"It has not appreciated as much as India, but nevertheless we do not know whether it is such a good thing to have so much increase immediately."
The Central Bank has been targeting the exchange rate since around 107.80 in 2008 and preventing the currency from moving up.
The rupee appreciated sharply late last year after the government raised 500 million dollars in foreign markets, allowing the Central Bank to tighten monetary policy.
"We have been able to improve our reserves," he said. "We have been able to ensure that our exports increased at a much higher rate than our imports."
Sri Lanka's exports grew 12.5 percent to 7.7 billion dollars while imports grew 10.2 percent to 11.3 billion dollars.
Governor Cabraal said he was satisfied with the current level of the rupee.
"Some people want the exchange rate to go up, others want