According to State Minister of Finance Ranjith Siyambalapitiya, the recent depreciation of the Sri Lankan Rupee is a temporary fluctuation caused by changes in demand and supply.
He mentioned that the Government has allowed the value of the US Dollar and the rupee to be determined based on market conditions. The situation was influenced by the need for banks to collect enough dollars to provide for depositors who invested in Sri Lanka’s Development Bonds.
As a result, banks may limit the release of dollars to the market temporarily. Siyambalapitiya emphasized that this is a temporary situation and not a long-term trend.