Sri Lanka currency weakens to more than 200 against the pound

Sri Lanka's currency weakened to more than 200 rupees against the British pound on concern that foreign reserves are shrinking rapidly, the Central Bank of Sri Lanka said Wednesday. Sri Lanka's currency weakened to more than 200 rupees against the British pound on concern that foreign reserves are shrinking rapidly, the Central Bank of Sri Lanka said Wednesday. The mid rate of the rupee between buyers and sellers fell to 200.28 against the pound, compared to 198.21 rupees on Tuesday, the central bank said.
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Central bank figures showed that the rupee has weakened 22.
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8 percent against the pound, 8.9 percent against the dollar, 23 percent against the euro and 15.
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92 against the yen in the past year.

The exchange rate has been under pressure because of a widening trade deficit in the island nation spurred by rising prices for imported crude oil and the 16 percent fall of Sri Lanka's foreign currency reserves since December 2003.(AFP)