📈 Customs Valuation Rate Distorts FX Market with Rs. 351 USD Rate

Sri Lanka Customs has maintained its USD exchange rate for import valuations at Rs. 351.17 for the week of 25–29 May, despite a recent recovery of the Sri Lankan rupee in the interbank market. • Market Mismatch: The applied Customs rate remains significantly higher than current commercial and interbank market rates. This comes after the Central Bank of Sri Lanka (CBSL) announced that the foreign exchange market had stabilized due to recent liquidity injections and measures to curb panic-driven distortions. • Economic Concerns: The Free Lawyers Organisation has questioned the mismatch, warning that using this inflated valuation rate artificially raises import costs. • Consumer Impact: Legal and civil representatives highlight that these inflated costs will eventually feed through to consumer prices, driving up inflation. • The Call to Action: Authorities, including President’s Counsel Maithri Gunaratne, have called on the CBSL to directly align the periodic Customs exchange rate with actual prevailing market rates to protect consumers and prevent revenue-collection practices from worsening FX market volatility.