Sri Lanka central bank to announce dollar/rupee trading band

ECONOMYNEXT – Sri Lanka’s central bank will announce a daily trading band for the rupee dollar exchange rate to prevent high off market premiums being charged from importers by exporters and stabilize volatility, Central Bank Governor Nandalal Weerasinghe said.

“The band will be based on the previous day’s price and a plus or minus margin,” Governor Weerasinghe told reporters in Colombo.

Exporters were asking banks to sell part of the dollars to third parties at higher prices, which is against regulations, he said.

Dollars were being used for non-essential imports like refrigerators with exporters instructing banks to sell dollars to third parties, he said.

The trading band will help establish a more transparent price for exporters and importers. (Colombo/May10/2022)