Sunday, 27 September 2020 18:24

State Minister for Finance says the rupee will appreciate following SWAPs

State Minister for Finance, Capital Market and State Enterprise Reforms Ajith Nivard Cabraal recently stated that Lankan rupee will appreciate once the inflow begins from the SWAP deals.

The State Minister was responding to a question raised by SJB MP Dr. Harsha de Silva in parliament, on SWAP arrangements.

However SJB MP Dr. Harsha de Silva has sought clarification from the government as to wether the premium has to pay for the Swap or is it a market determine Swap

State Minister Cabraal noted that due to the Coronavirus (COVID-19) pandemic the country has been on lockdown for almost three months.

The Government has introduced new methods to bring money into the country. The Swap arrangement has been established.

This money will come and the rupee will appreciate and when the country will get back into the normal position and there will be growth, he claimed. .

As far as the government is concerned, the government has issued the operating instructions, with all the details of SWAP arrangements, he explained. .

Dr. de Silva has asked if a foreigner brings more than $25 million and enters into a hedge agreement with the Central Bank of Sri Lanka or the government treasury, whether that hedge is going to carry a premium or not?

State Minister Cabraal responded saying that “ If the hedge will carry a premium or not, that operating instruction is clear so please go and read that, at the same time you can’t expect me to answer the question the way you want the answer”.


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