The Government will commence regular virtual road shows to strengthen investor relations following the announcement of the National Budget in Parliament November 2020, State Minister of Money & Capital Market and State Enterprise Reforms Ajit Nivard Cabraal told a presentation for officials last week.
“Those interactions will provide further clarity on the Government’s medium term fiscal and financing plans, as well as keep Investors posted on the progress relating to the economic initiatives of the new Government”, he said.
Commenting on the Government’s commitment to its Investors as deep and unwavering, the former Central Bank Governor said: “Sri Lanka re-affirms to foreign investors that it remains willing and able to meet its debt obligations, as it has done impeccably in the past.”
All payment transactions for the repayment of the International Sovereign Bond of US$ 1 billion which matured on 04 October 2020 were lined up, and funds were credited to the paying agent’s account on 02 October2020.
“Official reserves of the CBSL increased to US$ 7.4 billion by end August 2020. The recently introduced measures to entice foreign investors to the government securities market and the real economy through an attractive foreign exchange SWAP arrangement are likely to help enhance foreign currency inflows.”
“ This is in addition to the support of friendly countries, such as the SWAP arrangement of USD 400 million with the Reserve Bank of India in July 2020, and the expected disbursement of the 2nd tranche of the Foreign Currency Term Financing Facility of US$ 700 million from the China Development Bank in October 2020.”
“Sri Lanka’s policy environment remains facilitative of enabling high economic growth beyond the recovery phase while preserving the macro-economic stability and the public enterprise management improvements planned will be designed to get to the 25th rank in “Doing Business” Indicators by 2025.
The financial sector will be strengthened through a well designed “consolidation” program on the back of over 11 years of well anchored mid-single digit levels of inflation.
The CBSL has pursued an increasingly accommodative monetary policy stance to deal with the Pandemic fallout. Fiscal policy, while remaining focused on supporting the economy, will return to a path of consolidation to achieve a budget deficit of 4% of GDP as envisaged in the Government’s policy framework, “Vistas of Prosperity and Splendor”.
“Foreign holdings in Treasury bills and bonds are likely to attract a substantial volume of investments in coming months, he said, and added that foreign holdings in Treasury bills and bonds exceeded US$ 3,450 million in 2014.
He also remarked that current holdings have a substantives pace for new investments.
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