The Sri Lankan rupee weakened to its lowest level in three years and became the weakest currency in Asia in May, as soaring oil prices weighed on the economy.
On May 21, 2569 at 13.42:XNUMX a.m., Bloomberg News reported that The Sri Lankan rupee weakened to its lowest level in three years on Thursday, becoming the weakest currency in Asia. Following the rise in oil prices, which put pressure on the country's economy and financial markets.
Information from Bloomberg specify that The Sri Lankan rupee depreciated by 2.5% to 342.62 rupees per dollar, its weakest level since March 2566. Since the start of the Iran-Iran conflict in late February, the rupee has weakened by more than 10% against the US dollar.
Rain Yin, Director from S&P Global Ratings. said The weakening of the rupee reflects pressure on the economy and policy constraints imposed by the Sri Lankan government. However, she believes the currency's weakness has not yet immediately impacted the country's credit rating.
side Mr. Anil Jayantha Fernando, Minister of State for Finance and Planning of Sri Lanka. It was revealed to parliament in Colombo earlier this week that... The rupee's depreciation was intensified by speculation that the currency would continue to weaken.
The Sri Lankan government has attempted to curb the depreciation of its currency through increased import taxes on private vehicles and through periodic central bank interventions to control volatility.
however Ruchir Desai, Fund Manager from Asia Frontier Capital. I think that Sri Lanka's current macroeconomic position is stronger than during the oil price crisis of 2565, following the Ukraine war.
He stated that Sri Lanka recorded a current account surplus last year, and a more stable political environment has resulted in the country being significantly stronger than it was four years ago.
refer : www.bloomberg.com
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