CB allows ‘limited depreciation’ of Rupee
The Central Bank of Sri Lanka said on Thursday that it has decided to allow ‘limited’ depreciation of the Rupee against the US dollar in a bid to overcome sharply lower export prices and a slowdown in the global economy.
It said the decision was also due to the recent sharp appreciation of the US dollar against most major international currencies. Exporters, over the years, have been urging the Bank to allow the Rupee to depreciate in line with global trends while the urgency for a proper rate has been precipitated by the recent global financial crisis.
The Bank statement said that the currencies of some of Sri Lanka’s major trading partners and competitors have, since mid September, depreciated sharply against the US dollar leading to some pressure on the competiveness of Sri Lanka’s exports.