Sri Lanka meets quantitative targets under IMF program: CB Governor

Sept 28, 2009 (LBO) – Sri Lanka has met the key end-September quantitative targets under an International Monetary Fund program, Central Bank Governor Nivard Cabraal said. “We have met all the targets under the program,” Cabraal said.

A key target is a ceiling on reserve money or the narrowest supply of money made up of circulating cash and commercial bank deposits at the Central Bank through which final transactions in the economy is passed through.

The IMF program has a reserve money target of 280.37 billion rupees for September 30. Reserve money reached 284.2 billion on September 24, with cash generated by purchases of dollars by the Central Bank.

The Sri Lanka rupee strengthened to 114.45/50 against the greenback briefly in late afternoon trade Friday after a state name that usually represents the monetary authority went off the market, after starting the day at the usual 114.80/83 dealers said.

Dollar purchases by the monetary authority increases reserve money, forcing it to sterilize them by selling Treasury securities in its portfolio.

But the rupee moved back up to the pegged rate of 114.80 before markets closed.

“It was slight aberra