Rupee, freight rates on stabilising path
A rapidly appreciating rupee has currently been holding on and freight rates are seen to be stabilising that could help exporters if it sustains for the long term.
The Sri Lankan rupee that has been rapidly appreciating lately has been holding for the past few days that exporters expect will remain.
All exporters were concerned about the rapid appreciation of the rupee but in the last two days it has been holding, Exporters Association Chairman Jayantha Karunaratne told the Business Times.
He noted that the exporters expect a stable currency and pointed out that while this appreciation of the Sri Lankan rupee maybe good for importers it is not so for exporters.
India on the other hand, Mr. Karunaratne said is obtaining increased dollars but is controlling the rupee from appreciating as it could impact adversely on the exports of the country.
He pointed out that while Sri Lanka needs the dollars it earns it would be best if it was reserved as opposed to being released into the market.
In the meantime, exporters are now experiencing a stabilising of the freight rates but are yet at high levels.
Freight rates during the pre- COVID era at US$500 surged to $8,000 – 10,000 and has now again reached $2000 due to the Red Sea crisis, shipping sector officials state.
However, there are some issues on space on transit due to the long travel time delays being experienced in ports across the globe. The Colombo Port is also experiencing berthing delays currently, it was noted.
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