May 24, Colombo (LNW): Minister Bimal Ratnayake has expressed optimism over the future performance of the Sri Lankan Rupee, stating that the value of the US dollar is likely to weaken further as economic confidence gradually returns and foreign inflows improve.
Addressing a public gathering, the Minister said recent fluctuations in the exchange rate should not be viewed with alarm, arguing that certain opposition politicians had attempted to exploit the temporary rise of the dollar for political advantage. He criticised what he described as efforts to create unnecessary fear among the public when the currency briefly crossed the Rs. 340 mark.
Ratnayake pointed out that the dollar had already begun to retreat in the local market, noting that the exchange rate had fallen to around Rs. 334 in recent trading. He added that the Government expects the Rupee to strengthen further over the coming weeks if current economic trends continue.
The Minister also highlighted the anticipated release of approximately US$ 700 million from the International Monetary Fund, saying the funds would provide an additional boost to Sri Lanka’s foreign reserves and help improve overall market stability. He suggested that continued cooperation with international financial institutions was playing a key role in rebuilding investor confidence.
Defending the administration’s economic strategy, Ratnayake maintained that the country’s recovery programme was progressing steadily despite criticism from political rivals. He insisted that measures introduced to stabilise public finances and restore economic discipline were beginning to show positive results, particularly in the areas of currency management and external sector performance.
Economic analysts have meanwhile noted that exchange rate movements in the coming months are likely to depend on foreign inflows, import demand and broader global market conditions, although confidence surrounding IMF-backed reforms has contributed to improved market sentiment in recent weeks.
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