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Friday, 16 April 2021 - 9:50 Economic analysts stated that despite a US dollar 500 million loan from the China Development Bank, it is not a strong factor in preventing the rupee from depreciating. Sri Lanka received a US dollar 500 million loan from the Chinese Development Bank yesterday (15) as part of the 2020 Foreign Exchange Term Financial Facility signed on 18 March last year. The rupee hit an all-time low of 204 against the US dollar yesterday, hitting a record low of 204 rupees and 62 cents. Accordingly, the rupee has depreciated by more than 8% against the dollar so far this year. Dr. Priyanga Dunusinghe, Senior Lecturer, Department of Economics, University of Colombo, stated that the loan obtained from China would only help to prevent the rupee from depreciating in the short term.

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