CBSL: Sri Lankan Rupee Is Getting Stable

The Central Bank of Sri Lanka (CBSL) says the Value of the Sri Lankan rupee is getting stable. The main reason is the increase of foreign remittances and increasing demand from the foreign investors. There is much debate on whether the exchange rate should appreciate or depreciate due to its impact on economic activity.

Although there are pros and cons of depreciation of the exchange rate, the popular sentiment is against the depreciation of the exchange rate. Opponents of depreciation highlight that any depreciation of the Sri Lankan rupee will increase the value of the country’s stock of foreign debt in terms of Sri Lankan rupees while increasing the domestic price of imported goods and services.

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