Sri Lankan Rupee closed firmer on 9th of March as banks sold Dollars to buy Rupees on hopes of a rise in interest rates due to Government’s high domestic borrowing that has resulted in a high budget deficit.The Rupee closed at 114.05/10 per Dollar, compared with Monday’s 114.15/18, as Banks bought the local currency to cover short positions amid tight liquidity in the market. The Central Bank has already announced that it will relax its controls on foreign exchange with effect from March 11, aiming to improve investor confidence.
Meanwhile, the Colombo Bourse is still up 12.5 percent so far this year, following a 125 percent rally in 2009, becoming one of the best performers in Asia.
Courtesy: Government Information Department
