Sri Lanka rupee peg weakens slightly

Winner of the iPhone X promotion Dulvin Witharane receiving his gift from Tilan Wijeyesekera, Deputy General Manager – Retail Banking and Dinesh Jebamani, Chief Manager – Liability Products and New Age Media

Nov 18, 2011 (LBO) – Sri Lanka’s currency weakened to 20 cents to 110.40 rupees to the US dollar in the spot market Friday, with market quotes at 110.35/40 rupees dealers said. The central bank has been intervening steadily in forex markets.

The rupee had come under some pressure over the past few months with high domestic credit growth.

In the past few months interest rates have edged up which analysts say will help reduce pressure on the exchange rate and re-balance demand.