Exchange rates ‘determined based on supply, demand’

COLOMBO: State Minister of Finance Ranjith Siyambalapitiya has attributed the depreciation of the Sri Lankan Rupee to the relaxation of import restrictions.

Urging people not to panic over the matter, the State Minister assured that the Central Bank of Sri Lanka (CBSL) will work to manage the situation.

With the Sri Lankan Rupee further depreciating against the US Dollar on Thursday, the official buying rate was reported at Rs. 311.60, while the selling rate stood at Rs. 328.92.

The selling rate of the US Dollar soared to Rs. 335.00 at licensed commercial banks Thursday morning, with the buying rate having jumped to Rs. 315.00.

Siyambalapitiya explained that the exchange rates are determined based on supply and demand.

“There is nothing to worry about. The CBSL has already bought USD 03 billion. That is why the exchange rates are at their current position. Otherwise, the USD would have appreciated further (against the rupee).”