Sri Lanka will strengthen rupee to 130 to the US dollar: Finance Minister
COLOMBO (EconomyNext) – Sri Lanka will strengthen the rupee to 130 to the US dollar in two weeks from the current 133.90 to the US dollar Finance Minister Ravi Karunanayake told parliament.
Karunanayake said when the new administration came to power the rupee was 133.20 to the US dollar but it was now at 133.90 to the US dollar.
"Within two weeks we will reduce this to 130," Karunanayake told parliament Tuesday.
"Enough dollars are coming to the country. Investments are starting to come to the country."
The rupee had come under pressure from rising credit from the last quarter of 2014, but the Central Bank poured liquidity into the money market by not rolling over term reverse repo transaction and also cut rates in April.
Analysts had warned that low interest rates in the middle of rising state current spending and recovering private credit would put pressure on the US dollars.
Foreign investors in rupee Treasuries have been selling out over the past month adding to pressure on current transaction coming from low interest rates and rising credit. Over the week selling has increased.