Sri Lanka borrowed $1.5 billion via a 10-year sovereign bond sale on Tuesday at a 6.85% yield, down from an initial guidance of about 7%.
“The rupee is weaker due to importer demand. Panic selling by exporters, which was there in early trade, has also reduced,” a currency dealer said on condition of anonymity.
Some dealers said the bond inflows are unlikely to help the currency in the medium term because of the heavy repayment in the near future.
The rupee hit a record low of 141.40 per dollar on 28 September, but recovered slightly after a State-run bank sold dollars.
30 October, 2015 08:59 AMSource: Financial Times - Sri Lanka