Sri Lanka Inches Closer to IMF Aid Option After Rupee Plunge
- Nation’s dollar bonds due July 2022 snap five days of losses
- Ukraine conflict to further hit tourism revenue, tea exports
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Sri Lanka’s painful decision to effectively devalue its currency this week could pave the way for the island nation to get help from the International Monetary Fund as a $1 billion debt payment looms in four months.
The country’s dollar bonds due July 2022 gained 1.6% on Wednesday to halt five days of losses, while the rupee advanced 0.3% after plunging as much as 12% -- the most in more than four decades -- in reaction to the central bank’s announcement that it was letting the currency float as international reserves dwindle.