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Sri
Lanka’s
foreign-exchange
reserves
have
exceed
$3
billion
after
more
than $
875
million
flowed
in
during
the week
from an
international
hedge
fund in
the US
interested
in
investing
in
government
Treasury
bonds. The 875
million
US
dollar
flow
from a
"US-
based
fund"
will
increase
the
maturity
profile
of
government
debt,
said
Central
Bank
Governor,
Ajith
Nivard
Cabraal.
“This is
a result
of a
road
show we
did in
the U.S.
recently,”
he said.
“Investors
are
expecting
interest
rates to
fall
further
so they
can lock
in
profits.”
The
central
bank
last
month
raised
its 2009
growth
forecast
to as
much as
4.5
percent
from an
earlier
estimate
of 2.5
percent,
citing
increased
investments
and
reconstruction
projects.
The
Central
Bank has
cut
interest
rates to
a
three-year
low on
easing
inflation.
The end
of the
war in
May and
a $2.6
billion
loan
approved
last
month by
the
International
Monetary
Fund
have
boosted
investor
confidence
and
increased
capital
flows
into the
country.
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