The Sri Lankan rupee has been experiencing fluctuations against the US dollar, with instances of both strengthening and weakening [43aa4d92] [79bed14e] [8f7597a7] [6bf30200]. These fluctuations have implications for various sectors, including the stock market and bond yields [43aa4d92]. The Sri Lanka rupee closed at 329.00/75 to the US dollar [ee304d37]. State-run Litro Gas Lanka Ltd. raised prices of Liquefied petroleum gas (LPG) for the third successive month [ee304d37]. Foreign investors have sold 34.1 billion rupees worth of Sri Lanka government securities in 14 weeks, prompted by the reversal of rupee appreciation and reduction in key policy interest rates [ee304d37].[ee304d37]
In a parallel development, Argentina's dollarization plan has been criticized, drawing similarities to the reactions in Sri Lanka [654d0096]. Critics of dollarization lack an understanding of basic economic principles and the history of Argentina [654d0096]. Argentina has a high level of dollarization, similar to Sri Lanka's experience with a currency board arrangement [654d0096].
The Sri Lankan rupee opened weaker against the US dollar, with bonds also quoted higher [2c3bfa8f]. Opposition MP Tissa Attanayake claimed that Sri Lanka's economic growth would remain negative in 2024, contradicting forecasts by local and international financial institutions [2c3bfa8f]. The government announced a proposed salary increase for state sector workers, raising concerns about meeting the primary surplus target [2c3bfa8f]. The government also plans to allocate funds to support the health and education sectors across all nine provinces [2c3bfa8f]. The education system is being digitized, but there are concerns about the country's lag in implementing advanced technology [2c3bfa8f].
Opinion surveys indicate a shift in favorability towards leftist leader Anura Kumara Dissanayake [6bf30200]. The IMF program in Sri Lanka has also been a topic of discussion, with a staff level agreement on the first review enabling multilateral agencies to disburse remaining installments and expedite debt restructuring [6bf30200]. The International Monetary Fund (IMF) and the Central Bank of Sri Lanka have differing medium-term forecasts for the country's economy [2c3bfa8f]. The IPS highlighted the complexities of predicting the future of an economy that has experienced a severe crisis [2c3bfa8f].
The article also mentions the reduction of taxes on imported beedi wrapping paper in Sri Lanka and the possibility of the state-run Ceylon Petroleum Corporation selling fuel below the formula price [654d0096]. It also highlights the growth of Sri Lanka's tea export revenues in September 2023 [654d0096].
Sources: [43aa4d92] [79bed14e] [8f7597a7] [6bf30200] [ee304d37] [654d0096] [2c3bfa8f]