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The President orders to close down SEMA

Sri Lanka’s Strategic Enterprises Management Agency (SEMA) set up to carry of public enterprise reforms in 2004 is to be closed down on a directive issued by President Maithripala Sirisena.

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Crux of currency crisis!

Central Bank Governor at FT-CICRA Cyber Security Summit reassures on currency
Says three exogenous factors largely forcing pressure on the rupee
Current account deficit countries like SL more vulnerable to external shocks
Says overly defending the rupee sans reserves in the past caused doublewhammy
Former CB regimes in 2011/12 spent $ 4.2 b to defend rupee yet currency depreciated by 13.5% and in 2015 spent
$ 2.1 b but failed to prevent 9% depreciation Whilst pursuing flexible exchange rate policy will intervene aggressively if necessary
Insists stabilisation measures in progress; import tax on gold and introduction of 100% LC margin on vehicles import among measures
Says toolkit available for CB includes interest rate hike but Monetary Board reluctant as of now as growth of the economy is subdued though there was an uptick in 2Q
Stresses most effective solution to boost rupee and reserves is via more exports and FDIs
By FT News Desk

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