After dipping to record lows on Friday, the Sri Lankan Rupee (LKR) once more shows stability.
The rupee ended at 159.40/60 per dollar, considerably better than Wednesday’s close of 160.00/20.
According to Reuters, The Sri Lankan rupee ended marginally firmer on Thursday, as dollar selling by exporters surpassed importer greenback demand after the island nation received more than half a billion dollars from a Chinese port operator, dealers said.
After market hours on Wednesday, a state-run port authority revealed to Reuters that China Merchants Port Holdings has made a $584 million payment as part of a $1.12 billion deal to operate Sri Lanka’s deep sea Hambantota port.
Sri Lankan Rupees hit an all-time low of 160.17 per dollar on Wednesday, which surpasses its previous record of 160.00 on June 14th.
Sri Lanka's central bank has been placing measures in an effort to further stablize the currency, including expeditures of up to USD 190 mil. over the last month.
Overall, the currency has suffered a decline of 3.9 percent in 2018.
Dealers claim that the value of Sri Lankan Rupees is set to fall to between 165 - 163 per dollar, before the end of the year.
The International Monetary Fund (IMF) said on Wednesday that Sri Lanka’s economy remains vulnerable to adverse shocks because of sizable public debt and large refinancing needs.
Sri Lanka's economy has been suffering setbacks in recent years, dropping to 3.1 percent last year, the lowest figures the country has seen in the last 16 years.
The biggest challenge faced by Sri Lanka's balance sheets are the damages and subsequent loans borne by the SriLankan Airlines, amounting to 2 billion dollars and counting.
Although the nation has made attempts to privatize the company, investers are yet to reflect such enthusiasm to acquire the airline.
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