FINANCIAL CHRONICLE – Sri Lanka’s Central Bank will intervene in the foreign exchange market to ease day-to-day volatility but will stick to the flexible exchange rate as per the current inflation-targeting monetary policy framework, Governor Nandalal Weerasinghe said.
The rupee has depreciated 1.6 percent since the start of the conflict in the Middle East.
“It is short term volatility. We will manage it,” Weerasinghe told reporters at a media briefing on Wednesday.
“We always say it is a flexible exchange rate regime. The exchange rate will reflect demand and supply. We will only intervene to manage excess volatility on a day-to-day basis.”
The Central Bank has been buying U.S. dollars from the market to boost foreign currency reserves. It has already bought around US$700 million in the first two months of this year. (Colombo/March 25/2026)
