Sri Lanka’s central bank has published an indicative spot rate of 210 to the US dollar on August 31, while adjusting a rate for telegraphic transfers on its website to widen the margin while banks published rates of 220/226 rupees.
Sri Lanka does not have a functioning interbank spot market at the moment and banks are negotiating with importers and exporters over the counter leading to large margins in many cases, market participants say.
The central bank on Tuesday published a rate of 198.90/204.89 for telegraphic transfers on its website.
Sri Lanka effectively lifted convertibility for current transactions leading to a steady fall of the rupee as more money is printed to buy bonds from auctions that are failing due to ceiling prices.
Last week limited convertibility was provided at around 215 to 219 to the US in the spot market.
This week banks were asked to request dollars from two state banks, which were expected to have been provided with 116 million US dollars and 100 million dollars.
However private banks did not get dollars on Monday, market participants said.
Large private banks are quoting rates of 220/226 for telegraphic transfers and 218/226 for currency notes.
State banks are quoting lower rates for small transactions of 100 US dollars.