Sri Lanka devalues rupee, seen as step towards IMF help

Sri Lanka's foreign reserves fell to $2.36 billion at the end of January

Sri Lanka’s central bank has devalued the rupee by up to 15 per cent, taking one of several steps analysts said are needed to obtain a International Monetary Fund loan programme that would boost currency reserves and help negotiate debt restructuring.

Late on Monday, the Central Bank of Sri Lanka, with immediate effect, set an exchange rate limit of 230 rupees per dollar compared to a limit of 200-203 that had prevailed since October.

Analysts said the depreciation was likely done to encourage remittances, a major source of foreign exchange in Sri Lanka, which dropped to a 10-year low of $5.49 billion