Lankapage Logo CP 19 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka Central Bank determined to curb unwarranted depreciation of the rupee
Wed, May 16, 2018, 10:46 pm SL Time, ColomboPage News Desk, Sri Lanka.

May 16, Colombo: Sri Lanka's Central Bank says it is determined to curb unwarranted depreciation of the rupee since the underlying fundamentals do not warrant the current pressure on the Sri Lanka currency.

The Bank in a statement released today said the gross external reserves are presently at a healthy USD 9.1 billion and the real effective exchange rate indices indicate that the currency is competitive.

"The pressure on the currency is, therefore, unwarranted," the Bank stressed.

The following inflows are expected to boost the current robust level of reserves in the coming weeks.

- USD 250 million as the next tranche of the IMF EFF in early June;

- USD 585 million as the final payment on the long lease of the Hambantota port during the 2nd week of June 2018; and

- USD 1 billion as the proceeds of a syndicated term loan due in mid-June 2018.

Gross external reserves are, therefore, expected to amount to a record close to USD 11 billion by mid-June 2018.

"While being committed to flexible exchange rate management, the CBSL has the option of using a part of its unprecedentedly large external reserves to trigger a material appreciation of the rupee to prevent unwarranted depreciation of the currency, particularly as it is not justified by the underlying fundamentals," the Bank said.

The Sri Lankan rupee hit a record low of 158.50 per dollar and bounced back to close at 158.00/30 per dollar, according to a Reuters report.

 

ColomboPage - Recent 10 Stories ::
Sri Lanka Central Bank requests licensed banks to grant concessions to revive tourism industry
-- [15 minutes ago]
State's Financial Audit Report in parliament on the 31st
-- [7 hours ago]
Two suspects arrested with over 900 g of methamphetamine
-- [9 hours ago]
UNP suspends Weligama Mayor Weligama Rehan Jayawickrama's party membership
-- [9 hours ago]
Haycarb records turnover of USD 123.33 Million and profit before tax of USD 7.9 Million for 2018/19
Parliamentary translator alleged of having links with terrorists to be detained and questioned for 90 days
Sri Lanka participates at the largest supermarket exhibition in Brazil - APAS Show 2019
UNP to appoint a PSC to investigate allegations against Minister Bathiudeen
DNA tests confirm NTJ leader Zahran Hashim killed in Shangri La bombing
Sri Lanka nationwide inflation rises to 3.6 percent in April 2019

Copyright © 2000, 2016 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.