Sri Lanka will place a maximum limit on dollar deposits of exporters in dollar accounts to reduce the gap between rupee and dollar deposit rates and rupee loans, Central Bank (CB) Governor W.D. Lakshman said.
“The aim is to impose these caps on export earnings that are held in foreign currency accounts,” he added.
There is a shortage of dollars in the money markets with the currency trading in the inter-bank market at Rs.207 and over.
With the increase in import expenditure outweighing the improvements observed in earnings from exports, the trade deficit continued to widen during the first half of 2021 over the corresponding period of last year.
Sri Lanka’s foreign reserves are expected to grow to the level of around US$4 billion from a current $2.8 billion with the realisation of the International Monetary Fund (IMF )’s $780 million in terms of Special Drawing Rights (SDR) and several other forex inflows, Prof. Lakshman said.
Addressing the CB’s monthly monetary policy review media conference conducted via zoom platform, he said that the government is expecting non- debt creating inflows to strengthen foreign reserves.
Prof. Lakshman revealed that CB officials are conducting discussions on IMF procedures including Article IV consultations which are expected to be concluded by the end of this year.
However as an immediate foreign financing, the country will receive the first tranche of the Bangladesh swap facility of $50 million within the next few days and the balance two tranches of $200 million later this month, Deputy Governor K. M .Mahinda Siriwardana disclosed.
He said that the IMF SDR was made available to all countries regardless of any conditions.
The China Development Bank and the Sri Lankan Government entered into an agreement to lend RMB 2 Billion (approx Rs. 61.5 Billion) Term Facility on Thursday.
The facility is to be used to support Sri Lanka’s COVID-19 response, economic revival, financial stability, and livelihood betterment.
The Judicial Service Commission (JSC) has interdicted Colombo Fort Magistrate Kosala Senadheera.
Mr. Ali Sabri Rahim, a Member of Parliament (MP) for Puttalam District whom an open warrant had been issued, attended a public ceremony at Al Aksha National School in Kalpitiya today (16) as the special guest of honor.
The Supreme Court today refused interim relief in an application filed by President’s Counsel Senaka Walgampaya seeking an Order from the Supreme Court compelling the President to appoint judges to fill the existing vacancies in the Court Of Appeal.
The deadline for online applications to the 2024 G.C.E. Advanced Level (A/L) Examination has been extended until July 12, the Department of Examinations said.
Gazette on new speed limit regulations to be issued within two weeks
Cabinet has approved a proposed amendment to the Constitution that a referendum would be required to extend the Presidential and Parliamentary term beyond five years.
Leave Comments