Sri Lanka central bank lashes out at exporters engaging in policy debate

Dec 03, 2009 (LBO) – Sri Lanka’s central bank has lashed out at exporters who engaged in a policy debate on the island’s exchange rate saying they were “partisan” and were “driven by personal interests”, unlike its own stance which was “professional”. The Central Bank has been under fire for creating high inflation from 2004, driving domestic costs up and making the rupee ‘overvalued’ compared to major trading partners, including the United States, to whose currency Sri Lanka’s rupee is pegged.

Professional Decision

The monetary authority said its exchange rate policy was set after considering the overall impact on exports, imports, inflation, cost of living, debt, investment and consumption, internal and external balances and movement of major currencies.

“Accordingly, it is a carefully considered, professional decision which is taken in the interest of the entire country, unlike the partisan positions taken by some persons who are obviously driven by their own personal interests and individual preferences,” the Central Bank said in a statement.

The institution singled out two exporters, who were not named.

“Despite the vast majority of exporters being appreciative of the Central Bank’s strategy, a single exporter h