and ensure that there is no fall in its value by payback time. What you do to earn will have its own socio political impacts that will have to be managed.

You can take a look at my take on borrowing on this same blog at http://www.lankabusinessonline.com/sri-lankas-central-bank-to-sell-usd-75mn-worth-development-bonds/#comment-3691 and hopefully you will be able to perceive what is involved as far as this island is concerned. After all while most locations have to deal with just the rat race here you have to deal with a different one.

So basically do not borrow except to fiance a clearly drawn out development plan and even then make sure that you move forward very carefully following very carefully the priorities that have been identified so that revenue flows are set in motion even while the systems and services fall in place. You can do it if you take the trouble to think it out…and do not buy into fairly tales … you are a big boy now.

BKVWHK
BKVWHK
6 years ago

This must be from NewsCurry

samsaroyan
samsaroyan
6 years ago

Sounds like state sponsored money laundering, as a signatory to UNODC and policy frameworks of IMoLIN that determine such illicit activities may kicked in to investigate this. Unprecedented financial macabre move by the government, Fate of entire financial system is relying on single individual and his wealth. Bravo..

puniselva
puniselva
5 years ago

Folks
Have you ever heard of ”parking” money?
What’s the connection between this billion and the billion needed for 65,000 houses by ArcelarMittal please? ArcelorMittal Headquarters are in Luxembourg!