Rescuing the Rupee becomes high priority

The government is fighting hard to rescue the rupee which has hit the 200 mark , against the dollar. The key strategy is to delay payments on bonds and loans to be paid in foreign curacy until next year.

 

This move may help to repay foreign loans but ay bring down the level of confidence in the Sri Lankan economy. Approximately US$ 4.1 billion has to be repaid this year by the government to its lenders.

 

Meanwhile, according to treasury sources the government is shopping for long-term flexible loans. Sri Lanka’s foreign reserves have dropped to US$ 4.5 billion.