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Pressure on exchange rate easing, kerb premiums falling says Governor

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ECONOMYNEXTPressure on the exchange rate is easing with higher interest rates and a slowdown in credit with kerb premiums also falling, Central Bank Governor Nandalal Weerasinghe said on Thursday.

“We are seeing the pressure on the rupee easing as a result of exports growing and imports contracting and we hope that trend will continue,” Weerasinghe said at a policy review meeting.

“On the foreign remittances side, the severe shortage of forex has settled to a certain extent,” he said.

For the first five months of 2022 Sri Lanka has earned 1.33 billion dollars in remittances. Import expenditure for the period stood at 8.7 billion dollars. Forex inflows, mainly remittances, have helped pay for the import expenditure of key commodities, Weerasinghe said.

“We are especially able to allocate forex for the purchase of fuel, gas, and medicine. The import cost has reduced and export income is at a sizable level,” he said. “We are able to facilitate the purchase of basic needs of the country even without going for short term loans. That is a positive sign when compared with previous policy decision making. There is very little intervention by [the central bank].”

According to central bank data, Sri Lanka’s trade deficit has narrowed to 3.5 billion dollars in the first half of 2022 compared to 4.3 billion dollars a year earlier as import expenditure slowed.Exports earnings for the month of July was 1.15 billion dollars while the import expenditure was 1.25 billion dollars.

Central bank officials said the gap between the black-market premium and the banks have reduced for forex. The bank is quoting the US dollar at around 360 under a guidance peg whereas commercial banks were selling at around 370.However, the central bank will continue to monitor dollar earning exporters to ensure the repatriation of dollars into the country to further improve the situation, they said.



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Sun directly overhead Kalpitiya, Talawa, Sinharagama, Galkadawala, Nachchaduwa, Padikaramaduwa, Gomarankalla and Verugal about 12.10 noon today (01)

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The sun is going to be directly over the latitudes of  Sri Lanka from 28th of August to 07th of  September due to its apparent southward relative motion.

The nearest places of Sri Lanka over which the sun is overhead today (01) are Kalpitiya, Talawa, Sinharagama, Galkadawala,
Nachchaduwa, Padikaramaduwa, Gomarankalla and Verugal about 12.10 noon.

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SJB asks what Speaker intended to do about allegations against CJ

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… stresses need for action if claims were proved false

Samagi Jana Balawegaya (SJB) MP Dayasiri Jayasekera has sought a clarification from Speaker Dr. Jagath Wickremaratne regarding several allegations against Chief Justice Preethi Padman Surasena, in Parliament, recently.

In a letter dated 31 August, Jayasekera has asked the Speaker whether he received any documentary evidence from MPs in support of the allegations at issue. The SJB MP has also inquired about the steps taken by the Speaker regarding the allegations and whether the issue had been taken up with the relevant agencies authorised to probe the assets of the CJ and members of his family.

MP Jayasekera confirmed that he had raised the issue with the Speaker, following the accusations relating to the high profile X-Press Pearl case, which received significant public attention in the recent past.

The Kurunegala District MP has also asked the Speaker whether the latter contemplated taking action in case the allegations were proved false to ensure that the dignity of the Chief Justice and the judiciary was safeguarded.

Among the issues raised by MP Jayasekera are the acquisition of valuable property in Colombo by the CJ’s son, the circumstances in which he was able to procure the property, as well as accusations regarding the CJ’s birth certificate, marriage certificate and birth certificates of his children.

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Navy Chief attends strategic-level discussions in Delhi

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Navy Chief Vice Admiral Damian Fernando held a series of strategic-level discussions with senior Indian defence and military officials during a three-day official visit to New Delhi. He returned on Sunday (30).

Navy Headquarters said that the two sides discussed ways to further strengthen maritime security cooperation between the two Navies in support of security in the Indian Ocean region. They also exchanged views on expanding training opportunities and capacity-building programmes, as well as other areas of bilateral importance.

During his visit to New Delhi, Vice Admiral Fernando also held official discussions with India’s Chief of Defence Staff, General N.S. Raja Subramani, Defence Secretary Rajesh Kumar Singh and Vice Chief of the Air Staff, Air Marshal Ashutosh Dixit and defence industry representatives. Discussions at these meetings focused on bilateral defence cooperation, joint training programmes, and opportunities to enhance air and maritime cooperation in the Indian Ocean Region.

As part of efforts to further expand cooperation in naval training and professional development, Vice Admiral Fernando also met Vice Admiral Sameer Saxena, Flag Officer Commanding-in-Chief of India’s Southern Naval Command, at its headquarters in Kochi, Kerala. The two sides discussed existing naval training exchange programmes and opportunities for introducing and expanding further training initiatives. The meeting followed the Commander of the Sri Lanka Navy’s visit to INS Dronacharya, the Indian Navy’s training establishment where he previously completed the Long Gunnery and Missile Course.

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