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Sri Lanka to strengthen rupee to 129 in next two weeks: Finance Minister

June 23, 2015 (LBO) – Sri Lanka’s Finance Minister Ravi Karunanayake says the government will strengthen the rupee to 129/130 against the US dollar in the coming two weeks.
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“When we tookover the government it was at 133.25 rupees to the US dollar and now it is at 133.

90 rupees,” Karunanayake told reporters Tuesday. “In two weeks we are bringing it to around 129 and 130 rupees. Large amount of dollars are coming into the country,” “The country has taken loans more than the sustainable level. So the best thing would be to strengthen the rupee against the US dollar by managing it properly.” Karunanayake said. The Finance Minister also compared the borrowings taken by the previous government for the first four months of last year against this year. “For the first four months of 2014, the government has collected over 830 billion rupees as net borrowings from external sources.” According to the Minister, 384 billion rupees was received from treasury bonds, 66 billion rupees from treasury bills and 47 billion rupees from Sri Lanka development bonds. 36 billion rupees has received through advances from central bank, 29 billion rupees from the bank over draft and 268 billion rupees from foreign loans, Karunanayake said.

Sri Lanka’s new administration has obtained 577 billion rupees net borrowings for the first four months to April 2015.
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Keith gurusingha
Keith gurusingha
8 years ago

Is it ethical or some perspective legal to reveal such a confidential information? People/Speculators could easily trade on the information that FM announced and benefit exponentially in two weeks.

Ishan
Ishan
8 years ago

that is the idea…speculators acting on this tip off will help to artificially fulfil the prophecy.

Abdullah
Abdullah
8 years ago

It would be wise to prop up the Sri Lankan Rupees to 100Rs to a dollar in the long run. This would reduce demand for dollars for imports , especially for vehicles and fuel. Sri Lanka needs to trade Sri Lankan rupees to Indian Rs, Chinese won, Malaysian Ringdit, Japanese Yen, New Zealand Dollar, South Korean Won DIrectly. Instead of using third party dollar. We need to do what China is doing in trade. Trade with local currency instead of US dollar. Passengers on flight can take dollars and any foreign currency but they cannot take Sri Lankan Rupees. How stupid is the policy. If Sri Lankan Rupees is truely floating then people should be able to take money abroad any amount. Capital controls should be removed.

boobon
boobon
8 years ago
Reply to  Abdullah

Study some economics putha; talk something possible. Even CNY is struggling to establish itself as an alternative to USD.. You say LKR? Where do you get these ideas from?

Christina Williams
Christina Williams
8 years ago
Reply to  Abdullah

In Singapore they actually accept Rupees if you take them. There are man vendors who directly accept LKR, it’s because the presence of many Sri Lankan’s in Singapore, and additionally we do a lot of business with Singapore, it’s not about having an estabilishing the Rupee, but if we can directly take LKR and directly conduct business with there currency, then interconnection and other intemediatrly wont be needed like a 3rd party Dollar. Currency pairs should always be dealt between two pairs, not an 3rd party.

ishan
ishan
8 years ago
Reply to  Abdullah

On the contrary a Rs100 dollar, is cheaper than a Rs130 dollar. So Imports will be cheaper, and demand for imports will rise.

Chan Wee
Chan Wee
8 years ago
Reply to  Abdullah

LOL , some serious key board warriors here not knowing an iota about FX markets.

US$ 1 = LKR 100 means in reverse LKR 1 = US$ 0.01
US$ 1 = LKR 130 means in reverse LKR 1 = US$ 0.0077

higher LKR value means imports are expensive for us and exports are cheap for USA or who ever buys in $$$. the populist idea of maintaining a low LKR : $ value is to say that the powers that be are supporting exporters. there are many ways to support exports. CHINA that many people qoute has been accused of substantial subsidies for producers and there are several cases in the WTO. But usa is not a saint; they too support the exporters in many ways. However the in international trade it is simply the size of the dog in the fight!!!
whether u like it or not US$ is the favored currency in international trade. it has been from the time Bretten Woods agreement decided to get rid of Gold Standard and float the $. if people think just becoz we deal with india, we can pay in INR they got to be high on something. every single thing we buy is paid for in $$ and a little bit in Yen. GBP & Euro.
BTW international trade is not people taking money on a foreign trip . That is ILLEGAL !!! ROFL

Ranga
Ranga
8 years ago

ayyo will they bring down the foreign reserves to nil at this rate? Is this current UNP a socialist party?

