Rs.8bn inflows into securities since Jan; rupee appreciated 2.3-pct YTD: FM

mangala

Feb 21, 2019 (LBO) – Finance Minister Mangala Samaraweera says that foreign capital is now flowing back into the economy with 8 billion rupees worth inflows into government securities since January this year.

Addressing the AmCham Breakfast Buzz held today in Colombo, the Finance Minister reminded that the rupee has also appreciated 2.3 percent year to date.

“Today our external borrowing costs have declined by over 200 basis points – assuming US$ 3 billion in fresh borrowings this year, that translates into a saving of over Rs. 10.8 billion,” he said.

Minister said the IMF staff mission is in Colombo this week continuing negotiations with officials of the Treasury and Central Bank.

“Continuation of the IMF programme will signal the markets our continued commitment to disciplined, rules-based economic management,” he said.

“Our objective is to ensure responsible fiscal policies whilst enabling space to invest in targeted growth-supportive measures.”

According to the minister, the government has three major economic policy priorities;

1) Ensuring our continued access to global capital markets at an affordable rate to enable us to re-finance external debt this year.
2) Uplifting economic growth through Enterprise Sri Lanka and Gamperaliya.
3) Continuing our reform programme to build the competitiveness of the economy.