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Central Bank gets flexible with rupee up to Rs. 230 per USD 

The Monetary Board of the Central Bank of Sri Lanka (CBSL) yesterday (7) announced that it will allow greater flexibility in the exchange rate with immediate effect, but stated that it is of the view that forex transactions would take place at levels that are not more than Rs. 230 per US dollar.

In a press release issued last night to announce this change in policy, the CBSL stated: “Considering the severity of the external shocks and recent developments in the domestic front, the Monetary Board of the Central Bank of Sri Lanka announced a comprehensive policy package on 4 March 2022 with the view to counter such economic headwinds. 

“The Central Bank also indicated that it will continue to closely monitor the emerging macroeconomic and financial market developments, both globally and domestically, and will stand ready to take further measures as appropriate, with the aim of achieving stability in the fronts of inflation, the external sector, the financial sector, and real economic activity.”

It is in this context, the CBSL stated, that it will allow flexibility in the exchange rate. As of last night, the official CBSL exchange rate priced one US dollar at Rs. 202.04.