Flexible exchange rate-IMF

14 December 2010 03:40 am

(Reuters) - The International Monetary Policy on Tuesday said Sri Lanka has made substantial progress in turning its fiscal policy toward sustainability, but urged more exchange rate flexibility to ensure economic competitiveness.

"While challenges remain, the authorities have made substantial progress toward fiscal and external sustainability," the IMF said in a statement after finishing a review mission before releasing the sixth tranche of a $2.6 billion loan.

"We continue to believe that the exchange rate should retain the flexibility to ensure that the economy remains
competitive."