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Sri Lanka’s rupee was steady after data showed economic growth was faster than expected in the first quarter

Investment Bank in Sri Lanka

(Bloomberg) – Sri Lanka’s rupee was steady after data showed economic growth was faster than expected in the first quarter.

* USD/LKR little changed at 176.68

* 1Q GDP rose 3.7% y/y versus Bloomberg survey estimate of 3.0%

* Despite a strong first quarter, the growth outlook has been downgraded since the April 21 terror attacks, says Dimantha Mathew, head of research at First Capital in Colombo

* “Still, we will have a much steadier rupee with the US rate cut coming and its currency weakening.”

* The central bank sold 19b rupees ($108m) of treasury bills Wednesday

* The yield on 10.9% bonds due March 2024 fell 9bps Wednesday to 10.17%

* Overseas investors bought a net $1m of local equities on Wednesday, helping pare withdrawals this year to $32.6m: exchange data