Rupee trading band to be set at 113.50/90

Sri Lanka’s Central Bank Governor on Wednesday said the rupee would not be allowed to depreciate any further after this week’s three per cent devaluation, and the Government would keep the trading band at 113.50/90 for now.

“This is all the depreciation we will allow,” Ajith Nivard Cabraal told Reuters. “The rupee had gone a little higher but we will keep it where we set it on Tuesday.”

The President on Monday order a three per cent devaluation during his 2012 Budget presentation, which shocked the market and froze trading until Tuesday, when the Central Bank gave a quote through a State bank.

It ordinarily controls the rupee exchange rate through two State banks, with one selling and the other buying.