IMF urges Sri Lanka to limit intervention in FX markets


The International Monetary Fund urged Sri Lanka to limit its intervention in foreign exchange markets to curbing excessive short-term volatility, while emphasising the need for exchange rate flexibility.

The IMF, which ended a 2.6 billion dollar loan programme to Sri Lanka in 2012, estimated the island's economy grew by 7.4 percent in 2014 and said momentum could pick up to 6-7 percent in 2015.

The central bank repaid a 500 million dollars sovereign bond from its reserves soon after the January 8th presidential polls.