Tangled diplomacy of Sri Lanka’s currency crisis | Daily FT

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Daily Financial Times

Sri Lanka enters a new year with a black cloud of uncertainty hanging over its economy – Pic by Shehan Gunasekara By Dushni Weerakoon www.eurasiareview.com: Sri Lanka ends 2021 with foreign currency reserves in hand ($ 1.6 billion) to support a month of imports. For much of the year, a shortage of dollars saw uncleared essential imports piling up at the Colombo port as domestic prices soared. Directions from the country’s central bank to maintain an artificially fixed rate have seen a parallel black market emerge, as businesses have struggled to find hard currency. Added to this, mandated conv…

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