With the Central Bank (CBSL) indicating that Sri Lanka aims to conclude its debt restructuring process by year-end 2024, the country has expectations for a prompt exit from the default rating category soon after.
Quoting CBSL Governor Dr. Nandalal Weerasinghe, CT CLSA October 2024, Sri Lanka Monthly Report has indicated that the third review of Sri Lanka’s US$ 3 billion, 48-month Extended Fund Facility (EFF) was initially scheduled for completion in December 2024.
The report also said that the Colombo Bourse closed positive in October 2024, with the benchmark All Share Price Index (ASPI) rising +7.7% Month on Month (MoM) to 12,771 points (an increase of +916 index points MoM).
Meanwhile, the more liquid S&P SL20 index increased +11.9% MoM to 3,864 points (an increase of +411 index points). Average daily turnover increased to Rs.2, 757 million in October 2024 (vs. Rs.1, 653 million in September 2024).
Top contributors to monthly turnover were Sampath Bank (SAMP, Rs.6,486 mn, 78 mn shares), John Keells Holdings (JKH, Rs.4,869 mn, 24 million shares), and Hatton National Bank-Vot (HNB-N, Rs.4,489 million, 21 million shares).
Net foreign outflows recorded at Rs.359 million in October 2024 following a net foreign outflow of Rs.638 million in September 2024.
During the month, net foreign buying was seen in John Keells Holdings (JKH). Commercial Bank of Ceylon-Vot (COMB-N), and Sampath Bank (SAMP), whilst net foreign selling was seen in Dialog Axiata (DIAL), CIC Holdings-Vot (CIC-N), and Hayleys (HAYL).
The Colombo Consumer Price Index (CCPI- Base year 2021) decreased by -1.0 points MoM to 189.9 index points, whilst a point-to-point deflation of 0.8% was recorded in October 2024 (vs. a deflation of 0.5% in September 2024).
Tourist arrivals to Sri Lanka recorded as 135,907 in October 2024 reaching 1.65 million arrivals mark despite travel advisories and recovering 89% compared to October 2018 arrivals. Meanwhile, the LKR appreciated by +1.2% MoM to Rs. 293.7 against the USD.
Export earnings improved +4.1% YoY to US$1,012 million in September 2024, while imports increased +11.3% YoY to US$1,645 million in September 2024. The deficit in the trade account expanded +25.9% YoY to US$ 4,200 million for the first nine months of 2024.
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