The ongoing depreciation of the Sri Lankan rupee against the US dollar can be managed through planned financial inflows and policy measures, according to Minister Vijitha Herath.
Speaking at the weekly Cabinet media briefing held today (19), Minister Vijitha Herath said expected foreign currency inflows from international financial institutions, along with import controls, would help stabilise the situation.
He noted that the weakening rupee could lead to higher prices for imported goods, creating potential inflationary pressure across the economy.
However, the Minister said the government expects around US$ 700 million from the International Monetary Fund (IMF) in the near future, along with a further US$ 200 million from the Asian Development Bank (ADB).
“These inflows will bring additional foreign exchange into the country. At the same time, import restrictions will help reduce dollar outflows. Export earnings are also expected to improve due to exchange rate movements,” he said.
Minister Vijitha Herath added that, taking these factors into account, the government believes the situation can be effectively managed going forward.
