Last year Sri Lanka exported 10.07 billion US dollars of goods. This year 13 billion dollars are expected Central Bank Governor W D Lakshman said earlier in February.
Sri Lanka’s forex reserves had fallen to 4.8 billion US dollars by January and money printing was putting pressure on the island’s soft-peg with the US dollar as domestic credit gradually recovered from a Coronavirus lockdown and printed money ended up in forex markets.
Any dollar bought by a pegged central bank by-passes the forex market, creates more liquidity and adds to loanable reserves of the banking system.
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