• Close monitoring of developments in domestic forex market

The Central Bank of Sri Lanka has devalued the rupee against the US dollar to Rs.230 with immediate effect, the bank announced yesterday. 

“The Central Bank is of the view that forex transactions would take place at levels which are not more than Rs. 230 per US dollar and will closely monitor developments in domestic forex market,” the bank said in a statement.
The statement as follows: 

Policy package to support greater macroeconomic stability: Allowing flexibility in the exchange rate 
Considering the severity of the external shocks and recent developments in the domestic front, the Monetary Board of the Central Bank of Sri Lanka announced a comprehensive policy package on 04 March 2022 with the view to counter such economic headwinds. 

The Central Bank also indicated that it will continue to closely monitor the emerging macroeconomic and financial market developments, both globally and domestically.