COLOMBO (NewsRadio); Prices of fuel in the domestic market are expected to reduce in the coming weeks.
Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe said the appreciation of the Sri Lanka Rupee in recent days will result in a reduction in prices of petroleum products.
Governor Nandalal Weerasinghe noted that the faster than expected Rupee appreciation will also reduce inflation.
He said since the fuel price reduction will drive prices of essential commodities down, inflation will come down further.
Governor Nandalal Weerasinghe also indicated the gas prices will also come down if the current trend continues.
He added that the Rupee appreciation will also result in the reduction of prices of imported goods.
The Sri Lankan Rupee appreciated considerably against the US Dollar in the past few days.
According to the foreign currency exchange rates issued by the Central Bank of Sri Lanka on Friday, the buying rate of the US dollar was at Rs.334.50 while the selling rate was at Rs.348.03.
The Sri Lankan Rupee has been appreciating considerably against the US Dollar in recent days amidst the improving economic situation in the country.
According to brokers and experts, the Rupee is appreciating with the increase in confidence among investors due to the progress made by the government with the International Monetary Fund and also the increase in workers’ remittances.
They expect the Rupee to appreciate further in the near and medium term.