Rupee Gains Ground as CBSL Tightens Export Conversion Rules 📈

• Overall Movement: The Sri Lankan rupee opened the week stronger against the US dollar in the spot market yesterday. The USD/LKR spot rate closed at Rs. 333.00/334.50, appreciating from Friday's close of Rs. 335.50/336.00. • Policy Impact: This upward momentum follows a sharp appreciation last Wednesday driven by a Central Bank of Sri Lanka (CBSL) policy change. The CBSL reduced the mandatory timeline for exporters to convert export proceeds into rupees from 90 days down to 30 days. • Weekly Trend: • Early Last Week: The currency initially faced pressure, weakening to Rs. 337.00/337.75 by Tuesday's close. • Post-Announcement: Following the CBSL directive, the rupee rallied strongly on Wednesday to hit Rs. 332.25/333.00 before stabilizing at its current stronger position.