Sri Lanka financial market calm amid Brexit, Sterling plunges Rs21

ECONOMYNEXT – Sri Lanka’s financial markets were calm and the Sterling plunged 21 rupees against the rupee Friday as Britain voted to exit the European Union, but long tenor bonds were quoted wider, dealers said.

The Sterling pound fell 21 rupees to 196 rupee down from around 217 rupees over the week, while the Euro was down 5 rupees to around 160 from 165 levels.

In the forward forex markets the rupee was quoted at 147.30 to the US dollar to which the currency is soft-pegged.

The Indian rupee, which is closer to a floating currency was down to 67.25 rupees to the US dollar Friday from 68.12 a day earlier.

India is the largest import partner.
 
In bond markets, longer tenor bond above 6-year were quoted wider, dealers said.

"There is a usually a delay in reactions to global events in Sri Lanka," dealers said. "There have been some UK based buyers in bonds, we will have to see how they react."

Analysts said Sri Lanka could face difficulties selling sovereign bonds in the aftermath of the Brexit amid uncertainty.

 

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