Business
Reserve Bank of India sells $13 billion in August to hold the Rupee at 80
BY S VENKAT NARAYAN
Our Special Correspondent
NEW DELHI, 17: The Reserve Bank of India (RBI) is estimated to have sold about $13 billion in the spot market in August to defend the rupee from falling further against the US dollar, The Economic Times has reported quoting top dealers who cited the depletion in the country’s forex reserves.This is the highest monthly currency market intervention so far in 2022-23 as the central bank is said to be defending the psychological mark of 80. Foreign exchange reserves plunged by nearly $21 billion to $553.1 billion in five consecutive weeks between July 29 and September 2, latest data from RBI show. A stable exchange rate is quintessential for foreign portfolio investors who are flocking back to India, experts said.
“If India wants to be a destination of choice for overseas investors, we need to have a stable exchange rate. Also, higher oil prices and a falling rupee will only stoke inflation fear in a country, which is now aiming for higher economic growth,” said Bhaskar Panda, Executive Vice President at the National Stock Exchange (NSE). “Such a combination of factors including global volatility may have prompted the central bank to stabilise US$-INR in the currency market,” he added.
The RBI did not comment on the matter. On record, the central bank always denies protecting at any level but acts to dampen high volatility.Panda said the forex reserves depletion “can well be replenished once India is included in the global bond index.”
“The RBI is clearly protecting the 80 level as we could see aggressive dollar selling over the past one month,” a chief currency dealer at a large bank said on condition of anonymity. The rupee plunged to a lifetime low of 80.13 against the US dollar on August 29.
A majority of India’s foreign exchange reserves is held in US dollar-denominated currency while the rest comes from investment in non-dollar assets. Out of $21 billion forex reserves’ depletion between July 29 and September 2, a chunk of $7 billion can be attributed to the devaluation of non-dollar assets, internal estimates show.
During the period, the dollar index, which measures the US unit against other major currencies, gained 3.6%. The remaining over $13 billion the central bank had likely sold in the spot market, cutting the rupee’s wild move while draining India’s US dollar stock, dealers said. “RBI’s intervention intensified since July end as we observed,” said Amit Pabari, founder and managing director of CR Forex, a Mumbai-based foreign exchange firm.
“The central bank is clearly defending the psychological level at 80 as it triggers more panic than actual reality.” He said the forex reserves depletion “can well be replenished once India is included in the global bond index”.
While a part of the rupee outperformance is attributed to speculation of Indian government bonds in the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) index, it now turns out that the interventions also helped, banking insiders said.
In a related development, Chief Economic Advisor V Anantha Nageswaran said on Tuesday that India is not defending the rupee. The RBI is taking steps to ensure that the movement of the rupee is gradual and in line with market trends, he added.
“India is not defending the rupee… I don’t think Indian fundamentals are such that we need to defend the rupee. The rupee can take care of itself,” he said at an event in New Delhi.
“The RBI is making sure that whatever direction the rupee is moving in line with the market trends is just gradual and doesn’t impose burdens either on the importers or the exporters,” Nageswaran added.
On declining foreign exchange reserves, he said, “Global risk aversion prevents capital from coming in. Naturally that is what (foreign) reserves are meant for.”
The fall in the reserves during the reporting week ended August 26 was on account of a dip in the foreign currency assets (FCA), a major component of the overall reserves, and the gold reserves, according to the Weekly Statistical Supplement released by the RBI on September 2.
Business
SLT-MOBITEL driving Sri Lanka’s economic resilience through digital infrastructure
Corporate accolades underscore the alignment between its operational excellence and national development
In an era where national competitiveness is intrinsically tied to digital connectivity, strengthening the country’s digital backbone has become an urgent priority. Within this context, the evolving role of Sri Lanka’s leading telecommunications provider, SLT-MOBITEL, offers valuable insight into how technological infrastructure can underpin broader economic resilience.
