The Sri Lankan rupee ended firmer on Friday, further pulling away from a record-low, as exporters sold the U.S. dollar and foreign investors bought government securities a day after the island nation received more than half a billion dollars from a Chinese port operator, dealers said.
After market hours on Wednesday, a state-run port authority said that China Merchants Port Holdings has made a $584 million payment as part of a $1.12 billion deal to operate Sri Lanka’s deep sea Hambantota port.
The rupee which traded high of 158.60 per dollar during the day ended at 158.60/159.00 per dollar, firmer than Thursday’s close of 159.40/60.
The spot rupee hit an all-time low of 160.17 per dollar on Wednesday, surpassing its previous all-time low of 160.00 hit on June 14. The currency has declined 3.6 percent this year.
Dealers said the pressure on the currency eased after the news of $584 million from Hambantota port.
The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remains vulnerable to adverse shocks because of sizable public debt and large refinancing needs.