The depreciating rupee might provide fresh opportunities for foreign investors to invest in the Colombo Stock Exchange(CSE), a senior investment advisor attached to the Sampath Securities said.
While exporters gain from rupee depreciation, a strengthening rupee benefits companies that rely on imports or else more local currency is needed to purchase imports and exporters get more local currency when they convert the export proceeds.
In this scenario, there might be an impact on the overall performance of import oriented companies. In the meantime, current political development in Sri Lanka has somewhat undermined the investor confidence in the market, however, the political uncertainty and rupee currency hasn’t created any huge impact on overall market activities so far. “The market has been waiting for signs of political stability,”the advisor said.
Nevertheless, senior official expressed hope that market activities are likely to pick up next week following the Cabinet reshuffle and the next election not scheduled until 2020.
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