Telecommunications and digital networks are foundational to economic transformation. By expanding high-speed broadband access, upgrading enterprise cloud capabilities, and bridging the urban-rural connectivity divide, SLT-MOBITEL helps reduce business transaction costs, streamline supply chains, and enable micro, small, and medium enterprises to reach global markets.
Recent corporate accolades further underscore this alignment between operational excellence and national development. SLT-MOBITEL’s triple triumph at the National Business Excellence Awards 2026 – winning in the Infrastructure and Utilities sector, Performance Management, and ICT Services categories – highlights its growing impact. Notably, the recognition of eChannelling’s contributions to digital healthcare reflects a broader strategic pivot toward integrated technology solutions.
“Institutional efficiency of this nature is critical for attracting foreign direct investment, as global partners increasingly assess a country’s digital maturity and systemic stability before committing capital,” noted industry observers.
Moreover, the company’s transition from a conventional telecom utility to a comprehensive digital solutions provider aligns seamlessly with Sri Lanka’s national digitalisation agenda. As the country pursues public sector modernisation, enhanced e-governance, and a competitive knowledge economy, the private sector must step up to deliver secure, scalable, and future-ready networks. Investments in data centres, cybersecurity frameworks, and advanced ICT infrastructure act as strategic buffers, ensuring that Sri Lanka’s economic apparatus remains agile and resilient amid future global uncertainties.
However, industry experts caution that while these achievements are commendable, SLT-MOBITEL still has a considerable distance to cover in fully enabling a truly digital economy.
Business
Port City Colombo strengthens Gulf investment ties at Dubai diplomatic engagement
Port City Colombo (PCC) took a prominent role as Platinum Sponsor at the second edition of Sri Lanka Beyond Your Dreams, a high-level diplomatic and investment engagement hosted by the Consulate General of Sri Lanka in Dubai and the Northern Emirates. The event, held on 2nd September 2026 at the Hilton Dubai Al Habtoor City, brought together over 400 senior UAE-based business leaders, investors, diplomats, and institutional stakeholders, alongside Sri Lanka’s most senior government representatives.
The gathering was graced by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, as Guest of Honour, and Vijitha Herath, Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism. A high-level Sri Lankan delegation – including the Secretary to the Prime Minister, the Chairman of the Board of Investment, the Chairman of the Export Development Board, and the Director General of Commerce – underscored the government’s strong commitment to deepening economic diplomacy with the UAE.
In his keynote address, Minister Herath reaffirmed the centuries-old ties between Sri Lanka and the Arab region, emphasising the UAE’s vital role as a key economic partner. He stressed the urgency of finalising a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which would establish a robust framework to elevate trade, investment, and bilateral cooperation. Declaring Sri Lanka “open and ready for business,” he positioned Port City Colombo as the physical embodiment of this economic mission – a modern Special Economic Zone (SEZ) with a dedicated legal framework and competitive incentives, offering UAE investors a natural gateway to South Asia while maintaining strong Gulf connectivity.
Business
American Premium Water strikes Gold at Dragons of Sri Lanka 2026
American Premium Water has secured four wins at Dragons of Sri Lanka Awards 2026, including three Gold Dragons and one Black Dragon, marking a significant milestone for the brand following its relaunch last year.
Part of the prestigious Dragons of Asia awards, Dragons of Sri Lanka brings the program’s regional platform to the local market, celebrating creative and effective marketing communications, with entries evaluated on strategic thinking, creativity, execution and impact. Established in 2000, Dragons of Asia is one of Asia’s premier results-driven marketing awards programs.
For American Premium Water, the achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories. In the distinction of Gold Dragons, American Premium Water was recognized across three categories including Product Launch or Re Launch, Cause, Environment or Sustainability and Creative Excellence while the Black Dragon was awarded in recognition of Small Budget.
Competing alongside leading brands and agencies in Sri Lanka, American Premium Water’s four wins demonstrate the strength and effectiveness of its recent work. Winning three Gold Dragons across three distinct categories highlights the breadth of the brand’s achievements, while the Black Dragon for Small Budget further emphasizes its ability to create meaningful impact through focused and efficient investment.
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