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Improved worker remittances, reduction of trade deficit, low import volumes along with the extension of external debt repayment suspension, have created a surplus of foreign exchange among commercial banks. Also, the expectation of reaching the IMF rescue package by March has caused the LKR appreciate.
Poll was conducted during the two-day rally while LKR appreciated from 360 to 346 per USD. The majority expected USD /LKR to settle between 350 to 370 by end of March. But this momentum has broken the phycological barrier of Rs. 350. CBSL’s middle rate guidance was LKR 353 but allowed LKR to appreciate further by LKR 7.50 against USD.