Letting the rupee float to determine the value of the US dollar was a good decision that should have been implemented about two years ago, said W. Wijewardene, the former Deputy Governor of the Central Bank of Sri Lanka.
If the rupee had been allowed to float from 2020, the Central Bank of Sri Lanka could have saved more than 5 billion rupees, Wijewardene said.
He said that by forcing the Central Bank of Sri Lanka to forcibly keep the rupee at 202 against the dollar, another 5 billion was spent in vain because the market had to issue in demand.
However, allowing the rupee to float will change the course of the market, but it will also boost the economy, Wijewardene further said.
