The Sri Lankan rupee continued its slide to a record low for a twelfth straight session on Wednesday, as the government stated it would not intervene in the foreign exchange markets.
“Until the dollar rally is over, we will see the same trend of depreciation (in the rupee),” a dealer who requested anonymity told Reuters.
“The regional currencies are also in a falling trend with oil prices on the rise. It makes sense for exporters to hold in dollars until the rupee touches the bottom.”
In response to the slide junior finance minister Eran Wickremaratne confirmed that Colombo would not intervene in the foreign exchange market. “We will not intervene,” he told Reuters. “We have left it to the market. We will just do the right policy and let it sort itself. Never panic about it.”
The rupee has fallen by 0.5 percent this month and is down 5.8 percent this year.