Sri Lanka bonds soar, rupee jumps on prospect of final IMF deal sign off
A man counts Sri Lankan rupees at a money exchange counter in Colombo on Sep 4, 2015. (File photo: Reuters/Dinuka Liyanawatte)
LONDON: Sri Lanka dollar bonds soared and the rupee jumped on Tuesday (Mar 7) after President Ranil Wickremesinghe said the government has received new financing assurances from China, paving the way for an International Monetary Board programme approval.
International bonds issued by the country soared nearly 3 cents in the dollar to trade just under the 40 cents mark, levels last seen ten months ago, Tradeweb data showed.
The currency strengthened as much as 7.8 per cent to hit an eleven-month high at 315 to the dollar, before trading at 320 by 0820 GMT, Refinitiv data showed.
Wickremesinghe said the Chinese letter had been sent to the IMF on Tuesday and that he expected approval from the IMF to start the disbursal of US$2.9 billion in the third or fourth week of this month.
It was not clear what new support China extended to Sri Lanka.
