Rupee strengthens against US dollar | Sunday Observer

Rupee strengthens against US dollar

After a continuous fall in the recent past, the Sri Lankan Rupee strengthened against the US Dollar last week, from Rs. 177.32 to Rs. 175.82.

The Sri Lankan Rupee weakened by 3.7 per cent in October following a 4.7 per cent drop in September against the dollar. The Rupee has dropped by 13.4 per cent so far this year.

The continuous depreciation of the Rupee resulted in sever complications in the economy, leading to multiplying the external debt of the country and widening the trade balance.

According to recent reports of the Central Bank of Sri Lanka, the Western Province’s share to the GDP had declined last year, contributing to narrowing of regional disparity. In 2016, the Western Province share to the GDP had been 37.8 whereas it was only a 37.2 share in 2017. However, it still stands as the single largest contributor to the GDP. The Central and the North Western Provinces were the second and third highest contributors to the national GDP in nominal terms.

Of all the provinces, the Uva and Eastern Provinces recorded significant progress, an increase in the GDP share of the country. Uva’s 7.2 per cent contribution to the GDP in 2016 had increased to 7.9 per cent last year and the Eastern Province’s contribution hiked from 5.3 per cent to 5.7 per cent during the period.

Nominal total Gross Domestic Production of the country in 2017 was reported as Rs. 13,317 bn. In 2016, the GDP was Rs. 11,907 bn.