The decision to float the Sri Lanka Rupee should have been implemented in January last year, former Deputy Governor of the Central Bank of Sri Lanka (CBSL) W A Wijewardena said.
Speaking to local media, Wijewardena highlighted the impact on Sri Lanka by the decision taken by the CBSL authorities to hike the exchange rate.
“The decision to float the rupee was intended to be implemented 27 months ago, ie. in January 2020,” he pointed out.
Stating that there was a delay in implementing the decision, he said, however, it was not an incorrect decision.
The former CBSL Deputy Governor further pointed out that the dollar crisis had resulted in the large-scale trading of black money.
He said Rs. 260 was provided per US dollar in the black market and since being floated has in some cases surpassed the rate of Rs. 260.
Wijewardena said, as a result, several foreign investors who had refrained from investing their dollars in Sri Lanka have now commenced bringing in dollars to the country.
He said the Sri Lanka Rupee will stabilize between Rs. 250-255 as a result and this will help end the long queues for fuel and gas which was caused due to the shortage of US dollars.
The former CBSL Deputy Governor also pointed out, this will also result in a hike in prices in the local market.
The ongoing conflict between Ukraine and Russia will also contribute to this price hike, he added. (NewsWire)