With the record depreciation of the Sri Lankan Rupee against the US Dollar last Friday (04 September) the prices of all imported good will increase while foreign earnings too would increase, point out economic analysts. This is likely to affect the prices of all imported goods to Sri Lanka, from food items to other products. However, the depreciation of the Rupee would increase the export earnings of all sectors. The Sri Lankan Rupee showed a significant depreciation against the US Dollar in the money market last Friday when the Central Bank allowed it to float without its intervention. At close of market last Friday (04 September) the Rupee stood at nearly Rs. 138 as against the Dollar. The Central Bank of Sri Lanka decided to stop its intervention in the foreign exchange market unless necessary.
