Sri Lanka looking at trade, payments ‘measures’ to stabilize rupee: Finance Ministry

ECONOMYNEXT  – Sri Lanka says it is looking at ‘external trade’ and ‘payment transactions," measures to stabilize the exchange rate, the finance ministry said as the rupee continued to slide amid sterilized intervention.

"The measures to further consolidation of external trade and payment transactions are also being examined to provide much needed stability to the exchange rate," the finance ministry said.

It is not clear whether ‘further consolidation’ refers to additional trade, exchange, or remmittance controls. Sri Lanka has already placed import controls on cars and some other products.

Sri Lanka operates a soft-pegged exchange rate regime, involving sterilizing interventions with new money, which tends to bring further pressure to the exchange rate, analysts have warned. (Colombo/Nov01/2018)

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