COLOMBO, May 22 (Xinhua) -- The Sri Lankan government and Central Bank of Sri Lanka are taking targeted monetary and fiscal measures to stabilize the rupee, a minister told parliament on Thursday, urging businesses to curb expensive, non-essential imports.
Deputy Minister of Economic Development Nishantha Jayaweera said Sri Lanka expects nearly 1 billion U.S. dollars in foreign funding to help stabilize the rupee.
Jayaweera said the Central Bank of Sri Lanka expects about 700 million dollars from the International Monetary Fund and another 250 million to 300 million dollars from the Asian Development Bank and the World Bank.
Jayaweera urged importers not to panic and bring in large stocks of goods, warning that they could face losses once the rupee stabilizes.
He also called on the business community to help reduce demand for foreign currency by limiting non-essential and luxury imports, supporting local production and sourcing raw materials locally where possible.
Since the beginning of the Middle East conflicts in late February, the Sri Lankan rupee has been under sustained depreciation pressure, driven by elevated fossil fuel prices and other factors. ■
