Govt. gets $ 500 m syndicated loan from China in March

Tuesday, 2 June 2020 01:18 - - {{hitsCtrl.values.hits}}

Infusion helps bolster reserves and counter $ 261 m outflow from securities market

The Government received a $ 500 m syndicated loan from the China Development Bank helping to bolster reserves and counter $ 261 m outflow from the Government securities market in March, the Central Bank said yesterday.

Gross inflows on account of long-term loans to the Government amounted to $ 588 million in March, which included the receipt of the syndicated loan facility from the China Development Bank amounting to $ 500 million.

A net outflow of the foreign investment amounting to $ 261 million was recorded from the rupee denominated Government securities market in March, resulting in a cumulative net outflow of $ 361 million during the first three months of 2020. Outflows of foreign investments from bond markets of most emerging and frontier economies were observed in the aftermath of the COVID-19 pandemic.

However, Sri Lanka’s exposure to such outflows remains negligible, with only an insignificant share of outstanding Government securities being held by non-residents.

Foreign investment in the Colombo Stock Exchange (CSE), of which only secondary market transactions were available for March, recorded a net outflow of $ 6 million. The CSE remained closed for trading from mid-March until mid-May. On a cumulative basis, the CSE recorded a net outflow of $ 28 million in the first three months of 2020.

Exports tumble 42.3% in March on COVID-19 impact

Tourism earnings decline 70% in March

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