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Thursday, June 8, 2023

Ceylon Chamber of Commerce welcomes flexible exchange rate  – The Morning

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Issuing a statement yesterday (8), the Ceylon Chamber of Commerce (CCC) commended Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal and his team for permitting greater flexibility of the exchange rate. 

The statement added that this action has been proposed by the CCC on its own and along with other chambers on numerous occasions in the recent past. Hence, the CCC noted that it is pleased with this announcement by the CBSL and believes that it will contribute significantly to ease the shortage of dollars currently experienced. 

“This, along with the move to increase the additional incentive offered to migrant workers, should help to attract more remittances from this category, reversing the sharp drop in inflows seen from this source in recent months. In addition, a more market-oriented exchange rate will also enable both export and tourism sectors to become more competitive while protecting their margins against escalating costs. Further, it should also discourage unnecessary imports, easing the pressure on foreign currency reserves,” the statement added.

At the same time, the CCC hopes that the Government will favourably consider the other recommendations made by the Joint Chambers of Commerce, such as introducing market-driven pricing formulae for fuel, gas, and electricity, commencing a pre-emptive debt restructuring process, and engagement with the International Monetary Fund (IMF).

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