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Rupee Steady as Traders Wait for Rate Move: Inside Sri Lanka

Investment Companies in Sri Lanka

(Bloomberg) — Sri Lanka’s rupee was little changed as investors await the central bank’s monetary policy decision later this week.

* USD/LKR steady at 176.40, after its first weekly decline in three

* The monetary authority is scheduled to announce its rate decision on Friday at 7:30 am local time

* “We could see very low turnover this week as we await the rate decision,” says Dimantha Mathew, head of research at First Capital in Colombo

** “An expectation of a rate cut is likely to weigh on the currency this week,” while bond yields could trade sideways until the rate announcement

* Yield on the nation’s 10.9% bonds due March 2024 rose 7bps Friday to 10.02%, climbing for the first time in seven days

* Overseas investors sold a net $0.4m of local equities on Friday, taking withdrawals this year to $32.6m: exchange data