The Sri Lankan rupee (LKR) depreciated further yesterday (4) against the US dollar, reaching a selling rate of Rs. 362.99, while the buying rate was at Rs. 350.05.In Parliament, incumbent Minister of Finance Ali Sabry PC stated yesterday that the exchange rate should have been floated freely a long time ago, instead of a forced rate.“The dollar rate shouldn’t be restricted from floating,” he said, while also explaining other policies such as requesting the support of the International Monetary Fund (IMF) and restructuring debt. Former Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal, during most of his tenure, kept refusing to allow the floating of the rupee, while advising banks to halt its selling price at the margin of Rs. 200. However, it was allowed to float at the beginning of the month of March, due to the fact that foreign workers’ remittances fell historically amidst the foreign exchange crisis. The rupee has been depreciating continuously since March 2021.
