Sri Lanka’s rupee depreciates 3.2 percent
November 23rd, 2011 - 5:24 pm ICT by IANSColombo, Nov 23 (IANS) Sri Lanka’s currency depreciated by about 3.2 percent Wednesday for the second successive day on new government policy, the island’s central bank said here.
The exchange rate saw the Sri Lankan rupee buying rate at Rs.112.99 and selling rate at Rs.114.88 against the US dollar after the central bank set the new lower currency rate through the Bank of Ceylon, reported Xinhua.
However, currency dealers speculate that the central bank spent around $15 million to defend the current depreciation as investors tried to sell off rupee denominated Treasury Bonds.
On Monday, Sri Lankan President Mahinda Rajapaksa outlined plans to let the rupee depreciate by 3 percent in a shock announcement that halted trading.
The decision was part of the country’s second post-war budget detailing government policy for 2012.
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Tags: bank of ceylon, budget, currency dealers, currency rate, depreciation, exchange rate, government policy, investors, mahinda rajapaksa, post war, president mahinda rajapaksa, s central, shock announcement, sri lanka, sri lankan president, sri lankan rupee, treasury bonds, xinhua