Colombo. The Central Bank of Sri Lanka, which is facing severe shortage of foreign exchange reserves, has lifted the ban on foreign exchange transactions.
Giving a big relief to the importers, the Central Bank has given permission to the banks that they can now buy and sell foreign currency in advance.
China’s Dialogue Committee Xinhua has given this information. Under the forward buy and sell of foreign currency, two parties settle a transaction between two currencies at a fixed rate for a specific time in the future.
It is believed that this move of the Central Bank will reduce the huge shortage of all the goods issued in the country.
The central bank on April 25 last year barred commercial banks from selling dollars to customers for advance transactions. Due to this, the importers were facing a lot of difficulty in getting the goods from abroad.
Significantly, Sri Lanka has become so short of foreign exchange reserves that it is unable to import crude oil. Sri Lanka’s industries have come to a standstill due to the lack of fuel, most buses have stopped running and the condition of power plants has also deteriorated.
Right now the situation here has become so bad that inflation has reached its peak. Due to paucity of paper, students’ exams are being canceled and the prices of all the essentials are skyrocketing.
To overcome this economic crisis from Sri Lanka, India and China had sought help. India has given a loan of one billion dollars to Sri Lanka while China is looking at providing a loan of 2.5 billion dollars.
—AnyTV News
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