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Chinese inflows to boost Lanka forex reserves

Press Trust of India  |  Colombo 

A USD 200 million swap and a stake sale in the southern Hambantota port to will serve as a much wanted boost to Sri Lanka's foreign reserves, the governor of the Central said here today.

Indrajith Coomaraswamy said that was expecting payments from for the sale of Hambantota port to realise in January, 2017.

The first payment of USD 108 million is expected in January, another USD 300 million in March and the balance around June, he said.

has decided to sell an 80 per cent stake in Hambantota port to for USD 1 billion.

The Central is also close to finalizing a USD 200 million swap with China Development Both inflows will help boost reserves, Coomaraswamy said.

The announcement came as Sri Lanka's foreign exchange reserves fell to USD 6.1 billion in October.

The Sri Lankan rupee suffered over 2 per cent depreciation to the so far this year, the Central Bank said.

The reserves will also be boosted by the International Monetary Fund's approval of a second tranche earlier this month.

Last week, the IMF said it was releasing USD 162 million, part of the USD 1.4 billion three-year arrangement approved in June this year.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 29 2016. 17:22 IST