The governor's assurance comes a week after Treasury
Secretary P.B. Jayasundera said the country needed a flexible exchange rates to
curb cheap imports that are putting pressure on the $50 billion economy.
"We are not contemplating any depreciation move for
this year." Cabraal told Reuters, also denying a local media report
published on Monday.
On Nov. 21, President Mahinda Rajapaksa, in his capacity
as the finance minister, shocked markets with a 3 percent currency devaluation
aimed at making the island nation's exports competitive.
Daily Mirror, a local English daily, quoting an unnamed
Treasury official, on Monday said Sri Lanka may further devalue the rupee by
between 2.5 percent to 3 percent in early 2012 to ward off pressure on the
country's BOP and subsequently strengthen the export sector.
Currency dealers said there was pressure on the rupee due
to speculation that it would be devalued in early 2012, with importers
attempting to buy dollars to settle their bills, while exporters were holding
back greenback.
On Monday, the central bank pumped $20 million into
currency markets for a 28th straight session since the devaluation to defend
the rupee at 113.90 per dollar.
The bank has spent around $710 million to keep the exchange
rate steady since the 3 percent devaluation on Nov. 21. It spent a net $1.36
billion in the first nine months of the year to keep depreciation pressure at
bay.
