Sovereign Analysis /
Sri Lanka

Sri Lanka reserve crash in one chart

  • October reserves, released today, show continued drop from US$2.7bn to US$2.27bn (c6 weeks of import)

  • Rare that any country allows reserves to drop this low without defaulting, notwithstanding attempted bridge financing

  • We retain Hold on January 22s (but with less confidence). No rating on July 22s. Sell on the rest of the eurobond curve

Sri Lanka reserve crash in one chart
Patrick Curran
Tellimer Research
5 November 2021
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