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Friday USD rate 265/75

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ECONOMYNEXT – Sri Lanka’s rupee was quoted at 265/275 to the US dollar in mid-morning trade Friday slightly narrower after opening at 260/280 dealers said as banks cautiously sought to establish a market-clearing price after a floating exchange rate was permitted.

The rupee closed at 255/265 to the US dollar on Thursday.

On Friday there is a substantial supply of dollars at slightly higher rates, market participants said.

The highest deal done was around 265 to the US dollar, but there was some interbank trading in Thursday with some exporters having started to convert, market participants said.

Economists have called for a rate hike to slow aggregate demand and help support the rupee and also contain inflation.

A higher rate helps the currency bounce back after a float and discourages rupee borrowing to hold dollars, an analyst explained. He said the rupee is under pressure due to liquidity injections made to enforce low-interest rates.

East Asia and South Asian nations like Nepal (1.6) and Bhutan (1-1) has maintained pegs with the Indian rupee for over 70 years. The Maldives also has a fairly credible peg with the US dollar.

“Countries that float cleanly with an inflation target (reserve money determined by inflation) and do not intervene in forex markets also have strong currencies,” the analyst said. “However intermediate regimes which are neither fixed nor floating get into trouble by printing money to manipulate rates and have to steeply depreciate to avoid forex shortages, resulting in social unrest.”

In a floating exchange rate, there is no intervention and no requirement to sterilize interventions with newly printed money, helping stabilize the currency.



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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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