Dollar dips below Rs. 300 mark

For the first time after more than one year the Sri Lankan rupee appreciated against the US dollar coming down below the Rs. 300 mark.

According to the Central Bank yesterday’s buying rate was Rs.299.21 while the selling rate was Rs. 312.37. The LKR has strengthened by more than 10% against the US Dollar since the start of March. According to Fitch Ratings, this comes after mainland China gave assurances that it will support Sri Lanka’s debt restructuring and the Central Bank of Sri Lanka (CBSL). In addition the decision to float the rupee, the IMF Extended Fund Facility (EFF) and increase of foreign reserves has also contributed to this.

Higher number of foreign remittances channeled to Sri Lanka via official banking channels along with higher revenue generation through increase of tourist arrivals also helped to strengthen the rupee.