Sri Lankan Rupee Becomes Asia’s Worst Currency This Month as Dollar Buying Deepens Slide
Updated
Updated · Bloomberg · May 20
Sri Lankan Rupee Becomes Asia’s Worst Currency This Month as Dollar Buying Deepens Slide
1 articles · Updated · Bloomberg · May 20
Sri Lanka’s rupee has become Asia’s worst-performing currency this month, with Deputy Finance Minister Anil Jayantha Fernando saying the latest drop has accelerated.
Speculation of further weakness is driving the move: importers are buying more dollars, while exporters are delaying conversion of foreign-currency earnings.
Fernando also cited outflows from government securities and the stock market, adding pressure on the currency.
The slide points to broader stress in Sri Lanka’s financial markets as capital leaves local assets and demand for dollars rises.
Is speculation sinking the rupee, or is it a symptom of deeper institutional rot and external economic shocks?
With 17 IMF bailouts, is Sri Lanka trapped in a cycle where the supposed cure perpetuates the economic disease?