Financial Times

More foreign exchange flowing in-CB


The recent appreciation of the rupee in the foreign exchange market without any intervention by the Central Bank (CB) confirms higher foreign exchange inflows into the country, the CB said this week.
It said these foreign exchange inflows are expected to continue into the future in view of the positive outlook brought about by the end to the three decades of conflict. The statement said the Bank is now in a better position to build up its official reserves to a more comfortable level.

Meanwhile the trade deficit contracted for the third consecutive month in March 2009 as imports continued to ease faster than exports. This was helped by private remittances (mainly from migrant workers) showing a record US$278 million in March, the highest ever in any month of the year, the CB statement added.

Garment export earnings also rose. While textiles and garments exports to the European Union grew by 18.4 % in March, those to the US fell by 4.5 %. The trade deficit narrowed by 17.6 % in March 2009, year-on-year, to $383 million. Private remittances reached $774 million in the first quarter against $787 million in the corresponding period of 2008. Remittances during the first quarter were $129 million (about 20 %) in excess of the trade deficit.

The Bank said expenditure on imports fell by a comparatively high rate of 11.8 % to % 1,009 million in March in view of the reduced demand for imports of consumer and intermediate goods. Among the major food commodity imports, expenditure on rice, wheat and milk fell in March while spending on sugar rose by 22.4 %.

The gross official reserves, with and without Asian Clearing Union (ACU) funds, recorded $1,373 million and $1,272 million respectively, by end March. These include deposits of $200 million placed with two domestic banks which were intended to facilitate payments of petroleum bills without exerting undue pressure in the foreign exchange market. Based on the previous 12 month average imports ($1,085 million per month), these reserve values are equivalent to finance 1.3 and 1.2 months of imports, respectively.

Top to the page  |  E-mail  |  views[1]
Other Financial Times Articles
> Econ boom in the north soon
> Calling all Sri Lankans to rebuild
> Jetwing must make mandatory offer-SEC
> Finance industry now stable
> IBSL to discuss Janashakthi at next board meeting
> UN donor meeting end-June
> ‘At last …we can make money’
> COMMENT- Developing the north
> Right of reply - MBSL Chairman clarifies Computer Island cas
> CB rejects S&P report, reviews relationship with rating agency
> Three Ceylinco Directors remanded, 3-member committee appointed to value GK assets
> Sri Lanka tourism cashing in on peace
> Singha Cement producer helps IDPs
> Business and trade chambers hail victory over LTTE
> Commercial Bank supports IDPs
> Tourism gearing up for good winter
> WB suggests revitalising pension system
> HNB net in 1Q2009-10 fell but income grew by 14%
> GSK donates medicines for Sri Lanka's displaced
> Entrepreneurship issues at the ST Business Club
> Institute of Town Planners Sri Lanka offers expertise
> Letter- Plantation workers get reasonable pay-EFC
> BOC 1Q09 net profit soars by 107%
> International trade issues impact on Hayleys profits
> Aeturnum gets major US award
> Top business persons get special airport lounge
> GK issue - where the government went wrong
> Maliban Milk shows 100% sales in last 12 months
> Discussing power conservation measures in AC comfort
> More foreign exchange flowing in-CB
> Australia provides Rs 3.2 bln assistance to Sri Lanka
> Intel's Sri Lankan partners at Asia summit
> Some US$250 bln cost of lost opportunities in war
> F&G directors to disclose assets
> Promising future for Lankan economy-CB
> Serendib CEO Srilal to retire
> Entrust Investments not viable
> Sri Lanka at a disadvantage from global TRIPS agreement
> ICTA awards Rs 21 million in grants for rural projects
> Mobitel aids YouthMax to enhance IT skills of rural youth
> CIMA World President speaks at The Bankers Club meeting
> Seminar on 'how to win friends'
> Maldives, new member of ILO


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution