Aggressive US dollar buying by the Central Bank of Sri Lanka (CBSL) from the market to shore up the country’s parlous foreign reserves, negated somewhat by ‘avurudu’ inflows saw the benchmark ‘spot’ falling for the second consecutive market day to yesterday, this time albeit mildly, by between 0.31 per cent and 0.62 per cent (Rs one) to Rs 327/328 to the dollar in two way quotes today (Wednesday 29 March), market sources who didn’t want to be named told ‘BMD.’
Year on year (YoY) to today the ‘spot’ has weakened by between 3.81 per cent to 0.92 per cent (Rs 12- Rs three) to the dollar in two way quotes, thereby causing cost-push inflationary pressure as Sri Lanka is an import dependent economy.
Further, CBSL steeply weakened the official ‘spot’ by 0.84 per cent (Rs 2.69) to Rs 322.67 to the dollar today, whereas a year ago then CBSL Governor Ajith Nivard Cabraal kept the administered (official) ‘spot’ unchanged at Rs 294.98 to the dollar, nonetheless, resulting in a YoY weakening of the official ‘spot’ by 9.39 per cent (Rs 27.60) to the dollar to today.
However a year ago the market ‘spot’ March 29 2022 over March 28 2022, sharply weakened’ by between 2.35 per cent to 5.52 per cent (Rs seven-Rs 17) to the dollar to Rs 315/325 to the dollar in two way quotes, records also showed.