Sri Lanka’s gross official reserves have recovered to US$ 6.4 billion by the last week of July 2016, increasing from US$ 5.3 billion at the end of June 2016, albeit lower than the high US$ 7.3 billion reserves at the end of 2015, the Central Bank said yesterday. According to statistics, the government securities market has also experienced a net inflow in the month of July, continuing the trend observed since the latter part of April although foreign investments to the CSE (secondary market) recorded a net cumulative outflow
According to provisional data, the overall fiscal performance has improved during the first five months of 2016 with government revenue as a percentage of estimated GDP increasing to 5.0% during the first five months of 2016. Total expenditure and net lending during the first five months of 2016 remained unchanged at 7.2% of estimated GDP compared to the same period in 2015. Consequently, the overall budget deficit declined to 2.3% of estimated GDP during the first five months of 2016 compared to 2.7% recorded in the corresponding period of 2015.
“The successful issuance of the 10th International Sovereign Bond (ISB) at a low yield rate indicates continued investor confidence in Sri Lanka and the positive sentiments on the economic outlook,” the Central Bank said though outlining that the Rupee has depreciated against the US dollar by 1.2% thus far in 2016.