Sri Lanka rupee at 365 to TT dollar, guidance rate at 359.75

ECONOMYNEXT – Sri Lanka’s commercial banks quote the rupee at 365 against telegraphic transfers while the central bank set a daily guidance rate for interbank spot trade for 359.75 plus or minus 2.50 for March 17.

Banks could quote 2.50 rupees plus or minus under the new direction and the rate is set below the market rates.

The kerb rate has also eased after spiking last week.

The central bank stopped quoting day rates on January 23 when the rupee was floated with an interest rate correction after the soft peg collapsed, amid a war. In 2021 and the central bank also started enforcing a rate incompatible with the policy rate at around 203 to the US dollar.

Sri Lanka’s rates were hiked by new Governor Nandalal Weerasinghe which is expected to slow credit.

Commercial banks were quoting 355/365 for telegraphic transfer dollars on Tuesday flat from Friday.

The kerb rate was 360/395 to the US dollar.

In the secondary market bills and bonds were inactive, dealers said.

The three-month bill was quoted flat at 23.00/24.00 percent on Tuesday from Friday.

The 12-month bill was quoted at 24.00/24.90 on Tuesday, narrower from 24.00/25.00 percent on Friday.

A bond maturing on 01.05.2027 was quoted at 22.00/22.60 percent on Monday, narrower from 22.15/22.75 percent on Friday. (Colombo/May17/2022 – corrected guidance rate 359.75)