Sri Lanka rupee stronger after state bank sales

COLOMBO (EconomyNext) – Sri Lanka’s rupee traded at 133.90 to the US dollar in the spot market after a long absence after a state bank sold forex at the official rate, which also strengthened the three month forward market, dealers said.

The sales by a state bank came as the Central Bank also re-imposed a 90 day limit for exporters to bring back dollars, by imposing a penal 500 basis point interest surcharge on export credit running over 90 days.

State banks are usually used by authorities to intervene.

The three months forward rate also fell to 136.50/80 to the US dollar, strengthening from Friday’s close of 137.70/80 rupees.

 

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