Exchange rate will have to be flexible, but not so volatile: CB Governor

Central bank is not for a fixed exchange rate, but a much more 'predictable' regime, where investors can take positions, Central Bank Governor Nandalal Weerasinghe said.

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"The exchange rate will have to be flexible, but not so volatile," Governor Weerasinghe told local and foreign investors organized by the Colombo Stock Exchange.

"We don't want an exchange rate going up and down on a daily or monthly basis, like we have in 2022.

"We need a much more predictable kind of exchange rate regime, which is competitive, which is in line with macro-fundamentals, and also people can take positions and take positions in terms of predictability."

Sri Lanka has also seen current account surpluses, and the currency had appreciated in the recent past.