Page 58 - Management Digest Udyama Vol 1 Isuue 2

Exchange Rate: Exchange rate
target for Dec-2021 downgraded
to LKR 218.0-224.0 and Jun-
2022 target introduced at LKR
225.0-240.0

Strong Depreciation:

Sri Lanka’s lower foreign reserve
position and high foreign currency
debt repayments are the primary
concerns for the significant
weakness in the currency. The
recent surge in imports despite
the ongoing import restrictions
is an added concern. Taking the
situation into consideration, we
expect a strong depreciation of
the currency over the forecasted Equity Market: Reduce exposure to 50%
period. We further downgrade our
Dec-21 target from LKR 205.0-
215.0 to LKR 218-224.0 while
targeting LKR 225.0-240.0 for
Jun-22.

56 September 2021