US $350 Million in LCs Opened for Vehicle Imports amid Stable Dollar
- CNL Reporter
- April 24, 2025
- Business News
- Vehicle Imports
- 0 Comments
Sri Lankan President Anura Kumara Dissanayake stated that despite vehicle importers opening $350 million in Letters of Credit, the US dollar remains stable at around Rs. 300
Speaking at an election rally in Ratnapura, he credited ongoing economic stability for this outcome. Since September 2022, the Central Bank has maintained a deflationary policy. However, concerns arise from significant money printing in late 2024 to boost reserves.
Analysts caution that the Central Bank may inject excess liquidity by suppressing interest rates during private credit recovery, potentially fueling imports and inflation.
Historically, Sri Lanka’s flexible inflation targeting—based on past inflation data—has failed to prevent currency crises in 2011–12, 2015–16, 2018, and 2020–22.
