LONDON (Reuters) – Sri Lanka dollar bonds soared and the rupee jumped on Tuesday after President Ranil Wickremesinghe said government has received new financing assurances from China, paving the way for an International Monetary Board programme approval.
International bonds issued by the country soared nearly 3 cents in the dollar to trade just under the 40 cents mark, levels last seen ten months ago, Tradeweb data showed.
The currency strengthened as much as 7.8% to hit an eleven month high at 315 to the dollar, before trading at 320 by 0820 GMT, Refinitiv data showed.
Wickremesinghe said the Chinese letter had been sent to the IMF on Tuesday and that he expected approval from the IMF to start the disbursal of $2.9 billion in the third or fourth week of this month.
It was not clear what new support China extended to Sri Lanka.
(Reporting by Jorgelina do Rosario, editing by Karin Strohecker)
