The Governor of the Central Bank, Dr. Indrajit Coomaraswamy stated that the Central Banks main aim would be do reach and maintain a real effective exchange rate at Rs. 100.
During a press conference held at the central bank today (8), He also revealed that although the change won’t happen over time, valiant efforts are being made to help reach these goals.
One of the most important financial tasks the country faces, according to Dr. Coomaraswamy is to increase non – debt creating foreign inflows, which would reduce the country’s reliance on borrowing.
He also stated that cabinet approval is yet to be provided for the syndicated loan and sovereign bond worth up to one billion and 1.5 billion U.S dollars respectively.
Dr. Coomarswamy claimed that raising one billion U.S dollars would not be impossible due to the measures put in place, such as the trading off of government assets like hotels and commercial properties.
The agreement made with the Chinese merchants regarding the Hambanthota port will generate another one billion dollars, a much needed input, which will help the country to achieve cash reserves worth $7.5 billion by the end of the year, stated the governor.