The Central Bank of Sri Lanka Moves Towards a More Flexible Exchange Rate with the Ceylon Chamber of Commerce.

The Ceylon Chamber of Commerce praises the Governor and his team at the Central Bank of Sri Lanka for allowing more flexibility in the exchange rate. This move has been suggested by the Ceylon Chamber, on its own and together with other chambers on many occasions in the recent past. Therefore, the Chamber is happy to note this statement by CBSL and trusts that it will help considerably to relieve the scarcity of dollars presently experienced.

This, together with the action to grow the extra inducement provided to migrant workers should assist in attracting additional remittances from this category, overturning the severe decline in inflows witnessed from this source in current months. Additionally, a more market-aligned exchange rate will also permit both tourism and export branches to become more competitive while safeguarding their margins against soaring costs. Further, it should also avert irrelevant imports relieving the demand on foreign currency reserves. 

Simultaneously, the Ceylon Chamber of Commerce hopes that the Government will positively think about the other suggestions made by Joint Chambers like submitting market-driven pricing for fuel, gas, as well as electricity, starting a preventive debt reforming procedure, and engagement with IMF.