The Central Bank of Sri Lanka (CBSL) has announced that it will stand ready to take further measures as appropriate, with the aim of achieving stability in the external and financial sectors.
CBSL Governor Ajith Nivard Cabraal told reporters at the post-Monetary Policy Review media briefing held on Friday that the measures will be taken to support real economic activity on a sustained basis.
“We have paid attention to adjusting the exchange rate. However, the stand of both the Monetary Board and the Central Bank is that given the current economic conditions, the existing rate is the most appropriate,” he said.
Cabraal further said that the Central Bank will intervene and make prompt adjustments subject to certain changes in future economic conditions.
“There are different outcomes from each policy decision and certain experts can argue on the delay in the Central Bank implementing such policies. We know what should be done. But before taking such a decisive measure, the Monetary Board will have a lengthy discussion on the ramifications to the entire economy. We are closely monitoring the situation and will make adjustments after deliberate forecasts of the present, future, and overall economic objectives of the country,” he explained.
The official exchange rate has been effectively pegged to the dollar at a maximum of Rs. 203 since late last year. (NewsWire)