Rupee Appreciates Despite Pressures

COLOMBO (News 1st); The Sri Lanka rupee continued its appreciation trend observed since late 2023 into 2024, despite facing some depreciation pressures in May and June 2024.

Improved liquidity conditions in the domestic forex market during the first half of 2024, bolstered by higher forex inflows from workers’ remittances, increased services exports, and conversions of proceeds by merchandise exporters, have contributed to this trend. 

The rupee recorded an overall appreciation of 6.6% against the US dollar up to July 23, 2024. 

However, increased import payments and net outflows from the government securities market in May and June necessitated the Central Bank's intervention to supply foreign exchange to mitigate intraday fluctuations.