Eran
Eran
8 years ago

This statement is in direct contradiction the one just made by the CBSL government saying trying to forget the tide of the rising dollar globally is suicide.

It seems very shortsighted and bad economic policy to make statements like this unless they are very well thought out.

But what do we expect from the joker Ravi. In SL, we haven’t had a good finance minister in a very long time if not ever.

It is a shame when there have been so many distinguished Lankans in Finance who could have been brought in on the national list.

boobon
boobon
8 years ago

two weeks now. I am sure dollar is not at 129 yet

sanath
sanath
8 years ago

These people still selling crap to Sri Lankan’s, what a shame all these idiots should be flushed down the toilet. ,

Uzman Ali
Uzman Ali
8 years ago

Ravi almost an month and the rupee is not 129. Perhaps when you state something it’s rather better to show for it

BKVWHK
BKVWHK
8 years ago

Ha ha. Good one.

Leo
Leo
8 years ago

Dollars coming into your election work? that we already know.

Wasalaya
Wasalaya
8 years ago

Do anything you like with dollar and thieve as much as you like. But Do Not attempt divide the country

Sas
Sas
8 years ago
Reply to  Wasalaya

LOL the MR …camp! Stay on topic without spewing lies

Wasalaya
Wasalaya
8 years ago
Reply to  Sas

Camp?? yep, if you a traitor, twisted minded, mentally sick and does not believe in a family and loves Arthur instead of Martha your hero is in.

karaliya
karaliya
8 years ago
Reply to  Wasalaya

Do you have some mental problems??????O.o

Sas
Sas
8 years ago
Reply to  Wasalaya

The only traitor here is you!
Spewing lies and nonsense and selling the country to keep your dear king in power!
Disgusting!

regretVotingForRavi
regretVotingForRavi
8 years ago

rupee at 142!! ravi and his flip floppign policies!!

BKVWHK
BKVWHK
8 years ago

Join the club

Tilak
Tilak
8 years ago

The country has around 8 trillion LKR debt (Foreign+Local).The ER is affected by the amounts needed to service the foreign component of the debt at a time of lower exports & capital outflows.The present FM was in employment only for 8 months & he clearly cannot borrow this amount within a period of 8 months.(If so he did we must have cart loads of cash @ our homes or at the treasury). SL’s modal that was used & suitable @ that time(of course with risk of occurring what SL is facing today) to keep the rupee below the market value based on foreign borrowings @ a time when plenty of cheap droller was available to be borrowed since 2008 global financial crisis due to lower rates & QE in developed economies)..The present global realignment(Risk materialize)of financial markets too is creating pressure on EM currencies including SL @ a time a huge foreign debt created by the above said model remained to be re paid.(realignment caused by expected US rate hike,China & EM’s growth slowdown, China currency devaluation & pick up of the developed economies leading to capital out flow from our regions to the developed world).Thus let us get to gather and face this real threat rather than hitting a “muwahama” since this is potent & fairly serious stuff.

perumal
perumal
8 years ago

2 weeks , hahah, look at the rupee now

Navin Karunatilaka
Navin Karunatilaka
8 years ago

What a joke this has turned out to be like so many statements of this government

Chanakya
Chanakya
8 years ago

Ravi is going to turn exchange rate into sathosa

BKVWHK
BKVWHK
8 years ago
Reply to  Chanakya

Speaking of Sathoisa may be it should be sold to Cargills or Keells if they want it

Ranga Botheju
Ranga Botheju
8 years ago

I don’t think arjuna mahendran is fit for the job

anon
anon
8 years ago
Reply to  Ranga Botheju

Can we know *why* you think he is not fit for the job, please?

His cv, looks impressive – both educational, and work. His reputation amongst respected economists / investment bankers is also sound. So, wonder what the other take is.

perumal
perumal
8 years ago

so now again ravi promising to bring the dollar back to 130 in 90 days. what a joke.
Fool me once, shame on you; fool me twice, shame on me

Nimal Fonseka
Nimal Fonseka
8 years ago

So hes now stating rupee will be at 130 in 90 days.

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