Sri Lanka does not want rupee to fall ‘too quickly’: CB chief
Sri Lanka’s central bank does not want to allow the rupee currency to fall too quickly and wants to ensure a competitive exchange rate, the island nation’s Central Bank Governor Indrajit Coomaraswamy said on Tuesday.
U.S. dollar inflows have helped the rupee stabilize and eased the downward pressure. The central bank, however, has been adjusting the spot rupee reference rate weaker.
“The key thing is to have a competitive exchange rate…We don’t want to let it fall too quickly,” the central bank chief told reporters in Colombo after the monetary policy rate announcement.
He also said the central bank aimed to reduce overall credit growth to 15 percent year-on-year by end of this year from around 18 percent at end 2016.
“Private sector credit growth is still high. When the government last year imposed tight fiscal conditions, state banks lent mostly to the private sector.”
(Source: Reuters)
Latest Headlines in Sri Lanka
- Senior Professor Rathnayake appointed to restore order at University of Ruhuna November 24, 2024
- Sri Lankan fishing vessel seized with massive drug haul in Maldives November 24, 2024
- Audit reveals misuse of electric vehicle permits for migrant workers in Sri Lanka November 23, 2024
- IMF approves third review: Sri Lanka secures $333 million tranche under EFF November 23, 2024
- Sri Lankan President urges accountability and unity for a better future November 23, 2024
