Siyambalapitiya eases concerns over rupee depreciation

Friday, 16 June 2023 00:40 - - {{hitsCtrl.values.hits}}

Calls on public not to panic over strengthening of dollar
Explains rationale for exchange rate fluctuation
Says CBSL has purchased $ 3 b from market

State Finance Minister Ranjith Siyambalapitiya

State Finance Minister Ranjith Siyambalapitiya yesterday attempted to ease concerns over the rapid depreciation of the rupee against the dollar.

He stressed that there is no reason to panic over the strengthening of the dollar against the rupee, pointing out that the exchange rate is determined by the demand and supply.

“During a week when imports increase, the demand for the dollar inadvertently increase which results in the depreciation of the rupee,” he explained.

Siyambalapitiya noted that similarly when imports reduce during a week, the demand for the dollar reduces which results in the rupee’s appreciation.

“There is no need to panic since the Government is managing the economy and the Central Bank has already purchased $ 3 billion foreign currency from the market,” the State Minister added.

Rupee slips

Economy shrinks by 11.5% in 1Q